90,000+ Legal Questions Answered
Applicability of Factories Act and Shops & Establishments Act for NGOs in Karnataka
1 week ago
Are Factories Act & Shops & Establishments Act applicable for NGOs in Karnataka
A.Dear Client,
Non-profit organizations (NPOs) may still be subject to the Shops and Establishment Act if they provide services or engage in activities covered by the Act, despite not being commercial entities. Although the Act doesn't explicitly mention NPOs, it broadly encompasses establishments where individuals are employed for various functions. For instance, NPOs employing staff for administrative, accounting, or project management roles would fall under this Act's definition of an "establishment." According to the Karnataka Shops and Establishment Act, a commercial establishment includes various types of businesses such as offices, hotels, restaurants, theaters, and more. To obtain updated information and clarification on how this applies to NPOs, it's advisable to contact the Inspector appointed under the Karnataka Shops and Establishment Act.
Non-profit organizations (NPOs) may still be subject to the Shops and Establishment Act if they provide services or engage in activities covered by the Act, despite not being commercial entities. Although the Act doesn't explicitly mention NPOs, it broadly encompasses establishments where individuals are employed for various functions. For instance, NPOs employing staff for administrative, accounting, or project management roles would fall under this Act's definition of an "establishment." According to the Karnataka Shops and Establishment Act, a commercial establishment includes various types of businesses such as offices, hotels, restaurants, theaters, and more. To obtain updated information and clarification on how this applies to NPOs, it's advisable to contact the Inspector appointed under the Karnataka Shops and Establishment Act.
Helpful
Helpful
Share
A.Dear Client,
Non-profit organizations/NGOs, even though they may not engage in commercial activities, may still fall within the purview of the Shops and Establishment Act if they provide services or undertake any activities that fall under its ambit. While the Act does not specifically mention non-profit organizations, it broadly covers establishments where individuals are employed to carry out various functions. Consequently, NPOs employing workers for administration, accounting, project management, etc., would be considered an "establishment" under this Act. The Karnataka Shops and Establishment Act defines a commercial establishment as a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a cafe or any other refreshment house, a theatre or any other place of public amusement or entertainment and includes such establishments as the State Government may by notification declared to be a commercial establishment for the purposes of this Act;” Reach out to the office of the Inspector appointed under Karnataka Shops and Establishment Act for updated information and clarification
Non-profit organizations/NGOs, even though they may not engage in commercial activities, may still fall within the purview of the Shops and Establishment Act if they provide services or undertake any activities that fall under its ambit. While the Act does not specifically mention non-profit organizations, it broadly covers establishments where individuals are employed to carry out various functions. Consequently, NPOs employing workers for administration, accounting, project management, etc., would be considered an "establishment" under this Act. The Karnataka Shops and Establishment Act defines a commercial establishment as a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a cafe or any other refreshment house, a theatre or any other place of public amusement or entertainment and includes such establishments as the State Government may by notification declared to be a commercial establishment for the purposes of this Act;” Reach out to the office of the Inspector appointed under Karnataka Shops and Establishment Act for updated information and clarification
Helpful
Helpful
Share
Read Related Answers
Variable Pay Components - How to add Variable pay in offer letter and salary slips
Dear Client,
Variable pay or compensation is determined based on two main factors – the employee's performance and the company's overall performance. An employee becomes eligible to get variable pay...
layoff as BU is closing
Dear Client,
Apart from compliance with the statutory formalities required under the Companies Act, 2013 for the closer of the business of a company or part of it, the Company has to comply with the s...
Termination
Dear Client,
Termination without notice amounts to illegal termination and is defined as an industrial dispute under Section 2A of the Industrial Dispute Act, 1947 which also violated the mandatory p...
FnF amount not received
Dear Sir
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Karmika Bhavan, Dairy Circle,
Bannerghatta Road, Bangalore-29.
080-29753078
labou...
No Leave Encashment - Worked for 18 plus years in the organization
Dear Client,
Leave Encashment Rules for private companies vary according to their policies and local regulations. Each company has a unique leave encashment policy. Some may have a cap on the number o...
Read Blogs on Employment and Labour
Employment and Labour Lawyers
Find Lawyers by Location
