Factories Act -Important provisions

1. Factories Act- 1948
Icma-intermediate -Group 1
Commercial & industrial law
T.VENKATARAMANAN.FCMA,FCS.
FACTORIES ACT -1948
BY
T.VENKATARAMANAN.

2. Introduction
 The Factories Act, is a social legislation which has been enacted for occupational
safety, health and welfare of workers at work places.
 Applicability: It applies to factories covered under the Factories Act, 1948.
 Background:
 In India the first Factories Act was passed in 1881. This Act was basically
designed to protect children and to provide few measures for health and safety
of the workers. This law was applicable to only those factories, which employed
100 or more workers.
 In 1891 another factories Act was passed which extended to the factories
employing 50 or more workers.
 On the basis of the recommendations of the Factory Labour Commission, more
comprehensive Law was introduced in 1911, which got amended in 1923, 1926
and 1931
 With the amendments made by Royal Commission of Labour (1931),
Comprehensive Factory Act, 1934 was introduced.
 Following recommendations of the Rage Committee, the Govt. of India enacted
Factories Act, 1948

3. CONSISTS OF 120 SECTIONS ;
8 CHAPTERS, 3 SCHEDULES
THE ACT IN BRIEF
CHAP-1 DEFINITIONS,LICENCING ,REGN & OCCUPIER
2 Authorities under the act
3 Health & cleanliness
4 machinery
5 Hazardous process
6 welfare
7 Working hours for adults etc
8 Leave , misc . provisions , penalties & fines

4. Definitions
 The term “Factory” under Section 2(m) of the act means :
 Any premises in which 10 or more workers are employed and are engaged in
manufacturing process being carried on with the aid of power or
 Any premises in which 20 or more workers are employed in manufacturing process being
carried out without the aid of power
 The term “Power” under Section 2(g) of the act means not only electrical energy
but also any other form of energy, which is mechanically transmitted, but is not
generated by human or animal energy
 The term “Manufacturing Process” under Section 2(K) of the act means :
 Making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning,
breaking up, demolishing or otherwise treating or adapting any article or substance with
a view to its use, sale, transport, delivery or disposal; or
 Pumping oil, water, sewage or any other substance; or
 Generating, transforming or transmitting power; or
 Composing types for printing, by letter press, litho-graphy or other similar processes; or
 Constructing, reconstructing, repairing, refitting or breaking up ships or vessels; or
 Preserving or storing any article in cold storage

5. Definitions
 Factory does not include a mine, a mobile unit belonging to the armed forces of the
union, a railway running shed or a hotel, restaurant or eating place
The following have held to be a factory:-
 Salt works
 A shed for ginning and pressing of cotton
 A Bidi making shed
 A Railway Workshop
 Composing work for Letter Press Printing
 Saw Mills
 Place for preparation of foodstuff and other eatables
 Water works maintained by a municipality
 Electricity department of municipality
 The term “Worker” under Section 2(I) of the act means a person employed
(Directly or through any agency including a contractor), with or without the
knowledge of principal employer, whether for remuneration or not in any
manufacturing or not in manufacturing process, but does not include any member
of the armed forces of the Union

6. SOME IMPORTANT DEFINITIONS
1)Adult means a person who has completed 18 years of age.
2)Adolescent , has not completed 18 years of age

7. Occupier
 The term “Occupier” under Section 2(n) of the act means the person who has
ultimate control over the affairs of the factory; and
 In case of a firm or other association of individuals, any one of the individual
partners or members thereof shall be deemed to be the Occupier
 In case of a company, any one of the directors shall be deemed to be the
occupier
 In case of a factory owned or controlled by the Central govt. or state govt. or
any local authority, the person/s appointed to manage the affairs of the factory
shall be deemed to be the occupier.

8. Factory Inspectorate
 As per Section 6 and Rule 3, the plans of a factory has to be approved by Chief
Inspector of Factories.
 Occupier or manager of a factory has to apply for registration & get the licence from
Chief Inspector of Factories.
 As per Section 6 and Rules 5 to 13, the licence so granted may be amended,
renewed, revoked or suspended in accordance with the rules framed under the act.
 As per Section 9, Inspector appointed under this Act can any time enter the factory
 To carry out duties as laid down under Section 9(b) and (c);
 To ensure that statutory provisions and rules framed are carried out properly;
 To launch prosecutions against factory owners under the provision of Chapter X
of the act.

9. Hours of Work
 The main restrictive provisions of the Act about the working hours of Adults are:
 Section 51- A worker can not be employed for more than 48 hours in a week
 Section 52- A holiday must be given in every week
 Section 53- Compensatory holidays in case of missing of weekly holiday
 Section 54- A worker can not be employed for more than 9 hours a day
 Section 55- A worker must be given an interval of rest of at least half an hour
after 5 hours of work
 Section 56- The total period of work, inclusive of rest interval, must not be
spread over more than 10 ½ hours a day
 Section 59- If a worker works for more than 9 hours a day or more than 48
hours a week, he shall be paid for overtime @ twice the regular wage

10. Hours of Work
 In case of any exemption, under Section 64, the state government shall not exceed
the following limits of work, inclusive of over-time
 The total no. of hours of work in any day shall not exceed 10
 The spread over, inclusive of the interval of rest, shall not exceed 12 houra in any day
 The total no. of hours in a week, including over time shall not exceed 60
 The total no. of hours of over time shall not exceed 50 in any quarter
 The main restrictive provisions of the Act about women & children employment
under Section 66 to 71 are:
 A woman worker can not be employed except between the hours of 6 a.m. to 7. p.m.
 The employment of child below 14 yrs is strictly prohibited
 A child between 14 to 15 yrs of age can be employed for a maximum period of 4 ½ hours
in a day
 A child can not be employed during night (From 10 p.m. to 6 a.m.)
 A child worker must have fitness certificate granted by a Certifying Surgeon
 A child between age of 15 to 18 yrs, having fitness certificate to perform full days work
can be employed as an adult

11. Annual Leave with Wages
 The main provisions of the Act about the grant of annual leave with wages under
Section 79 are:
 A worker shall be allowed in every calendar year, annual leave with wages @ 1 day for
every 20 days of work performed by him during the previous calendar year
 In case of child worker, annual leave with wages @ 1 day for every 15 days of work
performed
 Leave can be accumulated upto 30 days in case of an adult or 40 days in case of a child
 The leave admissible will be exclusive of all holidays, occurring during, or at either end of
the leave period
 Wages for leave allowed shall be paid before the leave begins
 In case of a worker who is discharged or dismissed from service, quits or dies while in
service, he or his heir or nominees must be paid wages in lieu of annual leave.
In such case, the annual leave is to be calculated at the same rate as above but
irrespective of whether the worker has worked for 240 days or not.

12. Obligations of a Worker
 Under Section 111, various obligations of a worker are:
 A worker shall not interfere with or misuse any appliance or other thing provided for the
purpose of securing the health, safety or welfare of the workers.
 A worker shall not willfully and without reasonable cause do anything likely to endanger
himself or others
 A worker shall not willfully neglect to make use of any appliance or other thing provided
for the purpose of securing the health or safety of the workers.
 On contravention of above provisions, the worker shall be punishable with
imprisonment upto 3 months, or with fine upto Rs. 100 or with both

13. Obligations of Occupier
 Obtain government approval regarding location, plan and construction of the factory
an also licence and registration certificate for operating the factory
 Implement all provisions concerning health, safety and welfare
 Send a detailed written notice 15 days in advance to Chief Inspector before
occupying any premises as a factory.
 Comply all statutory requirements pertaining to hours of work, leave with wages,
weekly holidays and extra wages for overtime
 Display notice, maintain registers and records and submit returns as required under
the Act
 Report fatal and other accidents, and occupational disease contracted by any
workman, to the government or specified authority

14. Administrative Machinery
 The Factories Act, is the most comprehensive piece of labour legislation
 Though it is a piece of central legislation, the responsibility for administration of the
Act rests with the State Governments who administer it through their own factory
inspectorates.
 The state government appoint appropriately qualified persons as inspectors/
certifying surgeons. In addition, every district Magistrate is the inspector for his
district
 Uniformity in the administration of the Act is achieved by the model rules framed by
the Directorate General of Factory Advice Service & Labour Institutes (DGFASALI)

15. OFFENCES PENALTIES
For contravention of the Provisions of the Act
or Rules
Imprisonment up to 2 years or fine up to
Rs.1,00,000 or both
On Continuation of contravention Rs.1000 per day
On contravention of Chapter IV pertaining to
safety or dangerous operations.
Not less than Rs.25000 in case of death.
Subsequent contravention of some provisions Not less than Rs.5000 in case of serious
injuries.
Obstructing Inspectors Imprisonment up to 3 years or fine not less
than Rs.10,000 which may extend to
Rs.2,00,000.
Wrongful disclosing result pertaining to
results of analysis.
Imprisonment up to 6 months or fine up to
Rs.10,000 or both.
For contravention of the provisions of
Sec.41B, 41C and 41H pertaining to
compulsory disclosure of information by
occupier, specific responsibility of occupier or
right of workers to work imminent danger.
Imprisonment up to 7 years with fine up to
Rs.2,00,000 and on continuation fine @ Rs.5,
000 per day.
Imprisonment of 10 years when
contravention continues for one year.

16. Case Laws
1) Sun-cured tobacco leaves are subjected to processes of moistening, stripping,
breaking up, adaptation, packing, and so on, with a view to transporting them to the
company's main factory for their use in manufacturing cigarettes. Does it amount to
a `manufacturing process' under the Factories Act, 1948?
It amounts to a manufacturing process defined in Section 2 (k) of the Factories Act,
1948
2) Mohan meets with an accident on a public road on his way to the place of
employment. Does it amount to `employment injury' entitling him to benefits under
the Employees' State Insurance Act, 1948?
Mohan is not entitled to benefits under the Act. The Supreme Court, in Regional
Director ESI vs Francis de Costa, held that was road accident on a public road while
the employee was on his way to the place of employment. It cannot be said to have
its origin in his employment in the factory. It cannot be said to be caused by an
accident out of and in the course of employment.

17. Thank You