Factories Act- 1948

Icma-intermediate -Group 1

Commercial & industrial law

T.VENKATARAMANAN.FCMA,FCS.

FACTORIES ACT -1948BY

T.VENKATARAMANAN.

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 basicallydesigned to protect children and to provide few measures for health and safetyof the workers. This law was applicable to only those factories, which employed100 or more workers.

In 1891 another factories Act was passed which extended to the factoriesemploying 50 or more workers.

On the basis of the recommendations of the Factory Labour Commission, morecomprehensive Law was introduced in 1911, which got amended in 1923, 1926and 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 enactedFactories Act, 1948

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

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 inmanufacturing process being carried on with the aid of power or

Any premises in which 20 or more workers are employed in manufacturing process beingcarried out without the aid of power

The term “Power” under Section 2(g) of the act means not only electrical energybut also any other form of energy, which is mechanically transmitted, but is notgenerated 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 witha 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

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 theknowledge of principal employer, whether for remuneration or not in anymanufacturing or not in manufacturing process, but does not include any memberof the armed forces of the Union

SOME IMPORTANT DEFINITIONS

1)Adult means a person who has completed 18 years of age.

2)Adolescent , has not completed 18 years of age

Occupier

The term “Occupier” under Section 2(n) of the act means the person who hasultimate control over the affairs of the factory; and

In case of a firm or other association of individuals, any one of the individualpartners 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 theoccupier

In case of a factory owned or controlled by the Central govt. or state govt. orany local authority, the person/s appointed to manage the affairs of the factoryshall be deemed to be the occupier.

Factory Inspectorate

As per Section 6 and Rule 3, the plans of a factory has to be approved by ChiefInspector of Factories.

Occupier or manager of a factory has to apply for registration & get the licence fromChief 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 Xof the act.

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 hourafter 5 hours of work

Section 56- The total period of work, inclusive of rest interval, must not bespread over more than 10 ½ hours a day

Section 59- If a worker works for more than 9 hours a day or more than 48hours a week, he shall be paid for overtime @ twice the regular wage

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 employmentunder 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 hoursin 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 workcan be employed as an adult

Annual Leave with Wages

The main provisions of the Act about the grant of annual leave with wages underSection 79 are:

A worker shall be allowed in every calendar year, annual leave with wages @ 1 day forevery 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 workperformed

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 ofthe 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 inservice, 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 butirrespective of whether the worker has worked for 240 days or not.

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 thepurpose of securing the health, safety or welfare of the workers.

A worker shall not willfully and without reasonable cause do anything likely to endangerhimself or others

A worker shall not willfully neglect to make use of any appliance or other thing providedfor the purpose of securing the health or safety of the workers.

On contravention of above provisions, the worker shall be punishable withimprisonment upto 3 months, or with fine upto Rs. 100 or with both

Obligations of Occupier

Obtain government approval regarding location, plan and construction of the factoryan 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 beforeoccupying 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 underthe Act

Report fatal and other accidents, and occupational disease contracted by anyworkman, to the government or specified authority

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 theAct rests with the State Governments who administer it through their own factoryinspectorates.

The state government appoint appropriately qualified persons as inspectors/certifying surgeons. In addition, every district Magistrate is the inspector for hisdistrict

Uniformity in the administration of the Act is achieved by the model rules framed bythe Directorate General of Factory Advice Service & Labour Institutes (DGFASALI)

OFFENCES PENALTIESFor contravention of the Provisions of the Actor Rules

Imprisonment up to 2 years or fine up toRs.1,00,000 or both

On Continuation of contravention Rs.1000 per day

On contravention of Chapter IV pertaining tosafety 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 seriousinjuries.

Obstructing Inspectors Imprisonment up to 3 years or fine not lessthan Rs.10,000 which may extend toRs.2,00,000.

Wrongful disclosing result pertaining toresults of analysis.

Imprisonment up to 6 months or fine up toRs.10,000 or both.

For contravention of the provisions ofSec.41B, 41C and 41H pertaining tocompulsory disclosure of information byoccupier, specific responsibility of occupier orright of workers to work imminent danger.

Imprisonment up to 7 years with fine up toRs.2,00,000 and on continuation fine @ Rs.5,000 per day.

Imprisonment of 10 years whencontravention continues for one year.

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 thecompany's main factory for their use in manufacturing cigarettes. Does it amount toa `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 ofemployment. Does it amount to `employment injury' entitling him to benefits underthe Employees' State Insurance Act, 1948?

Mohan is not entitled to benefits under the Act. The Supreme Court, in RegionalDirector ESI vs Francis de Costa, held that was road accident on a public road whilethe employee was on his way to the place of employment. It cannot be said to haveits origin in his employment in the factory. It cannot be said to be caused by anaccident out of and in the course of employment.

Thank You