INSIGHT ON

The FACTORIES ACT, 1948

 Main Objective

Shouldering the responsibility of ensuring

compliance with the applicable legislations at
the place which is under the ambit of the
definition Factory
 ENFORCED LABOUR LEGISLATIONS ARE

THE FACTORIES ACT, 1948 & RULES MADE THEREUNDER

THE PAYEMENT OF WAGES ACT, 1936 & RULES MADE THEREUNDER

THE MATERNITY BENEFIT ACT 1961 AND RULES MADE THEREUNDER

THE CHILD LABOUR (PROHIBITION AND REGULATION ) ACT, 1986

THE INDIAN BOILERS ACT, 1923 AND RULES MADE THEREUNDER.

THE KARNATAKA WELFARE OFFICERS (DUTIES, QUALIFICATIONS AND

CONDITIONS OF SERVICE) RULE 1963

THE KARNATAKA FACTORIES (DEFINING THE PERSONS HANDLING

POSITION OF SUPERVISION OR MANAGEMENT) RULES 1981
 ENFORCED LABOR LEGISLATIONS ARE

THE LABOR LAWS (EXEMPTIONS FROM FURNISHING RETURNS AND

MAINTAINING REGISTER BY CERTAIN ESTABLISHMENT) ACT 1988

MAJOR ACCIDENT HAZARD CONTROL (KARNATAKA) RULES 1994

THE CHEMICAL ACCIDENTS (EMERGENCY PLANNING, PREPAREDNESS

& RESPONSE) RULES 1996

THE BUILDING AND OTHER CONSTRUCTION WORKERS

(REGULATION OF EMPLOYMENT AND CONDITIONS OF
SERVICE ) ACT, 1996 AND RULES MADE THEREUNDER

THE ABOVE ACTS ARE CUSTOMARILY CALLED AS

LABOUR LEGISLATIONS.
 COMPLIANCE UNDER
THE FACTORIES ACT, 1948
 What the Act is all about?
Enactment of Stringent provisions!

120 Sections
11 Chapters
03 Schedules

142 Rules,
10 Chapters
41 Forms/Registers

IF ESSENCE IS RIGHTLY APPRECIATED, & UNDERSTOOD THIS IS REALLY A

MASTER PIECE OF A SOCIAL LEGISLATION.
FACTORIES ACT, 1948
A Comprehensive law for the persons working at a
specific domain factories.
Regarded as one of the Benevolent, Noble and a
Comprehensive Labour Legislation which is in force
in our country.
Covers significant issues relating to the persons
employed in factories.

Secures - Safety
Health
Welfare
Regulates - Working Hours
FACTORIES ACT, 1948
Ensures - Annual leaves with wages
Provides - Additional protection
from hazardous processes
Additional protection to
women workmen
Prohibition of
employment of children

Series of amendments have been made time and again to

increase the scope of the Act.
Road map to the legislation.
 Road Map to the Legislation.
The establishment of cotton mills in Bombay in 1851 followed by the
establishment of jute mills in 1855 @ Rishra in Bengal marked the
beginning Factory System in India.

The number of factories grew steadily. During 1872-73, there were

18 Textile Mills Bombay; 5 Jute Mills Bengal.

Conditions in these factories were very gloomy and awful.

First Indian Factories Act, came into force during 1881

Comprehensive Act was enacted immediately after the independence -

under the nomenclature The Factories Act, 1948.

This Act has seen many amendments after the independence.

Major amendments were caused during 1987 -- Reason is Bhopal Tragedy

The ghastly chemical accident
 Road map to the legislation.
29 industries have been listed as industries involving hazardous
processes.

The industries are listed under - THE FIRST SCHEDULE

(See Section 2 (cb)

Special provisions have been incorporated to govern the aspect of

SHE in the said hazardous industries.

A new chapter by name Chapter IV A was introduced as Special

provisions relating to Hazardous processes.

Penal provisions were revamped.

Amendments are continual in the wake of industrialization.

FACTORIES ACT, 1948

Important indicators to be understood

1. Applicability
2. Beneficiaries
3. Responsible persons
4. Inspecting staff
 APPLICABILITY
Applies to Factories
1. Definite Premises where 10 and more workers;
Manufacturing process, Power Section 2m(i)
2. Definite Premises where 20 and more workers;
Manufacturing process; No power Section 2m(ii)
3. Act empowers State Government to declare all or any of the
provisions of the Act to apply to any place with an objective
to secure safety, health and welfare or workmen even though
the workers strength is less than the above cited conditions.
Section 85(i)
1. Tanning of hides, 2. Electroplating, 3. Manufacturing
of specific chemical substances, 4. Manufacturing of
asbestos, 5. Storing and handling of chemical substances
as listed under schedule 1 of MAH (K) Rules, 1994.
contd.,
APPLICABILITY

Unless otherwise provided, the Act is applicable to all

Factories viz., Private, State, Central, Government, Local
Bodies etc.,
 BENEFICIARIES (Target Group)
Workers employed in the registered factories
Worker means a person employed, directly or by or through
any agency (including a contractor) with or without the
knowledge of the principal employer, whether for
remuneration or not in any manufacturing process or in any
kind of work incidental to, or connected with, the
manufacturing process

Workers under the Act, includes

1. Permanent 2. Temporary 3. Contract 4. Casual , 5. Clerical
staff 6. Managers, 7. Engineers, 8. Supervisors etc.,

Apprentice under the Apprentice Act, 1961 are not the workers.
However as per Section 14 of the Act provision of health, safety &
welfare are applicable to the said category.
BENEFICIARIES
 RESPONSIBLE PERSONS
OCCUPIER AND MANAGER are the responsible persons for
implementation of the provisions envisaged in the Act.

OCCUPIER means the person who has got the ultimate control over the
affairs of the factory.

Proprietorship - Proprietor

Partnership - One of the partner

Company - One of the director

State or Central - Persons so nominated by the

Government owned respective governments.

1996 SUPREME COURT CONFIRMED THIS. (1996 LLR 981 JK

Industries LTD., and others V/S CIFB and others etc.,
 OCCUPIERS RESPONSIBILITY
PREVIOUS PERMISSION TO LOCATE THE FACTORY,

SHOULD OBTAIN LICENCE TO THE PREMISES,

LICENSE IS REQUIRED TO BE RENEWED PERIODICALLY,

OBLIGED TO COMPLY WITH THE APPLICABLE PROVISIONS OF THE

OUTLINED IN THE ACT AND RULES MADE THEREUNDER,

MOST IMPORTANTLY HE/SHE IS REQUIRED TO ENSURE SHE

MANAGEMENT AT THE SITE WITHOUT ANY COMPROMISE,

SHALL ENSURE, SO FAR AS IS REASONABLY PRACTICABLE, THE

HEALTH, SAETY AND WELFARE OF ALL WORKERS WHILE THEY ARE AT
WORK.
 RESPONSIBLE PERSON[S]
MANAGER?
A PERSON RESPONSIBLE TO THE OCCUPIER FOR WORKING OF THE
FACTORY & FOR THE PURPOSES OF THE ACT
RULES PRESCRIBES SPECIFIC DUTIES - WHAT ARE THEY?
Maintenance of registers, furnishing OT slips, leave cards
Furnishing of returns
Submission of notice to work on Sunday
Intimation about the reportable accidents, dangerous
occurrences.

Change in Manager?
With in a weeks
Form no. 3A
 INSPECTING STAFF - INSPECTORS
THE PERSONS VESTED WITH POWERS FOR ADMINISTRATION OF THE
APPLICABLE PROVISIONS OF LAW IN FACTORIES.

Act empowers State Government to appoint persons as

Inspectors
Qualification is defined
Scope and limits are defined through Notifications.
Act has prescribed the duties and powers of the Inspectors
Deputy commissioner of the District is also an Inspector
Government can notify persons as Inspectors - Notification
 POWERS OF INSPECTORS
He has got the power to enter to any premises (with
assistants or experts) which he has got reason to
believe it as a factory
He can make examinations of the premises, plant and
machinery to secure SHE
He can direct the occupier to left undisturbed any place till
his enquiries are completed.
He can seize any records, take copies which is required for
the purpose of enforcement
He can take measurements, photographs and make such
recordings which are required for enforcement of Law
He can call for production of any registers or documents
pertaining to his duties from the occupier.
GENERAL DOMAIN
OF THE LAW
 GENERAL DOMAIN OF LAW
APPROVAL AND LICENCING TO THE PREMISES

HEALTH INITIATIVES

WELFARE SCHEMES

SAFETY MANAGEMENT

STATUTORY DISPLAYS

STATUTORY COMMITTEES

STATUTORY REGISTERS

STATUTORY RETURNS

REGULATION OF WORKING HOURS OF ADULTS

ANNUAL LEAVE WITH WAGES

contd.,
 FOCUSSED AREAS

REPORTING OF ACCIDENTS

REPORTING OF DANGEROUS OCCURRENCE

REPORTING OF NOTIFIABLE DISEASES

PROVISIONS RELATING TO WOMEN WORKERS

PROVISION RELATING TO CHILD

PROVISIONS RELATING TO NO. OF EMPLOYEES

TRAINING & EDUCATION PROGRAMMES

OBTAINING OF EXEMPTION SCHEMES

PENALTY AND PROCEDURES

 APPROVAL/LICENCING

APPROVAL OF PLANS
REGISTRATION AND RENEWAL OF FACTORY LICENCE
AMENDMENT & TRANSFER IN THE LICENCE
 APPROVAL/LICENCING
APPROVAL IS REQUIRED IN RESPECT OF THE FOLLOWING:
PROPOSED CONSTRUCTION
EXTENTION TO EXISTING FACTORY BUILDING
FOR INSTALLATION OF MACHINAIRES CHANGE IN LAYOUT OF
MACHINES
RESITING OF MACHINES
APPLICATION SHALL BE MADE BEFORE MAKING ANY CHANGES
THE DOCUMENTS REQUIRED TO BE SUBMITTED IS CLEARLY DEFINED.
NO CHANGES SHALL BE MADE WITHOUT THE PREVIOUS PERMISSION

IF THE APPLICATION IS MADE SEEKING APPROVAL AND NO

COMMUNICATION IS RECEIVED WITHIN THREE MONTHS FROM THE DATE
OF SUBMISSION, PERMISSION APPLIED IN THE APPLICATION SHALL BE
DEEMED TO BE GRANTED.
 LICENCING
REGISTRATION AND GRANT OF FACTORY LICENCE
BEFORE STARTING THE FACTORY, THE APPLICATION SHALL BE
SUBMITTED TO THE OFFICE OF THE JURISDICTIONAL OFFICER - BEFORE
15 DAYS.

THE DOCUMENTS REQUIRED TO BE SUBMITTED IS CLEARLY DEFINED.

LICENCE WILL BE GRANTED IN FORM 3.

IF THE APPLICATION IS MADE SEEKING REGISRATION AND NO

COMMUNICATION IS RECEIVED WITHIN THREE MONTHS FROM THE DATE
OF SUBMISSION, REGISTRATION SHALL BE DEEMED TO BE GRANTED.

LICENCE IS REQUIRED TO BE RENEWED EVERY YEAR. OPTION HAS BEEN

GIVEN TO RENEW THE LICENCE FOR PERIOD NOT EXCEEDING THREE
YEARS.
 LICENCING
WHAT IS AMENDMENT/TRANSFER
THREE LIMITS ARE MENTIONED IN THE LICENCE.
IF THERE IS ANY CHANGE IN THE LIMITS SPECIFIED IN THE LICENCE
AND CHANGE IN THE NAME OF THE FACTORY, QUESTION OF
AMENDMENT ARISES.
THE DOCUMENTS REQUIRED TO BE SUBMITTED IS CLEARLY DEFINED.

APPLICATION FOR AMENDMENT SEEKING INCREASE IN THE LIMITS

SPECIFIED I.E., NO. OF WORKERS, HORSE POWER, KILOWATT SHALL BE
MADE 15 DAYS PRIOR TO THE INCREASE THE LIMITS.

DUPLICATE LICENCE CAN BE OBTAINED IF THE LICENCE GRANTED

UNDER RULE IS LOST OR ACCIDENTALY DESTROYED BY PAYING THE
FESS OF RS.250/- ALONG WITH AN APPLICATION IN T HIS BEHALF

IF THERE IS CHANGE IN THE OCCUPIER, LICENCEE SHOULD APPLY FOR

PERMISSION TO TRANSFER HIS LICENCE TO ANOTHER PERSON.
 APPROVAL/LICENCING
LICENCE CAN BE SURRENDERED FOR A TEMPORARY PERIOD

TO CLAIM EXEMPTION FROM PAYMENT OF LICENCE FEE AN

APPLICATION SHALL BE MADE TWO MONTHS BEFORE THE EXPIRY OF
LICENCE.

FURTHER AN INTIMATION SHALL ALSO BE GIVEN TO THE INSPECTOR

BEFORE THE FACTORY OR THE SECTION OR DEAPRTMENT THEREOF AS
THE CASE MAY BE , STARTS WORKING AGAIN.

DURING INTENDED CLOSURE

IF ANY INTENDED CLOSURE OF THE FACTORY OR ANY SECTION OR DEPARTMENT

THEREOF IMMEDIATELY IT IS DECIDED TO DO, THE OCCUPIER OR MANAGER
SHALL REPORT TO THE INSPECTOR UNDER RULE 142 OF THE KARNATAKA
FACTORIES RULES, 1969.