What are the provisions made by Factory Act 1948 for Health,

Safety, and Welfare of the workers? Who are "young persons"

and what are the provisions meant for them? What are the
provisions for health, safety, and welfare of women and
children? Mention the provisions regarding "hours of work".
Mention the provisions for hazardous processes.
Working conditions of factory workers in India has been historically very pathetic. Due
to poverty and exploitation by factory owners, workers had practically no option. Due to
an increase in industrial activity in the later half of the 19th century, attempts were
made to improve the condition of the workers many times by the reports of the Royal
Commission through various acts. The act of 1948 builds upon the act of 1934 after
understanding the defects and weaknesses of the earlier act. An important change was
the widening the definition of a 'Factory' to include any industrial establishment
employing 10 or more people that uses power, or any industrial establishment that
employs more than 20 people that does not use any power. Other important changes
were:
 The distinction between seasonal and non-seasonal factories was removed.
 Increasing the minimum age of children eligible to work from 12 to 14.
 Reducing the hours of work for children from 5 to 4 and a half.
 Prohibiting children from working after 7 PM and before 6 AM.
 Explicit and special focus on health, safety, and welfare of all sorts of workers.
Definitions

Factory Act 1948 defines the following terms.

Sec 2(k) Manufacturing Process

 Any process for making, altering, repairing, ornamenting, finishing, packing,
breaking up, demolishing, or otherwise treating any article for use, sale, transport,
delivery, or disposal.
 Pumping oil, water, sewage or any other substance.
 Building, breaking ships or vessels.
 Producing, transforming, transmitting power.
 Printing
 Preserving or storing any thing in cold storage
 State of Bombay vs Ali Saheb Kashim Tamboli 1955 SC - Bidi making is
a Manufacturing Process.
 Ardeshir vs State of Bombay AIR 1962 SC - Salt making is a Manufacturing
Process.
Sec 2(l) Worker
 Any person employed directly or indirectly, for or without remuneration, with or
without knowledge of the principle employer, working in a manufacturing process, or
cleaning any part of machinery or premises of a manufacturing process, or any other
kind of work incidental to or connected with the main manufacturing process or with
the subject of manufacturing process.
 Includes exclusive electrical worker which otherwise falls under worker.
 State of Bombay vs Tamboli AIR 1955 Bom - Wages not necessary for being
a worker.
 Shankar Balaji vs State of Mah AIR 1962 SC - not a worker because - no
agreement of contract, no fixed time for work, work from home any time, leave any time.
Only adherence to bidi specs is no issue.
Sec 2(m) Factory
 10+ people with power or 20+ people without power.
 Worked at any time in previous 12 months. Shifts/Relays are also counted as a
person.
 Exceptions - Railway Running Shed, Mines, Hotel, Restaurants, Armed Forces,
Any data processing unit that uses computers for office work and does not do
manufacturing.
 Pragnarain v Crown 1928 - Factory means premises where anything towards
making or finishing of an article is done up to a stage when it is ready for sale or is in
suitable condition to be put in market.
 State of Bombay vs Ardeshir Hormosji Bhiwandiwala 1956 - land used
for making salt is a factory.

Terminal of employment contract

The methods by which an employment contract can be brought to an end:

1. Death or dissolution of the enterprise.

At common law, death would bring the contract of employment to an end, whether it is the death
of the employee or employer. When death occurs the employee is discharged from further
performance, the result of an implied condition that the continued existence of the parties is an
essential part of the control. Death terminates the contract. But in practice most employees will
be employed by non human beings which do not die.

See Graham’s article, “The effects of liquidation on contracts of service”, 1952 vol. 15, Modern Law
Review from page 48

Davis and Freeedman, “The effects of receivership upon employees of companies”, 1980 vol. 9
Industrial Law Journal from page 95
 Partnerships: in the case of a partnership where a partner dies and there is a consequent dissolution
of partnership the contract of employment will be discharged.

But in the case of a company the situation is complex. The position appears to be as follows.

1. First an order of the court for compulsory winding up of a company operates as notice of dismissal
to its employees.

2. The effect of voluntary winding up depends on whether the business is to be carried in some form.
If the business is to carry on it does not operate as notice of dismissal but if there is not intention
to carry then it operates as a notice of dismissal just as in the case of a compulsory order.

3. The appointment of a receiver by the court terminates contracts of employment but the
appointment of a receiver out of court by the debenture holders does not have that effect, except
in four cases:

(i) where the receiver is appointed to act as agent for the creditors only not for the company
(ii) where the receiver sells the business so that there is not continuation
(iii) where the receiver enters a new contract of employment with the employee in question which is
inconsistent with the old one
(iv) where the continuation of the contract of employment is inconsistent with the appointment of the
receiver because of the nature of the employment.

Frustration of contract
It is a general principle of the law of contract a contract will be terminated automatically if it is
frustrated. If circumstances change so completely that performance becomes impossible or leads
to a completely different result then it is terminated

1. if the contract is frustrated it is terminated automatically and immediately upon the happening of
frustrating event.
2. there is no right to back pay from the date of frustration
3. if the contract is frustrated its termination is due to the operation of law and not to dismissal

Expiry

LABOUR LAW Lecture 4

Mutual consent must be voluntary without pressure on the employee or employer. Mutual consent
eventually ends contract.

Methods of bringing a contract to an end

1. Redundancy and
2. Dismissal

FACTORIES ACT, 1948 Applicability of the Act To any premises where manufacturing activities are carried
out with the aid of power and where 10 or more workers are/were working OR where manufacturing
activities are carried out without the aid of power and where 20 or more workers are/were working.
Employer to ensure health of workers pertaining to • Cleanliness Disposal of wastes and effluents •
Ventilation and temperature dust and fume • Overcrowding Artificial humidification Lighting • Drinking
water Spittoons. Safety Measures • Facing of machinery • Work on near machinery in motion. •
Employment prohibition of young persons on dangerous machines. • Striking gear and devices for
cutting off power. • Self-acting machines. • Casing of new machinery. • Prohibition of employment of
women and children near cotton-openers. • Hoists and lifts.