Salient features of The Factories Act

1948.
- G Ojha

Objective.
The objective is to protect workers from
physical strain & also to provide healthy &
sanitary conditions of work. It also emphasizes
safety for the prevention of accidents.

Scope & Application.

It extends to the whole of India.
Applies to all factories including those of the
Central & State Govts.
The benefits are available to those employed
in the factory & covered within the meaning of
the term Worker.

Factory.
Factory means
thereof :-

any

premises

including

precincts

a) Where ten or more workers are working or were

working on any day of the preceding 12 months, & in
any part of which a manufacturing process is being
carried on with the aid of power;
b) Where twenty or more workers are working , or were
working on any day of the preceding 12 months, & in
any part of which a manufacturing process is being
carried without the aid of power.
c) A Mine, a mobile unit of the Army, a Railway running

Manufacturing Process.
This has been defined as any process of Making,
Altering, Ornamenting, Finishing, Packing, Oiling,
Washing, Cleaning, Breaking up, Demolishing or
otherwise treating or adopting any article or substance
with a view to its use, Sale , Transport, Delivery or
Disposal.
many other processes are also included in
the manufacturing process.
Bidi making was held to be a manufacturing process in
State of Bombay Vs. Ali Saheb Kashim Tamboli (1995)
2 LLJ 182.
Making salt from sea water by the process of

Worker.
A Worker is a Person :1. Who is employed.
2. Either directly or through any agency.
3. Who is employed in any manufacturing process, or in
cleaning any part of the machinery or premises used
for manufacturing process or in any other kind of
work
incidental to or connected with the
manufacturing
process
or
subject
of
the
manufacturing process.
4. If (1) to (3) above are fulfilled then it is immaterial
whether a person is employed for remuneration or

Occupier.
He is a peson who has the ultimate control over the
affairs of a factory.
He is responsible for getting the premises approved
before the factory is established.
In case of a company, any one of the directors shall be
deemed to be the occupier.
As per Factories (Amendment) Act, 1987 the occupier
has been mode responsible for providing information,
instruction, training & supervision to ensure health &
safety of all workers. The occupier is also responsible
for monitoring of work environment so that no risk is
caused .
He is also responsible for registration,
obtaining/renewing license.

Power of the State Govt.

State Govt. has the power to frame rules (Sec.6)
including direction for maintenance of registers by
employers for inspection by factory inspectors.
State Govt. can declare different deptts./branches of a
factory as separate factories in case the occupier
requests for it. But not two or more factories as one
factory. (Sec. 4)
In case of emergency(War, external aggression or
internal disturbance) the State Govt. can exempt any
factory or any class of factories from all or any of the
provisions of the Act (except Sec. 67)for a specific
period. Such a notification can be issued for 3 months

Approval, Licensing & Registration of

Factory.
The Factory has to be approved and registered after
obtaining a license by the occupier.
Permission relating to site for construction/extension
of factory as per plan has to be given by the
competent authority.
No license or renewal of license shall be granted
unless the occupier gives at 15 days notice in writing
to the chief Inspector of factories before he proposes
to occupy or use any premises as factory.

Inspection I.
For enforcing the Acts provisions, the State Govt. is
empowered to appoint Inspectors, having prescribed
qualifications, through notification. They may be
assigned such local limits as the State Govt. may
think fit.
(1) Chief Inspector (2) Addl. Chief Inspectors (3) Jr.
Chief Inspectors, (4)Dy. Chief Inspectors , (5)
Inspectors & Addl. Inspectors .
No Inspector can be appointed or will continue to
hold office if he becomes directly or indirectly
interested in a factory or in a process/business
carried in the factory or in any patent or machinery
connected therewith.

Inspection II.
All Inspectors shall be deemed to be a public servant
within meaning of the IPC, 1860.
Section 9 of the Act gives details of powers to
inpectors.
Inspectors have to carry out their duties under section
9 (B )& (C).
They have to ensure that statutory provisions & rules
are carried out properly.
They have to launch prosecutions against factory
owners under the provision of chapter 10 of the Act.

Certifying Surgeons.
Section 10 empowers the State Govt. to appoint
qualified medical practitioners as Certifying Surgeons
for the purpose of the Act. These surgeons are
appointed to discharge duties within the local limits
placed under their control or for such factory or class
of factories as may be assigned to them.

Health.
Section 11 to 20 of the Act deal with Health.
These provide for the following :Cleanliness, Disposal of Wastes & Effluents,
Ventilation & Temperature, Dust & Fume, Artificial
Humidification, Overcrowding, Lighting, Drinking
Water, Conservancy Arrangements, Spittoons.

Safety.
The Act specifies safety measures & precaution in
respect of the following :Fencing of Machinery, Work on or near
Machinery in motion, Employment of young persons
on Dangerous Machine, Striking Gear and Devices for
cutting off Power, Self- acting machines , Casing of
new Machinery, Prohibition of Employment of women
& children
near Cotton openers, Hoists & Lifts,
Revolving Machinery, Pressure Plant, Pit sump &
opening in Floors, Dangerous Fumes & Gases, use of
portable Electric Light, Explosive or inflammable
material, fire Precautions, Building & Machinery Safety

Safety Officer.
The Act provides for appointment of Safety Officers in
factory employing 1000 or more workers.
They may also be appointed where in a manufacturing
process or operation there is risk of bodily injury,
poisoning, disease or any other hazard to health of
factory workers.

Provisions relating to Hazardous

Processes.
Section 2 (CB) of the Factories (Amendment Act, 1987
defines the team Hazardous process as any process
or activity in relation to an industry specified in the
first schedule where, unless special care is taken, raw
materials used therein or the intermediate or finished
products , by-products, wastes or effluents thereof
would :1. Cause material impairntment to the health of the
persons engaged in or connected therewith .
Or
2. Result in the pollution of the general environment.

Site Appraisal Committee.

The State Govt. , for the purpose of advice relating to
permission for initial location of a factory involving
Hazardous Process or for the expansion of any such
factory, appoint a site Appraisal Committee headed
by the Chief Inspector of Factories & members drawn
from concerned organizations or both the Central &
State Govts.
The Committee will give its recommendations within
90 days of the receipt of application in the prescribed
form.

Compulsory disclosure of Information

by the Occupier.
The Occupier of every factory involving a Hazardous
process shall disclose all information reg. dangers,
health hazardous and the measures to overcome
them arising from the exposure to or handling of
materials or substances in the manufacture,
transportation, storage & other processes to;
1. Workers employed in the factory ,
2. The Chief Inspector,
3.

the local authority within whose jurisdiction the

factory is situated and

4. General public in the vicinity.

Specific Responsibility of the Occupier

in Relation to Hazardous Process.
Under section
C of the Act every Occupier has
responsibility of medical check up of every worker &
also maintenance of health/ medical records of
workers in the factory exposed to any chemical toxic
or any other harmful substances which are
manufactured , stored, handled or transported and
such records shall be accessible to workers.

Powers of the Central Govt.

The Central Govt. may, under extraordinary situation,
appoint an Inquiry Committee to inquire into the
standards of health & safety in a factory engaged in
hazardous process.
Where no safety standards have been fixed or are
inadequate in a hazardous process or class of
hazardous processes, it may direct the Labour
Institutes or the D.G. of Factory Advice service or any
specialised institution to by down the emergency
standards for such hazardous processes.
The maximum limits of exposure to chemical & toxic
substances in manufacturing processes in any factory
(whether hazardous or not) shall be of the value

Workers Participation in Safety

Management.

In hazardous process factory , the Occupier shall set

up a safety Committee consisting of equal number of
workers & managements representation to promote
co-operation between them in maintaining proper
safety & health at work.
Where the workers engaged in a hazardous process
factory have apprehension about imminent danger to
their lives or health due to any accident, they may
bring the same to the notice of the Occupier ,
Manager or any other person incharge of the factory
or the process through their representative in the
safety Committee and simultaneously to the
Inspectors notice.

Other Important Features.

Section 85 of the Act empowers the State Govt. to
notify that all or any of the provisions of the Act shall
apply to any place where a manufacturing process is
being carried on with less than 10 or 20 persons
without or with the use of power. After such a
declaration that place will be deemed to be a factory,
the owner will be deemed to be an Occupier and any
person working there, a Worker.
Section 87 A empowers an Inspector to prohibit
employment in a factory if it appears that conditions
prevalent there may cause serious hazard by way of
injury or death to the persons employed therein or to

Welfare.
Several welfare measures have been provided in the
Act. Some of these are as follows : Washing and Sitting facilities; First Aid
Appliances and Ambulance Room; Canteen; Rest
Room, Lunch Room; Crche; Appointment of Welfare
Officers etc.

Working Hours of Adult Workers.

Weakly & daily working hours; weekly & substituted
holidays; compensatory holidays; Intervals of rest,
spreadover, night shift, double employment; extra
wages for overtime; notice of periods of work;
restriction on employment of women.
The State Govt. has been empowered to make rules
for granting exemption from restrictions on working
hours of adults on certain conditions as it may deem
necessary.

Employment of Young Person.

Section 67 is relevant which prohibits employment of
children and regulates employment of adolescents.
This section cannot be exempted even during public
emergency.
1. Effect of Fitness Certificate to Adolescents.
2. Working Hours for children.

Annual Leave with Wages.

Qualifying period
Rate of Leave
Unavailedled Leave
How to Avail Leave
Wages during Leave period under Section 78 or 79
have to be calculated as per Section 80 of the Act.
Advance payment of leave wages
Mode of recovery of unpaid wages

Some Case Laws I.

Standing order have merely a statutory flavour
whereas Section 81 of the Act (Payment in advance in
certain Cases) is a statutory provision. Therefore,
Section 81 will prevail over standing orders of the
Company.
( Maharashtra General Kamgar Union Vs.
Bharat Petroleum Corp. Ltd. 1996 LLR 899)
A commercial establishment receiving the products in
bulk & after unpacking such bulk products, pack them
according to the customers requirements & dispatch
such products to customers such an act is
manufacturing process within the meaning of section
2 (K) of the Act.

Some Case Laws II.

The Provisions of the Act should be so constructed/
interpreted so as to achieve its object, i.e. the welfare
of the workers & their protection from exploitation &
unhygienic working conditions in the factory premises;
(Ravi Shankar Sharma Vs. State of Rajsthan,
AIR 1993 Raj. 117)
There is nothing in section 46 of the Factories Act,
which provides for the mode in which a canteen
should be setup. Where it is left to the discretion of
the establishment, then a canteen may be set up
either by direct equipment or by employment of
contractor. In the latter event, it cannot be postulated
that canteen workers would be employees of the
establishment.

Some Case Laws III.

The intent of Section 52 (Weekly Holidays) is not that
employers will convert successive or all Sundays as
working days & make any other working day of the
week a holiday.
(Motor & Machinery Manufacturers Ltd. Vs. State
of west Bengal, 1994 (2) LLJ 562)

Questions.

Thank You!