Factories Act

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Labour WelfareFactories Act 1948

Constitutional ProvisionsDPSPs

Concurrent List Entries

Concurrent List of COIEntry 22. Trade unions; industrial and labour disputes.

Entry 23. Social security and social insurance; employment and unemployment.

Entry 24. Welfare of labour including conditions of work, provident funds, employers' liability, workmen's compensation, invalidity and old age pensions and maternity benefits.Entry 25vocational and technical training of labour.

Entry 36. Factories.

THE FACTORIES ACT ,1948

Application & ObjectTo the whole of India to all factories, including factories belonging to Central and State govt.Object: Regulate working conditions of labour lays down the essential provisions relating to working conditions, hazardous processes, health, safety and welfare of the workers and provision and procedures for penalties in case of contraventions of provisions of the Act.

FactorydefinitionBlack Law' Dictionary: includes all buildings and premises wherein, or within the close or curtilage of which, steam, water, or any mechanical power is used to move or work any machinery employed in preparing, manufacturing, or finishing cotton, wool, hair, silk, flax, hemp, jute, or tow..

Definition under The ActSec. 2m ofIndian Factories Act, Factory means "any premises including the precincts Thereofi.Whereon ten or more workers are working, or were working on any day of the preceding 12 months and in any part of which is manufacturing process is being carried on with the aid of power as is ordinarily so carried on; orii.Whereon twenty or more workers are working or were working on any of the preceding 12 months and in any part of which a manufacturing process is being carried on without the aid of power pr is ordinarily so carried on.A factory shall not include a mine subject to the operation of the Mines Act 1952 or a mobile unit belonging to the armed forces of the Union, a railway running shed or hotel, restaurant or eating places.

INGREDIENTS ( of factory)i. If a premises is using power or working without the aid of power the number of workers required to constitute a factory differ as followsa. With the aid of power- 10 or more workersb. Without the aid of power- 20 or more workersii. A manufacturing process should be carried oniii. Work should be carried on in precincts.

The term "Precincts" inOxford Dictionaryis defined as: i. the area within the walls or perceived boundaries of a particular building or placeii. area in a town designated for specific or restricted use, especially one which is closed to traffic

MANUFACTURING PROCESSTransforming and transmitting electricity (not conversion)Making of salt from sea waterPreserving article in cold storageSun cured tobacco leaves: moisture, strips, packed for transport to main factory manufacturing cigarettes.Conversion of raw films into finished productsPreparation of food stuffs and other eatables in the kitchen of a restaurant as well as the use of refrigerator Bidi making Cutting trees using axe and conversion into logs

Nagpur Electric Light & Power Co., ... vs Regional Director Employees ... on 2 March, 1967 1967AIR 1364The High Court said:"This manufacturing process is carried on by the Company not only in the building called the workshop or the receiving station but over the whole area over which the process of transmission is carried on including the sub- stations where electricity is stored and supplied to the consumers by further transmission lines. Thus every part over which this process is carried on will be a factory within the meaning of the Employees' State Insurance Act."We cannot accept this line of reasoning. It seems to us a startling proposition that every inch of the wide areaover which the transmission lines are spread is a factory within the meaning of s. 2(12). "A factory must occupy a fixed site", see Halsbury's Laws of England, 3rd ed., Vol. 71 ,art. 15, p. 15. The company's factory has a fixed site.

WORKER S.2(l)"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 cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process but does not include any member of the armed forces of the Union.

ApprenticePayment in kindWatchmenIndependent contractorsControl & supervisionShankar Balaji v. State of Maharashtra AIR 1962 SC 517

Occupier S.2(n)person who has ultimate control over the affairs of the factory . Provided that-(i) in the 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;(ii) in the case of a company, any one of the directors shall be deemed to be the occupier;(iii) in the case of a factory owned or controlled by the Central Government or any State Government, or any local authority, the person or persons appointed to manage the affairs of the factory by the Central Government, the State Government or the local authority, as the case may be, shall be deemed to be the occupier;

Provided further that in the case of a ship which is being repaired, or on which maintenance work is being carried out, in a dry dock which is available for hire-

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Must not be equated with the ownerTouchstone : ultimate control of the factory and not the companyIOC v. Chief Inspector of Factories AIR 1998 SC 2456Knoria Jute Industries Ltd. & others v. ESIC (2003) I L.L.J. 364(Cal)

S.6: registration & license S.7A: General duties of the occupier

Hotels: whether a factoryLal Bovta Hotel Bakery Mazdoor Union v. Ritz Private Ltd. India 2007 (113) FLR 568.In case of a co., its only one of the directors of the co. who can be an occupier and the co, cannot nominate any other employee to be the occupier of the factory: Container Corporation of India Ltd. v. Lt. Governor, Delhi (2003) 98 FLR 653: 2002 LLR 1068Indian Oil Corp. v. Labour Commissioner AIR 1998 SC 2456: Central govt .is the occupier of IOC.

HAZARDOUS PROCESSS.2(cb) "hazardous process" means 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, bye products, wastes or effluents thereof would--(i) cause material impairment to the health of the persons engaged in or connected therewith, or(ii) result in the pollution of the general environment:Provided that the State Government may, by notification in the Official Gazette, amend the First Schedule by way of addition, omission or variation of any industry specified in the said Schedule;

Chp IV-A: Dealing with HP Site Appraisal Committee (S.41-A)? - for advising the State Govt. to consider applications for grant of permission for the initial location of a factory .Duty of occupier: - Compulsory disclosure of information.(41-B) - maintain medical records (41-C) - hire competent persons for handling (41-C) - provide facilities to protect workers. (41-C) - provide medical examination (41-C) - set up Safety Committee (workers +mgmt) (S.41-G)Right of workers: to warn abt. Imminent danger (41-H)

Welfare of workersS.42: Washing facilities for workmenS.43: Storing and drying clothing facilities.S.44: Facilities for sitting, opp. For restS.45: First aid appliances.S.46: Canteens: >250 workers - whether workers of canteen =workers of establishment ? - depends on how obligation to set up canteen was discharged : by direct recruitment or through a contractorHarishankar Sharma & Ors v. Artificial Limbs Manufacturing Corp. and Ors. (2002) L.L.J. 237(S.C.)S.47: Shelters, rest rooms and lunch roomsS.48: Creches: >30 women workers, for children below 6 yrs.S.49: Welfare officer for >500 workers

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Working hoursS.51: MAX. 48 hours a weekS.52: Weekly holidays- first day of the weekS.54: Daily hours - >9 hours a dayS.55: Intervals for rest- no worker shall work for more than 5 hours before he has had 1 hr. rest.S. 57: Night shiftsS.59: Extra wages for overtimeS.66: Restrictions on employment of women- no women shall be required/allowed to work in any factory except between 6.a.m & 7 p.m.S.71: Working hrs. of children: not for more than 4.5 hrs a day & during the night.(10 p.m.-6 a.m.)

Employment of Young PersonsS.67: No employment of children below 14 yrs.S.68: For non adults: certificate of fitness reqd.Chp. X: Penalties

AuthoritiesChief Inspector (app. By State govt.)Add. Chief InspectorJoint Chief InspectorDeputy Chief InspectorInspector: Distt. Magistrate in each distt.If more than 1 inspector: powers defined by state govt.Powers: S.9: examination, inquiry, seizure,