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Factories Act,1948 India

Factories Act,1948 India

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Published by plzpushme

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Categories:Business/Law
Published by: plzpushme on Aug 23, 2010
Copyright:Attribution Non-commercial

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06/11/2013

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FACTORIES ACT, 1948INTRODUCTIONIn common parlance, invariably factory and industry are understood as interchangeable. This is incorrect. Theterm industry refers to a steady and systematic activity in which a trade is organised, whereas a factory is theplace where such activities are being carried on. The entire day-to-day administration of the factories isgoverned by the principal Act of 1948 amended Act, which is an improvement of 1934 Act. This Act extends tothe whole of India, including Jammu and Kashmir. Unless otherwise provided, it also applies to factoriesbelonging to the Central and StateGovernments. (Section 116) The Bhopal tragedy of 1984 has created awareness among the publicfor preventing pollution and this has made the government to take steps in amending the present 1948 Actby incorporating Chapter IV A from Sections 41 A to 41 H, pertaining to provisions as regards hazardousprocesses.OBJECT OF THE ACTThe object of the Factories Act of 1948 is(a) To improve health, welfare and safety of the workmen.(b) To regulate by imposing restriction as to hours of work includingrest and provisions for availing of leave.(c) To make stringent provisions as regards employment of womenand young persons and duration of their work.MEANING O
F THE TERM ‘FACTORY’
 Factory means any premises including the precincts therefore
 –
 (i) Wherein ten or more workers are working or were working on any day of the preceding twelve months,and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily socarried on, or (ii) Whereon twenty or more workers are working or were working on any day of the precedingtwelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on. Factory does not include a mine as it is covered by Indian Mines Act,1952 or a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel,restaurant or eating place.To put it in a nutshell, factory means (i) any premises including precincts (ii) where ten or more persons areengaged in manufacturing process with the aid of power or (iii) twenty or more persons are engaged inmanufacturing process without the aid of power.MANUFACTURING PROCESS
 –
Section 2 (k)Manufacturing Process means any process for
 –
 (i) Making, altering, repairing, ornamenting, finishing, packing,oiling, washing, cleaning, breaking up, demolishing or otherwisetreating or adopting any article or substance with a view to itsuse, sale, transport, delivery or disposal, or(ii) Pumping oil, water, sewage or any other substance, or
 
(iii) Generating, transforming or transmitting power, or(iv) Composing types for printing, printing by letter press,lithography taking photography and other similar process or bookbinding;(v) Constructing, reconstructing, repairing, refitting, finishing orbreaking up ships or vessels; or(vi) Preserving or storing any article in cold storage [Section 2 (k)].POWER [Section 2(g)]It means mechanical or electrical energy transmitted as a step or aids to carry outmanufacture and not energy generated by human or animal agency. Mere use of power not connected with activities of manufacturing will not make thepremises a factory. [New Taj Mahal Hotel vs. Inspector of Factories, (1956)I.L.I.J.273].Manufacturing process must be done with the aid of power, according toSection 2 (m). Use of power may be incidental or consequential tomanufacturing process. According to Section 4, on application by the occupierof a factory, different departments or branches of the factory may be treated asseparate factories. Likewise, two or more factories specified by the occupier canalso be treated as a single factory by the State government by passing suitableorders.WORKER [Section 2 (l)]Worker means a person employed directly or through any agency (including acontractor) with or without the knowledge of the principal employer, whetherfor 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 kindof work incidental to, or connected within the manufacturing process, or thesubject of the manufacturing process but does not include any member of thearmed forces of the Union [Section 2 (1)].In order to term a person as a worker, there must be employer
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 employee relationship. That is, the employer must not only be in a position todirect what work the employee should do but also how the work has to be doneby him.Rights of workers (Section 111A inserted by 1987 Amendment Act)A worker shall have the right to (i) obtain from the occupier information relating
to workers’ health and safety at work; (ii) get trained in the factory or at a
 training centre or institution when sponsored by the occupier and approved bythe Chief Inspector; and (iii) represent to the Inspector, directly or otherwise, thematter of inadequacy of health or safety in the factory.OCCUPIER [Section 2(m)]Any person who has ultimate control and management over the affairs of the factory will be deemed to be an occupier.(i) In a partnership firm, the individual partners and in the case of association of individuals, members thereof shall be regarded as
 
occupier.(ii) In companies, the directors are regarded to be occupier becausethey are vicariously liable for the functions of the company.(iii) In government owned and controlled factories, the person orpersons appointed to manage the affairs of the factory shall bedeemed to be the occupier.(iv) In the case of partnership firm or association of individuals, andpartner or member may be prosecuted. A manager cannot beregarded as an occupier, unless he is entrusted with the controland management of the factory.(v) Owner, lessee or a licensee having control over the factory withregard to its management is deemed to be the occupier [Emperorvs. Ram Pratap, (1896) 20 Bom.423].LICENSING AND REGISTRATION OF FACTORIES [SECTION 6]Under Section 6, the State government may make rules regarding the submissionof plans and approval, licensing and registration of factories. The site chosen tolocate the factory must have the previous permission in writing of the Stategovernment of Chief Inspector of factories. Such permission will be granted toapplicant unless he had duly complied with the directions of the government.Every application must be duly accompanied with a certified plan,showing all the details together with the challan representing the fees payablefor such registration, licensing or renewal of licence. If permission is not grantedeither by the State government or the Chief inspector, within 3 months fromthe date of submission of such application, permission is presumed to have beengranted.On the refusal of the State government to grant permission, the aggrievedapplicant can prefer an appeal within the 30 days from the date of refusal. Everyorder refusing to grant permission or licence must be a speaking order (aspeaking order is an order passed after hearing both the sides and it is passedwith reasons stated). Licence or permission cannot be denied merely on thedirection by the government without hearing the applicant [Shihabudeen Kunjuvs. State of Kerala, (1985) 2L.L.J.106].Under Section 7, the occupier must give 15 days notice to the Stategovernment or chief inspector of factories before he begins to occupy or use anypremises as a factory. Such notice should contain the following:(a) The name and situation of the factory;(b) The name and address of the occupier;(c) The name and address of the owner of the premises or building(including the precincts thereof);(d) The address to which communications relating to the factory maybe sent;(e) The nature of the manufacturing process to be carried on in thefactory during the next 12 months;(f) The total rated horse power installed or to be installed in thefactory (not including the rated horse power of any separatestand-by plant);(g) The name of the manager of the factory for the purpose of thisAct;

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Ranjeet Sambyal added this note
FACTORIES ACT, 1948 INTRODUCTION In common parlance, invariably factory and industry are understood as interchangeable. This is incorrect. The term industry refers to a steady and systematic activity in which a trade is organised, whereas a factory is the place where such activities are being carried on. The entire day-to-day administration of the factories is governed by the principal Act of
Surendran Narayanan added this note
My personnel view, I suggest every 10-15 years necessary amendments and certain changes should be implemented according to the time changes. We have not covered BPO, Malls, financial sectors and other newly arrived business activities. We have to see both sides, i.e., workmen and person who is investing the huge amount of money, both parties should benefited.
Tanya Tandon liked this

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