THE FACTORIES ACT,1948

BY
SANTOSH KUMAR SHARMA
Applicability
The industries in which ten (10) or more than
ten workers are employed on any day of the
preceeding twelve months - engaged in
manufacturing process being carried out with
the aid of power or twenty or more than
twenty workers employed in manufacturing
process being carried out without the aid of
power
Salient features
1. Approval of Factory Building Plans before
construction/extension, Factories Rules, 1950
2. Grant of Licences under the Delhi Factories Rules,
1950, and to take action against factories running
without obtaining Licence.
3. Renewal of Licences granted under the Delhi Factories
Rules, 1950, by the Dy. Chief Inspectors of Factories
4. Inspections of factories by District Inspectors of
Factories, for investigation of complaints, serious/fatal
accidents as well as suo moto inspections to check
compliance of provisions of this Act relating to :-
Health, Safety, Welfare facilities, Working hours,
Employment of young persons and annual Leave with
wages etc.
Cont………

Employers are required to follow stringent licensing and safety

measures.

Factory is defined as a place where ‘manufacturing process’ is

carried out using 10 workers using electrical power or 20 workers
without power.

‘Manufacturing process’ also includes petrol pumps, retail workshops,

handicraft industries etc.

PostBhopal tragedy (Union Carbide case) special chapter (IVA) has

been added making disclosures mandatory for hazardous processes.

Theworking hours, leave , weekly days off and wages are similar to
Shop and Establishment Acts- this is discussed later herein.

Under the Act the “occupier “ is responsible for all compliances and in
the case of an incorporated company the Director on the board of the
company must be designated for the purpose of an “occupier”.
Failing which all directors could become liable.
DEFINITIONS

Child:u/s-2(c) means a person who has not

completed his fifteenth year of his age
Adolescent:u/s 2(b)-means a person who has
completed his fifteenth year of age but not the
eighteenth year.
ADULT:u/s 2(a)-means a person who has
completed his eithteenth year of age.
Young Person:u/S 2(d)-means a person who is
either a child or an adolescent.
Definitions………………..
 Competent person:-In relation to any provision of this
Act,means a person or an intitutions recognized as such by the
chief inspector for the purpose of carrying out
tests,examinations and inspections required to be done in a
factory under the provisions of this “Act” having regard to---
---(i)-the qualifications and experience of the person and facilities
available at his disposal or
(ii)- the qualifications and experience of the persons employed
in such instututions and facilites available therein,with regard
to the conduct of such test,examinations and inspections,and
more than one person or institution can be recongnized as a
competent person in relation to a factory.
Factory u/s-2(m)--
Means any premises including the precincts
thereof
(i) Whereon ten or more workers are working or
were working on any day of the preceeding
twelve months, and in any part of which a
manufacturing process is being carried on with
the aid or power,or is ordinarily so carried on.
CONT…………….

(ii)-where on 20 or more workers are working or

working on any day of the preceeding 12months
and in any part of which a manufacturing
process is being carried on without the aid of
power, or is ordinarily so carried on.
But does 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 a hotel, restaurant or
eating place.
Explanations….
Explanation-I for computing the numbers of
workers for this clause,all the workers in a day
shall be taken into account whether in
different groups and relays.
Explanation-II mere fact that an electronic
data processing unit or a computer unit is
installed in any premises or part thereof, shall
not be contsrued to make it a factory if not
manufacturing process is being carried on in
such premises or part thereof.
worker u/s2(l)
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.
Manufacturing process u/s-2(k)
Means any process
(i)making,altering,repariring,ornamenting,finish
ing, packing, oiling, washing,cleaning,
breakingup,demolishhing, or otherwise
treating or adapting any article or substance
with a view to its use, sale transport,delivery
or disposal,or
(ii)Pumping oil, water,sewage,or any other
substance, or
Continue…………..

(iii)-generating, transforming or transmitting

power, or
(iv)-Composing types for printing, printing by
letter press, lithography, photogravaure of
other similar process or book-binding,
(v)-constructing,reconstructing, repairing,
refitting, finishing or breaking up ships or
vessels or
(vi)-preserving, or storing any article in cold
storage,
U/S-2(n)-OCCUPIER
Occupier of a factory means the person,who has
ultimate control over the affairs of the factory-
(i)-in the case of a firm or other association of
individuals, any one of the individual partners,
(ii)-in case of the company, any directory
(iii)-in case of factory owned by central govt.or
state govt.the person appointed to manage the
affairs of the company
But in case of ship repairement,dock owner.or
owner of the ship or agent or incharge of that.
Factories Act, 1948
a social legislation which has been enacted for
occupational safety, health and welfare of
workers at work places.
being enforced by technical officers i.e.
Inspectors of Factories, Dy. Chief Inspectors
of Factories who work under the control of the
Chief Inspector of Factories and overall
control of the Labour Commissioner,
Government of National Capital Territory of
Delhi
General duties of occupier u/s-7A
To ensure the health safety and welfare of all
its workers.This duty extends to
-Proper maintenance of plant and system
-The riskfree and safe arrangement of handling,
storing and transporting articles,
-Provide the necessary information necessary
for the work to so safely
-proper monitoring and maintenance.
Prepare a written statement of his general
policies with respect to health and safety.
General duties of manufacturers as regards articles
 Ensure as to the safety of article for the use of
workers when properly used to their health.
 To carry out all tests and examination,
necessary for the effective implementation
safety provisions
 To provided adequate information regarding
use of articles, tests and designed and about
the conditions which ensure safety.
 THE INSPECTING STAFF U/S-
8
STATE GOVE BY NOTIFICATION IN THE
OFFICIAL GAZZETTE
MAY APPOINT AS MANY AS REQUIRED AND
AS CHIEF INSPECTOR,ADDITIONAL CHIEF
INSPECTOR,JOINT CHIEF INSPECTOR AND
DEPUTY INSPECTOR.
EVERT DM IS INSPECTOR FOR THIS PURPOSE.
THEY ARE PUBLIC SERVANT.
STATE GOVT.SHALL DECIDE THEIR DUTIES
,RIGHTS & POWERS.
POWERS OF INSPECTORS

To enter in the factory premises.

To make examinations of plant machinery,
article,substances etc.
To enquire into the accident,disability,
statements on the spot .
To see the register or other documents.
Seize r take copies of other relevant docs.
To direct the occupier and manufacturer.
To take measurements and photographs.
To dismantle the dangerous article from fact.
CERTIFYING surgeon. U/S-10
The state govt. may appoint any persom who is
qualified medical practitioner.
He may exercise any of the designated function
and authority and may specify them.
No interested person shall be appointed in the
same factory as the medical practiontioner.
if any practitioner becomes occupier or otherwise
in the employment of the factory.
Provided that the state govt may exempt any person
or any class of persons from this application.
Duties of certifying surgeon

Examination and certification of young persons.

Examinations of such persons engaged in the
factory in dangerous processes
Exercise such medical supervision as prescribed
like
a) Cases of illnes, and their reasons.
b) If any likelihood of injury by process or article
c) Young persons are employed and it may be
dangerous to their health.
HEALTH PROVISION .(SEC 11-20)
CLEANLINESS
ARTIFICIAL HUMIDIFICATION
OVERCROWDING
LIGHTING
DRINKING WATER
LATRINES AND URINALS
SPITTONS.
DISPOSAL OF WASTE ANDEFFLUENTS.
VENTILATION AND TEMPERATUTE
DUST AND FUMES.
SAFETY (SEC.21-40)
FENCING OF MACHINERY
WORK ON OR NEAR MACHINERY
EMPLOYMENT OF YOUNG PERSONS NEAR
MACHINES
STRIKING GEAR AND DVICES FOR CUTTING
OF POWER
SELF ACTING MACHINES
CASING OF NEW MACHINERY
PROHIBITION OF EMPL.OF WOMEN AND
CHILDREN NEAR COTTON OPNERS
HOISTS AND LIFTS
CONT…..
LIFTING MACHINES,CHAINS,ROPES AND
LIFTING TACKLES.
REVOLVING MACHINERY
PRESSURE PLANT
FLOORS,STAIRS AND MEANS OF ACCESS
PITS,SUMPS,OPENINGS IN FLOORS,ETC.
EXCESSIVE WEIGHTS.
PROTECTION OF EYES.
PRECAUTIONS AGAINST DANGEROUS
FUMES,GASES.
PRECAUTION REGARDING THE THE USE OF
PORTABLE ELECTRIC LIGHT.
CONT…..
EXPLOSIVE PARTS OF TESTS OR
INFLAMMABLE DUST,GAS ETC.
PRECAUTIONS IN CASE OF FIRE.
POWER TO REQUIRE SPECIFICATIONS OF
DEFECTIVE PARTS OF TEST OR
STABILITY.
SAFETY OF BUILDINGS AND MACHINERY.
SAFETY OFFICERS.
POWER TO MAKE SAFETY RULES FOR
THIS PURPOSE.
Welfare provisons.
Washing facilities.
Facilities for storing and drying clothing
Facilities for sitting
Firs aid appliances
Canteens
Shelters,rest room,lunch room
Creches
Welfare officers
Working hours of adults (sec-51-66)
Weekly Hour:- not more than 48 hours/week.
Weekly holidays-first day of week shall be
off.
Compensatory holiday:- If any workder is
deprived of any provided holiday he shall be
given compensatory holiday in lieu of that.
Daily hours:- No adult worker shall be
allowed to work in the factory more than nine
hours in any day.
Cont….
Intervals for rest:--at least half an hour rest
must be provided after every working period
of five hours.
The period of work shall be so arranged that
including intervals for rest working hour shall
not spreadover more than ten and a half hours
in a day.
Night-shifts:-- A day is equal to 24 hours and
starts when shift ends.working hours after
mid-night shall be counted in previous day.
Cont-----
Prohibition of overlapping shifts
Extra wages for overtime- where a worker
works more than 9 hours a day or more
than 48 hours in a week, he shall be
entitled to receive twice the rate of
ordinary wages for overtime.
--ordinary wages means the basic wages
plus such allowances,including the cash
equivalent of the advantage accruing .
Cont---
Restrictions on double employment.
Notice of periods of works for adults.
The register of adult workers.
Restriction on employment of women:-

-No exemption regarding nine hour working in

regard of women.
-No women to work in the factory except between
6 a.m. to 7 p.m.
-There shall be no change of shift except weekly
holiday or any other holiday.
EMPLOYMENT OF YOUNG
PERSONS
No child required to work upto 14 year.
Non adult workers to carry tokens.this
shall be given in furtherance of certificate
given by medical surgeon.
Certificate of fitness. On application.
Working hours for children
-Not more than four hours in any day
-during the night.
CONT----
-shift shall not be changed oftenly,once in
30 days.
-Any female child between 8 am to 7 pm.
Notice of periods of works for children.
Register of child worker.
Hours of works to correspond with
provisions of this Act.
Power to require medical examination.
ANNUAL LEAVE AND
WAGES.
These provisions are not applicable where
central govt. rules are applicable.
Every worker who has worked for a period of
240 days or more in a factory during a
calendar year shall be allowed during the
subsequent calendar year leave with wages
for a number of days calculated at the rate of
—
a. If an adult one day for every 20 days
performed by him during previous year.
Cont…
b.If worker is child one day for every 15
day work performed.
But these shall be deemed as worker has
worked in the factory for the purpose of
computation of 240 days.
i.lay-off or by agreement or contract,
ii.Maternity leave not exceeding 12 weeks.
iii.The leave earned in the year
Cont…..
Leaves not taken shall be carry forward.
But shall not exceed 30 days if not by any
scheme.
Worker has to apply not less than 15 days
before the date he wishes to go on leave.
But in case of illness he has not to apply.
If worker is terminated before he avail the due
leave he shall be paid the amount.
Unaviled leave shall not be computed in his
period of notice in case of termination.
Wages during leave period
Entitled to the equal wage at daily average of his
total full time working.
If has not worked on any day during the calender
month immediately preceding his leave the cash
equivalent of the advantage on the basis of.
Standard family-wife-husband-2 children upto
14 years
Adult consumption unit—means for above 14
age .8 and upto 14
.6/unit.
Cont.
Advance payment in certain cases-4days
earlier to adult and 5 days earlier to child.
Unpaid wages shall be recoverable as per
provisions of Payment of wages Act.
Penalties and Procedure
Any person who contravenes the
provisions of Section 93 shall be punished
with imprisionment which may extent to 2
years and with fine which may extend to
one lakh Rupees.
If the offence is repeated the imp. Shall
extend to 3 years and fine not less than ten
thousand rupees and may extend to two
lakh rupees.