On this page you will read detailed information about Factories Act 1948.
As a business owner or manager, you must be aware of the Factories Act, 1948 and its various provisions. This legislation was enacted to regulate the working conditions in factories across India. Being cognizant of its key components allows you to ensure your factory complies with the law and provides a safe working environment for your employees. In the following 100 words, we provide an overview of this important Act, summarizing its scope, coverage, and main provisions regarding health, safety, welfare, working hours and leave for factory workers. Understanding the Act’s framework equips you to run your operations responsibly.
Background and Purpose of the Factories Act, 1948
The Factories Act, 1948 was enacted to regulate the working conditions of factory workers in India. The main aim of the Act is to ensure adequate safety measures and to promote the health and welfare of the workers employed in factories.
The Act applies to premises where ten or more workers are employed and engaged in manufacturing process with the aid of power or twenty or more workers are employed and engaged in manufacturing process without the aid of power. The Act provides provisions relating to health, safety, welfare, working hours and leave of workers in factories.
Some of the key provisions of the Factories Act, 1948 are:
- Restriction on the working hours of adult workers to 9 hours a day and 48 hours a week.
- Prohibition of employment of children below 14 years of age.
- Provision of annual leave with wages and payment of wages for overtime work.
- Maintenance of health and cleanliness in the factory premises.
- Safety precautions such as fencing of machinery, proper ventilation and temperature, adequate lighting, etc.
- Provision of welfare measures such as canteens, restrooms, creches, etc. for the workers.
- Specification of maximum permissible levels of exposure to hazardous gases, vapours, dust, etc.
- Ensuring proper inspection of factories by inspectors to detect any contraventions of the provisions of the Act.
The Factories Act aims to ensure a safe working environment, reasonable working hours, and proper health care and welfare amenities for the workers employed in factories so that they can work with reasonable efficiency and without risks to their health. The ultimate goal is to create satisfactory working conditions for workers and boost productivity.
Key Definitions Under the Factories Act
The Factories Act, 1948 aims to regulate the working conditions in factories and ensure the health, safety, and welfare of workers. To effectively administer the Act, it is important to understand some of the key definitions specified under the Act:
Factory
The Act defines a ‘factory’ as any premises which employs 10 or more workers and in which manufacturing process is carried on with the aid of power or 20 or more workers if manufacturing process is carried on without the aid of power.
In the previous post, we had shared information about An Overview of the Labor Codes in India, so read that post also.
In the previous post, we had shared information about An Overview of the Equal Remuneration Act 1976, so read that post also
Worker
A ‘worker’ refers to any person employed directly or through an agency, whether for wages or not, in any manufacturing process or cleaning any part of the machinery or premises used for a manufacturing process. Apprentices are also considered workers under the Act.
Manufacturing Process
‘Manufacturing process’ means any process for making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal.
Hazardous Process
A ‘hazardous process’ refers to any process or activity in relation to an industry specified in the Schedule of the Act which exposes any person to a serious risk of bodily injury, poisoning or disease. Workers employed in hazardous processes have additional protections and benefits under the Act.
Occupier
An ‘occupier’ of a factory refers to the person who has ultimate control over the affairs of the factory. The occupier is responsible for the compliance with the provisions of the Factories Act and the rules made thereunder in the factory.
To summarize, the Factories Act aims to regulate the working conditions of factories and protect the welfare of workers by defining key terms like factory, worker, manufacturing process, hazardous process and occupier which form the foundation for administering the Act.
Registration and Licensing of Factories
Under the Factories Act, 1948, any premises where a manufacturing process is carried on with the aid of power or employing 10 or more workers are required to be registered with the Chief Inspector of Factories. The occupier of the factory is required to submit an application for registration in the prescribed format along with plans of the factory building and such other particulars as may be specified.
Upon receiving the application, the Chief Inspector may register the factory or reject the application after recording reasons in writing. The registration certificate is valid only for a specified period, usually 5 years, after which it needs to be renewed. The registration process helps in bringing more factories under the purview of the Act and ensures better compliance.
Certain factories engaged in hazardous operations need to also obtain a license from the Chief Inspector. The license stipulates conditions for ensuring health, safety, and welfare of workers. It may specify maximum number of workers to be employed on a particular hazardous process, use of protective equipment, hours of work, interval for rest, and precautions to be taken. The license is granted for a fixed period and needs to be renewed to continue operations.
Obtaining registration and license is obligatory for factories to commence or continue operations. Failure to do so can lead to legal consequences including closure of factory, penalty or imprisonment. It is advised that factory owners and managers fully understand the provisions of the Factories Act regarding registration, licensing, and renewal to avoid violations and ensure a safe working environment. Compliance with the Act will also build goodwill and prevent disruptions to business operations.
In summary, registering and licensing factories is an important step to regulate occupational health and safety standards. When executed properly, it benefits both employers and employees through standardized working conditions, reduced accidents and greater productivity. Overall, it contributes to the sustainable growth of industries and the economy.
Safety Provisions for Workers
The Factories Act, 1948 aims to ensure the health, safety, and welfare of workers in manufacturing establishments and factories in India. Several provisions explicitly address safety standards to protect workers from occupational hazards.
Fencing of Machinery – All dangerous parts of machinery must be securely fenced to prevent workers from coming into contact with moving parts. This includes gears, flywheels, crushing machines, and cutting machines. Proper guards must be installed and be kept in working condition.
Work on or Near Machinery in Motion – Workers must not clean, lubricate, or adjust any part of running machinery. Machines must be stopped completely before any maintenance or repair work is performed. This protects workers from risks like entanglement, fractures, amputations, and death due to being caught in moving equipment.
Floors, Stairways and Passageways – All floors, steps, stairways, and passageways in the factory must be properly maintained and kept free of obstructions. This prevents slips, trips, and falls that could cause injuries. Handrails must be installed and maintained on all staircases.
Pits, Sumps and Openings in Floors – Any pits, sumps, and floor openings must be securely covered or fenced to prevent workers from falling into them. When the covers or fences need to be removed for work purposes, prominent warning signs must be placed.
Precautions Against Explosive or Inflammable Dust, Gas, etc. – In work areas where explosive or inflammable materials are used or produced, all practicable measures must be taken to prevent risk of fire, explosion, toxicity or explosion. This includes proper ventilation, use of intrinsically safe electrical equipment, and measures to avoid ignition sources.
By following these safety provisions carefully, factory owners and managers can significantly reduce the risk of accidents, injuries and health hazards to workers. Regular inspections must be conducted to ensure full compliance and take corrective actions when needed. The safety of workers should be the top priority in any manufacturing operation.
Health and Welfare Measures
The Factories Act aims to ensure acceptable standards of health and welfare for all factory workers.
Cleanliness
The Act specifies that all factories must be kept clean and free from effluvia arising from any drain, privy or other nuisance. The floors must be cleaned at least once a week by washing or using disinfectant. Accumulations of dirt and refuse must be removed daily.
Ventilation and temperature
Factories must provide adequate ventilation for fresh air and circulation. The temperature in workrooms must be reasonable according to the nature of the work. Measures must be taken to protect workers from excessively hot or cold temperatures that could be injurious to health.
Dust and fume removal
In any factory where any process produces dust or fumes or other impurities that may be injurious to health, the Act requires the use of measures like exhaust fans and filters to remove these dusts and impurities. Workers must be provided with suitable respirators or masks if necessary.
Drinking water
Clean drinking water must be provided and maintained for all workers at suitable and conveniently accessible points.
Latrines and urinals
Sufficient latrine and urinal accommodations must be provided, with separate facilities for male and female workers. These facilities must be conveniently situated and maintained in a clean and hygienic state.
Lighting
Factories must provide adequate and suitable lighting for workers to work in safety. The level must be at least 50 lumens in every workroom. Emergency lighting must also be provided in case the normal lights fail.
By adhering to these health and welfare measures, factory owners and managers can ensure safe and hygienic working conditions for all workers as per the Factories Act of 1948. Compliance will lead to greater productivity, reduced absences, and a more content workforce.
Working Hours, Overtime and Leave Benefits
The Factories Act, 1948 regulates the working hours, overtime hours and leave benefits of workers employed in factories.
Working Hours
- The normal working hours for an adult worker cannot exceed 9 hours per day and 48 hours per week.
- Workers are entitled to at least one day off each week.
- No worker shall work for more than 5 hours continuously without a break. The total breaks should not be less than 30 minutes.
Overtime
- Any work done by a worker beyond the normal 9 working hours per day or 48 hours per week is considered overtime work.
- Overtime work is permitted only under certain circumstances such as workload increase, shortage of workers, or in public interest.
- A worker cannot work overtime for more than 125 hours in a quarter and not for more than 60 hours in a month.
- For overtime work, a worker is eligible for twice the ordinary rate of wages.
Leave Benefits
- Every worker is entitled to one paid annual leave for every 240 days of work. The annual leave ranges from 12 to 20 days.
- Sick leave and casual leave are provided as per the leave policy of the organization.
- Festival holidays and national holidays are mandatory paid leaves.
- Maternity leave of 12 weeks (6 weeks prenatal and 6 weeks postnatal) is provided to every female worker.
- Other leaves such as paternity leave, bereavement leave, etc. may be provided as per the company’s leave policy.
Following these regulations on working hours, overtime and leave benefits for workers can help organizations improve work-life balance, increase productivity, and boost motivation levels of employees. Compliance to the Factories Act also builds goodwill and prevents penalization.
Penalties and Punishments for Violations
The Factories Act, 1948 lays down provisions for penalties and punishments for violations of the Act by the occupier or manager of the factory.
Penalties
The penalties for violations include fines, imprisonment or both. The penalties are imposed by a court of law. The quantum of penalty depends on the nature of the offense. Minor penalties like fines are imposed for violations such as failure to maintain registers or failure to give notices. Stringent penalties like imprisonment are imposed for violations that endanger the safety and health of workers such as employment of children or failure to ensure proper fire safety measures.
The occupier or manager of the factory is liable for penalties for violations of the provisions of the Factories Act. In case of death or injury due to negligence of the occupier or manager, they are liable for prosecution in accordance with the provisions of the Indian Penal Code.
Cancellation and Suspension of Licenses
In case of repeated violations or violations that pose danger to workers, the inspecting authority may suspend or cancel the license of the factory. The suspension or cancellation order has to be approved by the state government. Suspension of license prohibits the factory from operating during the period of suspension. Cancellation of license prohibits the factory from operating permanently. The factory has to apply for a fresh license to start operations again.
Compounding of Offenses
For minor violations of procedural lapses, the offenses can be compounded by the inspecting authority. This means that the accused pays a penalty in lieu of prosecution in court. The power of compounding offenses lies with the inspecting authority subject to the maximum limit of compounding fine prescribed in the rules of the respective state. Compounding helps in reducing burden on courts and expedites resolution of minor violations.
The provisions of penalties, punishments and compounding of offenses under the Factories Act ensure compliance with the law and help in creating safe and healthy working conditions for workers employed in factories.
Recent Amendments to the Factories Act
The Factories Act, 1948 has been amended several times to align with the changing dynamics of the industrial sector. Some of the major amendments are:
Amendment in 1976
The 1976 amendment prohibited the employment of children below the age of 14 years in any factory. It also placed restrictions on the working hours of adolescent workers between the ages of 15 and 18 years. This amendment aimed to prevent the exploitation of child labor in factories.
Amendment in 1987
The 1987 amendment mandated several provisions relating to the health, safety, and welfare of factory workers. Some of the key provisions include:
- Specifying minimum requirements for ventilation, temperature, latrines, and urinals.
- Stipulating provisions for adequate and suitable lighting, drinking water, and first aid appliances.
- Prescribing measures for the prevention of fatigue, occupational diseases, and accidents.
- Requiring precautions in case of fire, provision of means of escape in case of fire, and muster point.
Amendment in 2016
The 2016 amendment increased the overtime hours from 50 hours per quarter to 100 hours per quarter. It also provided flexibility for women to work during night shifts if adequate safeguards are in place. Further, the amendment mandated the appointment of Site Appraisal Committees to identify hazardous processes and substances. These provisions aimed at improving productivity and enhancing women’s participation in the industrial sector.
The Factories Act aims to regulate the working conditions of workers in factories and ensure their health, safety, and welfare. The periodic amendments to the Act demonstrate the government’s commitment to balancing productivity and development with labor welfare. Overall, the amendments have strengthened the Act to address contemporary challenges while upholding the dignity and rights of the workforce.
FAQs on Factories Act 1948: Your Top Questions Answered
The Factories Act, 1948 regulates the working conditions in factories across India. As an owner or manager of a factory, you likely have some questions about your responsibilities under this Act. Here are answers to some of the most frequently asked questions:
A factory refers to any premises where manufacturing processes are carried out with the aid of power and employs 10 or more workers. It includes any premises where manufacturing processes are carried out without the aid of power and employs 20 or more workers.
Factory owners must ensure:
i) Proper ventilation, temperature, dust and fume extraction, and adequate workspace for workers.
ii) Safe access to and exit from work areas.
iii) Protection of workers from dangerous machinery and occupational hazards.
iv) Availability of adequate and suitable personal protective equipment (PPE).
v) Arrangements for drinking water, latrines, urinals, and spittoons.
vi) Adequate arrangements for the disposal of wastes and effluents.
i) No adult worker shall be required or allowed to work in a factory for more than 9 hours in any day or 48 hours in any week.
ii) Workers are entitled to wages for any extra hours worked beyond normal hours. They are also eligible for paid annual leave, sick leave, and casual leave.
Women and young persons (between 15 to 18 years) may work in factories subject to certain conditions, such as:
i) Prohibition of employment of young persons in dangerous operations.
ii) Working hours not exceeding 7 hours in a day and 42 hours in a week for young persons.
iii) Half an hour break for young persons after 5 hours of work.
iv) No female worker shall be employed except between 6 AM and 7 PM.
By understanding your obligations as a factory owner under the Factories Act, 1948, you can ensure compliance and provide safe and fair working conditions for all your employees. Be sure to also stay up-to-date with any amendments to the Act.
Conclusion
As you come to the end of this overview, it is clear that the Factories Act of 1948 is a crucial piece of legislation that aims to ensure the welfare and safety of factory workers in India. By regulating provisions related to working hours, leave, health and hygiene, and more, the Act seeks to protect one of the most vulnerable segments of the workforce. With the growth of industry and increasing risks for workers, continued diligent implementation and potential evolution of the Act will remain vital. We all share responsibility in ensuring such protective policies translate to real improvements for those who fuel India’s engine of manufacturing and production. As you return to your daily life, consider how you can contribute to elevating factory conditions however possible through civic participation or community initiatives. Our collective voices and actions can lead the way.
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