WHAT IS FACTORTY?

Factory means any premises including the precincts thereof-(i) Whereon 10 or more workers are working or were working on any day of the preceding
12 months, and in any part of which a manufacturing process is being carried on with the aid of
power, or is carried on, or
(ii) Where on 20 or more workers are working or were working on any day of the
preceding 12 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.
The term 'factory' does not include a mine subject to the operation of the 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.

In Simple Words, a factory is a premises where on 10 or more persons are engaged in

power is used, or 20 or more persons are engaged if power is not used, in a manufacturing
process.
For computing the number of workers, all the workers in different groups and relays in a
day shall be taken into account
For the purposes of Sec. 2 (m), the mere fact that an Electronic Data Processing Unit or a
Computer Unit is installed in any premises or part thereof, shall not be construed to make it a
factory if no manufacturing process is being carried on in such premises or part thereof [Expl. 2
to Sec. 2(m) as introduced by the Amendment Act of 1987]

Whether any establishment is Factory: In order to determine whether any establishment is a

factory, two things must be proved:
(i) that a manufacturing process is being carried on in any part of the premises of that
establishment; and

(ii) that there are prescribed number of workers working in any part of the premises where the
manufacturing process is being carried on.
Mere fact that power is used in premises is not the deciding factor; the power used must be in
the aid of the manufacturing process
The following have been held to be factories:
A. Salt works which consist merely of open stretches of large area of land with some
temporary shelters.
B. Railway workshops.
C. A premises where the manufacturing process is carried on with 7 persons employed
permanently and 3 persons employed temporarily in repairs of part of machinery.
D.
For proper understanding of the meaning of the term factory the following three term
should be clearly understood:

(1) Manufacturing Process. It means any process for -(i) 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, 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, photogravure or
other similar process or book-binding, or
(v) constructing, reconstructing, repairing, refitting, finishing, breaking-up ships or
vessels, or
(vi) preserving or storing any article in cold storage.

(2) Worker A worker means a person employed, directly or by or through any agency
(including a contractor) with or without the knowledge of the principle employer. He may be
employed for or without remuneration. But he must be employed in a manufacturing process, or
in other kind of work incidental to, or connected with the manufacturing process, or the subject
of the manufacturing process. A worker does not include any member of the armed forces of the
Union.

Rights of workers. (Sec. 111-A as introduced by the Amendment Act of 1987). Every worker
shall have the right to
i.

Obtain, from the occupier, information relating to workers health and safety at
work;

ii.

Get trained within the factory wherever possible, or to get himself sponsored by
the occupier for getting trained in a training centre or institute, duly approved by
the Chief Inspector, where training is imparted for workers, health and safety at
work;

iii.

Represent to the Inspector directly or through his representative in the matter of

inadequate provision for protection of his health or safety in the factory.

(3) Power. It means electrical energy, or any other form of energy which is mechanically
transmitted and is not generated by human or animal agency.
Different departments to be separate factories or 2 or more factories to be a single factory.
The occupier of a factory may apply to the State Government that the different departments or
branches of the factory of the occupier be treated as separate factories. He may also apply to the
State Government that 2 or more factories of the occupier specified in the application be treated
as a single factory. The State Government may, be an order in writing, accede to the request of
the occupier.
Exemption during public emergency. In any case of public emergency, the State
Government may, by notification in the Official Gazette, exempt any factory or class or
description of factories from all or any or the provisions of this Act except Sec. 67. This
exemption may be far a specified period not exceeding 3 months at a time and subject to such
conditions as the State Government may think fit to impose.

Certain premises deemed to be a factory. The State Government may, be notification in

the Official Gazette, declare any establishment carrying on a manufacturing process to be a
factory for the purposes of the Act even though the number of persons employed therein is less
than the prescribed minimum number of workers. If the manufacturing process is being carried
on by the owner only with the aid of his family, Sec. 85 will not apply.