CHAPTER 1

THE LAW RELATING TO WORKING CONDITIONS

FACTORIES ACT, 1948

OBJECTIVES
• The main objectives of the Factories Act are
(i) to regulate working conditions in factories, and
(ii) to ensure that basic minimum requirements for the safety, health and welfare of the factory workers are
provided.
• The Act also envisages to regulate the working hours, leave, holidays, overtime, employment of children,
women and young persons, etc.
• The Act was drastically amended in 1987 whereby safeguards against use and handling of hazardous
substances and procedures for setting up hazardous industries were laid down.
• The Factories Act extends to the whole of India and is applicable to all 'factories' including government
factories.
DEFINITIONS
• A 'factory' as per Section 2(m), means
 any premises including the precincts thereof where a manufacturing process is carried on
(i) where the factory is run with power - employs 10 or more workers on any day of the preceding 12
months; or
(ii) where the factory is run without power – employs 20 or more workers on any day of the preceding
12 months.
• It must be noted that it does not include a mine under 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.
CASE EXAMPLE
A factory is a premises where a manufacturing process is carried on. The word 'premises' must not be restricted
to mean buildings alone and shall cover open lands as well. [Ardeshir H. Bhiwandiwala Vs. State of Bombay
AIR 1962 SC 29].
A manufacturing process need not necessarily end in a substance being manufactured [Akali Metals (P) Ltd.
Vs. E.S.I. Corpn. ('976) Lab IC 186 (DB) (AP)] but it essentially involves transformation [In Re A.M. Chinnayya
Sanger Soap Works, AIR (1957) Mad. 755], so that the article becomes commercially known as another and
different from that at which it began its existence.
"Worker" [Sec. 2(1)]
• A person employed in any manufacturing process
 directly or by or through any agency (including a contractor)
 with or without the knowledge of the principal employer,
 whether for remuneration or not.
"Manufacturing process" [Sec. 2 (k)]
• 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 or breaking up ships or vessels: or
(vi) preserving or storing any article in cold storage;
CASE EXAMPLE
Extraction of salt from seawater [Ardeshir H. Bhiwandiwala vs. Bombay State AIR 1962 SC 29] and bidi
[Chintaman Rao vs. State of M.P. AIR 1958 SC 388] making, have been held to be a manufacturing process.
Whereas, converting high voltage electricity into low voltage is not a manufacturing process [Gujarat
ElectricityBoardvs. State of Gujarat (1984) 2 LLJ 370 (Guj.).
"Occupier" of a factory [Sec. 2(n)]
• The person who has ultimate control over the affairs of the factory:

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IIPM 2 CHAPTER 01- FACTORIES ACT
(i) in the case of a firm or other association of individuals - any one of the individual partners or
members;
(ii) in the case of a company - anyone of the directors
(iii) in the case of a factory owned or controlled by the -
Central or any State Government, or any local authority - the person(s) so appointed to manage the
affairs of the factory.
• where a ship is being repaired - the owner of the dock .
'Hazardous process" [Sec. 2 1[(cb)]
• Any process or activity uses raw materials or the intermediate or finished products, by-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:
ADMINISTRATIVE SET UP
• The State Government is the Chief Administrative Authority that ensures enforcement of the Factories Act
in its State through the inspectorate.
• The inspectorate is headed by a Chief Inspector who is assisted by such Additional Chief Inspectors, Joint
Chief Inspectors, Deputy Chief Inspectors, Inspectors and other Officers, as may be appointed by the State
Government. The State Government also appoints doctors or surgeons for certifying children and
adolescents as fit for work in factories.
OBLIGATIONS OF EMPLOYERS
(1) Compulsory prior approval
• The occupier of any factory has to obtain prior approval of the State Government for the site on which the
factory is to be situated and for the construction or extension of any factory.
• Mere replacement or addition of any plant or machinery shall not require prior approval (or licence) unless
such replacement or addition reduces the space considered necessary for safe working, or affects the
environmental conditions of the factory.
(2) Registration/licence and Notice by Occupier – atleast 15 days` before
• The occupier of factory has to get the factory registered for obtaining a licence for operating it and send a
notice of occupation to the Chief Inspector of Factories, at least 15 days before he begins to occupy the
factory.
• The Application-cum-Notice generally contains the name and situation of the factory; name and address of
the owner, occupier and manager of the factory; address to which communications relating to the factory
may be sent; nature of the manufacturing process; total rated horse power installed or to be installed in the
factory, excluding the rated horse power of any stand-by plant: number of workers likely to be employed in
the factory; average number of workers per day employed during the last 12 months, etc.
(3) Grant and Renewal of Licence - annual
• When the Chief Inspector is satisfied about the particulars submitted in the application, the Licence for
operating factory shall be granted which shall be valid upto next 31st December.
• Renewal of Licence shall be applied every year, in the prescribed form.
(4) Notice of Change of Manager
• Whenever a new manager is appointed the occupier must intimate the Inspector and the Chief Inspector in
the prescribed form, within 7 days from the date the Manager takes over the change.
(5) General Duties as to Health, Safety and Welfare of workers
Every occupier shall ensure/provide for the health, safety and welfare of all workers:-
(a) in operating any plant or system
(b) in handing , storage and transport of articles and substances;
(6) General Duties as regards Articles and Substances for Use in Factories
• Every person who designs, manufactures, imports or supplies any article for use in any factory, shall—
(a) Ensure that the article is so designed and constructed as to be safe and without risks to the health of
the workers when properly used;
(b) Carry out necessary tests and examination for the purpose.
(c) Take necessary steps to ensure that adequate information is available regarding safe usage of the
article and conditions necessary thereof.
(7) To Provide Health Measures
(a) Cleanliness and disposal of wastes and effluents
(b) Ventilation, Temperature and Humidity
(c) Prevent Dust and Fumes

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IIPM 3 CHAPTER 01- FACTORIES ACT
(d) Avoid Overcrowding
(e) Lighting and Drinking Water
(f) Latrines, urinals and spittoons.
(8) To Undertake Safety Measures
(i) Fencing of all dangerous and moving parts of the machinery.
(ii) Young persons (aged between 15 to 18 years)
(iii) No person shall be employed to lift, carry or move excessive loads
(iv) All hoists, lifts and other lifting devices for raising or lowering persons or goods shall be of good
construction, sound material, adequate strength and free from all defects.
(v) Keeping floors, stairs, steps, etc. free from obstructions and slippery substances.
(vi) Taking necessary precautions and providing screens or goggles for protection of eyes, precautions
to prevent exposure to dangerous fumes, gases or dust, and measures to prevent accumulation of
explosive or inflammable dust, fumes, gases or vapors.
(vii) Providing safe means of escape in case of fire, necessary fire-fighting equipments and training
workers about use of such equipments.
(viii) Appointing Safety Officers in factories employing 1000 or more workers.
(9) Welfare Amenities
• Every factory shall provide adequate and suitable facilities for:
(a) Washing, drying and storing of clothes;
(b) Sitting arrangements for employees who are required to work in standing position;
(c) First-aid boxes (atleast one box for every 150 workers) and maintained under a certified person
(d) Ambulance rooms (when 500 or more workers are ordinarily employed in the factory).
(e) A suitably located canteen (when ordinarily 250 or more workers are employed in the factory) and
operated on non-profit basis.
(f) Rest-rooms/shelters and lunch rooms with provision for drinking water (when ordinarily 150 or more
workers are employed in the factory).
(g) Crèches (when 30 or more. women workers are employed in the factory) sufficiently lighted and
ventilated and maintained in a clean and sanitary condition under the charge of women trained in child
and infant care.
• Besides, if in a factory ordinarily 500 or more workers are employed, the employer shall appoint welfare
officers.
(10) Working Hours, Holidays and Overtime
(a) Restrictions on Employment of Women, Children and Adolescents
Women workers are not to be employed or allowed to work during night or between the hours of 7 p.m.
and 6 a.m. No child below the age of 14 years is to be employed in any factory.
(b) No Dual Employment
(c) Working Hours
 The working hours for an adult worker, or an adolescent certified to work as an adult, should not
exceed 48 hours in a week and 9 hours in a day, while for a child the working hours should not exceed
4-1/2 hours in a day.
(d) Rest Intervals and Spread Over
 Every worker is to be allowed at least half-an-hour rest interval after a maximum working of 5 hours at a
stretch.
(e) No Overlapping of Shifts
(f) Weekly Holidays
 Every worker is to be allowed one holiday (period of 24 consecutive hours), in a week, on any day, so
that it does not result in more than 10 days continuous work, without a holiday.
(g) Overtime
 A worker working for more than 9 hours on any day or for more than 48 hours in any week, shall be
entitled to overtime work at twice the 'ordinary rate of wages.
(h) Notice of Periods of Work
 No adult/child is allowed to work in a factory otherwise than in accordance with the notice of periods of
work displayed in the factory.
(i) Register of Workers
(11) Leave with Wages
Earned Leave
 Every worker who has worked for a period of 240 days or more during a calendar year shall be entitled
to following leave with wages during the next calendar year:-
(i) Leave of one day for every 20 days of work performed; if he /she is an adult; or
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IIPM 4 CHAPTER 01- FACTORIES ACT
(ii) Leave of one day for every 15 days of work performed, if he/she is a child.
 The above limit for leave is the minimum limit and not the maximum.
Accumulated Leave
 Leave not availed of during the year, can be carried forward upto 30 days in case of an adult and upto
40 days in case of a child. However, refused\ leave can be carried forward to next year without any
limit.
Application for Leave
 To be made by a worker atleast 15 days before the date on which he wishes to avail of the leave,
except in case of illness.
Leave Registers to be maintained
(12) Display Notices, Maintain Registers and Submit Returns
(a) Notices – all notices should be English and in a language understood by the majority of the workers.
(b) Registers
(c) Returns in prescribed form
(13) Notice of Accidents, Dangerous Occurrences and Diseases
• The manager of a factory to send notices of the fatal and other accidents causing disablement to the worker
within a period of 48 hours of the occurrence.
(14) Obligations Regarding Hazardous Processes/Substances
• The occupier/manager to undertake adequate measures for ensuring safety of life and health of the
workers employed in the factory and of the public in the vicinity of the factory.
OBLIGATIONS OF EMPLOYEES [SECTION 111]
(1) A worker should not willfully interfere with or misuse any appliance, convenience or other thing provided for
the purpose of securing the health, safety or welfare of the workers.
(2) A worker should not wilfully and without reasonable cause do anything likely to endanger himself or others.
(3) A worker should not wilfully neglect to make use of any appliance or other things provided for the purpose
of securing the health or safety of the workers.
Note -Contravention of any of the above provisions would entail imprisonment upto 3 months or fine upto Rs.
100 or both.
RIGHTS OF EMPLOYERS
(1) Right to carry on the plan of setting up a new factory or extension of an existing one, if no adverse order is
communicated to him within 3 months of the application for approval.
(2) Right to appeal to the Central Government against the State Government's refusal to grant approval to his
application for setting up a factory.
(3) Right to restrain a child or a young person not holding a certificate of fitness, from working in the factory.
(4) Right of appeal against the order of the Inspector or Chief Inspector, to the prescribed appellate authority,
within 30 days of the service of the order.
(5) Right to demand an application for leave from the worker and a medical certificate when leave is availed on
the ground of iIIness.
RIGHTS OF EMPLOYEES
(1) The obligations of the employers are, practically speaking, the rights of the employees.
(2) A worker has the right to obtain from the occupier, information relating to workers' health and safety at
work.
(3) A worker has the right to get himself trained in respect of workers' health and safety.
(4) A worker has the right to represent to the Inspector in the matter of inadequate provision for protection of
his health or safety in the factory.
(5) A worker has the right not to pay any fee or charge for the facilities or appliances provided by the employer.
(6) A worker has the right to claim wages for or in lieu of leave allowable to him.
OFFENCES AND PENALTIES
Offences Penalties
1. (i) If the occupier and manager of a factory contravenes of Imprisonment to each upto 2 years or fine upto As. 1 lakh or
provisions of the Act , Rules or order issued thereunder. both.
(ii) If the offence continues after conviction.
(iii) On subsequent conviction of the same offences Further fine upto Rs. 1000/- per day of default
Imprisonment upto 3 years or fine upto Rs. 2 lakhs
(Minimum fine Rs. 10,000/-) or both.
(iv) Failure to comply with any of the safety measures or As stated in (i), (ii) or (iii) above. However, the minimum fine
precautions against dangerous operations (sec. 87), which shall be
results in an accident causing

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IIPM 5 CHAPTER 01- FACTORIES ACT
(a) Death. Rs. 25,000 (Rs. 35,000 on subsequent conviction).
(b) Serious bodily injury. Rs. 5000' (Rs. 10,000 on subsequent conviction)
2. (i) Failure to comply with precautions against hazardous (i) Imprisonment upto 7 years and fine upto Rs, 2 lakhs.
processes and substances
(ii) If offence continues after first conviction. (ii) Additional fine upto Rs. 5,000 per day of default.
3. Any person who wilfully obstructs an Inspector or fails to Imprisonment upto 6 months or fine upto Rs. 10,000/- or
produce before him any records/documents. both.
4. Any person who publishes or discloses to any person the Same as above
results of an analysis of samples.
5. Any person who sells or lets on hire for use in a factory Imprisonment upto 3 months or fine upto Rs. 500/- or both.
any machinery driven by power which is not effectively
guarded against danger or encased.
6. Any person who spits within the premises of a factory Fine upto Rs. 5/-.
except in the spittoons.
7. A medical practitioner who attends on a worker of a factory Fine upto Rs. 1000/-.
who is found suffering from an occupational disease, fails to
report to the Chief Inspector.
8. If any worker contravenes any provision of the Act or Aules Fine upto Rs. 500/
made thereunder.
10. Any parent/guardian/custodian of a child or a person Fine upto Rs. 1000/unless it appears to the court that the
obtaining any direct benefit from the child's wages permits child worked without the consent of the accused.
the child for double employment.
11. Any worker who acts in contravention of Section 111 Imprisonment upto 3 months or fine upto Rs. 100/- or both.
(obligations of employees with regard to safe use of
appliances, etc.).

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