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Chapter 1 Law of Welfare and Working Conditions Factories Act 1948 Lyst4116
Chapter 1 Law of Welfare and Working Conditions Factories Act 1948 Lyst4116
Chapter 1 Law of Welfare and Working Conditions Factories Act 1948 Lyst4116
Working Conditions
Factories Act 1948
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pg. 1
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Learning objectives:
Factories act 1948 (amended in 1987) is an act to consolidate the law regulating labour in
factories
Disclaimers:
The following points need to be kept in mind while going through all acts under industrial
relations and labour laws:
1. There are various provisions under all acts that need to be memorised. merely
understanding these provisions might not be enough.
2. Get an umbrella view of the entire act before delving into details and provisions of
the act.
How to Think:
1. You are preparing for UPSC examination, wherein you will be working as an officer at
the highest level, if selected. the best way to understand and memorise the acts is to
think like an officer on duty who is required to enforce the Acts and their provisions.
2. Everything that you read, needs to be correlated with the kind of questions that can
be asked from it in the examination. Try to frame questions from everything that you
read. That will make it easy for you to remember and reproduce the same in the
examination.
pg. 2
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pg. 3
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Table of Contents
History of the legislation: ................................................................................................. 6
Object of the act: ............................................................................................................. 6
Applicability of the act: .................................................................................................... 6
Scheme of the act: ........................................................................................................... 6
Definitions: ...................................................................................................................... 8
Adult: ...................................................................................................................................... 8
Adolescent:.............................................................................................................................. 8
Child: ....................................................................................................................................... 8
young person: .......................................................................................................................... 8
Hazardous process: .................................................................................................................. 9
Calendar year: ......................................................................................................................... 9
Day:......................................................................................................................................... 9
week: ...................................................................................................................................... 9
Power: ..................................................................................................................................... 9
prime mover: ........................................................................................................................... 9
transmission machinery: .......................................................................................................... 9
Machinery: .............................................................................................................................. 9
Manufacturing process:.......................................................................................................... 10
Worker: ................................................................................................................................. 11
Factory: ................................................................................................................................. 14
Occupier: ............................................................................................................................... 15
Statutory Agencies and their powers for enforcement of the act: .....................................17
Measures to be taken by factories for health, safety and welfare of workers ...................19
Health: .................................................................................................................................. 19
Safety: ................................................................................................................................... 20
Provisions relating to hazardous processes: ............................................................................ 21
Constitution of site appraisal committee: ................................................................................................... 21
Compulsory disclosure of information by the occupier: ............................................................................. 21
Responsibility of occupier in relation to hazardous processes: .................................................................. 21
Inquiry committee: ...................................................................................................................................... 22
Safety committee: ....................................................................................................................................... 22
Welfare of workers: ............................................................................................................... 22
Working hours: ...............................................................................................................22
Employment of young persons: .......................................................................................23
Annual Leave with Wages ...............................................................................................24
Special Provisions ...........................................................................................................25
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pg. 5
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• Before India’s independence, the workers were generally illiterate, poor and
unconscious of their rights. neither the government nor the law court took notice of
these labour problems arising in the country as they believed in the policy of non-
interference in employer and employee relations.
• After independence, the government realised that the prosperity of country lies
upon development of industrial growth. Welfare and prosperity of employees is a
pre-condition for Industrial growth and development.
• Two basic concepts were used to create labour legislations-
1. Wage earner is a partner in production and hence should be allowed due share
of profits in production
2. individual employer as well as community as a whole is under obligation to
protect the wellbeing of workers.
• The first factories act was enacted in 1881 which was replaced by the Act of 1934
• after independence the factories act 1948 was passed, in tune with the spirit of
constitution of India under article 24, article 39(e), 39(f), article 42, and article 48A
• after Bhopal gas disaster, the factories act was amended as a shift away from dealing
with disaster or diseases to prevention of its occurrence
• The Factories act 1948 came into force with the objective to provide adequate
compensation to the affected persons
• the act extends to whole of India and persons employed in factories, Plantation,
construction, mechanically propelled vehicles and in some hazardous occupations.
pg. 6
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pg. 7
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Definitions:
Section 2 provides for definition of certain words used in the act. let us first have a look at
all the terms which have been defined under the act:
1. adult
2. adolescent
3. child
4. young person
5. hazardous process
6. calendar year
7. day
8. week
9. power
10. prime mover
11. transmission machinery
12. machinery
13. manufacturing process
14. worker
15. factory
16. occupier
Adult:
• A person who has completed 18th year of age is termed as an adult
Adolescent:
• A person who has completed his 15th year of age but has not completed his 18th
year if termed as adolescent.
Child:
• A person who has not completed his 15th year of age is termed as a child
young person:
• A person who is either a child or an adolescent
pg. 8
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Hazardous process:
• Any process or activity in relation to an industry, where unless special care is taken,
raw materials used, or intermediate or finished goods, bye products, wastes or
effluents - can cause material impairment to the health of persons engaged or
connected; can result in pollution of general environment.
Calendar year:
• The period of 12 months beginning with the first day of January in any year
Day:
• it means a period of 24 hours beginning at midnight
week:
• Means a period of 7 days beginning at midnight on Saturday night or such other
night as may be approved in writing for a particular area by Chief Inspector of
factories
Power:
• means electrical energy or any other form of energy which is mechanically
transmitted and not generated by human or animal agency
prime mover:
• An engine, motor or other appliance which generates or provides power
transmission machinery:
• A device by which the motion of a prime mover is transmitted or received by any
machinery
Machinery:
• Includes prime movers, transmission machinery and all other appliances whereby
power is generated, transformed, transmitted or applied
pg. 9
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Manufacturing process:
pg. 10
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• Vehicles- The business of sale of diesel oil, motor spirit, lubricants, servicing of cars
and lorries, repairing vehicles, charging batteries, by employing more than 20
workers amounts to manufacturing process
• Decorticating (removing husk etc) from groundnuts in electric mill
• Construction of Railway - use of raw materials like sleepers, bolts etc for ultimately
laying down railway line
• Hotel, eating places or restaurants – There is a contradiction here. The Supreme
court, in 1993, by its order said that an entire hotel falls within the purview of
definition of factory, whereas, the Factories Act 1948 specifically removes hotels,
eating places and restaurants from being counted under the definition of a factory.
You will find many such contradictions in Acts. In such a situation, the act is to be
followed in the examination unless there is a mention of the Court’s decision. The
Court’s decision in this case was in reference to some circumstances and facts, which
cannot be applied to the act blindly, unless amended in the act by the Legislature.
• Protection and maintenance of articles – By packing, oiling, washing, cleaning etc.
• Packing - Receiving products in bulk, packing as per clients requirements.
• Breaking up of boulders
pg. 11
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• The Supreme Court held that bidi roller is not a worker. if a servant has full liberty
to attend to his work according to his pleasure and not according to orders of his
master then the direction and control over the worker both in manner of the nature
of work and its details is not fulfilled. In the above case, the management was not
concerned with when the Bidis were rolled. it was only concerned with the
outcome.
• In another case the Supreme Court held that the work of garbling pepper by
winnowing, cleaning, washing and drying in lime and laid out to dry in a warehouse
are manufacturing processes. Persons employed in these processes are workers.
• A day labourer, who is not free to work for such period as he likes, not free to come
and go whenever he chose and not free to absent himself at his own will, is held to
be a worker.
• Women and girls employed in peeling, washing etc, of consignment of prawns
brought on the premises at anytime without any specified hours of work and
pg. 12
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without any control over their attendance, without any control over the quantum
of work, are not workers.
• It was held in a case that whether the Workman stands outside the factory
premises or inside it, if his duties are connected with the business of the factory or
connected with the factory, he is employed in the factory.
pg. 13
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• it was held in a case that definition of worker does not exclude those employees
who are entrusted solely with clerical duties. For example time keepers,
accountants/ Munim.
• In another case, it was held that “a person employed by a gas manufacturing
works as a Cooley for excavating and digging trenches outside the factory for
laying pipes for transporting gas to customers cannot be held to be a worker”
• It was held that the workmen in canteen became workers of the respondent
corporation only for the purpose of factories act and not for any other purpose.
5. Any member of the armed forces of the union is excluded from definition of worker
Factory:
• Any premises where 10 or more workers are working, or were working on any day of
the previous 12 months, where the manufacturing process is being carried on with the
aid of power.
• Any premises where 20 or more workers are working, or were working on any day of
the previous 12 months, where the manufacturing process is being carried on without
the aid of power.
• The definition of factory specifically excludes a mine subject to operations of mines
act 1952, automobile unit belonging to armed forces of the union, railway running
pg. 14
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shed or a hotel, restaurant or eating place. Hotels, restaurants and eating places
come under manufacturing process but do not come under the definition of factory.
Factory
Essential elements of a
Not covered by definition of factory
factory
There must be
premises Railway running sheds;
mobile units of armed
forces; hotels, eating
there must be a places or restaurants
manufacturing
process
10 or more workers-
if with aid of power;
20 or more workers if
without power
• The word premise is a generic term meaning open land or land with building or
building alone
• The term precincts is usually understood as a space enclosed by walls
• It was held in cases that “All the length of railway line would be phase wise
factories. company engaged in construction of railway line is factory.”
• A place solely used for some purpose other than manufacturing process carried
on in a factory or workshop does not constitute a factory.
• Salt works in which the work done is of conversion of sea water into salt crystals,
come within the meaning of the word premises.
Occupier:
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• A person who has the ultimate control over the affairs of the factory
• any of the individual partners or members shall be deemed to be occupier
• in a company, any one of the directors shall be deemed to be the occupier
• in the case of a factory owned or controlled by central government or state
government or local authority, the person appointed to manage the affairs of the
factory shall be deemed to be the occupier
pg. 16
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Deemed approval:
• If on an application for permission to the state government or chief inspectors, no
order is communicated to the applicant within 3 months, the permission applied for
in the said application is deemed to have been granted.
Inspectors:
• The state government can appoint inspectors, additional inspectors and chief
inspectors.
• Every district magistrate shall be an inspector for his district.
• A Chief Inspector is appointed for the whole state.
Powers of Inspectors:
pg. 17
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• To enter any place which is used or which he has reason to believe is used as a
factory
• to make examination of the promises, plant, machinery, article or substance
• inquire into any accident or dangerous occurrence
• ask production of any register or any other document relating to the factory
• seize or take copies of any registered record or other document
• direct the occupier that the premises be left undisturbed for so long as necessary for
the purpose of any examination
• take measurements and photographs and recordings
• Any substance found on the premises that is likely to cause danger to the health or
safety or workers, direct it to be dismantled and take possession of such substance
Welfare Officers:
• The act imposes statutory obligation upon the occupier of a factory to appoint
welfare officer wherein 500 or more workers are employed.
Safety Officers:
• Occupier of factory to employ safety officers where more than 1000 workers are
employed or where manufacturing process involves risk of bodily injury, poisoning or
disease.
pg. 18
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Health:
• In cleanliness, every factory shall be kept clean and free from effluvia rising from any
drain or other nuisance.
o dirt and refuse has to be cleaned every day,
o the floor of work room has to be cleaned at least once every week
o The inside walls, partitions, ceilings, sides and tops of passages, staircases
have to be repainted at least once in every 5 years (painted without washable
paint)
o To be repainted at least one coat every 3 years and washed at least once
every 6 months (washable water paint)
o If they have smooth impervious services, to be cleaned at least once every 14
months
o in any other case, to be white washed at least once every 14 months
o all doors and window frames to be painted at least once every 5 years
• In case of dust and fume, where manufacturing processes like chemicals, textile or
jute create Dust and fumes, the following is required-
o to take measures to prevent inhalation and accumulation of dust and fumes
in work rooms.
o to install exhaust appliances
o the evidence of actual injury to health is not necessary. if the dust and fumes
are released in excessive quantity, and the health of the workers is affected,
offence is committed under this section
• Overcrowding-
o Minimum working space for each worker is 14.2 cubic metres of space per
worker in every work room. to calculate the work area, the space more than
4.2 metres above the level of floor will not be taken into consideration
• Lightening-
o Prevention of glare and formation of shadows necessary.
• Drinking water-
o all areas where drinking water is provided have to be legibly marked
“drinking water”
o no such point shall be situated within 6 metres of any washing place, urinal,
latrine, spittoon, open drain.
o If more than 250 workers are employed, provision should be made for
cooling drinking water during hot weather.
pg. 19
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Safety:
• Fencing of machinery-
o fencing of machinery in use or in motion is obligatory.
• Work on or near machinery in motion-
o Examination or operation can be carried out only by specially trained adult
male worker wearing tight fitting clothes.
o No woman or young person shall be allowed to clean, lubricate or adjust any
part of a prime mover or any transmission machinery while it is in motion or
if there is a risk of injury from any moving part of the machine.
• Employment of young persons on dangerous machines-
o A young person is not allowed to work on dangerous machines unless he has
been fully instructed, received sufficient training, under adequate supervision
of a technical expert.
• Devices for cutting off power-
o There should be suitable devices for cutting off power in emergencies from
running machinery in every workroom in every factory
• Casing of new machinery-
o Mandatory casing of new machinery to safeguard the lives of workers.
o punishment for everyone who sells or lets on hire or as agent of a seller
procures to sell for use in a factory any machinery driven by power which
does not comply with the provisions. imprisonment up to 3 months or fine up
to ₹500 or both.
• Employment of women and children near cotton openers-
o there is prohibition of employment for women and children in any part of
factory for pressing cotton in which a cotton opener is at work.
• Protection of Eyes-
o State government is to make rules and is required to provide effective
screens or goggles for protection of persons employed, in any process
involving risk of injury to eyes from particles or fragments thrown in the
course of the process, or risk to the eyes due to exposure to excessive light.
• Entry into chambers with dangerous fumes and gases-
o the act prohibits entry in any chamber, tank, pit n or other confined space in
any factory in which any gas, fume, vapour or dust is likely to be present.
o Allowed in case of provision of a manwhole of adequate size or other
effective means of egress.
o The space should be reasonably free from dangerous gases or fumes
o the person should be wearing suitable breathing apparatus and a belt
attached to a rope connected with outside space.
• Use of portable electric light in chambers-
o In enclosed spaces like chambers, tanks, pit, pipe etc, the act prohibits use of
portable electric light or any other electrical appliance of voltage exceeding
24 volts.
• Precautions in case of fire-
o safe means of escape for all persons in the event of fire
o necessary equipment and facilities for extinguishing fire
pg. 20
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• The factories amendment act 1987 has inserted a new chapter relating to hazardous
processes
• For granting permission for initial location of a factory involving hazardous process a
site appraisal committee is to be appointed by the state government. the committee
is required to recommend approval or rejection within a period of 90 days.
• If the factory is owner controlled by the central government, the state government
shall Co-opt in the site appraisal committee a representative nominated by the CG as
a member of that committee.
• Once approval is obtained from site appraisal committee, there is no need for
further approval from central board or state board under the water prevention and
control of pollution act 1974 and air prevention and control of pollution act 1981.
• the occupier has to disclose all information regarding dangers including health
hazards and the measures to overcome hazards, to the workers employed in the
factory.
• every occupier has to draw and on site emergency plan and detailed disaster control
measures for his factory.
• The occupier is required to lay down measures for handling usage transportation and
storage of hazardous substances.
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Inquiry committee:
• the central government has the power to appoint an inquiry committee if there is an
extraordinary situation involving a factory engaged in a hazardous process.
Safety committee:
Welfare of workers:
Working hours:
pg. 22
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adjusted that the total weekly hours does not exceed 48. the liability of employer
cannot be absolved on the ground that workers are willing to work for longer hours
without any extra payment.
• Rest intervals- no period of work shall exceed 5 hours and no worker can work for
more than 5 hours before he has had an interval for rest of at least half an hour.
o Even if the state government exempts the factory from the above rule, the
total hours worked by worker without an interval cannot exceed 6.
• Spread of entire work day- the period of work of an adult worker has to be so
arranged that it does not spread over more than 10 and half hours in any day. the
spread can be increased to up to 12 hours after permission from Chief Inspector.
• Extra wages for overtime- if any worker works for more than 9 hours in any day, or
48 hours in any week, he is entitled to get wages at the rate of twice his ordinary
rate of wages. the ordinary rate of wages means basic wages plus allowances.
o the ordinary rate of wages does not include house rent allowance and bonus.
o if the worker is paid on piece rate basis, the time rates shall be considered
equivalent to daily average of their full time earnings.
• Restriction on double employment- no adult worker shall be allowed to work in any
factory on any day on which he has already been working in any other factory.
• Register of adult workers- the manager of every factory has to maintain register of
adult workers to be available to the inspector at all times.
o the register shall contain the name of each adult worker in the factory and
nature of his work
o No worker is allowed to work in a factory unless his name and other
particulars have been entered in the register of adult workers.
• Rules for persons holding position of supervision or management or confidential
position in a factory-
o the total number of hours of work in any day shall not exceed 10.
o the spread over inclusive of intervals shall not exceed 12 hours
o the total number of hours of work in a week including overtime cannot
exceed 60
o the total number of hours of overtime cannot exceed 50 for one quarter
• Restriction on employment of women- no women can be allowed to work in any
factory except between 6:00 AM and 7:00 PM. the state government can by an
Official Gazette change the above time limit, but no woman can be asked to work
between 10PM and 5AM.
o Potential employment to a woman cannot be denied on the sole ground of
sex when no other factor arises.
• A child who has not completed his 14th year cannot be employed in any factory.
• An adolescent who has completed 14th year can be allowed only after a certificate
of fitness is granted. (work as a child).
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• A person who has completed 15th year and is fit for full days’ work can be granted a
certificate of fitness to work as an adult.
• A certificate of fitness is valid for 12 months.
• An adolescent who has received certificate of fitness to work as an adult is treated as
an adult for working hours and leaves.
• An adolescent who has not attained the age of 17 years but has received certificate
of fitness to work in a factory as an adult is allowed to work between 6:00 AM and
7:00 PM.
• A child is not allowed to work for more than 4 and a half hours in any day and night.
night means time interval between 10:00 PM to 6:00 AM.
• A female child cannot be allowed to work in any factory except between 8:00 AM
and 7:00 PM.
• It is mandatory for manager of a factory to maintain register of child workers which
includes name, nature of work and number of certificate of fitness.
• If the agreement between worker and employer provides for a longer annual leave
with wages than provided in this act, then the agreement shall be followed.
• If the agreement provides for less favourable leave with wages than provided in this
act, then the provisions of this act shall apply.
• “Annual leaves with wages” under this act shall not apply to Factories of railways,
administered by the government.
• Basis of leave- If a worker has worked for 240 days or more in a calendar year,
worker is entitled to leave with wages on the following basis-
o Adult- 1 day for every 20 days of work done
o Child- 1 day for every 15 days of work done
o Fraction of leave of half a day or more to be treated as full day leave, less
than half a day to be ignored.
• How to calculate qualifying period of 240 days- the following are included-
o Days of lay off
o Period of maternity for women upto 12 weeks
o Leave earned in the previous year
o The above mentioned days are used in calculating qualifying period but no
leave is granted for these days.
• Accumulation or carry forward of leaves-
o If any worker does not avail any earned leave entitled to him, he can carry it
forward to the next calendar year, maximum of 30 days for adults and 40
days for child.
• How to apply for leave with wages-
o Apply in writing to the manager, atleast 15 days in advance
pg. 24
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Special Provisions
pg. 25
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General penalty for any For Violating any provisions Imprisonment- max 2 years
offence of this act Fine- Max 1 lakh or BOTH
Liability- owner or occupier
Repetition of the above Fine of Rs 1000 per day
violation
Violation causing death or Fine- Max Rs 25000-
serious injury (permanent accident causing death
loss of use of body part) Fine- Max Rs 5000- accident
causing serious injury
Enhanced penalty after Violation of the above Imprisonment- max 3 years
previous conviction (new Fine between 10,000 to 2
violation after 2 years of lakh
commission for previous
conviction)
Violation causing death or Fine- 35000 for death
injury Fine- 1000 for injury
Penalty for obstructing Wilfully obstructs an Imprisonment- upto 6
inspector inspector months
Fails to produce any register Fine- upto Rs 10000
or documents demanded by
the inspector
Prevents any worker to
appear before inspector
pg. 26
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Presumption of employment
• The offence came to the knowledge of inspector --> complaint should be made
within 3 months
• Offence of disobeying written order of an inspector --> complaint can be made
within 6 months of offence being committed
Obligation of workers
pg. 27
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Rights of workers
• Obtain info about workers health and safety from the occupier
• Get trained within the factory wherever possible, or get himself sponsored by the
occupier for training.
• Represent to the inspector directly for inadequate provisions for protection of his
health and safety in the factory.
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