How to Maintain Compliance under Factories Act, 1948

Compliance under Factories Act, 1948: All the companies or Factories working in India need to obey the compliance rules, regulation as per the provisions stated under the Factories Act.

Introduction to Factories Act, 1948

The Factories Act 1948 is a part of social welfare legislation that implies on factories for the benefit of both employer and employee that facilitate smooth running of the factory by complying with the provision of the Act.

Applicability and Non-applicability of the Act

The act applies to the entire establishment which is factories within the meaning of Section 2(m). It is defined as:

  1. A premise (including the precincts thereof) wherein 10 or more person employed and in any part of which a manufacturing process is carried on with the aid of power.
  2. A premise where in 20 or more person employed and in any part of which a manufacturing process carried on without the aid of power.

However the Act excludes the following from the purview of the definition:

  1. A mine.
  2. A mobile unit belonging to the armed forces of the union.
  3. A railway running unit.
  4. A hotel, restaurant, guest houses and eating places.

Process of Licensing and Registration of Factories

Effective monitoring of the Factories covered by the Act commences with the scrutiny of the place and approval of plans and specification before they are registered under the Act and license are issued for the running of the factories.

Before going to apply for approval of the building or site plan a number of documentation need to arrange. Few of those mentioned below and the requirement for documents is more or less similar in every state in India:

  1. Flow chart of the manufacturing process.
  2. Site map for the factory.
  3. Building drawing including elevation and fire prevention measures.
  4. List of machinery to be used with its layout.
  5. Certificate of Incorporation.
  6. List of Directors and many more in the list.

After getting approval for your building or site plan you may proceed to apply for registration of your factory. There are also a bunch of documents again need to arrange. As I told the requirement for documents is more or less similar in every state in India. Few of those mentioned below:

  1. Certificate of stability approved by engineer/CA.
  2. Board resolution of the director of the company.
  3. Power sanctioned certificate from electricity board.
  4. Fire NOC.
  5. NOC from Pollution Control Board of the State.
  6. Lift NOC if there is elevator in the factory.
  7. Certificate of Incorporation.
  8. List of Directors and many more in the list.

Section 6 of the Act providing for licensing and registration. The plans and specifications are required to be submitted for the consideration of the authorities for being satisfied with the arrangement proposed to dispose the waste and effluents and to meet the other requirement intended to secure the health, safety and welfare of the worker. As part of the licensing process the occupier is also obliged to give the chief inspector a written notice under section 7 furnishing particulars like the name, place of factory, name and address of the occupier, the nature of the manufacturing process the name of the manager the number of workers likely to be employed. If the inspector satisfied with the entire documentation plan and all then the factory may granted the registration. Permission or license as the case may be refused if all the requirement not complied by the occupier. And there is also a scope for appeal in such case.

Major Provisions of Factories Act, 1948

The major provision under the Act categorized according to its various chapters as below:

  1. Provision related to health, safety and welfare of workmen. (chapter III, IV and V of the Act)
  2. Provision relating to working hour of adults and annual leave with wages. (Chapter VI and VIII)
  3. Provision relating to employment of women and young persons. (chapter VII etc.)

Provision relating to Health

  1. Every factory shall kept clean and free from effluent arising from any drain, privy or other nuisance and to maintain the same measure can be taken like daily sweeping of floors, stair cases, benches of workmen, washing the floor, maintain effective drainage system, painting and varnishing walls, window doors, ceiling, shutter etc.
  2. Effective treatment of wastes and effluents and proper arrangement of disposal of such wastage also taken into consideration.
  3. Proper ventilation system needs to arrange in the factory house to avoid serious health hazards arising from industrial dust and fume. Adequate ventilation system is required for circulation of fresh air so that the temperature as will secure to worker reasonable condition of comfort and prevent health injury.
  4. Artificial humidification is also sought to be regulated as the same is likely to cause acute discomfort in certain cases. And corrective measure needs to adopt as per the provision of the Act.
  5. Overcrowding in any room in the factory to an extent is injurious to the health of the worker employed is prohibited.
  6. There is an obligation on employer to provide and maintain sufficient and suitable lighting in every part of the factory where workers are working or passing through. Such lighting may be natural or artificial or both.
  7. Every employer required to make effective arrangement to provide and maintain sufficient supply of wholesome drinking water in a freely accessible place by the workers. And such point shall be at least 6 meters away from urinal, latrine, spittoons, and open drainage carrying waste or effluent. Unless a short distance approved by the inspector.
  8. Providing sufficient latrine and urinal facilities in a place situated at a place freely accessible by the worker.
  9. Provided latrine and urinal facilities should be separate for Male and Female workers.
  10. Such latrine and urinal facilities should have proper lighting and ventilation system along with clean and sanitary condition is also mandate by the Act. Special standard however, are stipulated for the factories employing more than 250 workers.
  11. All the employer obligated to provide a sufficient number of spittoons at places convenient to all workers. Such spittoons shall also be maintained in clean and hygienic condition.

Provision relating to Safety

  1. Every employer required arranges proper fencing around the machinery or part of the machinery if it is considered as dangerous under the provision of the Act.
  2. When it is necessary to examine any part of the machinery while the machinery is in motion then such examination must carried out by specially trained adult male worker wearing tight-fitting clothing and whose name has been recorded in the register in this behalf and who has been furnished with a certificate of appointment.
  3. The act prohibits the employment of young person at such machines as are of such a dangerous character that young person ought not to work at them. If such young person allowed working in such machinery then proper training need to provide to such young person and under adequate supervision he may allowed to work at such place.
  4. Appropriate standard are also laid down with respect to construction, maintenance and operation of self-acting machines, hoists and lifts, lifting machines, chains, ropes, lifting tackles, revolving machinery, pressure plant and also casting of new machinery.
  5. Obligation has also been imposed with respect to the construction and maintenance of floor, stairs and means of access and fencing of pits and sumps.
  6. Precaution against dangerous fumes and gases, regarding the use of portable electric light and in case of fire are adversely dealt with in the interest of the workmen.
  7. Employer whose factories produce dust, gas, fume etc of such character and such extent as to be likely to explode on ignition are under an obligation to take all practicable measures to prevent such explosion.
  8. Appointment of safety officer is also envisaged in case of the factory employees more than 1000 or more workers of carrying on any manufacturing process involving any risk of bodily injuries. , poisoning of disease or any other hazard to health to the person employed.
  9. Provision relating to hazardous processes is extensively stipulated implying the responsibility of the employer in relation to such processes and the right of the workers to be warned about imminent danger and accident prevention latest strategy need to adopt in the factories to ensure maximum safety.

Provision relating to Welfare

  1. The provision of the Act mandates the employer to provide adequate and suitable facilities for washing and maintain for the use of the worker in the factory. And such facility should be separate for male and female and must be at the convenient place and kept clean.
  2. Provide adequate place to keeping clothes not work during working hours and for drying of wet cloths.
  3. Ensure facilities for sitting in the factory to help the workers to discharge their work with ease.
  4. The Act also places obligation in respect of maintenance of first aid appliances in the factory and the number of boxes to be provided one for every 150 workers . The same must be readily accessible during the working hour and must be kept in charge of separate responsible person who hold a certificate in first-aid treatment recognized by the state govt.
  5. In case of factory employing more than 500 employees a special facility of an ambulance room is also emphasized. The ambulance room must be of particular standards and must be kept in charge of medical and nursing staff.
  6. The Act also imposes responsibility to providing and maintaining canteen for the use of the worker in the factories employing worker exceeding 250.
  7. Factories employing more than 150 workers also obliged to provide shelters, rest rooms and lunch rooms for the benefit of the workers. The rooms are required to be maintained with provision for drinking water with sufficient light and ventilation. They must be maintained in cool and clean condition.
  8. Crèches facility in the factory also needs to provide where more than 30 women worker employed. Such crèches which are for the use of children of 6 years of such women must be clean, proper lighted, ventilated and must be under the charge of women trained in the care of children and infants.
  9. Appointment of welfare officer in the factory that employees 500 and more workers also mandatory according to the provision of the Act.

Provision relating to Working Hours of Adults

  1. Daily working hour for adults shall not exceed 9 hour and weekly limit is 48 hours fixed by the act.
  2. Weekly holiday shall also be provided on the first day of the week.
  3. If there is any necessity arise to work on weekly holiday the worker must provide a compensatory holiday within next three days immediately before or after such first day.
  4. Half our of rest need to provide to workers after every 5 hours as per the act. And period of work inclusive of intervals shall not spread over 10 ½ hours in any day.
  5. If a worker works at night the holiday shall means a period of 24 hours commencing from the termination of the shift.
  6. If a worker mores more than 9 hour he shall be entitled to receive the wages at double rate for such over time worked. And overtime work cannot be exceeded more than 1.5 hour on that day.
  7. A register of adult worker also required to maintain which shall be made available to the inspector at all times during working hour.

Provision relating to Annual Leave with Wages

  1. A worker who has worked for a period of 240 days or more during a calendar year, he is entitled to get leave during the subsequent calendar year.
  2. In case of an adult, 1 day for every 20 days work performed by him during the previous calendar year.
  3. In case of child, 1 day for every 15 days of work performed by him during the previous calendar year.
  4. Unused leave can be carried forward subject to maximum 30 days in case of an adult and 40 days in case of a child.
  5. The rate of leave shall be equal to daily average of his full time earning for the days her has actually worked during the month immediately preceding his leave.

Provision relating to Working of Women

  1. No women worker allowed to work beyond 6 am to 7 pm during any day. And also not allowed to work in night shift.

2. In some cases and in some types of factories the working hour for women may vary to some extend but with proper permission of the appropriate authority

Provision relating to Employment of Young Person

  1. Factories Act prohibits engaging children below the age of 14 years.
  2. Children’s under the Act divided into two classes namely ” children” who have not attained the age of 15 years and “adolescents” who have attained the age 15 but have not attained the age of 18. Both of the classes commonly known as young persons.
  3. The employment of child or adolescents is permitted on the condition of obtaining a certificate of fitness and carrying while he is at work a token giving a reference to such certificate. Such certificate valid for a period of 12 months.
  4.  Children as per the meaning of the Act as above not permitted to work more than 4.5 hour a day or night.
  5. Children as per the meaning of the Act also not allowed to work at two shift and cannot be allowed to work in more than one factory on the same day.
  6. Adolescents as per the meaning of the Act is considered to be an adult for the purpose of other provision of the act provided he has a certificate from a certifying surgeon that he is capable for a full day work.
  7. A register need to maintain for child worker and shall be made available to the inspector at all times during working hours.

You may also read: E-Shram Card Registration Benefit and Procedures

Statutory Registers and Returns under Factories Act, 1948

A number of register need to maintain under the Factories Act. And there are few returns also need to maintain to be fully complied. The form used of different register may vary state wise. But they were almost similar and only the number of the form may vary.

I’m referring to the Assam Factories Rules, 1950 for registers & return as I’m belongs to Assam. And the complete list of register and return provided below for reference:

  • 1- Application for permission to construct or take into use any building for factory.
  • 2- Application for license.
  • 4- Certificate of Registration.
  • IV- Annual Return of wages & Deduction made from wages of worker.
  • 5- Certificate of Fitness.
  • 6- Humidity Register.
  • 7- Record for Lime washing and painting etc.
  • 8- Report of examination of Pressure Vessel.
  • 9- Register of Compensatory holidays.
  • 10- Overtime Muster Roll for exempted workers.
  • 11- Notice period of work of Adult and children.
  • 12- Register of Adult worker.
  • 13- Register of Adult workers for Factories exempted.
  • 14- Register of Child worker.
  • 15- Register of Leave with wages.
  • 16- Leave Book.
  • 17- Health Register.
  • 18- Notice of Accident.
  • 18A- Notice of Dangerous Occurrence.
  • 19- Notice of Poisoning or disease.
  • 20- Abstract under Act.
  • 21- Annual Return.
  • 21A- Register of specially Trained Adult male worker.
  • 22- half yearly Return.
  • 24- Report of examination and Test of dust Extraction System.
  • 25- Muster Roll.
  • 27- Special certificate of Fitness.
  • 28- certificate of Fitness.
  • 29- certificate of Fitness for Dangerous operation.
  • 30- Record of Eye examination.
  • 31- Declaration for Nomination by worker.

Penal Provision under Factories Act, 1948

  1. If any factory found to be violating any provision of the actor, any rules made there under or any order made in writing, the occupier and manager will be guilty of an offence and punishable with imprisonment for a term which may extend to 2 year or fine that may also extend up to 1 lakh rupees or both.
  2. Any if such contravention is continued then a fine of rupees 1000 per day will be levied as per provision.
  3. And if any contravention repeated again by the occupier and manager, punishable with imprisonment for a term which may extend to 3 years or fine that may also extend up to 2 lakhs rupees or both.

I have tried to listed out all the major compliances that a factory need to maintain as per the provision of the Act and as per respective state rule.

You may refer to the Factories Act, 1948 and your respective state Factories Rules for detail understanding about the act. I only able to cover the few of them and provided for your knowledge and learning purpose.

If you have any questions don’t forget to write in the comment below. Thank you and keep reading, keep learning.

Leave a Comment