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A B . H . C O N S U L T I N G P R E S E N T A T I O N . ( C ) W W W . C H H E D A C O N S U L T A N C Y S E R V I C E S . C O M

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• Introduction• Object• Definitions• DISH / Factory Inspectorate• Licensing and registration of factory• Health & Safety Provisions• Welfare measures• Working hours, Annual Leave with wages• Accident, Occupational diseases, Dangerous operations• Special Coverage, Exemptions• Testing Of Equipments, Compressors, Pressure Vessels, Etc – MFR 1963• Maharashtra Factories (Occupational Safety And Health Audit) Rules 2012• Abstracts, Notices, Registers• Obligations of Workers & of Employer• Offences and penalties• Practical aspects• Summary • Question & Answers

A B . H . C O N S U L T I N G P R E S E N T A T I O N . ( C ) W W W . C H H E D A C O N S U L T A N C Y S E R V I C E S . C O M 2

INTRODUCTION

In India the first Factories Act was passed in 1881. This Act was basicallydesigned to protect children and to provide few measures for health and safety ofthe workers. This law was applicable to only those factories, which employed 100or more workers.

In 1891 another factories Act was passed which extended to the factoriesemploying 50 or more workers.

A comprehensive Law was passed in 1911. It was further amended in 1923,1926, 1931 & 1934.

The recommendation of Rege Committee was accepted by GOI in 1948 andpresent act i.e. The Factories Act 1948 was enacted.

Came into effect on 1st April 1949.


OBJECT

• To ensure adequate safety measures and to promote the health and welfare of the workers employed in factories.

• To prevent haphazard growth of factories through the provisions related to the approval of plans before the creation of a factory.

• To regulate the working condition in factories, regulate the working hours, leave, holidays, overtime, employment of children, women and young persons ext.


DEFINITIONS

Sec 2 (k) “Manufacturing process" means any process for -

(i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing,cleaning, breaking up, demolishing or otherwise treating or adopting any article orsubstance 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 orother similar process or book-binding or

(v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships orvessels; or

(vi) preserving or storing any article in cold storage;


EX. MANUFACTURING PROCESS OF CEMENT PLANT


DEFINITIONS(2) (m) "factory" means any premises including the precincts thereof-

(i) whereon ten or more workers are working, or were working on any day of thepreceding twelve months, and in any part of which a manufacturing process is beingcarried on with the aid of power, or is ordinarily so carried on, or

(ii) whereon twenty or more workers are working, or were working on any day of thepreceding twelve months, and in any part of which a manufacturing process is beingcarried on without the aid of power, or is ordinarily so carried on

(2)(l) "worker" means a person employed, directly or by or through any agency (includinga contractor) with or without the knowledge of the principal employer, whether forremuneration or not, in any manufacturing process, or in cleaning any part of themachinery or premises used for a manufacturing process, or in any other kind ofwork incidental to, or connected with, the manufacturing process, or the subject ofthe manufacturing process.


WHETHER FACTORY OR NOT?1. Laundry division in Hotel- Not a factory ( welcome group Windsor Manor v/s State

of Karnataka and others)2. Workshop is a factory (CCI v/s Lt. Gov. of Delhi)3. Petrol pump service station is a factory (Ravi Shankar Sharma v/s State of Raj)4. Transporting goods - not a manufacturing process, hence not a factory. ( RD. ESIC

v/s Jai hind Roadways)5. Brick field – not a factory ( GR Chaudhary v/s State of WB)6. Stone crushing unit – is a factory (L & T v/s State of Orissa)

Person doing clerical work in factory – whether worker or not?He is a worker – as clerical work is indispensable for the actual manufacturing

process. (Factory Inspector v/s A.K Ganguly


DEFINITIONS(2)(n) "occupier" of a factory means the person who has ultimate control over the affairs of the

factory

Provided that-

(i) in the case of a firm or other association of individuals, any one of the individual partners ormembers thereof shall be deemed to be the occupier;

(ii) in the case of a company, any one of the directors shall be deemed to be the occupier;

(iii) in the case of a factory owned or controlled by the Central Government or any State Government,or any local authority, the person or persons appointed to manage the affairs of the factory bythe Central Government, the State Government or the local authority, as the case may be, shallbe deemed to be the occupier

(2) (cb) "hazardous process" means any process or activity in relation to an industry specified in theFirst Schedule where, unless special care is taken, raw materials used therein or theintermediate or finished products, bye 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:


DISH / FACTORY INSPECTORATE

• DIRECTORATE OF INDUSTRIAL HEALTH AND SAFETY

• Implementing agency for the Factories Act, 1948 and the Maharashtra Factories Rules 1963


LICENSING AND REGISTRATION OF FACTORY

Application for plan approval 1 Form 1 with Questionnaire - Affix Court Fee Stamp of: 10 2 Plans (Site, Building layout, machinery layout and cross sectional elevation of building)(two copies

each) a) Site Plan drawn to scale 1:500 showing the site of factory and immediate surroundings

including adjacent buildings and structure, roads, drains etc. b) Building Plan, elevation, cross sectional elevation to scale 1:100 including all relevant details

like natural lighting, ventilation, means of escape in case of fire etc. c) Machinery layout to scale 1:100 shall clearly indicate position of machines/equipments,

passages. 3 List of Raw Material (including solvents/fuels/chemicals used if any) with maximum storage

capacity and mode of storage, handling 4 List of Finished products, Intermediate products including emission of toxic gases and by-products

along with maximum quantities, method of handling, loading & transport. 5 Process flow chart 6 Description of Manufacturing Process 7 Details of likely hazards involved and methods to control them.


8 Material Safety Data Sheets in respect of hazardous chemicals. 9 Process & Instrumentation Diagram. 10 Details of Chemical reactions carried out if any. 11 Details of fire fighting arrangements proposed to made. 12 Allotment letter from MIDC/ NOC from Local authority

IF CHIEF INSPECTOR IS SATISFIED THAT PLANS ARE INACCORDANCE WITH ACT, HE WILL APPROVE THEM ANDSTATE VARIOUS CONDITIONS TO BE FULFILLED ex.CERTIFICATE OF STABILITY, FIRE FIGHTING EQUIPMENTS,ETC.


Application for Registration & grant of factory license

Form 2 - Affix Court Fee Stamp of: 10 Application in triplicate in Form 2 for registration of the Factory and Grant of License for a

period not exceeding 10 years Declaration Form, about date of commencement of manufacturing process in prescribed

format Challan/Fee receipt, Original copy of Challan of license fees paid + one self certified

photocopy copy of challan Electricity Bill as a proof for installed H.P. Proof for Ownership of Premises(Owned/Rented/Leased etc.) (In case of owned-7/12

extract, tax receipt, In case of factory located in M.I.D.C.- a allotment letter from M.I.D.C., Incase of Rented/Leased-a lease deed) Proof of Residence of Occupiers A certified copy of MOA, A copy of List of Directors with residential address certified by

company secretary. A copy of Board Resolution nominating one of the Director as an Occupier certified by the

Company Secretary. Letter of acceptance by the Director as occupier of the Factory certified by company

secretary. AN Authority Letter / copy of Board Resolution nominating any person as a Manager of the

factory certified by the Company Secretary, if any. A Copy of Letter of Approval of Plan by DISH. Reply towards fulfillment of conditions as set out during plan approval


APPLICATION FOR RENEWAL

License can be granted for a period of maximum 10 years Renewal on or before 31st October. Maximum Renewal for 10 years. Form 2 - Affix Court Fee Stamp of: 10 Application in triplicate in Form 2 for renewal of License for a period not exceeding

10 years Challan/Fee receipt, Original copy of Challan of license fees paid + one self attested

Photo copy of challan


ADDITIONS / ALTERATIONCHANGE OF OCCUPIER – WHAT TO DO?Submit Form 2 along with relevant documents as above

CHANGE OF MANAGER – WHAT TO DO?Submit Form 5 along with relevant documents as above

EXTENSION OF FACTORY / CHANGE IN MFG PROCESS – WHAT TO DO?Submit new plans and process details as above Pay the difference feesFulfill various conditions as provided by the factory InspectorApply and obtain Revised license


HEALTH PROVISIONS

• To keep factory clean and free from effluvia

• To dispose waste and effluents

• To maintain adequate ventilation and reasonable temperature

• To prevent inhalation of dust and fumes and their accumulations in any work room

• To ensure proper standards of humidification where humidity is artificially increased

• To avoid over-crowding

• To provide sufficient and suitable natural or artificial lighting

• To provide sufficient supply of wholesome drinking water. Factories with 250+ workersmust provide cool drinking water during hot weather.

• To provide separately for male and female worker sufficient latrine and urinalaccommodation of prescribed types.

• To provide for sufficient no of spittoons and maintain them in clean and hygieniccondition.


HEALTH PROVISIONS – MFR 1963

• Annual medical checkup by a certifying surgeon – rule 18A• Record of whitewashing in form 8 – rule 20• Factory & surrounding compound shall be maintained in clean condition – rule 21• Make arrangement & Obtain permission for treatment & disposal of all types of

trade waste and effluents from MPCB – rule 22• At least 5 liters per day per worker.• Testing of drinking water – from govt approved lab once in every six months• 1 latrine for every 10 female worker, 1 latrine for 25 male workers, Sign Boards to

be applied, Privacy of latrines to be maintained• 1 urinal for 50 male workers• Sweepers to be employed as follows

• Up to 50 workers per shift – 1 part time per shift• 50 to 200 – 1 full time per shift• 201 to 500 – 2 full time per shift• 501 to 1000 – 3 full time per shift• Above 1000 – 3 full time per shift + 1 for every 500

additional


SAFETY PROVISIONS

• To fence dangerous parts of machine• MFR under rule 57 has 9 different schedules for different industries in this regards. States

that all machines driven by power, all couplings with bolt heads and similar projections shall be completely encased or effectively guarded to prevent danger

• To Prohibit employment of young person on dangerous machines

• To protect worker from repairing machinery in motion

• To prohibit employment of women and children near cotton openers

• To maintain hoists and lifts of good mechanical construction, of sound materials and adequate strength

• To maintain lifting machines, chains, ropes and lifting tackles of good mechanical construction, of sound materials and adequate strength

• Pressure plants to be tested and examined regularly

• To keep all floors, steps, stairs, passages and gangways in good condition


SAFETY PROVISIONS

• To prohibit any person from carrying or moving any load so heavy as to likely to cause him injury• MFR 1963 , rule 63

• To protect workers from injury to eyes from particles or fragments thrown off in course of the manufacturing process

• To protect workers from dangerous fumes, explosive or inflammable dust, gas and such other materials

• To protect workers from fire and provide precautionary measures

• Safety and maintenance of building

• 1000 or more workers – employ safety officers


MAJOR AMENDMENTS WERE CAUSED DURING 1987

Reasons :

• Bhopal Gas tragedy occurred in 1984 (Early hours of 3.12.1984)

Revealed the weakness in the existing law and demanded the need to amend the law by incorporating special provisions to deal with chemical industries and for management of chemical accidents.

Act was overhauled – 1987 (1.12.1987)

• Many provisions were introduced;

• Penal provisions were revamped

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LIST OF INDUSTRIES INVOLVING HAZARDOUS PROCESSES

1. Ferrous Metallurgical Industries Integrated Iron and Steel Ferro-alloys Special Steels

2. Non-ferrous metallurgical Industries - Primary Metallurgical Industries, namely, zinc, lead, copper, manganese and aluminum

3. Foundries (ferrous and non-ferrous) Castings and forging including cleaning or smoothening/roughening by sand and shot blasting

4. Coal (including coke) industries Coal , Lignite, Coke, etc. Fuel Gases (including Coal Gas, Producer Gas, Water Gas)

5. Power Generating Industries 6. Pulp and paper (including paper products) industries 7. Fertiliser Industries

Nitrogenous Phosphatic Mixed

8. Cement Industries Portland Cement (including slag cement, puzzolona cement and their products)9. Petroleum Industries

Oil Refining Lubricating Oils and Greases


10. Petro-chemical Industries 11. Drugs and Pharmaceutical Industries - Narcotics, Drugs and Pharmaceuticals12. Fermentation Industries (Distilleries and Breweries) 13. Rubber (Synthetic) Industries 14. Paints and Pigment Industries 15. Leather Tanning Industries 16. Electro-plating Industries17. Chemical Industries

Coke Oven by-products and Coaltar Distillation products Industrial Gases (nitrogen, oxygen, acetylene, argon, carbon dioxide, hydrogen, sulphur dioxide, nitrous oxide, halogenated hydrocarbon, ozone, etc.) Industrial Carbon , Alkalies and Acids Chromates and dichromates , Leads and its compounds Electrochemicals (metallic sodium, potassium and magnesium, chlorates, perchlorates and peroxides) Electrothermal produces (artificial abrasive, calcium carbide) Nitrogenous compounds (cyanides, cyanamides and other nitrogenous compounds) Phosphorous and its compounds ,Halogens and Halogenated compounds (Chlorine, Flourine, Bromine and Iodine Explosives (including industrial explosives and detonators and fuses)


18. Insecticides, Fungicides, Herbicides and other Pesticides Industries

19. Synthetic Resin and plastics

20. Man-made Fibre (Cellulosic and non-cellulosic) Industry

21. Manufacture and repair of electrical accumulators

22. Glass and Ceramics

23. Grinding or glazing of metals

24. Manufacture, handling and processing of asbestos and its products

25. Extraction of oils and fats from vegetable and animal sources

26. Manufacture, handling and use of benzene and substances containing benzene

27. Manufacturing processes and operations involving carbon disulphide

28. Dyes and Dyestuff including their intermediates

29. Highly flammable liquids and gases


PROVISIONS RELATING TO HAZARDOUS PROCESSES• Compulsory disclosure of information by occupier• Maintain Health and safety policy and inform to factory inspector• Maintain accurate health records of employees• MFR- disclosure of information to workers, general public, local authority, district emergency

authority, chief inspector• MFR- occupational health centers.

• Less than 50 workers – Medical officer on retainer basis– 5 persons trained in first aid– fully equipped first aid box

• 51 to 200 workers – OHC of min 15sq.m.– 1 part time factory medical officer– 1 qualified dresser cum compounder– fully equipped first aid box in all department

• >200 workers – OHC having min 2 rooms of min 15sq.m.– 1 full time factory medical officer– 1 qualified dresser cum compounder & 1 sweeper cum ward boy

• MFR – 1 Ambulance Van


WELFARE• Separate and adequate washing facilities for male and female workers• Facilities for storing of clothes not worn during working hours and drying of wet clothes• Facilities for sitting of workers obliged to work normally in standing position• First aid boxes or cup boards ; atleast 1 box for every 150 workers to be kept under the

charge of separate responsible person; notice to be displayed• Ambulance rooms in factories ordinarily employing 500 or more workers• Canteens of prescribed standards, in factories ordinarily employing 250 workers, to be

run on non profit basis by a duly constituted canteen managing committee• Suitable rest rooms and lunch rooms to be provided in factories employing 150 or

more workers• A crèche is to be provided wherein 30 or more women workers are employed; 300 ml

of milk per child to be provided every day; exemptions• 500 or more workers employed – employ welfare officer• 10 or more women employees- Anti sexual Harassment committee must.


CONTENTS OF FIRST AID BOX76(C) For factories employing more than fifty persons - Each first-aid box or

cupboard shall contain the

following equipment:-

(i) Twenty-four small sterilised dressings

(ii) Twelve medium size sterilised dressings.

(iii) Twelve large size sterilised dressings.

(iv) Twelve large size sterilised burn dressings.

(v) Twelve (15 gm.) packets of sterilised cotton wool

(vi) One (200 ml.) bottle of cetrimide solution (1 per cent) or suitable antiseptic solution

(vii) One (200 ml.) bottle of mercurochrome solution (2 per cent) in water

(viii) One (120 ml.) bottle of salvolatile having the dose and mode of administration indicated on

label.

(ix) One pair of scissors

(x) One roll of adhesive plaster (6 cms. x 1 metre)

(xi) Two rolls of adhesive plaster (2 cms. x 1 metre)

(xii) Twelve pieces of sterilised eye-pads in separate sealed packets


(xiii) A bottle containing 100 tablets (each 5 grains) of aspirin or any other analgesic

(xiv) One polythene wash bottle (500 c.c.) for washing eyes.

(xv) Twelve roller bandages 10 cms. wide.

(xvi) Twelve roller bandages 5 cms. wide.

(xvii) Six triangular bandages.

(xviii) One tourniquet

(xix) A supply of suitable splints

(xx) Two packets of safety pins

(xxi) Kidney tray

(xxii) A snake-bite lancet

(xxiii) One (30 ml) bottle containing potassium permanganate crystals

(xxiv) Ointment for burns

(xxv) First-aid leaflet issued by the Directorate General of Factory Advice Service and Labour

Institutes, Bombay:

WORKING HOURS• A worker cannot be employed for more than 48 hours in a week• Worker must be given a holiday for a whole day in every week• If worker is deprived of any of weekly holiday he shall be given compensatory holiday• A worker cannot be employed for more than 9 hours in a day• A worker must be given rest interval of at least half hour after 5 hours of work• Total period of work including rest interval must not spread over more than 10 and ½

hours • Prohibition of overlapping shifts• If a worker works for more than 9 hours in a day or more than 48 hours in a week he

shall be paid for overtime work at rate of twice the ordinary rate of wages• No double employment• Notice of period of work to be displayed• Women worker cannot be employed before 6 am and after 7 pm


WORKING HOURS – YOUNG PERSON

• Employment of child below 14 years of age is prohibited

• A child can work only 4 & ½ hours in any day

• A child cannot be employed at night time ie in between 10 pm and 6 am

• Register of children workers to be maintained


ANNUAL LEAVE WITH WAGES• A worker shall be allowed in every calendar year annual leave with wages at the

rate of 1 day for every 20 days of work performed by him during the previous calendar year

• In case of child worker he is to be allowed in every calendar year annual leave with wages at the rate of 1 day for every 15 days of work performed by him during the previous calendar year

• Leave can be accumulated up to 30 days in case of adult and 40 days in case of child

• Leave admissible will be exclusive of all paid holidays whether occuring during or at either end of the leave period

• In case of a worker who is discharged or dismissed or who quits employment or is superannuated or dies while in service, the annual leave is to be calculated at the same rate as above but irrespective of whether the worker has worked for 240 days or not


SPECIAL COVERAGE, EXEMPTIONS

Section 85. Special coverage

The state government may by notification in official gazette declare any place where manufacturing is carried on with or with out power notwithstanding

1. no. of persons working is less than 10 or 20 as case may be OR

2. Person working therein are not employed by the owner thereof but are working with permission of owner .

Section 86 Exemption to public institution

State government in case of grave emergency may exempt any factory from all or any provisions of the act for period not exceeding 3 months subject to conditions as it thinks fit.


INDUSTRIES, ENERGY AND LABOUR DEPARTMENT1st July 1985

FACTORY ACT, 1948 No. FAC/1082/8583/Lab-4. - In exercise of the power conferred by sub-section (1) of section 80 of the factory Act.,1948 (LXIII of 1948), the Government of Maharashtra hereby declares that all the provisions of the said Act shall apply to everypremises or placed including the percents thereof, wherein any of the manufacturer processes mentioned in the Schedule appendshereto is carried on with or without the aid of power or is so ordinarily carried on notwithstanding that-(i) The number of persons employed therein is less than ten, if working with the aid of power; or (ii) the persons working therein are notemployed by the owner thereof but are working with the permission of, or under agreement with, such owner:Provided that the manufacturing process is not being carried on by the owner only with the aid of his family.Explanation for the purposes of this notification "flammable solvent" means any liquid having a flash point below 65°F (18.33°C) orwhich can from explosive mixture due to process conditions.

SCHEDULE• Any of the following manufacturing processes when carried out using flammable solvents namely:-1. Paints, Varnishes, Lacquers or Thinners, 2. Nail Polish or Cosmetic Sprays.3. Rubber beading or rubber goods 4. Artificial Leather 5. Adhesive Tapes 6. Pinoleum, resins or water proof fabrics7. Wall Papers 8. Setallizing Plastic or other goods.9. Cleaning of fabrics or any other material•Manufacture of textile auxiliaries by process of emulsification of silicon oil.• Manufacture of nitro cellulose paint. Process involving use of ethylene oxide. •Manufacturing processes involving any chemical reaction such as nitration, amination, sulphoation, halogenation, polymerisation, isomerisation, or aromatication•Manufacture of chlorates or perchloratesm, or peroxide or salts of any of these• Any process involving use of pressure vessels, except air recevers tanks having air under pressure Rotegurature, Printing Process •Manufacture of Metallic powder of aluminium, nickel or zinc.• Pulverisation of sulphur, carbon, starch, chlotates or perclorates. •Distilisation of organic solvents and chemoicals.


TESTING OF EQUIPMENTS, COMPRESSORS, PRESSURE VESSELS, ETC – MFR 1963• Register for examination of hoists to be maintained in form 11

• No lifting machine, no chain , rope of lifting tackle shall be used for the first time unless it has been tested & certified by competent person

• All chains and lifting tackle to be effectively annealed under supervision of competent person once in every twelve months

• Every Pressure plant in service shall be thoroughly examined by competent person

• (a) externally every six months• (b) internally every twelve months• ( c) hydraulic test once every four years• Thermic fluid heaters to be tested every 12 months• Fire extinguishers must be test regularly for their validity


MAHARASHTRA FACTORIES (OCCUPATIONAL SAFETY AND HEALTH AUDIT) RULES 2012

1. Applies to following categories of factories1.Category I – includes the factories which involve the use, storage, handling or processing of

hazardous chemicals or wherein such hazardous chemicals are likely to be generated or given out.

2.Category II - factories carrying out manufacturing process with aid of power excluding Category I Factories.

3.Category III – factories carrying out manufacturing process excluding Category I Factories, category II Factories.

2. Occupational Health and Safety Audit- means a systematic, objective assessment and documental evaluation of the occupational safety and health systems , practices, operations and in and pertaining to a factory.

3. Occupational Health and Safety audit to be conducted as follows :1. Internally, at intervals not exceeding twelve months by factory staff2. Externally, at intervals not exceeding twenty four months by an occupational safety and health

auditor.4. Occupier has the right to choose from eligible recognized OSH Auditor5. OSH audit to be carried out as per IS 14489: 1998 code for Cat I & Cat II, Cat III as per Sch 16. Grade I auditor can audit any category, Grade II can audit Cat II & Cat III, Grade III can audit Cat III7. OSH audit report to be submitted by Occupier to dept within 30 days.8. Factories having OHSAS(18001:2007) are exempted


ABSTRACTS & NOTICESFollowing have to be displayed on notice board1. The Factory License2. Abstracts of the Act and rules in English and in language understood by majority

of workers At conspicuous place at or near main entrance. MFR – Form 263. A notice containing the name and address of inspector and certifying surgeon

shall be displayed in same manner.Following are to be submitted to appropriate authorities1. Notice of accidents – accident causing death or serious bodily injury to be

submitted within 24 hours - MFR form 242. Notice of dangerous occurrences – whether causing bodily injury or disability or

not – MFR form 24A3. Notice of certain disease as specified in 3rd Schedule – if contracted by worker


REGISTERS - MFR• Health Register – Form 7, rule 18(7)• Register of Lime wash – Form 8, rule 20 and 51• Form 9 – Humidity Register rule 27• Register of adult worker & Muster Roll – rule 17 & 29 combined• Leave Register – Form 20, rule 105 & 106• Form 24 – Report of accident , rule 115• Form 26 – Abstract of Act• Form 27 – Annual Return• Form 27A – Monthly return • Form 30 – Accident Register• Form 31 – Inspection Book


OBLIGATIONS OF EMPLOYER

• Obtain approval from DISH regarding location, Plan and Construction of Factory

• Obtain License for Operating Factory

• Implement provisions concerning health, safety and welfare

• Send Notices as explained previously to DISH

• Comply with statutory requirements pertaining to hours of work, leave with wages, weekly holidays, overtime wages

• Display notices & Abstracts, Maintain registers and records, submit returns

• Report accidents and occupational diseases to DISH in manner specified

• Attend inspections


OBLIGATIONS OF WORKERS

• Not to interfere with or misuse any appliance, convenience or other things provided for purpose of securing health, safety or welfare of workers

• Shall not willfully or without reasonable cause do anything likely to endanger himself or others

• Shall not willfully neglect to make use of any appliance or other thing provided for the purpose of securing the health or safety of the workers


OFFENCES AND PENALTIES

• Of any contravention of provisions of the Act or rules , the occupier and manager may be each be punished with imprisonment for a term which may extend to 2 years or with a fine of one Lakh Rupees or both Section 92

• Repeat Offence - with imprisonment for a term which may extend to 3 years or with a fine of one Lakh Rupees or both Section 94

• Obstructs Inspector or fails to produce documents demanded - with imprisonment for a term which may extend to 6 months or with a fine of Ten Thousand Rupees or both Section 95

• Wrong Disclosure - with imprisonment for a term which may extend to 6 months or with a fine of Ten Thousand Rupees or both Section 96

• Contravention of Provisions of Section 41B (compulsory disclosure) , 41C (responsibility of occupier in relation to hazardous processes) and 41H( rights of workers to be warned of imminent danger) - with imprisonment for a term which may extend to 7 years AND with a fine of upto two lakh Rupees 96A

• Offences by Worker - fine of Rs 500/-


LIMITATIONS OF PROSECUTIONS – SEC 106

• No Court shall take cognizance of any offence punishable under this Act unless complaint thereof made within three months of the date on which the alleged commission of the offence came to the knowledge of an Inspector Provided that where the offence consists of disobeying a written order made by an Inspector, complaint thereof may be made within six months of the date on which the offence is alleged to have been Committed

(a) Continuing offence, the period of limitation shall be computed with reference to every point of time during which the offence continues;

(b) Time granted or extended for performance of any act – period of limitation shall be computed from the date on which the time so granted or extended expired


PRACTICAL ASPECTS TO THE FACTORIES ACT 1948 & THE MAHARASHTRA FACTORIES RULE 1963


INSPECTION – WHAT TO DO?

Please keep ready and handy all the time following documents

1. Muster roll rule 17 & 29

2. Leave Register Form 20

3. Inspection Register – Form 31

4. Renewed License Copy

5. Approved Plans

6. Notices and Abstracts to be displayed

7. Ensure that Factory premises is neat and clean & clutter free

8. Total No of workers on floor must be as per No in the license only and there name must appear on muster roll

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INSPECTION – WHAT TO DO?

On personal front please remember following

1. Be patient

2. Behave with courtesy and greet inspecting authority with smile

3. Ensure all records and registers are in place

4. Ensure cleanliness of factory

5. Understand what the inspecting authority wants to check/ inspect and then resolve his queries.


ACCIDENT - WHAT TO DO?1. Immediately administer First-Aid to the injured employee 2. Incase of serious / fatal accident immediately take the injured employee to nearest

ESIC / tie-up hospital.3. Inform relative of the injured employee.4. Immediately inform by telephone , telegram or messenger about accident to factory

inspector and ESIC branch office / WC commissioner .5. Incase of Death due to or subsequent to such accident inform office in charge of

nearest police station.6. Take at least 2 witness statements 7. Take photographs of accident site8. Submit accident report in Form 24 to factory inspector and Form 16 to ESIC Branch

Manager within 24 hours.9. Update the Accident Register


CASE STUDY – M/S DARSHAN CHEMICALS

!!! SAFETY MATTERS MOST !!!MATERIALS NOT MAINTAINED PROPERLY

WORKERS NOT TRAINED TO HANDLE CHEMICALS PROPERLY

PROPER ENVIRONMENT SUITABLE TO CHEMICALS NOT MAINTAINED

CONSEQUENCES

BLAST IN DYES AND CHEMICAL FACTORY

2 DIED ON THE SPOT

7 SEVERLY BURNT

ALL THE ADJACENT FACTORIES EFFECTED INCLUDING PAPER MILL, GODOWN, ETC.

COST OF MEDICAL EXPENSES DUE TO ACCIDENT AND BURN INJURIES – RS 50 LACS !!!!

COST OF REDEVELOPING THE ENTIRE PLANT – RS.15 CRORES


2 KILLED, NINE INJURED IN BLAZE AT TURBHEVIJAY SINGH & JOSHUA A P, TNN MAY 23, 2009, 01.52AM IST

NAVI MUMBAI: A raging chemical fire at the MIDC industrial zone in Pawane near Turbhe killed twoworkers and severely burnt nine others early on Friday. The fire, reported to have started at theDarshan Chemicals unit 40 minutes after midnight, was said to have spread after drums filledwith highly volatile chemicals caught fire. Some of the drums exploded, making it difficult forfiremen to quell the inferno. Firemen from Navi Mumbai, Thane and Mumbai managed to controlthe blaze after 10 hours. Two neighbouring industrial units, Pace Printers and Lotus Company, anda godown were also gutted. One of the deceased was identified as Abhijeet Pitale (37), while theother, a Panvel resident could not be identified. About 25 fire engines and water tenders weredeployed at the spot. The area has witnessed major fires and ammonia gas leaks earlier. NaviMumbai police commissioner Ramrao Wagh said: "We are waiting for the inquiry report to file anappropriate case.‘’The nine injured were rushed to the Navi Mumbai Municipal CorporationHospital at Vashi at 1.30 am and were given basic treatment. "Five of the patients have more than50% burns. The factory's management has decided to shift all the injured to a burns centre inAiroli for specialist care,'' NMC Hospital medical superintendent Meena Deo said. DarshanChemicals is a distillation plant which produces volatile and combustible chemicals like isopropylalcohol, methanol, ethyl acetate, xylene and other solvents. There was a re-ignition after morechemical drums caught fire and exploded when firemen had spent nearly seven hours battling theblaze. Fire officials said the narrow lanes and single entry-exit points made the operation difficult.Director of neighboring Pace Printers, Harshad Chitale, said: "We, too, have been badly affectedand our estimated loss is Rs 5 crore.''


OTHER APPLICABLE LAWS TO FACTORY

1. Employee State Insurance Act ,1948

2. Employees Provident Fund Act ,1952

3. Minimum Wages Act,1948

4. Maharashtra labour Welfare Fund ,1953

5. Payment of Wages Act,1936

6. Maternity Benefit Act, 1961

7. Payment of Gratuity Act, 1972

8. Employee ‘s Compensation Act, 1923

9. Payment of Bonus Act, 1965

10. Professional Tax, 1975


BANCKRUPTCY CASES (SICA RULES)

(c) The criteria to determine sickness in an industrial company are

(i) the accumulated losses of the company to be equal to or more than its net worth i.e. its paid up capital plus its free reserves

(ii) the company should have completed five years after incorporation under the Companies Act, 1956

(iii) it should have 50 or more workers on any day of the 12 months preceding the end of the financial year with reference to which sickness is claimed.

(iv) it should have a valid factory license


SUMMARY

• The Factories Act ,1948 applies to all establishments employing 10 or more workers where power is used, and to establishments employing 20 or more workers where power is not used.

• The Factories Act is a comprehensive legislation and contains many important provisions regarding health , safety, welfare, employment of young persons and women, hours of work for adults, children, holidays, and leave with wages.

• The responsibility for administration of the Act rests with the State Governments who administer it through their own factory inspectorates.


NEXT WORKSHOP

Various aspects of employing Contract Labour

Date – TBAVenue – TBA


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