Factories act 1948 and S&CE act 1953

Introduction

The early version of the Factories act came into effect in 1881

during the onset of industrial revolution. However, it did not

cover all the aspects relating to the safety and welfare of

workers.

It underwent many changes and the Factories act was brought

into force in 1948, which practically became a parent act.

It was amended a couple of times to include or redefine

some changes to reflect the changing dynamics of the

country’s economy.

The parent act has 106 main sections and 14

supplemental sections which describe the various areas

that come under the act.

Objectives

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 by imposing restriction as to hours of work including rest

and provisions for availing of leave.

To make stringent provisions as regards employment of women and

young persons and duration of their work.

Scope and coverage

Regulates working condition in factories.

Basic minimum requirements for ensuring safety, health and welfare of

workers.

Applicable to all workers.

Applicable to all factories using power and employing 10 or more

workers, and if not using power, employing 20 or more workers on any

day of the preceding 12 months.

The various areas covered in the act are:

Compulsory approval, licensing and registration of

factories

Health measures

Safety measures

Welfare measures

Working hours.

Employment of women and young persons

Annual leave provision

Accident and occupational diseases

Dangerous operations

Penalties

Obligations and rights of employer and employees

When to consult and refer

On starting a factory.

Throughout the life of the factory.

Important concepts and definitions

Factory means any premises including the precincts

thereof:-

i) Wherein ten or more workers are working, or were

working on any day of the preceding twelve months and in

any part of which a manufacturing process is being carried

on with the aid of power, or is ordinarily so carried on, or 

 

ii) Wherein twenty or more workers are working or were

working on any day of the preceding twelve months, and

in any part of which a manufacturing process is being

carried on without the aid of power, or is ordinarily so

carried on.

Worker

Worker means a person (employed directly or through any

agency including a contractor) with or without the

knowledge of the principal employer, whether for

remuneration or not in any manufacturing process, or in

cleaning any part of the machinery or premises used for

a manufacturing process, or in any kind of work incidental

to or connected with the manufacturing process, or the

subject of manufacturing process (but does not include any

member of the armed forces of the Union).

Occupier

Any person who has ultimate control and management

over the affairs of the factory will be deemed to be an

occupier.

(i) In a partnership firm, the individual partners and in

the case of association of individuals, members

thereof shall be regarded as occupier.

(ii) In companies, the directors are regarded to be

occupier because they are vicariously liable for the

functions of the company.

(iii) In government owned and controlled factories, the

person or persons appointed to manage the affairs of

the factory shall be deemed to be the occupier.

(iv) In the case of partnership firm or association of

individuals, and partner or member may be prosecuted. A

manager cannot be regarded as an occupier, unless he is

entrusted with the control and management of the factory.

(v) Owner, lessee or a licensee having control over the

factory with regard to its management is deemed to be the

occupier

Power

It means mechanical or electrical energy transmitted as a

step or aids to carry out manufacture and not energy

generated by human or animal agency. Mere use of power

not connected with activities of manufacturing will not

make the premises a factory.

Manufacturing process

means any process for: -

i) Making, altering, repairing, ornamenting, finishing,

packing, boiling, 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

i) Composing types for printing, printing by letter press,

lithography, photogravure of other similar process or

book binding,

ii) Constructing, reconstructing, repairing, refitting, finishing

or breaking up ships or vessels,

iii) Preserving or storing any article in cold storage.

Hazardous Process

means any process or activity in relation to an industry

specified in the First Schedule where, unless special care

is taken, raw materials used therein or the intermediate or

finished products, by- products, wastes or effluents thereof

would cause material impairment of the health of the

persons engaged in or connected therewith, or results in

the pollution of the general environment.

Provided that the State Government may, by notification in

the Official Gazette, amend the First Schedule by way of

addition, omission or variation of any industry specified in

the said Schedule.

Fatal Injury means injury resulting from industrial accident

which caused death to the worker.

Non-Fatal Injury means injury resulting from industrial

accident, which prevented injured worker from attending to

work for a period of 48 hours or more immediately

following the injuries.

Adult means a person who has completed his eighteenth

year of age.

Adolescent means a person who has completed his

fifteenth year of age but has not completed his eighteenth

year.

Child means a person who has not completed his fifteenth

year of age.

Average Daily Number of Workers Employed

The average daily number of workers employed is

calculated by dividing the aggregate number of

attendance on working days (that is, mandays worked)

by the number of working days in the year.

Attendance on separate shifts (e.g. night and day shifts)

should be counted separately.

Days on which the factory was closed for whatever cause

and days on which the manufacturing process was not

carried on should not be treated as working days.

Partial attendance for less than half a shift on a working day

should be ignored, while attendance for half a shift or more

on such day should be treated as full attendance.

Mandays Worked - Mandays Worked means total

Number of attendance during a calendar year.

Average Number of Hours Worked per week The

Average number of hours worked per week means the

total actual hours worked by all workers during the year

excluding the rest intervals but including overtime

worked, divided by the product of average number of

workers employed daily in the factory and 52 weeks.

In case the factory has not worked for the whole year,

the number of weeks during which the factory worked

should be used in place of 52

Administrative Machinery

This legislation is being enforced by technical officers i.e.

Inspectors of Factories, Dy. Chief Inspectors of Factories

who work under the control of the Chief Inspector of

Factories and overall control of the Labor Commissioner

under the state government labor conditions of the state.

Each state has the right to adapt the Factories act as

befitting to the geographic, economic and social status.

Compulsory approval, licensing and registration of factories

To establish a factory under the purview of the Act, the factory

management should

1. Obtain prior permission for construction of the factory

building

2. Obtain license before commencement of manufacturing

activity;

3. Comply with applicable provisions of law, which are in vogue

The licensee should renew the license every year by

submitting the relevant documents to the Chief inspector

of Labor of the particular area.

In case of change of the occupier, management, number

of workers or power, or if the license is lost, then the

relevant changes (transfer/amendment/duplicate) will

need to be sought with the Labor inspector.

Health measures

Cleanliness

Disposal of wastes and effluents

Ventilation and temperature

Dust and fume

Artificial humidification

Overcrowding

Lighting

Safety measures

Work on or near machinery in motion

Employment of young persons on dangerous machines

Striking gear and devices for cutting off power

Self-acting machines

Casing of new machinery

Prohibition of employment of women and children near

cotton openers and other dangerous machines

Hoists and lifts

Lifting machines, chains, ropes and lifting tackles

Revolving machinery

Pressure plant

Floors, stairs and means of access

Pits, sumps, opening in floors, etc

Excessive weights

Protection of eyes

Precautions against dangerous fumes, gases, etc.

Precaution regarding the use of portable electric light

Explosive or inflammable dust, gas, etc

Precautions in case of fire

Safety of buildings and machinery

Safety officers

Welfare measuresStatutory amenities have to be provided in the factories as

a compliance of Welfare measures. The type of amenities

and its number relates to the number of men/women

workers employed in the factory.

Sl.No. Type of amenity NO. of workmen required

Nos. to be provided.

1 Drinking water points   Adequate supply at 5litres/worker

2 Cooled supply of water >250 One for 150

3 Latrine accommodation   One for 25 separately for male and female

4 Urinal accommodation   One for 50 workers.

5 Washing facility    

6 First aid appliances   One equipped first aid box per 150 persons.

7 Ambulance room >500 With all amenities and personnel.

8 Rest room/shelter/lunch room

>150 With adequate accommodation and facilities

9 Crèche >30 female With adequate facilities and personnel

10 Canteen >250 With adequate facilities and personnel

11 Occupational Health Centres >50 With adequate facilities and personnel

(in respect of hazardous process industries)

Annual leave with wages

The Act provides that every worker who has worked for a

period of at least 240 days during a calendar year shall

be allowed during the subsequent year leave with wages

at the rate of (a) one day for every twenty days worked in

the case of adults, and (b) one day for every fifteen days

worked in the case of children.

The leave is exclusive of holidays that occur during or at either

end of the leave period. Provision is also made for

proportionate leave with wages for a worker who is discharged

or dismissed before he has rendered 240 days service.

There is also a provision that any days of lay off by agreement

or contract or as permissible under the Standing Orders

Maternity leave period for female workers for days not

exceeding 12 weeks and leave earned in the previous

year in which leave is enjoyed may be counted as days

on which workers have worked in a factory for the

purpose of computation of period of 240 days or more.

Exemption provision under the act

1. Exceptional pressure of work- exemption to work

overtime

2. Exemption for maintaining registers in prescribed forms

3. Exemption for employing women workers up to 10 pm in

certain factories

List of exempted factories

Ready made garment – clothes industries;

Leather goods industries ( foot wear, fancy leather

articles, leather garments etc.,)

Fruit canning and processing industries;

Electronics, telecommunication, informatics, computers (

hardware and soft ware) allied industries;

Agarbathi, perfumery industries;

Horological industries, watch assembly, component

manufacturing, jewel manufacturing etc.,

Precision instruments, electrical, electromechanical,

electronic manufacturing industries;

Lamps, lamp filament and lamp component industries;

Food processing industries, instant foods etc.,

Units manufacturing domestic appliances, sports goods, toys

etc.,

Cosmetics, drugs ( formulation) manufacturing units;

Biscuit and confectionery units;

Cotton, woolen, hosiery industries;

Jarada industries;

Cotton ginning and pressing factories;

Penalties

If convicted, occupier/and management may face a

punishment that includes payment of fine from Rs. 25,000

to Rs. 1 lakh and/or imprisonment up to two years.

Latest Amendments

Night shift working for women – 2005

Inclusion of Hotel industry under Factories act - 2008

VEDASANTHUR TEXILE INDUSTRY in Dindigul – A case of violation of the Factories act

Textile workers in Vedasanthur block of Dindigul district, located in Tamil Nadu are enduring numerous rights violations, with respect to the factories act.

BACKGROUND

While employers in the area are earning large profits with the export of yarn, the industry is characterized by the use of forced overtime, child labor, and the denial of fundamental union rights, reports the CCC Task Force – Tamil Nadu. Information on working conditions in Vedasanthur was gathered by local unions and during interviews with workers organized by HOPE, a local NGO. Workers reported age-based discrimination. They said that experienced workers are forced to resign and have no option other than getting jobs at other textile mills at beginner’s wages.

Workers in Dindigul are regularly denied their right to free association. Of the 167 cotton mills in Dindigul, only 56 mills allow trade unions. One obstacle to worker organizing is the prohibition on trade unions conducting gate meetings in front of the mills. The unions view these meetings as important opportunities to strengthen workers’ solidarity and organizing efforts, as it is the only opportunity for workers who are drawn from scattered villages to meet together. Mill owners have obtained a stay from the Munsif Vedasanthur DistrictCourt to prevent workers from assembling in front of the mill gate for a radius of 300 meters.

Workers report that employers will dismiss them if they try to start trade Unions or join any existing trade unions, and that they will be placed ona blacklist and unable to obtain work in the region. There have been several cases of workers being beaten up and dismissed for their organizing efforts.

An estimated 950 children are employed in the Dindigul cotton mills. In some of the area’s textile mills workers, including child workers, are beaten with sticks, either as punishment or to keep them working at a fast pace. Conditions are unsafe, with old machinery in use, fingers are often cut and sometimes amputated. Conditions are also unhealthy due to poor air quality – the fine cotton dust in the air has negative effects on the respiratory system of the workers.

Textile workers are regularly denied benefits they are legally entitled to.For example, workers do not receive Employees State Insurance (ESI), Provident fund (a social security retirement system for which workers make contributions through wage deductions and employersare also required to make contributions), paid maternity leave, and other benefits. Workers who have worked for as long as three years are still categorized as temporary workers.

.

Workers are paid below the legal minimum wage. Workers generally live in 300 square foot tiled houses, without toilet facilities, and are unable to maintain a nutritious diet on the wages they earn

The Tiruppur Saga

Tiruppur is one of the success stories of the Indian Textile industry but

one which is still export driven. There are about 10,000 production

units in Tiruppur, employing more than 4,00,000 workers. Tiruppur

accounts for nearly 90% of India’s cotton knitwear exports

It has an amazing compliance to an internally imposed code of conduct

as opposed to one that is regulatory driven. These labor or production

standards may not be internalized by all the firms but most big firms

have embraced these concepts. The generic ethical code of conduct

covers the following areas.

Compliance with the local labor laws and workplace regulations

Prohibition of child labor

Regulation of contract labor

Non discrimination

Prohibition of forced labor

Freedom of association and Right to Collective bargaining

Humane treatment

Minimum wages, living wages and other benefits

Regulation of working hours

Working conditions related to health and safety

The interesting fact is that these codes and compliance thereof do not

follow from any labor laws.

The Shops and Establishments act, 1953

This act provides for the regulation of conditions of work

and employment in shops and commercial establishments.

This is on the concurrent list of the Labor ministry and is

under the supervision of the State government.

In Karnataka, the government adapted the act to its

geographical region in 1961. The act comes under the

purview of the Deputy Labor Commissioner.

 

Objective

To provide statutory obligation and rights to employees and

employers in the unorganized sector of employment, i.e.,

shops and establishments.

The Constitution of India, while ensuring under Article 19(1)

(g) to all citizens the right to practice any trade, business or

profession, has maintained a clear distinction between

carrying on a trade or business as against practicing a

profession.

The reason underlying the distinction is that unlike in a

trade or business, a profession is practiced without any

underlying profit motive. What a practicing professional

renders to his clients is his services essentially based on

his qualification, personal skill and intellectual capacity.

Earning of fees is considered only an incidental part.

Scope and Coverage

A state legislation; each state has framed its own rules for the

Act.

Applicable to all persons employed in an establishments with or

without wages, except the members of the employer's family.

State government can exempt, either permanently or for a

specified period, any establishments from all or any provisions of

this Act.

Main Provisions

Compulsory registration of shop/establishment within thirty days of

commencement of work.

Communications of closure of the establishment within 15 days from the

closing of the establishment.

Lays down the hours of work per day and week.

Lays down guidelines for spread-over, rest interval, opening and closing

hours, closed days, national and religious holidays, overtime work.

.

Rules for employment of children, young persons and

women

Rules for annual leave, maternity leave, sickness and

casual leave, etc.

Rules for employment and termination of service.

Maintenance of registers and records and display of

notices.

Obligations of employers.

Obligations of employees

When to Consult And Refer

o At the time of start of an enterprise. o When framing personnel policies and rules.