Factories Act, 1948 – CS Professional Study Material

Chapter 3(A) Factories Act, 1948 – CS Professional Labour Laws and Practice Notes is designed strictly as per the latest syllabus and exam pattern.

Factories Act, 1948 – CS Professional Labour Laws and Practice Study Material

Question 1.
Write short notes of the following:
‘Manufacturing process’ under the Factories Act, 1948 (Dec 2008, 5 marks)
Answer:
According to Section 2(k) of the Factories Act, 1948 the term manufacturing process means any process for-

• Making, altering, repairing, oiling, ornamenting, finishing, packing, washing, clearing, breaking, demolishing or otherwise for sale, disposal delivery
• Generating, transforming transmitting power
• Pumping oil, water or sewage
• Printing, composing types for printing or book binding
• Repairing, constructing, finishing etc of vessels or ships
• Preserving or storing in cold storage.

Question 2.
Write short notes on the following:
‘Occupier’ under the Factories Act – 1948. (June 2009, 5 marks)
Answer:

• The term Occupier’ as defined under Section 2 (a) of the Act, means a person who has ultimate control over the affairs of the factory.
• Following shall be deemed as occupier in these cases:
  • Firm/association of individual-Partner/member.
  • Company – Any director
  • Factory owned/controlled by central or state government – Person appointed to manage the affairs.
• Occupier should make a written statement of the policy adopted by him with respect to the aforesaid points (health, etc.) and even make the workers aware about the same.
• He shall provide:
  • Proper maintenance of the plants so as to ensure that they are safe.
  • Safety arrangement with regards to use, handling and transportation of substances
  • Training and supervision
  • Safe access to all places of work in the factory.
  • Adequate facilities and arrangements for welfare of the workers in the factory.

Question 3.
Write short notes on the following:
‘Hazardous process’ under the Factories Act, 1948. (Dec 2009, 5 marks)
Answer:

• ‘azardous process’ has been defined under the Factories Act, 1948. It means any process or activity which:
  • causes material impairment to the health of the persons who are engaged in that process or activity.
  • result in the pollution of the general environment.
• Special provisions relating to hazardous process are being there in the Factories Act, 1948 such as:-
  • Constitution of site appraisal committees.
  • Compulsory disclosure of information by the occupier
  • Provisions relating to the responsibility of the occupier.

Question 4.
Write short notes on the following:
Provisions relating to ‘hazardous processes’ under the Factories Act, 1948 (Dec 2010, 5 marks)

Question 5.
Write notes on the following:
General duties of an ‘occupier’ under the Factories Act, 1948. (June 2011, 5 marks)

Question 6.
Write short notes on the following:
‘Manufacturing process’under the Factories Act, 1948. (Dec 2011, 5 marks)

Question 7.
Write short notes on the following:
Special provisions relating to hazardous processes under the Factories Act, 1948. (Dec 2012, 5 marks)
Answer:

• The duties and responsibilities of an occupier of factory handling hazardous process as contained under section 41B and 41C of the Act are as follows:
• Section 41 B casts upon the occupier duty to compulsorily disclose the following information:
• Hazardous processes and related dangers to the Chief Inspector.
• Accurate quantitative details of wastes and the disposal of the aforesaid needs to be given.
• Detailed policy with regards to health, welfare and safety of workers of factory involved in hazardous process to the chief Inspector and local authority needs to be given.
• A non site emergency plan and detailed disaster control measures to be initiated in acute cases needs to be drafted by the occupier and spread awareness to the workers about the same.
• Communication to the inspector within 50 days if factory engages as on commencement date or proposes to engage, any hazardous process.
• Contravention in the aforesaid may even lead to cancellation of the licence.
• Specific responsibility as prescribed under section 41C in relation to hazardous processes are:
• Accurate and up to date health records of workers exposed to harmful substances and ensure accessibility of such records to workers.

Question 8.
Write short notes on the following:
Provisions relating to employment of women under the Factories Act, 1948. (June 2013, 5 marks)
Answer:

• The provisions relating to working hours of adult workers, both male and female are provided under Section 51 to 66.
• Apart from that, additional provisions are contained in section 66 of the Act.
• No exemption will be granted to female worker, from the provisions of Section 54 relating to daily hours of work.
• Women worker shall not be employed between the hours of 6 a.m and 7 p.m.
• However, the State Government may by a Notification in the Official Gazette, vary these limits to the extend that no women shall be employed between the hours of 10 p.m and 5 a.m.
• There shall be no change of shifts except after a weekly holiday or any other holiday.
• State Government is empowered to make rules granting exemptions from the above stated restriction in respect of women working in fish – curing or fish canning factories.

Question 9.
Write short notes on the following:
Special provisions relating to hazardous processes under the Factories Act, 1948. (Dec 2013, 5 marks)

Question 10.
Distinguish between the following:
‘Young person’ and ‘adult’ under the Factories Act, 1948. (June 2009, 5 marks)
Answer:

Basis	Adult	Young Person
Relevant section	Section 2 (a) of Factories Act, 1948	Section 2 (d) of the Factories Act, 1948
Definition	A person who has completed 18 years of age.	Defined as a person who is either a child or adolescent. Thus excludes adult.

Question 11.
Distinguish between the following:
‘Premises’ and ‘precincts’ under the Factories Act, 1948. (June 2010, 5 marks)
Answer:
Premises and precincts

The word “premises” 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. Expression ‘premises’ including precincts does not necessarily mean that the premises must always have precincts.

It merely shows that there may be some premises with precincts and some premises without precincts. The word ‘including is not a term’ restricting the meaning of the word ‘premises’, but is a term which enlarges its scope.

The Supreme Court in Ardeshir H. Bhiwandiwala v. State of Bombay, observed that the legislature had no intention to discriminate between workers engaged in a manufacturing process in a building and those engaged in such a process on an open land and held that the salt works, in which the work done is of conversion of sea water into crystals of salt, come within the meaning of the word ‘premises’.

Question 12.
Distinguish between the following:
‘Premises’ and ‘precincts’ under the Factories Act, 1948. (June 2011, 5 marks)

Question 13.
Distinguish between the following:
‘Young person’ and ‘adult’ under the Factories Act, 1948. (June 2013, 5 marks)

Question 14.
Discuss the following:
Special provisions of the Factories Act, 1948 relating to hazardous processes. (June 2005, 5 marks)
Answer:

• Section 41 A empowers state government to appoint site appraisal committee whose function will be to advise government and examine application for establishment on expansion of factory involving hazardous processes.
• Section 41B requires compulsory disclosure of information by the occupier, detailed policy relating to health and safety and disaster control.
• Section 41C cast specific responsibly on occupier to maintain health record and provide for medical examination of workers.

Question 15.
Discuss the following:
General duties of the occupier. (June 2007, 5 marks)

Question 16.
In deciding the concept of ‘worker’ in Factories Act, 1948, whether relationship of master and servant is necessary ? (June 2019, 6 marks)
Answer:

• According to section 2(1) of the Factories Act. 1948 “worker” means a person employed, directly or by or through any agency (including a contractor).
• The definition of work makes relationship of employment mandatory for a person to be worker according to the Factories Act.
• The expression “employed” does not necessarily involve the relationship of master and servant.
• There are conceivable cases in which where no such relationship exists and yet such persons would be workers.
• The definition of worker is clearly enacted in terms of a person who is employed in and not in terms of person who is employed by. It is immaterial how or by whom he is employed so long as he is actually employed in a manufacturing process.

In the case of Birdh Chand Sharma v. First Civil Judge, Nagpur, where the respondents prepared bidis at the factory and they were not at liberty to work at their homes. They worked within certain hours which were the factory hours. They were, however, not bound to work for the entire period and they could go whenever they like. Their attendance was noted in the factory.

They could come and go away at any time they liked. However no worker was allowed to work after midday even though the factory was closed at 7 p.m. and no worker was allowed to continue to work after 7 p.m. There were standing orders in the factory and, according to these orders a worker who remained absent for eight days presumably without leave could be removed.

The payment was made on piece rate according to the quantum of work done, but the management had the right to reject such bidis which did not come up to the proper standard. On these facts the Supreme Court held that respondents were workers under section 2 (I) of the Act as there exists master and servant relationship between them.

Question 17.
Discuss the various provisions under the Factories Act, 1948 regarding the health of the Workers. (Dec 2020, 6 marks)
Answer:
Chapter III (Section 11-20) of the Factories Act, 1948 dealing with the provisions relating to Health of the worker. Health provisions for Workers are:
(i) Cleanliness (Section 11)
Section 11 of the Act makes provisions for ensuring cleanliness in the factory. It states that every factory shall be kept clean and free from effluvia arising from any drain, privy or other nuisance.

(ii) Disposal of wastes and effluents (Section 12)
Every occupier of a factory shall make effective arrangements for the treatment of wastes and effluents due to the manufacturing process carried on in the factory so as to render them innocuous and for their disposal.

(iii) Ventilation and temperature (Section 13)
Section 13 provides that every factory should make suitable and effective provisions for securing and maintaining (1) adequate ventilation by the circulation of fresh air; and (2) such a temperature as will secure to the workers reasonable conditions of comfort and prevent injury to health.

(iv) Dust and fume (Section 14)
There are certain manufacturing processes like chemical, textile or jute, etc., which generates lot of dust, fume or other impurities. It is injurious to the health of workers employed in such manufacturing process. Effective measures should be taken to prevent the inhalation and accumulation of dust, fumes etc.

(v) Artificial humidification (Section 15)
Humidity means the presence of moisture in the air. In certain industries like cotton, textile, cigarette, etc., higher degree of humidity is required for carrying out the manufacturing process. For this purpose, humidity of the air is artificially increased. This increase or decrease in humidity adversely affects the health of workers. The State Government may make rules prescribing standards of humidification.

(vi) Overcrowding (Section 16)
Overcrowding in the work-room does not only affect the workers in their efficient discharge of duties but their health also. Section 16 has been enacted with a view to provide sufficient air space to the workers. The section prohibits the overcrowding in the work-rooms to the extent it is injurious to the health of the workers.

(vii) Lightening (Section 17)
This Section provides for maintain sufficient and suitable lighting, natural or artificial, or both in every part of a factory where workers are working or passing.

(viii) Drinking water (Section 18)
This Section deals with the provisions relating to arrangements for drinking water in factories. It provides that in every factory effective arrangements shall be made for clean water.

(ix) Latrines and urinals (Section 19)
The section made it mandatory that in every factory-(a) sufficient latrine and urinal accommodation of prescribed types shall be provided conveniently situated and accessible to workers at all times while they are at the factory.

(x) Spittoons (Section 20)
According to the section, there shall be provided, in every factory, a sufficient number of spittoons in convenient places and they shall be maintained in a clean and hygienic condition.

Question 18.
“Audit under labour laws is new concept, which is necessitated, in direct consequence of its non-compliance in large scale”. Explain this statement and list out the areas to be checked/verified the Auditor under Factories Act, 1948 of an Industrial Organization. (Aug 2021, 6 marks)
Answer:
Audit under Labour Legislations is an effective tool for compliance management of labour legislations.lt helps to detect non-compliance of various labour laws applicable to an organization and to take corrective measures. The objective of labour audit is to protect the interests of all the stakeholders. This leads to better Governance and value creation for the organization and avoids any unwarranted legal actions against the organization and its management.

Labour Audit is a process of fact finding. It is a continuous process. Labour Audit will ensure a win-win situation for all interested parties. Initially the employers may frown at the idea of such Audits, but with passage of time, the compulsion of labour audit will infuse self-regulation amongst the employers.

The illustrative areas to be checked /verified by Auditor under Factories Act, 1948 compliance are:

• Whether the factory is registered or not? If so, registration number of the factory be given.
• Item of manufacture.
• Whether hazardous industry or not if so steps suggested by appropriate government for safety have been complied with in toto.
• Whether Chapter IV on Safety has been complied with or not.
• Whether Chapter V on Welfare has been taken care of.
• Whether working hours are in accordance with the provisions of the Act.
• Maintenance of proper records of Attendance and Leaves.
• Provisions relating to employment of women, young person’s etc. are duly complied with.

Question 19.
“One of the important measures to be taken by Factories for Health, Safety and Welfare of the workers is ‘Ventilation and Temperature’ in the work environment”. Explain the statutory provisions in this regard under Factories Act, 1948. (Aug 2021, 3 marks)
Answer:
Ventilation and temperature
Section 13 of the Factories Act, 1948 provides that every factory should make suitable and effective provisions for securing and maintaining :

1. adequate ventilation by the circulation of fresh air; and
2. such a temperature as will secure to the workers reasonable conditions of comfort and prevent injury to health. What is reasonable temperature depends upon the circumstances of each case.

The State Government has been empowered to lay down the standard of adequate ventilation and reasonable temperature for any factory or class or description of factories or parts thereof. It may direct that proper measuring instruments at such places and in such position as may be specified shall be provided and prescribed records shall be maintained.

Measures to reduce excessively high temperature:
To prevent excessive heating of any workroom following measures shall be adopted:

1. walls and roofs shall be of such material and so designed that such temperature shall not be exceeded but kept as low as practicable;
2. where the nature of the work carried on in the factory involves, or is likely to involve, the production of excessively high temperatures, such adequate measures as are practicable shall be taken to protect the workers there from, by separating the process which produces such temperatures from the workroom, by insulating the hot parts or by other effective means.

The Chief Inspector is empowered to direct any factory to adopt such methods which will reduce the excessively high temperature. In this regard, he can specify the measures which in his opinion should be adopted.

Question 20.
Attempt the following stating the relevant legal provisions and case law, if any:
A licensed salt producer engaged workmen in open land in which work was done to convert sea water into crystals of salt. Whether the workmen working in open land are employed in the premises of the factory? (Dec 2005, 3 marks)
Answer:
Yes, the workmen working in open land are employed in the premises of the factory. The ruling of the Supreme Court in case of Ardishir H Bhiwande Wala V. State of Bombay states that salt made from sea water is considered as a manufacturing process and as per section 2(m) of the Factories Act, 1948, factory is defined as a premises wherein 10 or more persons are engaged if power is used or 20 or more persons where power is not used in case of manufacturing process.

The term premises even includes land and hence workmen working in open land will be said to be working in the premises of the factory.

Question 21.
Attempt the following stating the relevant legal provisions and case law, if any:
The Board of directors of a company appointed its deputy general manager, who controlled the operational activities of the factory, as its ‘occupier’. The Chief Inspector of Factories (CIOF) did not approve the appointment. Can the company succeed against the CIOF for having refused to accept its senior functionary’s appointment as the ‘occupier’? (June 2006, 3 marks)
Answer:
According to Factories Act, company owing factory cannot nominate its employees or officers except director of the company as occupier of its factory as held in J.K. Industries Ltd. V Chief Inspector of Factories. In this case it was decided that the only a member of the board of directors of the company can be the occupier of the factory of the company hence the company will not succeed against the CIOF for having refused to accept its senior functionary’s appointed as the occupier.

Question 22.
Attempt the following stating the relevant legal provisions and case law, if any:
A small-scale establishment uses materials, like sleepers, bolts, nuts, etc., for supply to the railway department for laying tracks. Is the establishment carrying on ‘manufacturing process’ ? (Dec 2006, 3 marks)
Answer:
According to the Factories Act, 1948 manufacturing process includes use of raw materials like sleepers, bolts, loose rails etc. to adaptation of their use for laying down railway line as held in Lai mohamad V Indian Railway Construction Co. Ltd. Thus, the small scale establishment will be a carrying manufactured process under the factories Act, 1948.

Question 23.
Attempt the following stating the relevant legal provisions and case law, if any: (Dec 2007)
(i) Dare Davil Ltd. has no industrial dispute pending in any labour court. In order to rationalise working conditions, it wants to change hours of work, leave with wages, and holidays. Can the company do so? (3 marks)
(ii) Navratna Public Sector Undertakings have factories throughout the country. These undertakings have an impeccable record of best welfare measures and working conditions. Do these undertakings still require to appoint welfare officers in their factories? (3 marks)
Answer:
(i) Dare Davil Ltd, in order to rationalise the working conditions, wants to change the hours of work, leave with wages & holidays. But before enforcing these changes, the Dare Davil Ltd. has to give notice to the workmen likely to be affected by such change according to section 9 -A of the Industrial disputes Act, 1947 Thus, they are advised to give notice to the workers affected by such changes on a proper time period.

(ii) Navaratna Public Sector Undertakings have to appoint welfare officers in their factories if the number of workers in the undertaking exceeds the prescribed workers. It will not be a deciding criteria that whether the undertaking have factories throughout the country or not.

Question 24.
Attempt of the following stating relevant legal provisions and case law, if any: Workmen of an electricity generation station claimed that their unit is covered under the definition of ‘factory’ considering the process of transforming and transmission of electricity generated at the power station as a ‘manufacturing process’. Will their claim succeed ? (Dec 2008, 4 marks)
Answer:
No, the workmen will not succeed since the process of transforming and transmission of electricity generated at power station does not fall within the purview of manufacturing process and hence is not a factory.

Question 25.
Attempt the following stating relevant legal provisions and decided case law, if any:
Ghee brought from various customers is sampled chemically, analysed and packed in tins for transportation to the head office of the company for sale in the market. Does it amount to manufacturing process under the Factories Act, 1948? (June 2009, 4 marks)
Answer:
In the above case ghee brought from the various customers is sampled chemically, analysed and packed in tins for transportation to the head office of the company for sale in the market. It will amount to manufacturing process under the Factories Act, 1948.

Question 26.
Attempt the following stating relevant legal provisions and decided case law, if any:
Designers Ltd. is engaged in fabrication work of window grills with the aid of power and has employed 19 workers. Recently, it appointed 2 gardeners for gardening in its factory premises. Is the company liable to extend the benefits to the gardeners as applicable to other factory workers ? (Dec 2009, 4 marks)
Answer:
Yes, the company will be liable to extend the benefits to the gardeners as applicable to other factory workers since all persons employed in the factory whether or not employed as workers are allowed benefits of the Factories Act, 1948.

Question 27.
Attempt the following stating relevant legal provisions and decided case law, if any:
The workers were engaged by beedi manufacturer for rolling beedies at home subject to the rejection of defective beedies by manufacturer. The workers claimed that they should be treated as ‘workers’ under the provisions of the Factories Act, 1948. Will they succeed? (June 2010, 4 marks)
Answer:
Though Beedi making is regarded as a manufacturing process as per the Factories Act, 1948, however persons engaged for rolling beedies at home shall not be treated as worker as was held in Shankar BalajiWaje v/s State of Maharashtra. The persons engaged in rolling of beedies were performing the function at their respective homes and were having full freedom and were not subjected to the direct control or superintendence of the employer.

Though the owner enjoys the right to reject the defective beedies yet he doesn’t enjoys an effective control over the beedi roller and thus they cannot be regarded as workers within the meaning of Factories Act, 1948.

Question 28.
Attempt the following stating relevant legal provisions and decided case law, if any:
A government enterprise issues raw materials to the weavers registered under it to manufacture handloom cloth as per the specifications given. The weavers take raw material and manufacture cloth in the looms installed by them. The government enterprise procures the finished goods from the weavers. State whether weavers are the workers of the government enterprise under the provisions of the Factories Act, 1948. (June 2011, 4 marks)
Answer:

• For calling the weavers to be the employees of the Government, there must be employee employer relationship between them. That is there must be a contract of service and not contract for service. A person is an employer when he has a right of control & supervision over his employee.
• In the given case the Government only issues raw material to the weavers to manufacture cloth, so prima facie it can be observed that weavers cannot called the employees of Government.

Question 29.
Attempt the following stating relevant legal provisions and decided case law. (Dec 2011)
(i) Sooraj Hospital has a laundry in its premises to ensure a high degree of hygiene standard for washing the linen used in the hospital. The employees of the hospital work in the laundry and the laundry cannot be separated from the hospital. The inspector of factories issued a notice to Sooraj Hospital to register it as a factory. Is he justified? (4 marks)
(ii) Amar was the owner of a ginning factory. Certain persons were engaged in putting the ginned cotton into what was called bojhas and they were engaged for that work not by the owner but by the merchants who owned cotton. The owner had not entered their names in the attendance register of the factory. Are the persons employed by the merchants covered under the category of ‘workers’ under the provisions of the Factories Act, 1948? (4 marks)
Answer:
(i)

• In this case, the hospital has a laundry in its premises and the inspector of factories issued a notice to hospital to register it as a factory.
• As per the provisions of the Act, the primary character of the main institution alone has to be taken into consideration to determine whether it is factory or not
• The laundry in the hospital is not a factory as per the Act since the main institution is not a factory
• The inspector of factories is not correct as held in ‘Dr. PSS Sundar Rao V/s Inspector of Factories, Vellore’.

(ii)

• In case the work performed by the workers are incidental to or connected with
• The facts of the case are similar to ‘Local Government V/s Nauserwanji AIR’ the manufacturing process then those workman will be covered under the
• category of workers.
• Thus in the above case the workers employed by the merchants covered under the category of ‘workers’ under the provisions of the Factories Act, 1948.

Question 30.
Attempt the following stating relevant legal provisions and decided case law, if any:
Hotel Harsha Ltd. has engaged an electrician to attend to electrical repairs required in the hotel. There is an agreement between the hotel and the electrician that he will be required to attend to repair work whenever required on call. The electrician is paid a consolidated sum of ? 10,000 per month for the services rendered by him. Can the electrician be called an employee of the hotel under the provisions of the Factories Act, 1948 ? (June 2012, 4 marks)

• In the above case, agreement between Hotel Harsha Ltd. & electrician is an agreement for services & not agreement of service.
• There is no existence of right of the employer to supervise & control the work done by the employee.
• In this case electrician is required to work as & when required & he is an independent contractor.
• Thus, electrician is not an employee of the hotel under the provisions of the Factories Act, 1948.

Question 31.
Attempt of the following stating relevant legal provisions and decided case law.
Some workers were engaged in the processes of moistening, stripping, breaking- up and packing of sun-cured tobacco leaves with a view to transporting these to company’s main factory for their use in manufacturing cigarettes. Do these processes amount to ‘manufacturing process’ under the Factories Act, 1948 ? (June 2013, 4 marks)
Answer:

• Yes, processes of stripping, breaking up, adaption, packaging of sun used tobacco leaves amount to manufacturing processes under the Factories Act, 1948.
• The same was held in the case of V. P. Gopal Rao. V Public Prosecutor.

Question 32.
Mohan collect the tendu leaves from nearby forest during day time and along with his family roll them to bidies at night. He supply the finished product of bidies to nearby factory i.e., ABC Bidi Ltd., Factory does the quality inspection of the finish product as per their fixed standards and accordingly accept or reject the product. Payments are made for the accepted quantity of bidies as per the factory rates. In the above kind of factual circumstances, decide with the help of set principle whether Mohan is an employee of the factory. (Dec 2020, 6 marks)
Answer:
A person to be a worker within the meaning of the Section 2(l) of the Factories Act, 1948 must be a person employed in the premises or the precincts of the factory. As held by the Supreme Court in the State of Uttar Pradesh v. M. P. Singh (1960) 2 SCR 605: (AIR 1960 SC 569) field workers who are employed in guiding, supervising and controlling the growth and supply of sugar cane to be used in the factory are not employed either in the precincts of the factory or in the premises of the factory. Hence the provisions of the Factories Act do not apply to them.

A workers or workman need to be employed in the factory. The concept of “employment” involves three ingredients, viz. employer, employee, and contract of employment. The employment is the contract of service between employer and employee where under the employee agrees to serve the employer subject to his control and supervision.

The prima facie test for determination of the relationship between the employer and employee is the existence of the right of the employer to supervise and control the work done by the employee not only in the matter of directing what work the employee is to do but also the manner in which he shall do his work (Chintaman Rao v. State of M.P. AIR 1958 S.C. 388).

Therefore, ‘supervision and control’ is the natural outcome when a person is employed by another person. In Shankar Balaji Waje v. State of Maharashtra, AIR 1963 Bom. 236, the question arose whether bidi roller is a worker or not. The management simply says that the labourer is to produce bidies rolled in a certain form. How the labourer carried out the work is his own concern and is not controlled by the management, which is concerned only with getting bidies rolled in a particular style with certain contents.

The Supreme Court held that the bidi roller is not a worker. The whole conception of service does not fit in well with a servant who has full liberty to attend to his work according to his pleasure and not according to the orders of his master. Where the employer did retain direction and control over the workers both in manner of the nature of the work as ‘also its details, they will be held as workers.

Same rational to be applied here in the given case. Mohan is not a worker as there is no superstation control of the employer on him.

Question 33.
Prakash Kumar advised workers in his factory to work on all Sundays in a month by compensating the weekly holiday on Wednesdays. Veena, a worker without availing the weekly holidays, claimed double of the wages for working on Sundays and normal wages for working on Wednesdays.
Whether the claim of Veena is correct? Justify your answer with reasons. (June 2022, 6 marks)

Factories Act, 1948 Notes

Object & Scope of Factories Act, 1948

• An Act to consolidate and amend the laws regulating labour in factories.
• Applies to whole of India including Jammu & Kashmir.
• Objective of the Act is to ensure safety measures and promote health and welfare of factory workers.

What is Factory as per the Act

• Factory includes any premises including the precincts thereof, wherein 10 or more workers are working/were working on any of the day in the preceding 12 months to carry any manufacturing process with the aid of power OR 20 or more workers are working/were working in case the manufacturing process is carried without power.
• Excludes mine, unit of armed forces, railway running shed, hotel, restaurant or eating place.
• Premises including precincts enlarges the scope.
• Factory includes all the length of railway line, company engaged in construction of railway line.
• Open land engaged in the conversion of sea water into crystals of salt will be regarded as Factory.
• Seasonal factories like sugarcane etc. will continue to remain as factory during the off-season.

What is manufacturing process as per the Act
The term manufacturing process means any process for-

• Making, altering, repairing, oiling, ornamenting, finishing, packing, washing, cleaning, breaking, demolishing or otherwise treating any article with a view to use, for sale, disposal or delivery;
• Generating, transforming, transmitting power
• Pumping oil, water or sewage
• Printing, composing types for printing or book binding
• Repairing, constructing, finishing etc. of vessels or ships
• Preserving or storing in cold storage.

Includes the following:

• Laundry
• Carpet beating
• Process involved for pumping water
• Stitching bags
• Conversion of latex into rubber
• Conversion of sea water into salt
• Tracing & adapting on raw film
• Packing & packaging into smaller units
• Processes like moistening, packing of tobacco for use in cigarettes

Excludes the following :

• Transforming & transmitting electricity
• Training Institute
• Exhibition of film

Who is a Worker as per the Act
As per Sec. 2(1) of Factories Act, 1948, the definition of worker has following ingredients:

• Person should be employed
• There should exist an employer employee relationship
• Employer not just to control what work to be done but also the manner in which the same shall be done.
• Relationship of master and servant not necessary.
• Piece rated workers who work on regular basis shall be treated as ‘workers’.
• Partner or independent contractor cannot be regarded as worker.
• Employment to be direct or through some agency.
• Employment should be directly by the management or through employment agency
• There should exist a privity of contract.

Employment should be in some manufacturing process:
Includes in its purview people directly involved in manufacturing process and also those involved in activities incidental to manufacturing process. Includes:

• People working in canteen
• Munim in a factory.
• Employment may be for remuneration or not
• Apprentice
• Honorary worker
• Person employed on price work basis
• Person employed for no wages.

Enforcement of Factories Act, 1948
State Govt, is responsible for enforcement of the Act.

• State Govt, carries administration of the Act through:
  • Inspecting Staff
  • Certifying Surgeons
  • Welfare Officers
  • Safety Officers
• Welfare officer to be appointed wherein 500 or more workers are employed
• Safety officer to be appointed wherein 1000 or more workers are employed

Occupier & his Role under the Factories Act, 1948

• Occupier as per Section 2(n) means a person who has the ultimate control over the affairs of the factory.
• Following persons will be considered as Occupier:
  • In case of Company: Director
  • In case of Partnership Firm: Partner
  • In case of Association of Individuals: Member
  • In case of Government or local authority owned or controlled factory: Person/persons appointed to manage the affairs of the factory
• Occupier of the factory needs to give a notice to Chief Inspector:
  • 30 days before date of resumption of seasonal factories
  • 15 days before date of use of premises by occupier
  • Where new manager is appointed, Occupier to intimate within: 7 days of appointment
• Contents of Notice:
  • Name & address of factory
  • Name & address of occupier
  • Name & address of owner
  • Name of manager
  • Address of communication
  • Number of Workers
  • Nature of manufacturing work
  • Total power installed
• Occupier should ensure worker’s:
  • Health
  • Safety and
  • Welfare
• He should make a written statement of the policy adopted by him with respect to the aforesaid points and make the workers aware about the same.
• He shall provide:
  • Proper maintenance of the plants so as to ensure that they are safe.
  • Safety arrangement with regards to use, handling and transportation of substances
  • Training and supervision.
  • Safe access to all places of work in the factory.
  • Adequate facilities and arrangements for welfare of the workers in the factory

Working hours as per Factories Act, 1948

• Adult worker to work for not more than 48 hours a week.
• Cannot be made to work for more than 9 hours a day.
• In case of work exceeding 9 hours or 48 hours in any week, overtime at twice the ordinary rate of wages needs to be given
• (Ordinary rate = Basic wages + Allowances, not includes bonus.)

Other Noteworthy Points/Quick bites for Exams on Factories Act

• No worker shall be required/allowed to work in any factory if he has already been working in any other factory on that day.
• Notice of period of work to be displayed in every Factory.
• Every factory to maintain a register of adult workers containing prescribed particulars the same shall be made available to the Inspector on demand.
• Shifts cannot be changed other than after weekly holiday or any other holiday.
• Women workers shall be employed between – 6 AM to 7 PM (State Govt, may alter the same by notification in Official Gazette but no woman be employed between 10 PM to 5 AM).
• In respect of employment of children above the age of 14 years, factory manager needs to obtain a certificate of fitness & such children needs to carry the same while he is at work.
• No children be employed between 10 PM to 6 AM and can be permitted to work for not more than four and a half hours a day.
• Female children can be employed only between 8 AM to 7PM.
• Certificate of fitness is valid for 1 year.
• Provisions for leave: for workers who have worked for a minimum of 240 days in a calendar year are as follows:
  (a) For adults: 1 day for every 20 days worked
  (b) For children: 1 day for every 15 days worked
• Needs to be given atleast half an hour break after continuous 5 hours of work.
• There shall be one holiday every week.
• No adult worker shall work for consecutively 10 days.

• Child who has not completed 15 years of age shall not be employed in factory.
• Following welfare facilities are prescribed in the Act:
• Canteen: State Government may make rules requiring that in any specified factory wherein more than 250 workers are ordinarily employed.
• First aid: Maintenance of first aid box or cup board for every 150 workers are employed in the factory.
• Restroom: Maintenance of shelter arrangement or rest room and lunch room with drinking water wherein more than 150 workers are employed.
• Urinals: Maintenance of urinals of prescribed sanitary type wherein more than 250 workers are employed.
• Schedules of the Factories Act, 1948:
• First Schedule: List of industries involving Hazardous process
• Third Schedule: List of notifiable diseases