Overview
The Factories Act, 1948 is a central piece of Indian labor legislation that regulates working conditions in factories. Enacted soon after independence, its aim is to ensure the safety, health, and welfare of workers in industrial establishments. The Act imposes obligations on factory owners to provide a safe working environment, adequate facilities, and reasonable working hours. State governments are empowered to make rules under this Act, and it is administered at the state level by factory inspectorates. The Act has been instrumental in improving industrial workplace standards in India and remains in force (though it is expected to be subsumed by the Occupational Safety, Health and Working Conditions Code, 2020, once that code comes into effect).
Applicability and Scope
The Factories Act applies to manufacturing establishments defined as “factories” under the Act. A “factory” is typically any premises where a manufacturing process is carried out with:
• 10 or more workers and power is used in the process, or
• 20 or more workers and no power is used.
This means that once an industrial unit meets these worker thresholds, it must comply with the Act. The Act covers all workers in factories – including contract workers in many cases – focusing on occupations ranging from textiles and chemicals to engineering workshops. Certain establishments not meeting the threshold or not engaged in “manufacturing” (as legally defined) are outside its scope. State governments can also declare any place a factory by notification if hazardous processes are carried on there. It’s important for employers to correctly determine if their facility falls under this Act; if so, registration under the Act and adherence to its provisions are mandatory.
Key Provisions
The Factories Act, 1948 sets out numerous provisions to protect workers:
• Health: Employers must maintain cleanliness of the factory, proper ventilation and temperature control, manage dust and fumes, prevent overcrowding, ensure clean drinking water, provide latrines and urinals, etc. These measures aim to prevent occupational diseases and general ill-health at work.
• Safety: The Act mandates fencing of dangerous machinery, training and supervision for young or inexperienced workers on machines, provisions for machinery maintenance, and precautions against fire. There are special requirements for factories carrying out hazardous processes (added via later amendments), such as handling toxic substances – these include emergency measures, medical exams for workers, and safety committees. Employers must also report accidents and dangerous occurrences to authorities and maintain accident records.
• Welfare: Factories over a certain size must provide welfare facilities. For example, any factory with 250 or more workers is required to provide a canteen; factories with 30 or more women workers must have a crèche (daycare) for their children; and first aid appliances must be available and accessible in all factories. Other welfare provisions include restrooms, washing facilities, and, in some cases, welfare officers (for larger factories).
• Working Hours: The Act fixes the working hours and rest intervals. The standard working hours are limited to 48 hours per week and 9 hours per day. It mandates a weekly holiday (usually Sunday) and daily rest intervals. Overtime is permitted but with payment at twice the normal wage rate. There are also restrictions on night shifts and a requirement of at least a half-hour break after 5 hours of work. For female workers, historically there were restrictions on working at night (these have been relaxed in some states with conditions, or under new codes).
• Employment of Young Persons: The Act has strict provisions prohibiting the employment of children below 14 in any factory. Adolescents (aged 15-18) may work only with a fitness certificate from a certified surgeon and under regulated conditions (limited hours, no night work, etc). This aligns with child labor laws to protect minors.
• Leave and Holidays: Workers are entitled to earned annual leave—one day for every 20 days worked in the previous year (and for younger workers, one day per 15 days). These leaves can be carried forward (subject to limits) and workers can encash them under certain conditions. The Act also acknowledges public holidays as per the establishment’s practices or state rules.
Compliance Obligations for Employers
Factory owners and managers have several compliance obligations under the Act:
• Registration and Licensing: A new factory must be registered with the Chief Inspector of Factories of the state. This involves obtaining a factory license by submitting plans of the factory, details of the manufacturing process, and paying the prescribed fees. Operating a factory without a valid license or registration can lead to penalties.
• Notices and Records: The occupier (typically the owner or person in control of the factory) must send notices to the Inspector when certain events occur, such as before a factory begins operations, if there’s a change in manager, or if the factory extends or changes its manufacturing process. Factories must maintain various records and registers – for example, an attendance register, overtime registers, accident register, inspection book, and health records if required (especially for hazardous processes). These should be produced to inspectors on demand.
• Safety Committees and Personnel: For factories carrying out hazardous processes or above certain employment thresholds, the law may require appointment of safety officers and establishment of safety committees. Employers need to ensure such roles are staffed by qualified persons to continuously monitor and improve safety in the factory.
• Display of Notices: Factories must display statutory abstracts of the Act and rules in local language and English, as well as notices about working hours, holidays, and wages rates (if relevant). Warning signs for safety (like for fire exits, dangerous machinery) and informational signs (like capacity of lifts, emergency contacts, etc.) should be displayed prominently.
• Periodic Returns: Employers are required to file annual or half-yearly returns with the factory inspectorate detailing information such as number of workers employed, number of accidents, man-hours worked, leave granted, etc., as per state rules. This data helps authorities ensure compliance and gather labor statistics.
Failure to meet these obligations can result in penal consequences under the Act, including fines and imprisonment for the factory manager or occupier. For instance, general penalties for contravention can be a fine up to ₹1 lakh or imprisonment up to 2 years, and higher if the offence is grave or repeated. HR and compliance officers in manufacturing companies must therefore regularly audit their practices against the Factories Act requirements to avoid legal issues and to ensure a safe workplace for employees.
