There has been rise of large scale factory/ industry in India in the later half
of nineteenth century. Major Moore, Inspector-in- Chief of the Bombay Cotton
Department, in his Report in 1872-73 first of all raised the question for the
provision of legislation to regulate the working condition in factories; the
first Factories act was enacted in 1881.
Since then the act has been amended on
many occasions. The Factories Act 1934 was passed replacing all the previous
legislation in regard to factories. This act was drafted in the light of the
recommendations of the Royal Commission on Labour. This Act has also been
amended suitably from time to time.
The experience of working of the Factories
Act, 1934 had revealed a number of defects and weakness which have hampered
effective administration of the Act, and the need for wholesale revision of the
act to extend its protective provisions to the large number of smaller
industrial establishments was felt.
Therefore, the Factories Act, 1948
consolidating and amending the law relating to labour in factories, was passed
by the Constituent Assembly on August 28, 1948. The Act received the assent of
Governor General of India on 23 September 1948 and came into force on April 1,
1949.
Objective of Factories Act ,1948
The main objectives of the Indian Factories Act, 1948are to regulate the
working conditions in factories, to regulate health, safety welfare, and annual
leave and enact special provision in respect of young persons, women and
children who work in the factories.
1.Working Hours:
According to the provision of working hours of adults, no adult worker shall be
required or allowed to work in a factory for more than 48 hours in a week. There
should be a weekly holiday.
2.Health:
For protecting the health of workers, the Act lays down that every factory shall
be kept clean and all necessary precautions shall be taken in this regard. The
factories should have proper drainage system, adequate lighting, ventilation,
temperature etc.
Adequate arrangements for drinking water should be made. Sufficient latrine and
urinals should be provided at convenient places. These should be easily
accessible to workers and must be kept cleaned.
3. Safety:
In order to provide safety to the workers, the Act provides that the machinery
should be fenced, no young person shall work at any dangerous machine, in
confined spaces, there should be provision for manÂholes of adequate size so
that in case of emergency the workers can escape.
4. Welfare:
For the welfare of the workers, the Act provides that in every factory adequate
and suitable facilities for washing should be provided and maintained for the
use of workers.
Facilities for storing and drying clothing, facilities for sitting, first-aid
appliances, shelters, rest rooms’ and lunch rooms, crèches, should be there.
5. Penalties:-
The provisions of The Factories Act, 1948, or any rules made under the Act, or
any order given in writing under the Act is violated, it is treated as an
offence. The following penalties can be imposed:-
(a) Imprisonment for a term which may extend to one year;
(b) Fine which may extend to one lakh rupees; or
(c) Both fine and imprisonment.
If a worker misuses an appliance related to welfare, safety and health of
workers, or in relation to discharge of his duties, he can be imposed a penalty
of Rs. 500/-.
Applicability of Factories Act, 1948
The Act is applicable to any factory whereon 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 whereon 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; but this does not include a mine, or a mobile unit
belonging to the armed forces of the union, a railway running shed or a hotel,
restaurant or eating place.
Importance of Factories Act, 1948
The Factories Act, 1948 is a beneficial legislation. The aim and object of the
Act is essentially to safeguard the interests of workers, stop their
exploitation and take care of their safety, hygiene and welfare at their places
of work. It casts various obligations, duties and responsibilities on the
occupier of a factory and also on the factory manager. Amendments to the Act and
court decisions have further extended the nature and scope of the concept of
occupier, especially vis-a-vis hazardous processes in factories.
Definitions
1.Who is an Occupier?
According to section 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 or members 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 by the Central Government, the State
Government or the local authority, as the case may be, shall be deemed to be the
occupier:
Provided further that in the case of a ship which is being repaired, or on which
maintenance work is being carried out, in a dry dock which is available for
hire,
(1) the owner of the dock shall be deemed to be the occupier for the purposes of
any matter provided for by or under-
(a) section 6, section 7, section 7A, section 7B, section 11 or section 12;
(b) section 17, in so far as it relates to the providing and maintenance of
sufficient and suitable lighting in or around the dock;
(e) section 18, section 19, section 42, section 46, section 47 or section 49, in
relation to the workers employed on such repair or maintenance;
(2) the owner of the ship or his agent or master or other officer-in-charge of
the ship or any person who contracts with such owner, agent or master or other
officer-in-charge to carry out the repair or maintenance work shall be deemed to
be the occupier for the purposes of any matter provided for by or under section
13, section 14, section 16 or section 17 (save as otherwise provided in this
proviso) or Chapter IV (except section 27) or section 43, section 44 or section
45, Chapter VI, Chapter VII, Chapter VIII or Chapter IX or section 108, section
109 or section 110, in relation to-
(a) the workers employed directly by him or by or through any agency; and
(b) the machinery, plant or premises in use for the purpose of carrying out such
repair or maintenance work by such owner, agent, master or other
officer-in-charge or person.
ION Exchange India Ltd. V.Deputy Chief Inspector of factories, Salem (1996).It
was held that owner can nominate any person tobe in ultimate control over the
affairs of a factory. If no one else has been nominated to be in ultimate
control over the affairs of the company, Director of a company or any partner of
partnership is deemed to be the occupier.
2. What is a factory?
According to section 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 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) whereon 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, - but
does not include a mine subject to the operation of the Mines Act, 1952 (XXXV of
1952) or a mobile unit belonging to the armed forces of the Union, a railway
running shed or a hotel, restaurant or eating place;
Explanation I--- For computing the number of workers for the purposes of this
clause all the workers in different groups and relays in a day shall be taken
into account;
Explanation II.---For the purposes of this clause, the mere fact that an
Electronic Data Processing Unit or a Computer Unit is installed in any premises
or part thereof, shall not be construed to make it a factory if no manufacturing
process is being carried on in such premises or part thereof;
3. Who is a Worker?
According to section 2(l) â€worker" means a person employed directly or by 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 other kind of work incidental to, or connected with the
manufacturing process, or the subject of the manufacturing process but does not
include any member of the armed forces of the Union;
4. What is a Manufacturing Process?
According to section 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 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
(iv) composing types for printing, printing by letter press, lithography,
photogravure or other similar process or book-binding; or
(v) Constructing, reconstructing, repairing, refitting, finishing or breaking up
ships or vessels; or
(vi) Preserving or storing any article in cold storage;
5. What is hazardous process?
According to section 2(cb) "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, 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:- 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;
Duties of Occupier
The Duties of Occupier have been clearly mentioned in the following sections
of
Factories Act, 1948: -
1. Notice by Occupier (Section 7)
The occupier shall, send to the Chief Inspector a written notice in respect
of
all establishments which come within the scope of the Act for the first time,
before a factory engaged in a manufacturing process which is ordinarily carried
on for less than one hundred and eighty working days in the year resumes
working, whenever a new manager is appointed. During any period for which no
person has been designated as manager of a factory or during which the person
designated does not manage the factory, any person found acting as manager, or
if no such person is found, the occupier himself, shall be deemed to be the
manager of the factory for the purposes of this Act.
2. General Duties of the Occupier(Section7A)
# To ensure the health, safety and welfare of all workers while they are
at work in the factory.
# To provide and maintain the plant and systems of work in the factory
that are safe and without risk to health of the workers.
# To provide arrangements in the factory for ensuring safety and absence
of risk to health in connection with the use, handling, storage and transport of
articles and substances
# To provide such information, instruction, training and supervision as
are necessary to ensure the health and safety of all workers at work.
# To maintain all places of work in the factory in a condition that is
safe and without risks to health and to provide and maintain such means of
access to, and egress from, such places as are safe and without such risks.
# To provide, maintain or monitor such working environment in the factory
for the workers that is safe, without risk to health and adequate as regards
facilities and arrangements for their welfare at work.
# To prepare a written statement of his general policy with respect to
the health and safety of the workers at work and the organization and
arrangements in force for carrying out that policy.
3. Appointment of Safety officers. (Section 40-B)
It shall be the duty of the of the Occupier to Appoint a Safety officer in a
factory:-
(i) Wherein one thousand or more workers are ordinarily employed, or
(ii) Wherein, in the opinion of the State Government, any manufacturing process
or operation is carried on, which process or operation involves any risk of
bodily injury, poisoning or disease, or any other hazard to health, to the
persons employed in the factory, if so required by the State Government by
notification in the official Gazette.
4. Compulsory Disclosure of Information by the Occupier. (Section 41-B)
Compulsory disclosure of information by the occupier -
# The occupier of every factory involving a hazardous process shall
disclose in the manner prescribed to the Chief Inspector and the local
authority.
# The occupier shall, at the time of registering the factory involving a
hazardous process, lay down a detailed policy with respect to the health and
safety of the workers employed therein and intimates such policy to the Chief
Inspector and the local authority.
# Every occupier shall, with the approval of the Chief Inspector, draw up
an on-site emergency plan and detailed disaster control measures for his factory
and make known to the workers employed therein and to the general public living
in the vicinity of the factory the safety measures required to be taken in the
event of an accident taking place.
# The occupier of a factory involving a hazardous process shall, with the
previous approval of the Chief Inspector, lay down measures for the handling,
usage, transportation and storage of hazardous substances inside the factory
premises and the disposal of such substances outside the factory premises and publicise them in the manner prescribed among the workers and the general public
living in the vicinity.
5. Specific Responsibility of the occupier in relation to Hazardous Process.
(Section 41-C)
Every occupier of a factory involving any hazardous process shall-
# maintain accurate and up-to-date health records or, as the case may be,
medical records, of the workers in the factory
# appoint persons who possess qualifications and experience in handling
hazardous substances
# Provide for medical examination of every worker.
6. Worker’s Participation in safety management. (Section 41-G)
The occupier shall, in every factory where a hazardous process takes place, or
where hazardous substances are used or handled, set up a Safety Committee
consisting of equal number of representatives of workers and management to
promote co-operation between the workers and the management in maintaining
proper safety and health at work and to review periodically the measures taken
in that behalf.
7. Right of Workers to be warned about imminent dangers. (Section 41-H)
It shall be the duty of such occupier, agent, manager or the person in charge
of the factory or process to take immediate remedial action if he is satisfied
about the existence of such imminent danger and send a report forthwith of the
action taken to the nearest Inspector.
8. Facilities for sitting and Canteens. (Section 42 to 49)
It is the duty of occupier to provide welfare facilities like Lunch rooms,
Canteen, Crèche, Washing facilities, first-aid appliances etc. to all workers
and to appoint a welfare officer.
9. Annual Leave with Wage.(Section 79)
For the purpose of ensuring the continuity of work, the occupier or manager
of
the factory, in agreement with the Works Committee of the factory constituted
under section 3 of the Industrial Disputes Act, 1947 (14 of 1947), or a similar
Committee constituted under any other Act or if there is no such Works Committee
or a similar Committee in the factory, in agreement with the representatives of
the workers therein chosen in the prescribed manner, may lodge with the Chief
Inspector a scheme in writing whereby the grant of leave allowable under this
section may be regulated.
10. Safety and Occupational Health Survey. (Section 91-A)
The occupier or manager of the factory or any other person who for the time
being purports to be in charge of the factory, undertake safety and occupational
health surveys, and such occupier or manager or other person shall afford all
facilities for such every, including facilities for the examination and testing
of plant and machinery and collection of samples and other data relevant to the
survey.
Duties of Factory Manager
The Duties of Factory Manager are mentioned in the following Sections of Factory
Act, 1948: -
1. Right of Workers to be warned about imminent danger. (Section 41-H)
It shall be the duty of such occupier, agent, manager or the person in charge
of the factory or process to take immediate remedial action if he is satisfied
about the existence of such imminent danger in the factory where the worker is
engaged in any hazardous process and send a report forthwith of the action taken
to the nearest Inspector.
2. Notice of periods of work for adults. (Section 61)
The manager of the factory shall display correctly and maintained in every
factory in accordance with the provisions of sub-section (2) of section 108, a
notice of periods of work for adults, showing clearly for every day the periods
during which adult workers may be required to work, fix the periods during which
each relay of the group may be required to work, classify them into groups
according to the nature of their work indicating the number of workers in each
group, shall draw up a scheme of shifts where under the periods during which any
relay of the group may be required to work.
3. Register of Adult Workers. (Section 62)
The manager of every factory shall maintain a register of adult workers, to be
available to the Inspector at all times during working hours, or when any work
is being carried on in the factory.
In State of Maharashtra v. Sampat Lal Mensukh Bothra (1992),it was held that
the obligation to maintain registers is imposed on the manager and
4. Annual Leave with Wage. (Section 79)
For the purpose of ensuring the continuity of work, the occupier or manager
of
the factory, in agreement with the Works Committee of the factory constituted
under section 3 of the Industrial Disputes Act, 1947 (14 of 1947), or a similar
Committee constituted under any other Act or if there is no such Works Committee
or a similar Committee in the factory, in agreement with the representatives of
the workers therein chosen in the prescribed manner, may lodge with the Chief
Inspector a scheme in writing whereby the grant of leave allowable under this
section may be regulated.
5. Notice of Certain Dangerous Occurrences. (Section 88A)
Notice of certain dangerous occurrences. —Where in a factory any dangerous
occurrence of such nature as may be prescribed occurs, whether causing any
bodily injury or disability or not, the manager of the factory shall send notice
thereof to such authorities, and in such form and within such time, as may be
prescribed.
6. Notice of Certain Disease. (Section 89)
Where any worker in a factory contracts any disease specified in 1[the Third
Schedule], the manager of the factory shall send notice thereof to such
authorities, and in such form and within such time, as may be prescribed.
7. Safety and Occupational Health Survey. (Section 91-A)
The occupier or manager of the factory or any other person who for the time
being purports to be in charge of the factory, undertake safety and occupational
health surveys, and such occupier or manager or other person shall afford all
facilities for such every, including facilities for the examination and testing
of plant and machinery and collection of samples and other data relevant to the
survey.
8. Notice of Certain Accidents. (Section 88)
Where in any factory an accident occurs which causes death, or which causes any
bodily injury by reason of which the person injured is prevented from working
for a period of forty-eight hours or more immediately following the accident, or
which is of such nature as may be prescribed in this behalf, the manager of the
factory shall send notice thereof to such authorities, and in such form and
within such time, as may be prescribed to the Chief Inspector.
General Procedure As To Filing of Cases In Case of Factory Accidents
Whenever an accident takes place in a factory the Occupier or Factory Manager
shall inform the Chief Inspector within a period of forty eight hours or so
(Section 88) and shall send Form No. 22 containing all the information regarding
the said accident to Labour Department, Industrial Health And Safety, which
shall inquire into the matter by factory inspector who shall inspect the
accident spot, take the witness of the victims, then he shall issue a show cause
notice to the Occupier and Factory Manager to reason out the causes of the mis
happening. If the Factory Inspector is not satisfied with the reply given by the
factory management he shall institute a case against the Occupier and Factory
Manager before Judicial Magistrate First Class, Labour Court (Section
105).Then in case if the party to the disputes are not satisfied with the
judgement they shall refer the case to the High Court or and to the Supreme
Court respectively.
Penalties under factory act, 1948
Section 92. General penalty for offences. -
Save as is otherwise expressly provided in this Act and subject to the
provisions of section 93, if in, or in respect of, any factory there is any
contravention of the provisions of this Act or of any rules made there under or
of any order in writing given there under, the occupier or manager of the
factory shall each be guilty of an offence and punishable with imprisonment for
a term which may extend to two years or with fine which may extend to one lakh
rupees or with both, and if the contravention is continued after conviction,
with as further fine which may extend to one thousand rupees for each day on
which the contravention is so continued.
Provided that where contravention of any of the provisions of Chapter IV or any
rule made there under or under section 87 has resulted in an accident causing
death or serious bodily injury, the fine shall not be less than twenty-five
thousand rupees in the case of an accident causing death, and five thousand
rupees in the case of an accident causing serious bodily injury.
Explanation. - in this section and in section 94 "serious bodily injury" means
an injury which involves, or in all probability will involve, the permanent loss
of the use of, or permanent injury to, any limb or the permanent loss of, or
injury to sight or hearing, or the fracture of any bone, but shall not include,
the fracture of bone or joint (not being fracture of more than one bone or
joint) of and phalanges of the hand or foot.
General Manager, Wheel & A. P, Bangalore v. State of Karnataka (1996) .It was
held in this case that the requirement of obtaining sanction to prosecute is
mandatory and taking cognizance of an offence in the absence of sanction cannot
be allowed to stand and has to be quashed.
Provincial Government v. Ganpat, AIR 1943 Nag 243.It was held in this case where
the occupier or the manager of the factory admits the guilt under Section 92 of
the Act, but alleges the clerk of the Factory to be the actual offender, the
onus of establishing the innocence is on such occupier or the manager as the
case maybe.
Section 94. Enhanced penalty after previous conviction. -
(1) If any person who has been convicted of any offence punishable under section
92 is again found guilty of an offence involving a contravention of the same
provision, he shall be punishable on a subsequent conviction with imprisonment
for a term which may extend to three years or with fine, which shall not be less
than ten thousand rupees but which may extend to two lakh rupees or with both;
Provided that the Court may, for any adequate and special reasons to be
mentioned in the judgment, impose a fine of less than ten thousand rupees:
Provided further that where contravention of any of the provisions of Chapter IV
or any rule made there under or under section 87 has resulted in an accident
causing death or serious bodily injury, the fine shall not be less than
thirty-five thousand rupees in the case of an accident causing death and ten
thousand rupees in the case of an accident causing serious bodily injury.
(2) For the purpose of sub-section (1), no cognizance shall be taken of any
conviction made more than two years before the commission of the offence for
which the person is subsequently being convicted.
Section 95. Penalty for obstructing inspector. -
Whoever wilfully obstructs an Inspector in the exercise of any power conferred
on him by or under this Act, or fails to produce on demand by an Inspector any
register or other documents kept in his custody in pursuance of this Act or of
any rules made there under, or conceals or prevents any workers, in a factory
from appearing before, or being examined by, an inspector, shall be punishable
with imprisonment for a term which may extend to six months or with fine which
may extend to ten thousand rupees or with both.
Section 96A. Penalty for contravention of the provisions of sections 41B, 41C
and 41H.-
(1) Whoever fails to comply with or contravenes any of the provisions of
sections 41B, 41C or 41H or the rules made there under, shall, in respect of
such failure or contravention, be punishable with imprisonment for a term which
may extend to seven years and with fine which may extend to two lakh rupees, and
in case the failure or contravention continues, with additional fine which may
extend to five thousand rupees for every day during which such failure or
contravention continues, after the conviction for the first such failure or
contravention.
(2) If the failure or contravention referred to in sub-section (1) continues
beyond a period of one year after the date of conviction, the offender shall be
punishable with imprisonment for a term which may extend to ten years.
Section 97. offences by workers. -
(1) Subject to the provisions of section 111, if any worker employed in a
factory contravenes any provision of this Act or any rules or orders made thereunder, imposing any duty or liability on workers, he shall be punishable
with fine which may extend to five hundred rupees.
(2) Where a worker is convicted of an offence punishable under sub-section (1)
the occupier or manager of the factory shall not be deemed to be guilty of an
offence in respect of that contravention, unless it is proved that he failed to
take all reasonable measures for its prevention.
Exemptions of occupier or manager from liability in certain cases
Section 101. Exemption of occupier or manager from liability in certain cases.-
Where the occupier or manager of a factory is charged with an offence punishable
under this Act he shall be entitled, upon complaint duly made by him and on
giving to the prosecutor not less than three clear days' notice in writing of
his intention so to do, to have any other person whom he charges as the actual
offender brought before the Court at the time appointed for hearing the charge;
and if, after the commission of the offence has been proved, the occupier or
manager of the factory, as the case may be, proves to the satisfaction of the
Court -
(a) that he has used due diligence to enforce the execution of this Act, and
(b) that the said other person committed the offence in question without his
knowledge, consent or connivance,
that other person shall be convicted of the offence and shall be liable to the
like punishment as if he was the occupier or manager of the factory, and the
occupier or manager, as the case may be, shall be, discharged from any liability
under this Act in respect of such offence:
Provided that in seeking to prove as aforesaid, the occupier or manager of the
factory, as the case may be, may be examined on oath, and his evidence and that
of any witness whom he calls in his support, shall be subject to
cross-examination on behalf of the person he charges as the actual offender and
by the prosecutor:
Provided further that, if the person charged as the actual offender by the
occupier or manager, cannot be brought before the court at the time appointed
for hearing the charge, the court shall adjourn the hearing from time to time
for a period not exceeding three months and if by the end of the said period the
person charged as the actual offender cannot still be brought before the court,
the court shall proceed to hear the charge against the occupier or manager and
shall, if the offence be proved, convict the occupier or manager.
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