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What is the Factories Act?

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1 minutes

The Factories Act is a law in India that regulates labour practices in factories, ensuring the safety, health, and welfare of workers. It sets guidelines on working hours, employment conditions, and workplace safety standards to protect factory employees.

History of Indian regulations around factories and factory workers

The history of labour regulations in India is marked by significant legislative milestones designed to regulate working conditions, employment of women and children, and overall safety in factories. These acts have evolved over time to improve the welfare of factory workers and establish better standards for workplace safety.

Factory Act of 1881

The Factory Act of 1881 was the first major legislation in India aimed at regulating labour in factories. It primarily focused on improving working conditions. It also prohibited the employment of young children under seven in factories. 

One of its key provisions was the fencing of machinery to prevent accidents and ensure worker safety. However, its scope was limited and covered only a small segment of the working population.

Factory Act of 1891

The Factory Act of 1891 expanded the earlier legislation by further regulating hours of work and ensuring better labour protections. It introduced the concept of weekly holidays for workers and regulated the hours of adults by helping ensure all factory workers—not just women and children—were entitled to a weekly rest. 

This act set more stringent standards for the protection of labourers and widened the scope to cover a larger number of factory workers.

Factory Act of 1948

The Factories Act of 1948 is the cornerstone of modern labour law for Indian factory workers. 

Enforced post-independence, this Act focuses on ensuring the safety, health, and welfare of adult workers employed in factories. Key provisions include guidelines for annual leave, compensatory holidays, advance notice of periods of work, and regulation of the working day. This Act provides detailed coverage of various aspects of worker safety, employer responsibilities, and working hours, setting the standard for labour laws in India today.

Important definitions under the Factories Act

The Factories Act includes a number of definitions that clarify various aspects of factory operations and worker safety. Some of the most important definitions include:

  • Adult, child, and adolescent: Under the Act, an adult is someone over 18 years of age. A child is under 15. An adolescent is between 15 and 18.
  • Competent person: An individual recognized by the government, Chief Inspector, or other regulatory authority to certify the safety of certain processes or machinery in a factory. This person must have the appropriate qualifications and experience to ensure compliance with safety standards.
  • Hazardous process: Any process or activity that involves a substantial risk to life, health, or safety, especially when chemicals or dangerous substances are used. The term applies to specific manufacturing procedures that pose a significant threat to factory workers and must be managed according to the regulations under the Act.
  • Machinery: This refers to any mechanical equipment used for the manufacturing process, including prime movers (like engines or turbines) and transmission machinery used to transmit energy or motion from the prime mover to other machinery in the factory.
  • Week: A period of seven days beginning at midnight on Saturday and ending at midnight on the following Saturday
  • Day: A period of 24 hours, beginning at midnight
  • Factory: Any premises where 10 or more workers are employed and where any part of the manufacturing process is carried out with the aid of power, or where 20 or more workers are employed without the aid of power.
  • Manufacturing process: Any process involving the making, altering, repairing, or packaging of goods. This term also includes tasks related to cold storage, printing, oil extraction, and other industrial activities.
  • Worker: A person employed directly or through an agency, whether for wages or without wages, in any manufacturing process or activity carried out in a factory. This includes individuals involved in the production, cleaning, maintenance, or any other operation related to the functioning of the factory.

Important provisions under the Factories Act of 1948

The Factories Act of 1948 outlines two basic sets of provisions:

  • The general duties of the occupier, or provisions for workers and other occupants of factory facilities
  • The general duties of manufacturers, or provisions for employers to provide working conditions that promote the health, safety, and welfare of factory workers

All parties covered by the law are responsible for ensuring the factory complies with all safety regulations. This includes creating a safe working environment. The state government is empowered by the Act to establish further rules, especially in matters related to working hours, safety standards, and factory inspections. The Factories Act also outlines rules for remuneration, ensuring that factory workers receive fair wages for their labor

The Act sets rules for registration of factories. Any factory employing a set number of workers must be registered with the authorities, ensuring adherence to health, safety, and welfare regulations. They must provide adequate facilities, including restrooms, latrines, or urinals, as well as washing facilities and lunch rooms where workers can take meals during breaks. Access to clean drinking water is also a fundamental requirement. Lastly, factories are required to provide spittoons in convenient locations, and to prohibit spitting in other parts of the factory.

In case of emergencies, the Act mandates that factories be equipped with first aid appliances and first aid boxes. Additional provisions call for areas for drying clothing if needed, particularly in industries where they may come into contact with water. 

Health and safety of factory workers under the Factories Act

Chapter III, Chapter IV, and Chapter V of the Factories Act all cover health, welfare, and safety of factory workers—from the restriction on the employment of young persons on dangerous machines to the disposal and management of effluents, ensuring that factory waste does not harm the environment or the health of workers. Factories are also required to maintain proper safety checks for hoists and ropes, ensuring these devices are in good working order to prevent accidents during lifting operations.

Safety measures must be implemented throughout the factory, particularly where hazardous processes are carried out. These measures are designed to protect workers from the inherent risks of machinery, chemicals, and dangerous substances. For example, the Act mandates that factories control dust and fume levels in the workroom to protect the respiratory health of workers. In addition, measures such as protection of eyes and other specific safety standards are required to ensure the overall health of workers. These regulations reflect the importance of maintaining a safe and clean environment for all factory employees.

Finally, the Act sets limits on how much weight workers can lift and carry—there are different weight limits for adult male workers versus women and children.

Penalties under the Factories Act

The Factories Act of 1948 includes stringent penalties to ensure compliance with its provisions, detailed in Chapter X.

Penalties apply to any person found violating the safety, health, or welfare regulations outlined in the Act. One significant offense is the issuance of a false certificate of fitness, which can occur when an individual fraudulently certifies that a worker is fit to work, particularly when they are not. This can lead to serious health risks for the worker and heavy fines for the certifier and the factory.

The manager of the factory has a crucial role in ensuring that the factory complies with all legal requirements under the Act, so any failure to enforce these regulations, such as not implementing safety measures or providing proper working conditions, can result in penalties. Moreover, the compulsory disclosure of information requires factory managers and occupiers to fully disclose any details regarding factory conditions, processes, or safety measures when requested by the authorities. Withholding or falsifying this information can lead to more legal consequences.

Important amendments to the Factories Act

Several important amendments have been made to the Factories Act over time to strengthen worker protections and address emerging industrial challenges. The amendments have added special provisions to protect workers’ rights, including enhanced regulations for child workers, restricting their employment in hazardous conditions and reducing their working hours to ensure safety.

Notable amendments include:

  • A requirement that factories that employ 30 or more women must have creches (childcare areas) under the care of women trained in child and infant care
  • A requirement that floors, stairs, and other means of access must be kept clear and accessible
  • An amendment to Chapter VIII to allow workers to carry forward unused leave
  • A requirement that the government run inspections for certain hazardous industries, like pressure plants
  • A requirement that factories provide striking gear and devices to cut off power to electrical machinery
  • A requirement that factories with more than 1,000 workers elect safety officers

Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.

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