Prof.

BD Singh
Sr. Professor HRM,
&
Dean MDP& Consultancy
IMT Ghaziabad
 Factory Act--1948
Introduction
A piece
- Social Legislation, protecting workers—(Leela Vs. State of
Kerla 2004.---Kerla High Court)
- Humanization of Work Places
- Quality of work life
- Removing Exploitation
- Providing better Working Conditions
 Chapter 1
Definitions

1. Adult- Above 18 years, Adolescent below 18 years,

child-below 15 years, young person-15 to 18 years

2. Worker- A person directly or through any Agency

(including a contract worker), with or without knowledge of
Principal employer, with or without remuneration in a
factory
3. Factory means any premises and prescient thereof
- 10 workers with power, 20 without power
- Manufacturing process is carried on
- Prescient means- within the enclosed walls or fences
- Definition does not include hotel, restaurant, EDP
centers, railway workshop etc.
4. Occupier- A person who has the ultimate control over
the affairs of the factory-one of the partners or
directors.
- Private Sector )
)
- Government/Public Sector) (IOC CASE)

A person appointed by govt. to manage the affairs of

the factories (of Govt. companies)
2(cb)Hazardous Process- Any Process or activity in
relation to Industry as specified in First Schedule.
 Section 3 empowers State
Government to make rules for
references to time of day where
IST being 5 ½ hours ahead of
GMT, is not observed

Section 4 empowers State

Main responsibility Government to declare different
Is of the State departments to be separate
for administrating Government factories or two or more factories
the Act
to be single factory. The power is
used at its own or on application

Section 5 in the case of public

emergencies, empowers State
Government to exempt any
factory or class of factories from
all or any of the provisions of
this Act except from section 67
 Sec-6
i) Compulsory Approval, Licensing
and Registration of Factories—
Section 6
- General duties of occupier-Section 7(A)-Provision of
F.A.
- General Duties of the Manufacturers etc. as regards
articles and substances for use in factories (Section7 B)
- Importers of articles have to ensure the standard set out
in the country or standard adopted outside the country.
 Chapter-II
INSPECTING STAFF

- Powers of inspectors
• Qualification
• Power
Enter, examine, enquire, sieze, direct occupier,
dismantler stop etc.
- Certifying surgeon
• Qualification
• Power
Examine & certification of young Person.
- Every District Magistrate is the chief inspector of
factory for his own area.
 Chapter-III
HEALTH

Cleanliness, Disposal of Waste and affluent, ventilation

and temperature, Dust and Fumes, Artificial
humidification, over crowding, Listing, Drinking Water,
250 workers---cooler, Latrine and Urinals, ( commonly
situated separate for Men & women sanitation-sweepers)
Spittoons(Rs 5 as fine)
 Chapter IV
SAFETY

Sec-21-40
Fencing of machinery, work on or near machinery in
motion, employment of young children on dangerous
machinery, casing of new machines, Prohibition of
children and women near cotton firms, Resolving
machines, Pressure Plant, Floors, stairs and areas of
access, dangerous fumes, gases, explosive or
inflammable gases, fire-precautions etc.
 40-B
- Manager Safety- Appointments, functions etc.
- 1000 workers or more
- Certifying Surgeon- Functions etc.
 Section 41
After Bhopal Gas Tragedy---Amendment/Addition-1987

section 41-A
Constitution of Site /Appraisal Committee to consider
application involving hazardous process or for expansion
etc.
- water pollution
- Air pollution
 Section 41-B
Compulsory disclosure of information by the occupier to
inspector & general public–manufacturing,
transportation, storage etc. Involving damages/ Health
hazards.
- Draw- up disaster Plan/Central
- Make known to the workers/ public
 Section 41-C
Specific responsibility– The occupier in relation to
hazardous processes—Schedule--First
- Up-to-date health records/ Medical records
- Medical Examination of worker who are exposed to
chemicals, Toxic & harmful substances.
Section 41-D
Central Government can appoint Enquiry Committee
to enquire into the standards of health/safety of
workers & public.

Section 41-E
Central government can lay down suitable Emergency
Standards.

Section 41-F
Certain chemicals can be exposed for limited period
permissible limits of exposure of chemicals/ toxic
substances—(second schedule) cultural/ state Govt.
can change/add.
 Section 41-G
Workers’ participation in Safety Management

Section 41-H
Right of workers to warm about imminent dangers

- In case of reasonable apprehension, they can bring

that to the notice of the occupier, Agent
- If not satisfied, refer to Inspector of Factories
 Chapter V
WELFARE
- Intra-Moral
- Extra-Mural
- Washing/ drying facilities, silting, First Aid(100)
canteen(250), Rest-rooms, Creches(30)
- Welfare officers (250)
- Functions
- Protection
 Chapter VI
WORKING HOURS FOR ADULTS
- 48 hours a week, not exceeding 9 hours a day- spread
over up to 10-1/2 hours, maximum 12 hours with
permission
- Rest intervals- 5 hours, ½ hour
- Weekly holiday in a week, or immediately after or
before. Not more than 7 days in a week
- Overtime-75 hours in three months
- Overlapping shifts and double
- Notice period of work for adult workers
- Register of adult workers.

For Woman worker

- Hours of work must not exceed 12 hours a day and 60

hours a week including Overtime
- Spread over including rest intervals is not to exceed 13
hours in any one day
- Total Overtime amount not exceed 75 hours in a quarter
of three months and no one to be allowed to work more
than seven days at a stretch
- No woman is allowed to work more than nine hours and
between hours of 7 p.m. to 6 a.m. or between 10 p.m.
and 6 a.m., if this change is permitted by Government
- There will be no change in shift without a weekly or any
other holiday
 On employment of children
Hours - - 7 p.m. to 6 a.m.
No child below 14 years
Duration - - Certifying system
Age 4-1/2 hours, 10 p.m. to 6
a.m.
A register to be
maintained
- Child Not completed 15th years of
age
- Young Young man is neither a child nor
an adolescent
 Chapter VII
- Certificate of fitness
- Duration of work
- Shift working
- Register of child worker
- Medical examination
 Chapter VIII
ANNUAL LEAVE WITH WAGES

- 240 days working

- One day for 20 days working for adult
- One day for 15 days working for a child
- For computation of 240 days, earned leave, maternity
leave and lay-off period is counted. But for computing
20 days, they are not counted
- Fraction of leave of half day or more is computed as full
day leave
- A worker has to work for 2/3rd of an year to become
eligible for earned leave
 ANNUAL LEAVE AWITH
WAGES(CONTD.)
- Earned leave can be carried forward upto 30 days in
case of adult worker and 40 days in case of a child
- Refused leave can be carried forward without limit
- In case of dismissal, quitting of service, superannuation
and death, wages in lieu of leave is to be paid. Before
expiry of 2nd day in case of dismissal/discharge and
before expiry of two months in case of superannuation
and death.
- Section 79 (6 & 7) deals with methods of applying and
granting of leave
- A leave not availed can not be used for giving notice for
discharge and dismissals.
- Wages payable for leave can be recovered under
payment of wages Act./ID Act.
ANNUAL LEAVE WITH WAGES
(CONTD.)
If a factory provides better leave amenities to its
employees, the State Government may in the interest of
employees exempt the factory from the operation of
Chapter VIII of the Act. In Fact, some State Govt. Have
provided for National Holidays, Sick and Casuals Leave in
their shops and Commercial Establishments Acts, or in
separate legislation on the subject.
(Shops & Establishment Act.)
 OFFICE PENALTY
1.Contravention of Act/ Rule Two years, upto one lakh or both

2. Continuous contravention Fine of Rs. 1000/- per day

3. Repetition Three years, Fine of Rs.10,000/- which
may be extended to rupees 2 lakhs or
both
4. Obstructing Inspection Imprisonment upto six months and fine
upto Rs. 2 lakhs
5. Disclosing results of analysis under Imprisonment upto six months and fine
section 96 upto Rs. 2 lakhs
6.Contravention of Section 41-B, 41-C Seven years, fine upto Rs. 2 lakhs
and 41-H u/s 96A
7.Continuance of these offences after Rs. 5000/- per day for each day of
fine/conviction continuance
8.If offences confirmed after one year 10 years

9. Offences by workers Fine upto Rs. 500/-

10. Penalty for using false certificate of Two months/Rs.1000/both
fitness of child to work (98)
11. Double Employment of child (99) Fine upto Rs. 1000
 Special Provisions
Sec 87 - Dangerous operation
- State Govts. Can make
rules/ occupier to follow
87.A. - Power to prohibit
employment on account of
serious hazard
89 - If any worker contacts any
diseases specified in the third
schedule
 - Medical Practicum to attend him
- Full Information to Inspector of Factory

91. Full Power to direct enquiry in cases of

Accidents/Diseases
 INDUSTRIAL EMPLOYMENT (STANDING
ORDERS) ACT, 1946

Objective:- To avoid friction and tension between

employer and workmen employed in and industry
establishment Covered (Sec 1 (3))

- A factory as defined in Clause (m) of section 2 of he

Factories Act, 1948 or;
- A railway as defined in Clause (4) of Section 2 of the
Indian Railways Act 1890; or
- The establishment of a person who, for the purpose of
fulfilling a contract with the owner of any industrial
establishment, employs workmen.
 Contents of the Schedule
The matter referred to in the Schedule are:
† Classification of workmen, e.g., whether permanent,
temporary, apprentices, probationers, of badlis.
† Manner of intimating to workmen periods and hours of work,
holidays, paydays and wage rates.
† Shift working.
† Attendance and late coming.
† Conditions of, procedure in applying for, and the authority
which may grant, leave and holidays.
† Requirement to enter premises by certain gates, and liability
to search.
† Closing and reopening of sections of the industrial
establishment, and temporary stoppages of work and
the right and liabilities of the employer and workmen
arising there from.
† Termination of employment, and the notice thereof to
be given by employer and workmen.
† Suspension or dismissal for misconduct, and act or
omissions which constitute misconduct.
† Means of redress for workmen against unfair
treatment or wrongful exactions by the employer or
his agents or servant.
 Additional matters to be provided in Standing
Orders in coalmines.
1. Medical aid in case of accident.
2. Railway travel facilities.
3. Method of filling vacancies
4. Transfers
5. Liability of manager of the establishment or
mine
6. Service certificate
7. Exhibition and supply of Standing orders
 Additional matters to be provided in
Standing Order relating to all industrial
establishments.
1. Service record-matters relating to service car,
token tickets, certification of services, change
of residential address of workers and record of
age,
2. Confirmation
3. Age of retirement
4. Transfer
5. Medical aid in case of accidents.
6. Medical examination
7. Secrecy
8. Exclusive services

Any other matter which may be prescribed.

Certification Process– its Operation and
Binding Effect

Conformity with the Model Standing Orders

Fairness and Reasonableness of Standing Order

Certifying Officers: Their Appointments, Powers and

Duties

Appeals Against Certification

Posting of Standing Orders

Interpretation of Standing Orders

 LAWS RELATED TO INDUSTRIAL DISCIPLINE IN
STANDING ORDER

The legal Dimension

Amongst others the following acts on the part of an

employee have been held to be misconducts:-
† any act or conduct which is prejudicial or is likely to be
prejudicial to the interests of the employer or to the
reputation of the employer;
† any act or conduct inconsistent or incompatible with the
due or peaceful discharge of the workman's duty to his
employer;
† any act or conduct of an employee which is such as to
open before his temptations for not discharging his
duties properly;
† any act or conduct of an employee which disturbs the
peaceful functioning at the place of work;
† use of filthy or abusive language against co-employees,
officers or employer;
† insulting behaviour and in-subordination as to make it
impossible to retain the relation of master and servant;
† habitual neglect of duties for which a worker is paid;
† neglect of the employee, though isolated which causes or
tends to cause serious and harmful consequences;'
† theft, fraud or dishonesty in connection with the employer's
business;
† illegal strike;
† breach of duty, absence without leave, non-performance
of job-duties, disobedience of orders;
† Breach of discipline, disrespect to or assaulting superiors
or subversion organization discipline, disrupting relations
with co-workers;
† Delinquencies like telling lies, committing theft, fraud,
dishonesty, disloyalty and corruption, damage to
property or goodwill;
† Disabling or disrespectful conduct, disreputable outside
conduct.
Principles of Natural Justice

Domestic enquiry
 Decision

The following punishments are generally imposed on the

employees depending upon the gravity of the misconduct
committed by them:
(i) Warning;
(ii) Fine;
(iii) Withholding or stoppage of increments;
(iv)Demotion or reduction in rank;
(v) Suspension;
(vi)Discharge;
(vii)Dismissal.

Provision for Appeal