The Factories Act, 1948
The Factories Act, 1948
The Factories Act, 1948
Labour problems and inspector raj are frequently associated with factories.
HR managers must be familiar with this legislation, whether it be for multiple
compliances or any laws about working conditions. Although it is still not
standard practice for family enterprises, more and more large organisations,
particularly MNCs, are now engaging consultants and training institutes that
can train their HR managers about compliance with the Factories Act.
This act prescribes the basic rights and interests of the workers, and the
guarantee to provide them with basic amenities like proper sanitation,
ventilated workspace, safety for using machinery etc. The maximum working
hours prescribed are not more than 48 hours a week. Compliance with this
act can act as a boon for this company as it can effectively avoid labour
conflicts in the future.
The main objectives of the Indian Factories Act, of 1948 are to regulate the
working conditions in factories, to regulate health, safety welfare, and annual
leave and enact a special provision in respect of young persons, women and
children who work in the factories.
Working Hours: According to the provision of working hours for 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.
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 a proper drainage system, adequate
lighting, ventilation, temperature etc.
Adequate arrangements for drinking water should be made. Sufficient
latrines and urinals should be provided at convenient places. These should be
easily accessible to workers and must be kept clean.
Safety: To provide safety to the workers, the Act provides that the
machinery should be fenced, no young person shall work at any dangerous
machine, and in confined spaces, there should be provision for manholes of
adequate size so that in case of emergency the workers can escape.
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, and crèches, should be there.
Penalties:- The provisions of The Factories Act, 1948, 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.
# Under the Act of 1934 the State Governments had the power to extend the
application of the Act to establishments where more than 10 Workers were
employed. Under the Act of 1948, the State Government may extend the
provisions of this Act to any establishment irrespective of the number of
workers employed therein and irrespective of the number of the workers
employed on therein and irrespective of the fact that manufacturing work is
carried by power or otherwise. The only exception is an establishment where
the work is done solely by the members of a family.
# Chapter III of the Act of 1934 was split into three parts, dealing with the
health, safety and welfare of workers. The Act specifies very clearly the
minimum requirements under the three heads stated above.
safety and welfare are extended to all workplaces irrespective of the number
of workers employed, except premises where processes are carried on by the
occupier with the sole aid of his family.
# The minimum age for the admission of children to employment has been
raised from 12 to 14 years and the minimum permissible daily hours of work
for children were reduced from five to four and a half hours.
# Provisions are made for the licensing and registration of factories and the
prior scrutiny by the Factories Inspectorate of the Plans and specifications of
factory buildings.
# State Government is obliged to see that all the factories are registered and
take a licensing for working, which should be periodically renewed. Prior
approval of the State Government has been made necessary for every new
installation of a Factory or the e xtension of an existing factory. Besides
mines, the new Act also excludes railway running sheds from the definition of
Factories.
Key Amendments
# (Section 2) Power to make rules on various matters: The Act permits
the state government to prescribe rules on a range of matters,
including double employment, details of adult workers to be included in
the factory’s register, conditions related to exemptions to certain
workers, etc. The Bill gives such rule-making powers to the central
government as well.
Powers to make rules for exemptions to workers: Under the Act, the
state government may make rules to (i) define persons who hold
management or confidential positions; and (ii) exempts certain types
of adult workers (e.g., those engaged in urgent repairs) from fixed
working hours, periods of rest, etc. The Bill gives such rule-making
powers to both, the central and state governments.
Under the Act, such rules will not apply for more than five years. The
Bill modifies this provision to state that the five-year limitation will not
apply to rules made after the enactment of this Bill.