Topic: The Factories Act, 1948

Subject Name: Industrial Law

Subject Code: BBA 604
By: Dr. Shuchi Mathur, Associate Professor

1
 SYLLABUS
 
 
Unit I Factory act 1948.
  Workmen compensation act 1923
 

Unit II Industrial dispute act 1947, Minimum wages act 1948

Unit III Employee state insurance act 1948.

 
Unit IV Employee provident fund act 1952.

Unit V Payment of gratuity act 1972.

 
Suggested Readings:
 
1.Element of industrial law N D Kapoor
2. Industrial Relations & Labour Law by A.M. Sharma
3. Industrial Law by Anil Sharma & Dr. Saurabh Kr. Sharma
INDUSTRIAL LAW BBA 604
UNIT 1
3
The Factories (Amendment) Bill, 2014 was introduced
in Lok Sabha on August 7, 2014.  It proposes to amend
the Factories Act, 1948. 

4
What is a factory?
A premises whereon 10 or more persons are
engaged if power is used, or 20 or more persons
are engaged if power is not used, in a
manufacturing process. [section 2(m)].
Amendment, 2014
Proposed: The Bill specifies that the state government
may raise the minimum number of workers employed
in the definition to 20 (if power is used) and 40 (if
power is not used).

5
 Objective of the Act

• The Act has been enacted primarily with the

object of protecting workers employed in
factories against industrial and occupational
hazards.
• For that purpose, it seeks to impose upon the
owner or the occupier certain obligations to
protect the workers and to secure for them
employment in conditions conducive to their
health and safety. 

6
Applicability of the Act 
At any place wherein manufacturing process is
carried on with or without the aid of power or is
so ordinarily carried on, not with standing that:

The number of persons employed therein is less

than ten, if working with the aid of power and less
than twenty if working without the aid of power,
or 

7
Applicability of the Act 
The persons working therein are not
employed by the owner thereof but are
working with the permission of, or under
agreement with, such owner. 

8
What is a manufacturing process?
Manufacturing process means any process for-
• (i) making, altering, repairing, ornamenting,
finishing, packing, oiling, washing, cleaning,
breaking up, demolishing, or otherwise
treating or adapting 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

9
• (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
• (v) constructing, reconstructing,
repairing, refitting, finishing or breaking
up ships or vessels;
• (vi) preserving or storing any article in
cold storage.
• [section 2(k)].

10
Who is a worker?
A person employed in any manufacturing
process or cleaning or any work incidental to
manufacturing process.
A person employed, directly or by or through any
agency with or without knowledge of the
principal employer.
Whether for remuneration or not.
Relationship of master & servant
[section 2(l)].

11
 Definitions[Sec.2]
• “Adult” means a person who has
completed his eighteenth year of
age

• “Adolescent” means a person who

has completed his fifteenth year of
age but has not completed his
eighteenth year
12
• “Child” means a person who has not
completed his fifteenth year of age

• “Young person” means a person

who is either a child or an
adolescent

13
 Definitions[Sec.2]
• “Day” means a period of twenty-four hours
beginning at midnight;
• "week" means a period of seven days beginning at
midnight on Saturday night
• “Calendar year” means the period of twelve
months beginning with the first day of January in
any year

14
• “Power” means electrical energy, or any other
form of energy which is mechanically
transmitted and is not generated by human or
animal agency;

• “Prime mover” means any engine, motor or other

appliance which generates or otherwise provides
power

15
Who is the occupier?
The person who has ultimate
control over the affairs of
factory.

It includes a partner in case of

firm and director in case of a
company.
16
In case of Government
company, 'occupier' need not be
a director. In that case, person
appointed to manage affairs of
the factory shall be occupier.
[section 2(n)].

17
Approval, Licensing & Registration Of
Factories[sec.6]
• Making an application to the Government or
Chief Inspector , along with the duly
certified plans and specifications required by
the rules,

• Sent to the State Government or Chief

Inspectors by registered post,

18
• And no order is communicated to the applicant
within 3 months from the date on which it is so
sent, the permission deemed to be granted.
• If the application is rejected appeal can be made
to the government within 30 days of the date of
such rejection.

19
Notice by Occupier[sec.7]
The occupier shall, at least 15 days before he begins
to occupy or use any premises as a factory, send a
notice to the Chief Inspector containing-
• (a) The name and situation of the factory;
• (b) The name and address of the occupier;
• (c) The name and address of the owner of the
premises
• (d) The address to which communications
relating to the factory may be sent;

20
• (e) The nature of the manufacturing process;
• (f) The total rated horse power installed or
to be installed in the factory;
• (g) The name of the manager of the factory
for the purposes of this Act;
• (h) The number of workers likely to be
employed in the factory;
• (i) Such other particulars as may be
prescribed

21
 General duties of the Occupier
• Occupier shall ensure, the health, safety and
welfare of all workers while they are at work in the
factory.

• Every occupier shall prepare, a written statement

of his general policy with respect to the health
and safety of the workers.

• Bring such statement and any revision thereof to

the notice of all the workers.

22
 The Inspecting Staff[Sec.8]
• State government may appoint Chief Inspector,
Additional Chief Inspectors, Joint Chief
Inspectors, Deputy Chief Inspectors, and
Inspectors.

• Prescribe their duties and qualifications

23
• Every District Magistrate shall be an Inspector for
his district

• Every inspector is deemed to be a public servant

within the meaning of the Indian Penal Code

24
Powers of Inspectors[sec.9]
• Enter factory premises for investigation
• Examine the premises
• Inquire into any accident or dangerous
occurrence
• Require the production of any prescribed register
or document
• Seize, or take copies of, any register, record or
other document

25
• Take measurements and photographs and
make such recordings

• Exercise such other powers as may be

prescribed

• No person shall be compelled under this

section to answer any question or give any
evidence tending to incriminate himself .

26
Certifying Surgeon[Sec.10]
• State Government may appoint qualified
medical practitioners to be certifying
surgeons
Duties of surgeons
• (a) the examination and certification of
young persons under this Act;
• (b) the examination of persons engaged
in factories in such dangerous
occupations or processes
27
(c) supervising the factories where

(i) cases of illness have occurred which are

due to the nature of the manufacturing
process or
(ii) due to manufacturing process there is a
likelihood of injury to the health of workers
or
(iii) young persons are employed in any work
which is likely to cause injury to their
health.
28
Topic: Health Provisions
(Factories Act, 1948)
Subject: Industrial Law
Code: BBA N 505

29
Health Provisions[Sec.11-20]
Chapter III of Factories Act contain details
regarding health of workers. Let us discuss
these provisions…

30
 Cleanliness[sec.11]
The working conditions should be clean and safe.
Clean the floor at least once a week by washing, or
by some effective method.
Effective means of drainage shall be provided.
White wash every 14 weeks
Paint / varnish every 5 years

31
Disposal of wastes and effluents
[sec.12]

There should be proper arrangements for

disposal of wastes and effluents.
Follow state govt. rules…

32
Ventilation & Temperature [sec.13]
Proper level of ventilation, temperature and
humidity must be maintained.
Make provisions for reducing excess heat.
The State Government may prescribe a standard
of adequate ventilation and reasonable
temperature for any factory or class or description
of factories.

33
 Dust and fume[sec.14]
• Effective measures should be taken to prevent
inhalation or accumulation of dust & fume.
• If any exhaust appliance is necessary for, it shall
be applied as near as possible to the point of
origin of the dust, fume or other impurity.

34
Artificial Humidification[sec.15]
• Factories in which the humidity of the air is
artificially increased (like in textile units), it
must be kept in limits.
• The water used for artificial humidification
to be clean.

35
 Overcrowding[Sec.16]
no room in any factory shall be overcrowded to an extent
injurious to the health of the workers employed therein
14.2 cubic metres of space per worker should be
there. While calculating this space, space above
the worker beyond 4.2 meters will not be taken
into account.
Notice, specifying the maximum number of
workers, which can be employed in any work
room shall be displayed in the premises.

36
 Lighting[Sec 17]
Sufficient & suitable lighting in every part of
factory should be there. There should be natural
lighting as far as possible.
All glazed windows and skylights used for the
lighting of the workroom shall be kept clean.
Formation of shadows to such an extent as to
cause eye-strain or the risk of accident to any
worker shall be prevented.

37
 Drinking water[Sec.18]
There should be provision for drinking water
(wholesome water)
Drinking points to be marked as drinking water.
They should be at least 6 meters away from wash
room/urinal/ latrine/spittoons.
If >250 workers are working, then have cool water
facility also.

38
Latrines and Urinals[Sec.19]

There should be separate –

for male and female.
Proper cleaning should be
there.

39
 Spittoons[Sec.20]
There should be sufficient number of spittoons.
No person shall spit within the premises of a
factory except in the Spittoons provided for the
purpose
Whoever spits in contravention shall be
punishable with fine not exceeding five rupees

40
Safety of Worker[Sec.21-41]
CHAPTER IV DEALS WITH SAFETY OF
WORKERS…

41
Fencing of Machinery[Sec.21]
Every dangerous parts must be
securely fenced.
The State Government may by
rules prescribe such further
precautions.

42
Machines in motions[Sec.22]
Examination of machinery in
motion only by a specially
trained adult male worker
wearing tight fitting clothing.
No women or child should be
allowed to work.

43
Employment of young persons on
dangerous machines[Sec.23]
No young person should be
allowed to work on
dangerous machines (unless
he has been trained, and is
under supervision).
Young person = 14 to 18.

44
Striking gears[Sec.24]
There should be suitable
striking gears etc. to switch
off the power, so that if there
is any emergency, problem
can be solved.

45
Self acting machines[Sec.25]
Make sure that no person
should walk in a space within
45 cm from any fixed
structure which is not a part
of machine.

46
Casing of new machines[Sec.26]
All machinery driven by
power & installed should be
so sunk, encased or
otherwise effectively guarded
as to prevent danger.

47
Cotton openers[Sec.27]
No women and children
are allowed to work on
cotton openers.

48
 Hoists and lifts[Sec.28]
Every hoist and lift should be in good condition, and
properly checked.
The maximum load it can carry – must be clearly
mentioned.
The gates should be locked by interlocking / safe
method (it should not open in between).
To be properly examined in every 6 months.

49
 Lifting machines, chains, ropes &
lifting tackles[Sec.29]
Cranes & lifting machines, etc. to be of good
construction & to be examined once in every 12
month.
Cranes and lifting machines not to be loaded
beyond safe working load.
Cranes not to be approach within 6 metres of a
place where any person is employed or working.

50
Revolving machines[Sec.30]
Maximum safe speed must
be mentioned for each
machine.
Speed indicated in notices
should not to be exceeded.

51
Pressure plant[Sec.31]
There should be safe working
pressure on pressure plants.
Effective measures should be
taken to ensure that the safe
working pressure is not
exceeded.

52
Floors, Stairs etc.[Sec.32]
All floors, steps, stairs,
passages & gangways should
be of sound construction &
properly mentioned.

53
Pits, sumps, openings in floors etc.
[Sec.33]
• Pits, sumps etc. should be
securely covered or fenced.

54
Excessive weights[Sec.34]
No person should be
employed to hold more
weight than the person can
hold.

55
Protection of eyes[Sec.35]
Provide goggles if workers
have to work on something
stretching to the eyes.

56
Dangerous fumes etc[Sec.36]
Prohibited to employ workers
in places where dangerous gas /
fume is present.
Practicable measures should be
taken for removal of gas, fume,
etc.

57
Portable electric light[Sec.36A]
• It should not be above 24
volts

58
Explosive or inflammable dust, gas,
etc.[Sec.37]
• Take all measures for safety
and to prevent explosion on
ignition of gas, fume etc.

59
Precautions in case of fire[Sec.38]
There should be separate exit
for cases of fire.
There should be facilities for
extinguishing fire.
Adequate arrangement to raise
an audible alarm preferably a
siren.
60
Role of inspector[Sec.39,40]
Section 39, 40 and 40A talk
about various roles that have
been assigned to the inspector.
He may call for details
regarding building, machines
etc.

61
Safety officer[Sec.40B]
If 1000 or more workers are
employed, appoint a separate
safety officer.

62
Power to make rules to supplement
the above provisions[Sec.41]
The State Government may make rules
requiring the provision in any factory of such
further devices & measures for securing the
safety of persons employed therein as it may
deem necessary.

63
Welfare Provision[Sec.42-50]
Chapter V
There are a number of provisions in the factories
act regarding welfare facilities for the workers.

64
 Welfare Issues
Washing facilities(Sec 42)
Facilities for, storing & drying clothes(Sec43)
Facilities for sitting(Sec 44)
First aid appliances(Sec 45)
Canteen( Sec46)
Rest room, shelters, lunch room( Sec 47)
Creches (Sec 48)
Welfare Officers(Sec 49)
Power to make rule(Sec 50)
65
 Washing facilities[Sec.42]
There should be washing facilities in
every factory for the workers–separate
for male and female workers-properly
screened.
conveniently accessible and shall be
kept clean.

66
Facility for storing and drying of
clothing[Sec.43]
There should be facility so
that worker can place their
cloth not worn during the
manufacturing process.
There should be facility so
that worker can dry their wet
cloth.
67
Facilities for sitting[Sec.44]
Suitable arrangements for
sitting shall be provided and
maintained for all workers
obliged to work in a standing
position
If the worker can do the work by
sitting, - there should be sitting
arrangement for the worker.
68
 First-aid appliances[Sec.45]
There should be at least 1 first aid box for every
150 workers.
It should have the prescribed contents.
A responsible person should hold a certificate on
first aid treatment.
An ambulance room should be there if the
number of workers is more than 500.

69
 Canteen[sec.46]
If the number of workers is more
than 250, the govt. may make rules
for canteen.
The govt. may make rules
regarding foodstuff, construction,
furniture, equipment of the
canteen.
70
Shelter, rest room, lunch
room[Sec.47]
When 150 workers are
working, there should be rest
rooms, lunch room, etc.
Such places should be
having drinking water
facilities etc.

71
 Creches[Sec.48]
If the number of women
workers is more than 30, there
should be the crèches.
It should be sufficiently lighted,
ventilated & to be under the
charge of trained women

72
Welfare Officer[Sec.49]
If the number of workers is
500 or more, there should be
a welfare officer to look after
the welfare of the workers.

73
 In Nutshell
• Crèche - > 30 women workers
• Restroom / shelters and - > 150 workmen
lunch room
• Cooled drinking water - > 250 workers
• Canteen - > 250 workers
• Ambulance room – Doctor, > 500 workers
Nurse and Dresser cum compounder
• Welfare officer - > 500 workers
• Lady welfare officer - > more nos. of women workers

74
Working hours Of Adults
Chapter VI
The rule as to the regulation of hours of work
of adult workers in a factory and holidays.

75
 Working Hours
• Sec.51-Weekly hours not more than 48 hours a
week
• Sec.52-First day of the week i.e. Sunday shall be a
weekly holiday
• Sec.53-Compensatory holidays
• Where a weekly holiday is denied he shall be
allowed to avail the compensatory holiday within
a month.

76
 Working Hours
• Sec.54-Daily working hours- no adult worker
shall be allowed to work in a factory for more
than nine hours in any day
• Sec.55-Intervals for rest-no worker shall work
for more than 5 hours before he has had an
interval for rest of at least 1/2 an hour.
• Inspector may increase it upto six hours.

77
 Spread over[sec.56]
• Inclusive of rest intervals they
shall not spread over more than
10-1/2 hours in any day
• Inspector may increase the
spread over up to 12 hours.

78
 Night Shifts[Sec.57]
If shift extends beyond
midnight , a holiday for him will
mean a period of 24 hours
beginning when his shift ends.

79
 Prohibition Overlapping
Shifts[Sec.58]
Work shall not be carried in any factory by
means of system of shifts so arranged that
more than one relay of workers is engaged in
the work of same kind at the same time.

80
Extra Wages for Overtime [Sec.59]
If workers work for more than 9
hours a day or more than 48
hour a week, extra wages should
be given.
Wages at twice the ordinary
Rate.

81
Restriction on Double Employment
[Sec.60]
No worker is allowed to work in
any factory on any day on which
he has already been working in
any other factory

82
Notice of periods of work for Adult

Workers [Sec.61]
Notice to be displayed at some
Conspicuous place.
Periods to be fixed beforehand
Classification of workers-
Groups.
Copy of Notice in Duplicate &
any change to be sent to
Inspector.
83
 Register of Adult
Workers[Sec.62,63]
The manager should maintain Register of Adult
workers showing-
- Name, Nature of work &The Group etc.
of each & every Adult Worker in the factory.
The Register shall be available to the Inspector at
all time during working hours.

84
Employment of young persons

85
Prohibition of employment of
young Children[Sec.67]
No child who has not
completed his 14th year
allowed to work in Factory.

86
Non-Adult workers to Carry Tokens
[Sec.68]
A child who has completed his 14th year may be
allowed to work in factory if:-
• a) a certificate of fitness for such work is in
custody of manager of factory.
• b) Such child or adolescent carries , a token
giving a reference to such Certificate.

87
 Certificate of fitness
• Is a certificate issued by a
certifying surgeon after
examining him & ascertaining
his fitness for work in factory.
• Valid for 12 Months.

88
• Revocation of Certificate by
surgeon , if child is no longer fit.
• Fee payable by Employer:-Fee &
Renewable Fee
• Effect of Certificate of Fitness:-
deemed to be an adult for the
purpose of hours of work.

89
Working Hours for Young persons

[Sec.71,72]
Working Hours limited to 4-1/2
Not during Nights.
Period of work limited to 2 shifts which shall not
overlap & spread over more than 5 hrs.
Entitled to weekly Holidays.
Female to work only between 6 am to 7 pm.
Fixation of periods of work beforehand.

90
Register of Young persons (Sec-73)
• The manager should maintain Register of
child workers showing-
• -Name
• -Nature of work
• -The Group etc.
• - where his group works on shifts, the relay
to which he is allotted, &
• -no. of his fitness certificate
of each & every Young Worker in the
factory.
• The Register shall be available to the
Inspector at all time during working hours.
91
Hours of work to correspond
with notice under sec-72 &
register under sec-73 (sec-74)
Under sec-74 a child shall not be employed in any
factory other than in accordance with-
-The notice of period of work displayed in factory
- The entry to be made beforehand against the
name of the child in the register.

92
Power to require Medical
Examination [Sec.75]
Inspector has the power to direct
manager to have medical
examination of young persons
working in case-
• Young Persons working without
License.
• They no longer seem to be Fit.

93
 Employment of Women
• Prohibition of women workers at night shift
• Women shall not be allowed to work in any
factory except between the hours of 6 A.M. and 7
P.M..
• The inspector may relax this norm but prohibited
between 10 P.M. and 5 A.M.
• Working hours not more than-weekly 48 hours &
daily 9 hours

94
 Power to make rules (sec-76)
Sec-76 empowers the state government to make rules-
1. Prescribing the forms of certificates of fitness,
providing for duplicate in event of loss of original
certificate and fixing the fee for such certificates.
2. Prescribing physical standards to be attained by
children & adolescents working in factories
3. Relating to procedures of certifying surgeons
4. Specifying other duties of certifying surgeons in
connection with employment of young persons & fee
chargeable such duties.
95
Certain other provisions of law not
barred (sec-77)

Sec-77 provides that the provisions shall be

in addition to and not in derogation of the
Employment of Children Act, 1938

96
Annual Leave with Wages [Sec.78-
84 (Chapter- VIII)]
Measures regarding annual leave with wages:
1) Leave Entitlement-
Every worker who has worked for period of 240 days in
a calendar year shall be allowed in subsequent year
leave with wages calculated at the rate of:
1. For adults, one day for every 20 days of work
performed in previous calendar year.
2. For child, one day for every 15 days of work
performed in previous calendar year.

97
2) Computation of Period of 240 days-
The days of lay-off, maternity leave not exceeding
12 weeks,& earned leave in previous year should
be included.
3)Discharge, Dismissal , Superannuation ,death ,
quitting of employment-
He , his heir , nominee as the case may be entitled
to wages.

98
4) Treatment of Fraction of Leave:-
Half day or more is treated as full while less
than half is omitted.
5) Treatment of Un-availed leave:
Should be carried – forward to next calendar
year but shall not exceed 30 in case of an
adult & 40 in case of child.
6)Application for leave to be made in writing
within specified time.

99
7) Application for leave covering a period
of illness may not be within specified
time.

8)Scheme for grant of leave.

9) Display of Scheme for grant of leave.

100
10) Refusal of leave to be in accordance
with Scheme
11) Payment of wages to worker for leave
period if he is discharged or if he quits
service.
12) Un-availed leave not to be taken into
account while computing period of
notice.

101
Wages during leave period [sec.80]
Worker is entitled to wages at a
rate equal to the daily average of
his total full time earnings for
the days on which he actually
worked during the month
immediately proceeding his
leave.

102
Section 81- Payment in advance in
certain cases
A worker who has been allowed leave for not
less than 4 days in case of an adult and not
less than 5 days in case of a child , shall
before his leave begins, be paid the wages in
advance for the leave period

103
Section 82- Mode of recovery of unpaid
wages.
Any sum required to be paid by an employer
but not paid shall be recovered as delayed
wages under the provisions of Payment of
Wages Act, 1936.

104
Section 83- Power to make rules
State Govt. may make rules directing
managers to keep registers containing
particulars as prescribed and registers be
made available for examination by
Inspectors.

105
Section 84- Power to exempt
factories
The state govt. may by written order
exempt the factory from all or any of
the provisions subject to such
conditions as may be specified in the
order, if it is satisfied that its own leave
rules provide benefits which are not less
favourable to the workers than the
statutory leave rules.
106
Penalties under the Act[Sec.92-106]

107
 General Penalty for Offences
[Sec.92]
If there is any contravention of any of the
provisions of the act, the Occupier &
Manager each shall be Guilty & punishable
with

Imprisonment for a term upto 2 years.

with a fine upto Rs.100000 or with Both.

108
[Sec.93] further extends, if the contravention
under section 92 continued after
conviction ,they(Manager& Occupier) shall be
punishable with further fine which may extend
to Rs. 1000 for each day on which contravention
is so continued.
Where contravention of any provisions of
chapt. 4 or any rule under sec-87 has resulted in
an accident causing death or serious injury,
the fine shall not be less than Rs. 25000/- in
case of accident causing death
Rs. 5000, in case of accident causing serious
bodily injury

109
 Enhanced Penalty after
Conviction[Sec.94]
If a person convicted of any offence punishable under
Sec 92, is again guilty involving contravention of same
provision ,he shall be punishable with
Imprisonment for a term which may extend to 3 years.
Or fine which shall not be less than 10000
Or both.

110
If any contravention of provision relating to
safety, has resulted in an accident causing
death /serious bodily injury, Fine shall not be
less than Rs.35000/Rs.10000

111
Cognizance of Offences[sec.105]
No court shall take cognizance of any offence
under this act except on a complaint by or
with the previous section in writing of an
Inspector.

The complaint shall be filed within 3 months

of the date on which offence comes to the
knowledge of an Inspector. But it can be six
months , if offence consists of disobeying a
written order made by an Inspector.

112
 Appeal [Sec.107]
The manager of the Factory or
the Occupier on whom an order
in writing has been served by an
inspector, can appeal against it
to the prescribed Authority
within 30 days of the notice.

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Display of Notices[Sec.108]
A notice containing Abstracts of this Act & the
rules made there under and also the name &
address of the Inspector and the certifying
surgeon.
Shall be in English& Language Understood by
the majority of the workers.
Convenient Places or near main Entrance.

114
 Returns [Sec.110]
The State Govt. may make
rules requiring Owner ,
Occupier, Manager of
factories to submit Returns
as may be required.

115
Power to make rules & give
directions [Sec.112,113,115]

(Sec 112) The State Govt. may make rules

providing for any matter which may be
discovered expedient (convenient, useful)
In order to give effect to the purposes of
the act.

116
(Sec 113) The central Govt. may also give
directions to the State Govt. as to carrying to the
execution of the provisions of the act.

(Sec 115) provides for the publication of the rules

made under the act in the official Gazette.

117
Restriction on Disclosure of
Information[Sec.118-A]
 Every Inspector shall treat as confidential
the source of any complaint brought to his
notice on the breach of any provision of this
act. Further he shall not disclose to manager
or occupier that the inspection is made in
pursuance of the receipt of complaint.

118