Factories Act 1948: Download Complete Notes

Overview: Labour laws are essential to the All India Bar Examination (AIBE) syllabus, making it crucial for law students, lawyers, and AIBE aspirants to understand and prepare for these laws comprehensively.

Among the critical statutes under labour law, the Factories Act of 1948 stands out as a fundamental piece of legislation that directly impacts workers' rights, industrial safety, and the legal framework governing workplace conditions.

Labour laws are critical in regulating the relationship between employers, employees, and the government. These laws are designed to protect workers' rights, promote fair treatment, ensure workplace safety, and provide a framework for dispute resolution. Understanding labour laws is crucial for practising lawyers and law students in their law schools.

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In this blog, we will cover:

• Introduction of Factories Act
• Historical Overview of the Factories Act
• Important Definitions from the Factories Act 1948
• Welfare Provisions in the Factories Act 1948
• Salient Features of the Factories Act, 1948
• Amendment of 1976

Introduction:

The Factories Act of 1948 is significant because it addresses crucial aspects such as workers' health, safety, and welfare in manufacturing and industrial establishments.

Understanding the provisions of this Act is essential for legal professionals and students. It governs factory regulations and protects workers from exploitation and unsafe working conditions, thereby ensuring social justice in the industrial sector.

For AIBE aspirants, the Factories Act is an essential area of study as questions related to labour laws frequently appear in the exam. Mastering the provisions of the Factories Act helps students gain a firm grasp of critical topics such as:

• Working Hours and Overtime Regulations: There are legal restrictions on the number of hours workers can be required to work and provisions for overtime pay.
• Child and Adolescent Labour: Safeguards against the exploitation of child labour, setting minimum age limits, and regulating working conditions for adolescents.
• Health and Safety Provisions: Requirements for safe machinery, proper ventilation, sanitation, clean drinking water, and emergency exits to protect workers from industrial hazards.
• Welfare Measures: Ensuring basic welfare facilities like first-aid, canteens, restrooms, and shelters for workers in large factories.

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The Factories Act has been consistently amended to adapt to evolving industrial practices and is grounded in International Labour Organization (ILO) conventions. Therefore, understanding this law prepares students for AIBE and equips them with the knowledge required to represent clients in labour disputes, ensuring adherence to national and international standards.

In conclusion, in-depth knowledge of the Factories Act is indispensable for anyone aiming to pass the AIBE or practising labour law.

It forms the foundation for understanding broader labour legislation and ensures that future lawyers can advocate for workers' rights effectively. Therefore, thoroughly preparing the Factories Act and its provisions is essential for all law students, lawyers, and AIBE aspirants.

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Historical Overview of the Factories Act:

The Factories Act is a central piece of legislation first introduced in 1881 to regulate the working conditions of factory workers. It outlines health, safety, and welfare provisions, addresses hazardous processes, and establishes violation penalties.

The Act has undergone several amendments, with significant changes in 1891, 1911, 1922, 1934, 1948, 1976, and 1987. The 1948 amendment is the most comprehensive. It expanded on previous versions by focusing on workers’ health, safety, welfare, working hours, and provisions like leave with pay.

The Act drew heavily from the 1937 Factory Act in Great Britain. However, it’s important to distinguish between the terms "factory" and "industry." An industry refers to organized trade activities, while a factory is the physical location where such activities are conducted. The Factories Act governs day-to-day operations within these premises and applies across India, including Jammu & Kashmir.

The 1984 Bhopal Gas Tragedy highlighted the risks associated with factory operations and stressed the need for stricter regulations.

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Consequently, the government made timely amendments to the Act. The Factories Act applies to establishments with 10 or more workers when using power and to those with 20 or more workers when no power is used.

Key provisions of the Act include ensuring safety measures such as machine guarding, maintaining cleanliness, providing drinking water and proper sanitation, and offering first aid facilities. Factories with more than 500 workers must also have dispensary services and welfare officers, while those with over 50 women employees must provide creches. Additionally, provisions ensure fair working hours, including 48 weekly hours for adults, regulations for young workers, overtime compensation, and mandatory breaks.

As workplace safety and health issues have evolved, so has the need for more effective implementation of the Act's provisions, which have been updated to reflect International Labour Organization (ILO) conventions. Central and state governments collect labour and employment statistics to monitor compliance, employment conditions, and workplace hazards. These statistics help assess the current state of implementation and highlight areas for further development and enhancement.

The Factory Act has a history of over 100 years, emerging from the Industrial Revolution, which brought both the rise of factories and the exploitation of workers. The British government was slow to enact protective labour legislation for Indian workers despite the growth of the cotton, jute, and steel industries.

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Early advocates for workers’ rights, such as philanthropists Sorabjee Shahpurjee Bengali and Sasipad Banerjee, along with labour leaders like Narayan Meghaji Lokhandey, played crucial roles in pushing for reforms.

The first Factory Act of 1881 was a step toward regulating working conditions but proved inadequate. This led to further amendments and the establishment of the Factory Commission in 1890. The recommendations of this commission laid the groundwork for future amendments, addressing issues such as working hours, the employment of women, and child labour restrictions. The Act has been consistently updated to meet the challenges of industrialization and protect workers’ rights.

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Important Definitions from the Factories Act 1948:

Factory (Section 2(m)): A premises where ten or more workers are engaged in manufacturing with power or 20 or more workers are employed without power, excluding mines, mobile units of the armed forces, railways, hotels, or restaurants.

Worker: A person employed directly or indirectly in any manufacturing process or related work. This excludes members of the armed forces.

Occupier: The individual who has ultimate control over the factory's operations, such as a partner in a firm, a director in a company, or an appointed manager in government-run factories.

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Health Provisions (Sections 11 to 20):

The Act mandates provisions to protect the health of factory workers, including:

• Cleanliness of the premises and machinery (Sec. 11)
• Proper disposal of waste and effluents (Sec. 12)
• Adequate ventilation and temperature control (Sec. 13)
• Control of dust and fumes (Sec. 14)
• Regulation of artificial humidification (Sec. 15)
• Prevention of overcrowding (Sec. 16)
• Adequate lighting (Sec. 17)
• Access to safe drinking water (Sec. 18)
• Proper sanitation facilities (Sec. 19)
• Provision of spittoons (Sec. 20)

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Welfare Provisions:

The welfare of workers is safeguarded through measures such as:

• Washing facilities (Sec. 42): Factories must provide adequate and separate washing facilities for men and women.
• Facilities for storing and drying clothes (Sec. 43): State governments may direct factories to provide suitable facilities for storing and drying clothes.
• Sitting arrangements (Sec. 44): Factories must provide sitting arrangements for workers who need to rest during breaks.
• First aid (Sec. 45): For factories with more than 500 workers, proper first aid equipment and an ambulance room must be maintained.
• Canteens (Sec. 46): Factories with more than 250 workers must provide canteen facilities.
• Shelters, restrooms, and lunchrooms (Sec. 47): Factories employing more than 250 workers must provide well-ventilated rest and lunchrooms.
• Creches (Sec. 48): Factories with over 30 women employees must provide creche facilities for their children.
• Welfare officers (Sec. 49): Factories with 500 or more workers must employ welfare officers.

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Safety Provisions:

The safety of workers is a priority, and the Act mandates measures such as:

• Fencing of dangerous machinery (Sec. 21): All hazardous machinery must be securely fenced.
• Work on or near machinery in motion (Sec. 22): Only trained male workers wearing proper attire are allowed to work near machinery in motion.
• Employment of young persons on dangerous machines (Sec. 23): Young workers must be fully trained and supervised when operating hazardous machinery.
• Hoists, lifts, and lifting machines (Sec. 28-29): These must be appropriately constructed, maintained, and inspected.
• Precautions against dangerous fumes and gases (Sec. 36): Factories must ensure proper ventilation and suitable equipment for workers entering hazardous spaces.
• Protection against fire hazards (Sec. 38): Factories must maintain fire safety equipment, ensure clear escape routes, and train workers in fire prevention and response.

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Salient Features of the Factories Act, 1948

1. Expanded Definition of Factory: The Factories (Amendment) Act of 1976 broadened the definition of "factory" to include contract labour when determining if a factory employs 10 or 20 workers.
2. Child Labor Restrictions: The Act raised the minimum working age for children from 12 to 14 and reduced their working hours from 5 to 4.5 hours daily.
3. Restrictions on Women and Children: The Act prohibits women and children from working in factories between 7 p.m. and 6 a.m.
4. Seasonal Factory Classification Removed: The distinction between seasonal and non-seasonal factories was abolished.
5. Factory Registration and Licensing: The Act mandates factory registration and licensing, with the state government responsible for ensuring all factories are appropriately registered and licensed, with renewals as required.
6. State Government’s Role: The Act grants state governments authority to create rules for the benefit of employees, including encouraging employee-management associations.
7. Applicability Beyond Factory Size: State governments can apply the provisions of the Act to any establishment, regardless of its number of employees or whether it engages in manufacturing.
8. Legal Precedence: In Rabindra Agarwal v. State of Jharkhand (2010), the Jharkhand High Court ruled that the Factories Act, a special legislation, takes precedence over the Indian Penal Code.

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Objectives of the Factories Act, 1948

1. Safety Measures: The primary goal of the Act is to establish comprehensive safety measures for workers and to improve their overall health and welfare in factories. It aims to protect workers from industrial and occupational hazards.
2. Health Provisions: The Act mandates that factories maintain cleanliness, provide sufficient drainage, ventilation, and lighting, and ensure the availability of clean drinking water. It also requires separate, clean, and accessible restrooms for men and women.
3. Safety Provisions: Machines must be adequately fenced, and young workers cannot operate dangerous machinery. Factories must have emergency exits to allow workers to escape in case of accidents.
4. Welfare Provisions: Factories must provide suitable washing facilities, storage and drying spaces, first-aid equipment, and restrooms. Larger factories are required to have shelters and canteens for workers.
5. Regulation of Working Hours: The Act limits working hours to 48 per week and mandates weekly holidays for all workers.
6. Protection from Exploitation: The Act imposes strict rules on factory owners and occupiers to ensure workers' safety, protect them from exploitation, and improve working conditions.
7. Penalties for Violations: Violations of the Act can lead to imprisonment of up to one year, fines of up to ₹1 lakh or both. Workers who misuse safety or welfare equipment may face fines of up to ₹500.

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Application of the Factories Act, 1948

1. Geographical Scope: The Act applies across India, including Jammu and Kashmir, and covers all premises involved in manufacturing as defined under Section 2(m).
2. Factories Using Power: The Act applies to factories that use power and employ ten or more people on any working day in the previous 12 months.
3. Factories Not Using Power: It also applies to factories without power that employ 20 or more people on any working day in the past 12 months.
4. State Government’s Role: The Act grants state governments and Union Territories the power to apply its provisions to specific factories under Section 85.

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Important Definitions under the Factories Act, 1948

1. Adult and Child: An adult is a person aged 18 or older (Section 2(a)), while a child is defined as someone under 15 (Section 2(c)).
2. Adolescent: Defined in Section 2(b), an adolescent is between 15 and 18.
3. Calendar Year: Defined as 12 months starting January 1st (Section 2(bb)).
4. Competent Person: Someone authorized by the Chief Inspector to conduct inspections or tests in a factory (Section 2(ca)).
5. Hazardous Process: A process involving materials that threaten health or the environment (Section 2(cb)).
6. Machinery: Includes prime movers, transmission machinery, and any other equipment related to manufacturing (Section 2(j)).
7. Power: Mechanically transmitted energy not generated by humans or animals (Section 2(g)).
8. Week: Seven days starting at midnight on Saturday (Section 2(f)).
9. Day: 24 hours starting at midnight (Section 2(e)).
10. Young Person: A term including children and adolescents (Section 2(d)).
11. Factory: A premises where a manufacturing process is conducted, with 10 or more workers when power is used, or 20 or more workers without power, as defined in Section 2(m).
12. Manufacturing Process: Defined in Section 2(k), this includes processes like generating, altering, repairing, cleaning, packing, or storing goods for sale, transport, or disposal.
13. Worker: A person employed directly or indirectly in a factory, either with or without the knowledge of the principal employer (Section 2(l)).

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Important Provisions of the Factories Act, 1948

1. Approval, Licensing, and Registration of Factories (Section 6):
The Factories Act mandates that state governments establish rules requiring factory plans and site details to be submitted to the Chief Inspector or the state government for approval before any construction or extension. This section also requires factories to be registered and licensed, with fees paid for registration, licensing, and periodic renewals.

No license is issued or renewed unless the occupier notifies the Chief Inspector. If the state government denies permission for a site or factory construction, the applicant can appeal to the central government within 30 days of the refusal.

2. Labour Welfare:
Labour welfare encompasses services offered to workers both within and outside the factory, including canteens, restrooms, recreational facilities, and housing. These services contribute to worker well-being and productivity. During the early stages of industrialization, welfare measures for factory workers were not prioritized, but with industrial growth in the 20th century, efforts were made to improve working conditions through recommendations like those of the Royal Commission.

The 1948 Act expanded the definition of “factory” to include any industrial facility with ten or more workers using power or 20 or more workers without power. Other significant changes included raising the minimum working age for children from 12 to 14, reducing their working hours, and prohibiting them from working between 7 p.m. and 6 a.m. Special emphasis was placed on employees' health, safety, and welfare.

3. Welfare Measures:
The Act focuses on three main welfare aspects: occupational health care, appropriate working hours, and fair remuneration. Welfare measures aim to integrate the workforce's socio-psychological needs with technological and organizational requirements. These measures help foster a culture of work commitment, ensuring higher employee satisfaction and productivity.

4. Key Provisions for Workers' Welfare and Safety:

• Washing Facilities (Section 42): Factories must provide sufficient and well-maintained washing facilities for male and female employees. These must be easily accessible and kept clean, with standards determined by the state government.
• Clothing Storage and Drying Facilities (Section 43): The state government can direct factories to provide proper storage and drying facilities for workers' clothing when not dressed for work.
• Seating Arrangements (Section 44): Factories must provide seating arrangements for workers who perform standing jobs, allowing them to rest when possible.
• First Aid (Section 45): Factories are required to have first aid boxes or cupboards with essential supplies accessible to workers. A trained person should supervise each box and should be available during working hours.
• Canteen (Section 46): Factories with more than 250 workers must provide and maintain a canteen. The state government sets the rules for food and pricing.
• Shelters, Restrooms, and Lunchrooms (Section 47): Factories employing more than 150 workers must provide shelters, restrooms, and lunchrooms where workers can eat food brought from home. These areas must be clean, well-ventilated, and well-lit.
• Creches (Section 48): Factories with more than 30 female employees must provide a clean, well-lit room for children under six years old, supervised by trained personnel. Facilities for washing and changing may also be provided, along with free milk and refreshments for children.

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5. Health Provisions (Sections 11-20):

• Cleanliness (Section 11): Factories must be kept clean, with floors and surfaces regularly swept and disinfected. Waste materials must be properly disposed of.
• Waste Disposal (Section 12): Factories must have proper systems for disposing waste and effluents from their manufacturing processes.
• Ventilation and Temperature Control (Section 13): Factories must ensure proper ventilation and temperature control for workers' comfort and safety.
• Dust and Fumes (Section 14): Factories must have adequate measures to prevent the buildup of dust and fumes that could harm workers.
• Overcrowding (Section 16): Factories must avoid overcrowding and ensure that each worker has sufficient space to work comfortably.
• Lighting (Section 17): Adequate natural or artificial lighting must be provided in all factory areas, and glass windows and skylights must be kept clean.
• Drinking Water (Section 18): Factories must ensure that safe drinking water is provided in easily accessible areas at least six meters away from any source of contamination.
• Latrines and Urinals (Section 19): Factories must provide separate, well-lit, ventilated, and hygienic restrooms for male and female workers. Cleaners must be employed to maintain cleanliness.
• Spittoons (Section 20): Spittoons must be provided in accessible locations, kept clean, and used exclusively.

6. Safety Provisions (Sections 21-41):

• Dangerous Machines (Section 23): Young workers must be fully trained and supervised before operating dangerous machines.
• Cotton Openers (Section 27): Unless specified by the inspector, women and children cannot work in areas where cotton openers are in operation.
• Hoists and Lifts (Section 28): Hoists and lifts must be constructed with sound materials and regularly inspected. They must have appropriate safety features.
• Eye Protection (Section 35): Workers must be provided with protective goggles or screens when processes pose a risk to the eyes, such as exposure to excessive light or flying particles.
• Fire Safety (Section 38): Factories must have fire prevention measures in place, along with fire extinguishing equipment and clear escape routes. Workers must be trained in fire safety procedures.

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Penalties (Sections 92-99):
The Factories Act imposes penalties for violations, including imprisonment and fines. These range from two years of imprisonment or fines up to ₹2 lakh for general offenses, to specific penalties for violations involving safety, obstructing inspectors, and employing children.

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Amendment of 1976

Following the amendments in 1948 and 1954, industrial growth continued, leading to the need for safety officers to address concerns regarding industrial safety and health. In response, the Factories (Amendment) Act of 1976 was passed and enacted on October 26, 1976. This amendment arose from several judgments regarding the definition of a "worker" and the tendency to exclude contract labour from this definition unless a clear master-servant relationship could be proven. It also addressed the need for updates to various provisions, including penal sections.

Key changes included revisions to the definitions of terms such as "manufacturing process," "employee," "factory," and "occupier." The term "worker" was expanded to include contract labour, and it became mandatory for factories to have an approved site plan and permission for construction.

Amended Provisions in the 1976 Act:

• Section 8: Inspectors.
• Section 10: Certifying surgeons.
• Section 11: Cleanliness.
• Section 12: Disposal of waste and effluents.
• Section 21: Fencing of machinery.
• Section 22: Work on or near machinery in motion.
• Section 24: Striking gear and devices for cutting off power.
• Section 31: Pressure plants.
• Section 32: Floors, stairs, and means of access.
• Section 36: Precautions against dangerous fumes.
• Section 38: Precautions in case of fire.
• Section 39: Specifications of defective parts.
• Section 40: Safety of buildings and machinery.
• Section 45: First aid devices.
• Section 48: Creches.
• Section 56: Spread over of working hours.
• Section 59: Overtime wages.
• Section 73: Register of child workers.
• Section 79: Leave with wages.
• Section 87: Dangerous operations.
• Section 88: Notices of accidents.
• Section 92: Penalties for offences.
• Section 101: Determination of the occupier in certain cases.
• Section 106: Limitation of prosecutions.

New Provisions Introduced:

• Section 36A: Use of portable power lights.
• Section 40A: Authority for ordering implementation of measures recommended by the Inspector for building maintenance.
• Section 40B: Requirement of safety officers for factories employing 1,000 or more workers.
• Section 88A: Notice of dangerous occurrences.
• Section 91A: Safety and health surveys.

Amendment of 1987

The 1984 Bhopal Gas Tragedy heightened global awareness of industrial safety and led to a push for stricter regulations on worker and public health. In response, both the central and state governments revised their laws. On May 23, 1987, two major pieces of legislation were introduced: the Environment (Protection) Act of 1986 and the Factories (Amendment) Act of 1987. These amendments added a new Chapter IV-A on hazardous processes, introduced several restrictions, and imposed severe fines and prison terms for violations.