UNIT-I

Course Name: B.B.A.

Semester Number: V
Subject Code: BBA-N-505
Subject Name: Industrial Law
Faculty Name: Himanshu Upadhyay
Designation: Assistant Professor

Unit-I-BBA-505-Industrial Law
 Provisions Relating to Hazardous Processes

According to Section 2 (cb) “hazardous process” means any process or activity in

relation to an industry specified in the First Schedule where, unless special care is taken,
raw materials used therein or the intermediate or finished products, bye-products, wastes
or effluents thereof would—
i. cause material impairment to the health of the persons engaged in or connected
therewith, or
ii. result in the pollution or the general environment:
Provided that the State Government may, by notification in the Official Gazette, amend
the First Schedule by way of addition, omission or variation of any industry specified in
the said Schedule.

41A. Constitution of Site Appraisal Committee.

1) The State Government may, for purposes of advising it to consider applications
for grant of permission for the initial location of a factory involving a hazardous
process or for the expansion of an such factory, appoint a Site Appraisal
Committee consisting of—
a) the Chief Inspector of the State who shall be its Chairman;
b) a representative of the Central Board for the Prevention and Control of Water
Pollution appointed by the Central Government under section 3 of the Water
(Prevention and Control of Pollution) Act, 1974 (6 of 1974);
c) a representative of the Central Board for the Prevention and Control of Air
Pollution referred to in section 3 of the Air (Prevention and Control of
Pollution) Act, 1981 (14 of 1981);
d) a representative of the State Board appointed under section 4 of the Water
(Prevention and Control of Pollution) Act, 1974 (6 of 1974);
e) a representative of the State Board for the Prevention and Control of Air
Pollution referred to in section 5 of the Air (Prevention and Control of
Pollution) Act, 1981 (14 of 1981);
f) a representative of the Department of Environment in the State;
g) a representative of the Meteorological Department of the Government of
India;
h) an expert in the field of occupational health; and
i) a representative of the Town Planning Department of the State Government,
and not more than five other members who may be co-opted by the State Government
who shall be—
i. a scientist having specialised knowledge of the hazardous process which will
be involved in the factory,

Unit-I-BBA-505-Industrial Law
 ii. a representative of the local authority within whose jurisdiction the factory is
to be established, and
iii. not more than three other persons as deemed fit by the State Government.
2) The Site Appraisal Committee shall examine an application for the establishment
of a factory involving hazardous process and make its recommendation to the
State Government within a period of ninety days of the receipt of such application
in the prescribed form.
3) Where any process relates to a factory owned or controlled by the Central
Government or to a corporation or a company owned or controlled by the Central
Government, the State Government shall co-opt in the Site Appraisal Committee a
representative nominated by the Central Government as a member of that
Committee.
4) The Site Appraisal Committee shall have power to call for any information from
the person making an application for the establishment or expansion of a factory
involving a hazardous process.
5) Where the State Government has granted approval to an application for the
establishment or expansion of a factory involving a hazardous process, it shall not
be necessary for an applicant to obtain a further approval from the Central Board
or the State Board established under the Water (Prevention and Control of
Pollution) Act, 1974 (6 of 1974) and the Air (Prevention and Control of Pollution)
Act, 1981 (14 of 1981).

41B. Compulsory disclosure of information by the occupier.

1) The occupier of every factory involving a hazardous process shall disclose in the
manner prescribed all information regarding dangers, including health hazards
and the measures to overcome such hazards arising from the exposure to or
handling of the materials or substances in the manufactures, transportation,
storage and other processes, to the workers employed in the factory, the Chief
Inspector, the local authority within whose jurisdiction the factory is situate and
the general public in the vicinity.
2) The occupier shall, at the time of registering the factory involving a hazardous
process, lay down a detailed policy with respect to the health and safety of the
workers employed therein and intimate such policy to the Chief Inspector and the
local authority and, thereafter, at such intervals as may be prescribed, inform the
Chief Inspector and the local authority of any change made in the said policy.
3) The information furnished under sub-section (1) shall include accurate
information as to the quantity, specification and other characteristics of wastes
and the manner of their disposal.
4) Every occupier shall, with the approval of the Chief Inspector, draw up an on-site
emergency plan and detailed disaster control measures for his factory and make

Unit-I-BBA-505-Industrial Law
 known to the workers employed therein and to the general public living in the
vicinity of the factory the safety measures required to be taken in the event of an
accident taking place.
5) Every occupier of a factory shall, —
a) if such factory engaged in a hazardous process on the commencement of the
Factories (Amendment) Act, 1987 (20 of 1987), within a period of thirty days
of such commencement; and
b) if such factory proposes to engaged in a hazardous process at any time after
such commencement, within a period of thirty days before the commencement
of such process,
inform the Chief Inspector of the nature and details of the process in such form
and in such manner as may be prescribed.
6) Where any occupier of a factory contravenes the provisions of sub-section (5), the
licence issued under section 6 to such factory shall, notwithstanding any penalty
to which the occupier or factory shall be subjected to under the provisions of this
Act, be liable for cancellation.
7) The occupier of a factory involving a hazardous process shall, with the previous
approval of the Chief Inspector, lay down measures for the handling, usage,
transportation and storage of hazardous substances inside the factory premises and
the disposal of such substances outside the factory premises and publicise them in
the manner prescribed among the workers and the general public living in the
vicinity.

41C. Specific responsibility of the occupier in relation to hazardous processes.

Every occupier of a factory involving any hazardous process shall—
a) maintain accurate and up-to-date health records or, as the case may be, medical
records, of the workers in the factory who are exposed to any chemical, toxic or
any other harmful substances which are manufactured, stored, handled or
transported and such records shall be accessible to the workers subject to such
conditions as may be prescribed;
b) appoint persons who possess qualifications and experience in handling hazardous
substances and are competent to supervise such handling within the factory and to
provide at the working place all the necessary facilities for protecting the workers
in the manner prescribed:
Provided that where any question arises as to the qualifications and experience of
a person so appointed, the decision of the Chief Inspector shall be final;
c) provide for medical examination of every worker—
i. before such worker is assigned to a job involving the handling of, or
working with, a hazardous substance, and

Unit-I-BBA-505-Industrial Law
 ii. while continuing in such job, and after he has ceased to work in such job,
at intervals not exceeding twelve months, in such manner as may be
prescribed.

41D. Power of Central Government to appoint Inquiry Committee.

1) The Central Government may, in the event of the occurrence of an extraordinary
situation involving a factory engaged in a hazardous process, appoint an Inquiry
Committee to inquire into the standards of health and safety observed in the
factory with a view to finding out the causes of any failure or neglect in the
adoption of any measures or standards prescribed for the health and safety of the
workers employed in the factory or the general public affected, or likely to be
affected, due to such failure or neglect and for the prevention and recurrence of
such extraordinary situations in future in such factory or elsewhere.
2) The Committee appointed under sub-section (1) shall consist of a Chairman and
two other members and the terms of reference of the Committee and the tenure of
office of its members shall be such as may be determined by the Central
Government according to the requirements of the situation.
3) The recommendations of the Committee shall be advisory in nature.

41E. Emergency standards.

1) Where the Central Government is satisfied that no standards of safety have been
prescribed in respect of a hazardous process or class of hazardous processes, or
where the standards so prescribed are inadequate, it may direct the Director-
General of Factory Advice Service and Labour Institutes or any institution
specialised in matters relating to standards of safety in hazardous processes, to lay
down emergency standards for enforcement of suitable standards in respect of
such hazardous processes.
2) The emergency standards laid down under sub-section (1) shall, until they are
incorporated in the rules made under this Act, be enforceable and have the same
effect as if they had been incorporated in the rules made under this Act.

41F. Permissible limits of exposure of chemical and toxic substances.

1) The maximum permissible threshold limits of exposure of chemical and toxic
substances in manufacturing processes (whether hazardous or otherwise) in any
factory shall be of the value indicated in the Second Schedule.
2) The Central Government may, at any time, for the purpose of giving effect to any
scientific proof obtained from specialised institutions or experts in the field by
notification in the Official Gazette, make suitable changes in the said Schedule.

41G. Workers’ participation in safety management.

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 1) The occupier shall, in every factory where a hazardous process takes place, or
where hazardous substances are used or handled, set up a Safety Committee
consisting of equal number of representatives of workers and management to
promote co-operation between the workers and the management in maintaining
proper safety and health at work and to review periodical the measures taken in
that behalf:
Provided that the State Government may, by order in writing and for reasons to
be recorded exempt the occupier of any factory or class of factories from setting
up such Committee.
2) The composition of the Safety Committee, the tenure of office of its members and
their rights and duties shall be such as may be prescribed.

41H. Right of workers to warn about imminent danger.

1) Where the workers employed in any factory engaged in a hazardous process have
reasonable apprehension that there is a likelihood of imminent danger to their
lives or health due to any accident, they may bring the same to the notice of the
occupier, agent, manager or any other person who is in charge of the factory or
the process concerned directly or through their representatives in the Safety
Committee and simultaneously bring the same to the notice of the Inspector.
2) It shall be the duty of such occupier, agent, manager or the person in charge of the
factory or process to take immediate remedial action if he is satisfied about the
existence of such imminent danger and send a report forthwith of the action taken
to the nearest Inspector.
3) If the occupier, agent, manager or the person in charge referred to in sub-section
(2) is not satisfied about the existence of any imminent danger as apprehended by
the workers, he shall, nevertheless, refer the matter forthwith to the nearest
Inspector whose decision on the question of the existence of such imminent
danger shall be final.

Unit-I-BBA-505-Industrial Law