Module 4 : The factories act 1948

Q- State the provision of factories act 1948

a. Scope and features of the act

b. Authorities under the act.

c. Definition of factory

d. Powers and duties inspectors.

e. Employment of young Persons

f. Penal Provisions.

Ans-
Introduction

The Factories Act of 1948 was enacted to protect the welfare of workers in a factory by regulating
employment conditions, working conditions, the working environment, and other welfare requirements of
specific industries. The Court held in Ravi Shankar Sharma v. State of Rajasthan (1993) that the Factory Act
is social legislation that covers the health, safety, welfare, and other aspects of factory workers. The
Factories Act lays out guidelines and safety measures for using machinery, and with its strict compliance, it
also provides owners with instructions. When factory workers were taken advantage of and exploited by
paying them low wages, the Factories Act was passed.

A factory is a building or group of buildings where people work with machinery to make goods. The primary
goal of the Factories Act is to safeguard employees in a factory from industrial and occupational risks. This
Act gives the owner or occupier of a factory a particular responsibility to secure and protect employees
from employment in conditions harmful to their health and safety in order to safeguard workers. It is
stated in the Act that the purpose of the Factories Act is to amend and consolidate the legal framework
governing factory labour. The Bhopal gas tragedy case (1984) raised public awareness of factory pollution
and risks, necessitating government action to allow legislation amendments.

The article is described as follows: history, objectives, some key terminology and definitions in their most
basic form, application to the Factories Act, penalties for violation of the Act, facilities supplied to
employees in a factory, and finally, certain case laws and new amendments to the Act.

Scope of Indian Factories Act, 1948

To understand a given law also requires understanding its scope, i.e. the area which the provisions extend
to, the subject matter of action, etc. The pointers below hep understand the same:

 The Factories Act 1948 extends to the whole of India.

 Applicability of the Factories Act 1948 covers all the factories unless restricted/ excluded by the
central or state government.
 It mainly applies to the factories whereby 10 or more workers are employed, where any part of the
manufacturing process is carried with the aid of power,

Salient Features of the Factories Act

Definition of Worker under Factory Act 1948

Understanding legal terms and definitions might sometimes be troublesome. Breaking the long complex
and technical sentences helps understand the crux of what a legal finding actually means. As per section 2
(i) of the Indian Factories Act,1948, the definition of workers include

 A person employed;
 Directly or by or through any agency (including a contractor);
 With or without the knowledge of the principal employer, whether for remuneration or not;
 In any manufacturing process, or in cleaning any part of the machinery or premises used for a
manufacturing process, or in any other kind of work incidental to, or connected with, the
manufacturing process, or the subject of the manufacturing process;
 But does not include any member of the armed forces of the Union.

Section 2 (m) of the Act defines what constitutes a factory mentioned in the above definition. Also, Section
2 (k) explains the ‘manufacturing process’. The idea behind providing clear definitions is to specify the
scope which the Factories Act 1948 extends to.

In Focus

The Indian Factories Act, 1948 specifically deals with the industrial aspects of employment in factories in
our country.

 Authoritative Compliance (Approvals, licensing and registrations)

 Health
 Safety Measures
 Inspecting Authorities
 Working Hours
 Rules of Employment for Children and Adults
 Leave and Penalties

Definition of Factory
According to section 2(m) "factory" means any premises including the precincts thereof-

(i) whereon ten or more workers are working, or were working on any day of the preceding twelve months,
and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily
so carried on, or

(ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on without the aid of power, or
is ordinarily so carried on, - but does not include a mine subject to the operation of the Mines Act, 1952
(XXXV of 1952) or a mobile unit belonging to the armed forces of the Union, a railway running shed or a
hotel, restaurant or eating place;

Explanation I--- For computing the number of workers for the purposes of this clause all the workers in
different groups and relays in a day shall be taken into account;

Explanation II.---For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a
Computer Unit is installed in any premises or part thereof, shall not be construed to make it a factory if no
manufacturing process is being carried on in such premises or part thereof;

Powers and Duties of Inspector

In the local limits assigned to him, an Inspector reserves the authority to:

1. Enter a factory with an assistant who is employed by the government of local/ Public officers OI
professional
2. 2 Examine the plant, machines, articles substances on the premises.
 Look into accidents or any life-threatening eventualities that have or could have rise to injuries on
the body and or lead to disabilities. He reserves the right to question any individual considered
helpful in reaching to the bottom of the finadings
1. Receive any register or document that he prescribes that is connected to the factory.
2. Take hold of copies of all registers, records and any other document and portion that he deems to
be a necessity in any offense stated in the Act that has been committed
3. Give the order that any occupiers of the factory premises should refrain from trespassing stated
areas be it generally or particulatly, for as long as it is required for the reasons of examination
stated in clause (ii)
 Acquire samples, measurements, recordings, photos and any equpment ot instrument he deems
necessary for the execution of an examination as stated in clause (1)
 Direct any article or substance in any place that seems to be the cause or has the possibility of
causing harm to the safety or health of workers to be dismantled or take it through processes of
testing with the permission to destroy it only if it is mandatory in accordance to this Act. He may
also take the article or substance into custody for the required duration of time for the çompletion
of the examinaton.
1. Make use of any other authority as may be given

Any other rules that may be formed by the State Government hold the mentioned authorities of an
Inspector subject to them

Additional authorities of an Inspector

An Inspector also reserves the authority to:

1. Inquire for the medical examination of a suspected minor working in a factory (S. 75).

2. Collect samples of substances that are used and or are set to be used in a factory with the objective of
determining whether the substance is harmful to the health of the factory workers.

Consequences of obstructing an Inspector S.95

Individuals who intentionally obstruct an Inspector in the execution of any authority given to him by the
Act, or fails to give up any registers or documents as demanded by the inspector is liable to a punishment
of up to 6 months imprisonment to a fine of up to 10000 rupees or both.

Penalties of the Factories Act, 1948

In Chapter X of the Act, the penalties of the Factories Act of 1948 are covered. There are 9 Sections, from
Section 92 to Section 99, that deal with penalties in certain situations. Anyone who breaches the Act or the
rules established by the Act or by law is subjected to the penalty.

General Penalty for offences

Section 92 of the Factories Act, 1948 defines the general penalties for offences:

If there is any infringement of the Act’s laws, the occupier and manager of the factory will be held
responsible and equally liable for breaching the law. They will both face two years in imprisonment and a
fine of up to Rs.2 lakhs.
If they continue to commit the same offence, they will be fined Rs.10,000 every day for continued
violations.

Liability of an owner of factory premises

Section 93 of the Factories Act, 1948 defines the liability of an owner of premises under special
circumstances.

When a factory is leased to several occupiers or lessees or leaseholders, the factory’s owner is still held
liable for supplying and maintaining certain services such as drainage, approach roads, water supply,
power, lighting, sanitation, and so on.

The chief inspector has the authority to issue an order to the owner of the premises in order to enforce the
requirements.

The penalty is enhanced even after a previous conviction

Section 94 of the Factories Act, 1948 defines a penalty that is enhanced even after a previous conviction.

First, a person who commits a general offence in a factory and does it again faces a penalty of up to three
years in jail or a fine of at least Rs. 10,000, or both.

Second, the managers must count the offences committed during the previous two years of the most
recent offence to determine the application of this Section.

The penalty for obstructing an inspector

Section 95 of the Factories Act, 1948 defines a penalty for obstructing an inspector.

Any person who stops an inspector from using any powers given to him or under the Act, or if an individual
fails to appear when requested by an inspector, may be made responsible and subject to a punishment of
up to six months imprisonment, a fine of up to ten thousand rupees, or both.

This Section is also applicable when anyone stops a worker from coming before or being inspected by an
inspector in a factory.

Penalty for wrongfully disclosing results of analysis

Section 96 of the Factories Act, 1948 defines a penalty for wrongfully disclosing the results of analysis
under Section 91 of the Factories Act, 1948.

Any individual who publishes or discloses to another person the results of an analysis that is performed
using samples is punishable by up to six months imprisonment. He will be liable for at least an Rs. 10,000
fine.

Penalty for the contravention of certain provisions

Section 96A of the Factories Act, 1948 defines the penalty for the contravention of certain provisions, such
as Sections 41B, 41C, and 41H.

Anyone who disobeys or violates any of the rules or the provisions of Sections 41B, 41C, or 41H will be
sentenced to 7 years in prison and a fine of Rs. 2,00,000. If the offender continues to commit the same
offence, he will also be fined Rs. 5,000 every day after the conviction of the same offence.

If the failure or violation persists more than a year after the conviction, the offender will face a 10-year jail
sentence.
Worker’s offences

Section 97 of the Factories Act, 1948 defines worker’s offences.

If any worker in the factory breaches the Act’s rules or provisions, causing liabilities for other workers, he or
she will be fined at least Rs. 500.

When a worker is found guilty of a punishable offence, the owner or manager of the factory is not held
responsible for the violation unless it can be proven that he failed to take reasonable precautions to
prevent it.

False certificate of fitness

Section 98 of the Factories Act, 1948 defines a false certificate of fitness.

A fitness certificate details a person’s level of fitness for a certain job or work. This certificate is important
in factories. A person who obtains a false certificate of fitness faces a minimum fine of Rs. 10,000 or a 2-
month sentence in jail. He may occasionally face fines and jail terms as punishment.

Double Employment of Child

Section 99 of the Factories Act, 1948 defines the double employment of children.

If a child works in a factory on a day when they have already worked in another factory, their parents,
guardians, or anyone else who benefits from the wages of the child faces a fine of Rs. 1000 unless the court
finds that the child worked without the parents or guardian’s consent.

Offence Penalties

Any worker in a factory who contravenes the Section 92 penalises him/her for 2 years of
provisions of the Act or Rules. imprisonment or a fine of Rs.1,00,000 or both.

Section 92 penalises him/her with a fine of

A continuation of contravention.
Rs.1000 per day.

On contravention of Chapter IV pertaining to Not less than Rs.25,000 in case of death.Not less
safety or dangerous operations. than Rs.5,000 in case of serious injuries.

Section 94 deals with imprisonment up to 3 years

Subsequent contravention of some provisions. or a fine of not less than Rs.10,000 which may
extend to Rs.2,00,000.

Section 95 deals with imprisonment up to 6

Obstructing inspectors
months or a fine up to Rs.10,000 or both.

Wrongful disclosing results pertaining to the Section 96 deals with imprisonment of 6 months
results of the analysis. or a fine of up to Rs.10,000 or both.

For contravention of the provisions of Sections Section 96A deals with penalties of-
41B, 41C and 41H pertaining to compulsory Imprisonment up to 7 years with a fine up to
disclosure of information by occupier, specific Rs.2,00,000 and on continuation fine of Rs.4000
 responsibility of occupier or right of workers to per day. Imprisonment for 10 years when
work imminent danger. contravention continues for one year.

Amendments

Changes brought about by the Factory Act,1948

The following changes were made by the factories Act, 1948: -

# The definition of the term “Factory” was widened to cover all industrial establishments employing ten or
more workers where power was used and 20 or more workers in all other cases.

# The distinction between seasonal and non-seasonal factories was abolished.

# Under the Act of 1934 the State Governments had 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 the
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 health, safety and welfare of
workers. The Act specifies very clearly the minimum requirements under three heads stated above.

# The basic provisions of the old Act relating to Health,

safety, and welfare are extended to all work places 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 of children were reduced from five to four and a half hour.

# 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.

# Employment of Children and women between 7 p.m. and 6 a.m. is prohibited. For overtime work the
workers are entitled to twice their normal rate of wages.

# The State Government are empowered to make rules requiring the association of the workers in the
management of arrangements for the welfare of the workers.

# 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 The installation of a Factory or for the extension of an existing factory. Besides mines, the
new Act also excludes railway running sheds from the definition of Factories.

Changes made in Factories Act, 1948in 2016

The Factories (Amendment) Bill, 2016

The Factories Act 1948was an Act of Parliament passed in the United Kingdom by the Labour government
of Clement Attlee. It was passed with the intention of safeguarding the health of workers and adopted by
India.
The Factories (Amendment) Bill, 2016 was introduced in Lok Sabha on August 10, 2016 by the Minister for
Labour and Employment, Mr. Bandaru Dattatreya. The Bill amends the Factories Act, 1948. The Act
regulates the safety, health and welfare of factory workers. The Bill amends provisions related to overtime
hours of work.

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) exempt certain types of adult
workers (e.g. those engaged for 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.

# (Section 64) Overtime hours of work in a quarter: The Act permits the state government to make rules
related to the regulation of overtime hours of work. However, the total number of hours of overtime must
not exceed 50 hours for a quarter. The Bill raises this limit to 100 hours. Rules in this regard may be
prescribed by the central government as well.

# (Section 65) Overtime hours if factory has higher workload: The Act enables the state government to
permit adult workers in a factory to work overtime hours if the factory has an exceptional work load.
Further the total number of hours of overtime work in a quarter must not exceed 75. The Bill permits the
central or state government to raise this limit to 115

Overtime in public interest: The Bill introduces a provision which permits the central or state government
to extend the 115-hour limit to 125 hours. It may do so because of (i) excessive work load in the factory and
(ii) public interest

Q. State the provision of factories act 1948

Q. Examine the provision relating to safety of workers under the factories act 1948
Q. Define Factory and discuss safety measure in factories act 1948
Introduction

The Factories Act of 1948 was enacted to protect the welfare of workers in a factory by regulating
employment conditions, working conditions, the working environment, and other welfare requirements of
specific industries. The Court held in Ravi Shankar Sharma v. State of Rajasthan (1993) that the Factory Act
is social legislation that covers the health, safety, welfare, and other aspects of factory workers. The
Factories Act lays out guidelines and safety measures for using machinery, and with its strict compliance, it
also provides owners with instructions. When factory workers were taken advantage of and exploited by
paying them low wages, the Factories Act was passed.

A factory is a building or group of buildings where people work with machinery to make goods. The primary
goal of the Factories Act is to safeguard employees in a factory from industrial and occupational risks. This
Act gives the owner or occupier of a factory a particular responsibility to secure and protect employees
from employment in conditions harmful to their health and safety in order to safeguard workers. It is
stated in the Act that the purpose of the Factories Act is to amend and consolidate the legal framework
governing factory labour. The Bhopal gas tragedy case (1984) raised public awareness of factory pollution
and risks, necessitating government action to allow legislation amendments.

 Important provisions in the Factories Act, 1948

o Getting approval, licencing and registration of factories (Section 6)
o Labour and welfare
 Welfare measures
 Washing facilities (Section 42)
 Facilities for storing and drying clothing (Section 43)
 Facilities for sitting (Section 44)
 First aid appliance (Section 45)
 Canteen (Section 46)
 Shelters, restrooms and lunch rooms (Section 47)
 Creches (Section 48)
 Health
o Cleanliness (Section 11)
o Disposal of wastes and effluents (Section 12)
o Ventilation and temperature (Section 13)
o Dust and fume (Section 14)
o Overcrowding (Section 16)
o Lighting (Section 17)
o Drinking (Section 18)
o Latrines and urinals (Section 19)
o Spittoons (Section 20)
 Safety

Important provisions in the Factories Act, 1948

Getting approval, licencing and registration of factories (Section 6)

 The state government shall make rules that require formal submission of plans of any category or
description of factories, as well as the site on which the factory is located, for construction or
extension must be submitted to the chief inspector or the state government.
 This Section requires the registration and licencing of factories, as well as the payment of fees for
such registration and licencing, as well as the renewal of licences.
 No licence is issued or renewed unless the occupier gives notice to the chief inspector.
 If the state government refuses to grant permission to the site or construction of a factory, then
within 30 days of the refusal, the applicant can appeal to the central government.

Labour and welfare

The word ‘labour welfare’ refers to the services offered to employees within as well as outside the factory,
such as canteens, restrooms, recreation areas, housing, and any other amenities that support employee
well-being. States that take welfare measures care about the overall well-being and productivity of their
workforce. Early on in the industrialization process, social programmes for manufacturing workers did not
receive enough priority. In the past, industrial labour conditions in India were terrible. Due to a growth in
industrial activity in the latter part of the twenty-first century, several attempts were made to improve the
working conditions of the workforce through the recommendations of the Royal Commission.

After gaining knowledge about the deficiencies and limitations of the previous Act, the Factories Act of
1948 was amended. The definition of ‘factory’ was expanded to encompass any industrial facility employing
10 or more people that uses power or any industrial establishment employing more than 20 people that
uses no power, which was a significant development.

Other significant amendments included-

 Raising the minimum age of children who can work from 12 to 14 years old.
 Reducing the number of hours a child can work from five to four and a half.
 Preventing the kids from working between the hours of 7 p.m. and 6 a.m.
 The health, safety, and well-being of all types of employees are given particular attention.

Welfare measures

The three main components of welfare measures are occupational health care, appropriate working hours,
and appropriate remuneration. It speaks of a person’s complete health, including their physical, mental,
moral, and emotional states. The goal of welfare measures is to integrate the socio-psychological demands
of the workforce, the particular technological requirements, the organisational structure and procedures,
and the current socio-cultural environment. It fosters a culture of work dedication in enterprises and
society at large, ensuring increased employee happiness and productivity.

Washing facilities (Section 42)

 All factories should supply and maintain enough appropriate washing facilities for the use of the
employees.
 For male and female employees, separate, well-screened facilities must be provided; these facilities
also need to be easily accessible and maintained clean.
 The standards for appropriate and suitable facilities for washing must be set by the state
government.

Facilities for storing and drying clothing (Section 43)

 The state government has a specific authority. It specifies that the state government has the
authority to give instructions to the manufacturers regarding where to store the worker’s clothing.
 They can also provide them with instructions on how to dry the workers’ clothes. It refers to the
circumstance in which workers are not dressed for work.

Facilities for sitting (Section 44)

 All factories should provide and maintain seating arrangements in appropriate areas for all workers
who are required to work in a standing position in order to take advantage of any chances for rest
that may arise throughout the course of the job.
 According to the chief inspector, workers in any factory involved in a certain manufacturing process
or working in a specific room are able to perform their work effectively while seated.

First aid appliance (Section 45)

 All factories must have first aid kits, appliances, or cupboards stocked with the required supplies
during all working hours, and they must be easily accessible for all manufacturing employees to
 access. Accordingly, there must be more first aid boxes or cupboards than the usual ratio of one for
every 150 industrial employees, which must be fewer than that.
 The first aid box or cupboard should only include the recommended supplies.
 Throughout the factory’s operating hours, each first aid box or cupboard should be kept under the
supervision of a specific person who is accountable for it on a separate basis and must be readily
available at all times during the working hours of the factory.

Canteen (Section 46)

 A canteen must be provided and kept up by the occupier for the benefit of the workers in any
specified factory where more than 250 people are usually employed, according to rules that the
state government may set.
 Food must be served, and prices must be established for it.

Shelters, restrooms and lunch rooms (Section 47)

 Every factory with more than 150 employees must have appropriate and suitable restrooms or
shelters and a lunchroom with drinking water where employees can eat food they have brought
with them and that is kept for their use. If a lunchroom is available, employees should stop eating
in the work area.
 The shelters or restrooms need to be well-lighted, ventilated, kept clean, cool, and in good
condition.
 The state government sets the standards.

Creches (Section 48)

 Every factory with more than 30 female employees must have a suitable room for the use of
children under the age of six of such women.
 Such rooms must be well furnished, well-lighted, and ventilated, and they must be kept clean and
hygienic. They must also be under the care of women who have received training in child and infant
care.
 In addition, facilities for washing and changing clothes can be made available for the care of the
children of female workers.
 Any factory may be forced to provide free milk, refreshments, or both to such children.
 Small children can be fed by their mothers in any industry at necessary intervals.

Health

Sections 11-20 of Chapter III of the Act deal with the Health of the Factories Act, 1948.

Cleanliness (Section 11)

Every factory needs to be kept clean and clear of any effluvia from drains, latrines, or other annoyances. In
particular:

 Dirt must be cleaned daily from floors, benches, staircases, and passages by sweeping or by
another method, and it must be properly disposed of.
 The floor should be disinfectant-washed at least once a week.
 During the manufacturing process, the floor becomes moist; this must be drained via drainage.

Disposal of wastes and effluents (Section 12)

Every factory has to have a method in place for treating wastes and effluents produced by the
manufacturing process they use.
Ventilation and temperature (Section 13)

 In order to ensure worker comfort and prevent health problems, sufficient ventilation must be
created for the circulation of air in a factory, which should be maintained at a specific temperature.
 Walls and roofing should be made of a material that is intended for a particular temperature that
shouldn’t go over as much as possible.
 Certain precautions must be taken to protect the employees in facilities where the manufacturing
process requires extremely high or low temperatures.

Dust and fume (Section 14)

 Every factory has to have efficient measures to remove or prevent any dust, fumes, or other
impurities that might harm or offend the employees employed and cause inhalation and buildup in
any workroom.
 No factory may operate an internal combustion engine unless the exhaust is directed outside, and
no other internal combustion engine may be used. Additionally, precautions must be made to avoid
the buildup of fumes that might endanger the health of any employees inside the room.

Overcrowding (Section 16)

 There should be no overcrowding in factories that might harm the health of the workers.
 All employees must have ample space in a room to work in the building.

Lighting (Section 17)

 Every area of a factory where employees are employed must have adequate natural, artificial, or
both types of lighting installed and maintained.
 All glass windows and skylights that provide lighting for the workroom in factories must be kept
clean on the inside and outside.
 The production of shadows should not cause eye strain during any manufacturing process, and all
factories must have preventative measures that should not cause glare from the source of light or
via reflection from a smooth or polished surface.

Drinking (Section 18)

 All factories must have the appropriate installations in place, and maintain convenient locations
with an adequate supply of clean drinking water.
 The distance between any drinking water and any washing area, urinal, latrine, spittoon, open drain
carrying sullage or effluent, or another source of contamination in the factory must be 6 metres
unless the chief inspector approves a shorter distance in writing. The labelling must be legible and
in a language that workers could understand.
 In all factories with more than 250 regular employees, there needs to be a suitable method for
providing cold drinking water during hot weather.

Latrines and urinals (Section 19)

 All factories should have enough restrooms, and urinal accommodations of the required types must
be offered in a location that is convenient and always accessible to workers.
 Male and female employees must have separate enclosed rooms.
 These locations must be thoroughly cleaned, kept in a hygienic state, and have sufficient lighting
and ventilation.
 Sweepers must be used to maintain latrines, urinals, and washing facilities clean.
Spittoons (Section 20)

 All factories must have spittoons in easily accessible locations, and they must be kept clean and
hygienic.
 The state government specifies the number of spittoons that must be given, their placement in any
factory, as well as their maintenance in a clean and hygienic manner.
 Except for spittoons designed, for this reason, no one should spit within the premises of a factory. A
notice must be posted if any violations occur, with a fine of five rupees.

Safety

Safety is covered in Chapter IV of the Act and is covered in Sections 21–41 of the Factories Act, 1948.

Employment of young persons on dangerous machines (Section 23):

No young person is permitted to operate dangerous machines unless he has been adequately taught the
hazards associated with the machine and the measures to be taken, and has received suitable training in
working at the machine or adequate supervision by a person who has complete knowledge and experience
of the equipment.

Prohibition of employment of women and children near cotton openers (Section 27):

Women and children are not permitted to work in any area of a cotton pressing facility while a cotton
opener is in operation. Women and children may be employed on the side of the partition where the feed-
end is located if the inspector so specifies.

Hoists and lifts (Section 28):

 Every hoist and lift must be of strong mechanical structure, enough strength, and sound material.
They also need to be regularly maintained, completely checked by a qualified person at least once
every six months, and a register kept for the mandatory exams.
 A cage that is properly designed and installed must enclose all hoist and lift ways to prevent people
from being trapped between any of the equipment.
 No larger load should be carried; the maximum safe operating load must be marked on the hoist or
lift.
 Every hoist or lift gate must have interlocking or another effective system installed to prevent the
gate from opening except during landing.

Protection of eyes (Section 35):

The state government may require effective screens or appropriate goggles to be provided for the
protection of persons employed or in the vicinity of the process during any manufacturing process carried
out in any factory that involves risk to the eyes due to exposure to excessive light or injury to the eyes from
particles or fragments thrown off during the process.

Precautions against dangerous fumes, gases etc (Section 36):

No person shall be required or permitted to enter any chamber, tank, vat, pit, pipe, flue, or other confined
space in any factory where any gas, fume, vapour, or dust is present to such a degree as to involve risk to
persons being overcome, unless such chamber, tank, vat, pit, pipe, flue, or other confined space is provided
with an adequate manhole or other effective means of egress.

Explosive or inflammable dust, gas etc (Section 37):

  Any factory involved in manufacturing processes that produce dust, gas, fume, or vapour of a
nature that could explode on ignition must take all reasonably practicable precautions to prevent
any explosion through
 The effective enclosure of the plant or machinery.
 The removal or prevention of the accumulation of such dust, gas, fume, or vapour, etc., or
 Otherwise by the exclusion or effective enclosure of all potential ignition sources.

Precautions in case of fire (Section 38):

 In order to protect and maintain safety to allow people to escape in the case of fire, all factories
should have precautionary measures in place to avoid the breakout and spread of fire, both
internally and externally. The required tools and facilities for extinguishing the fire must also be
made accessible.
 All factory employees who are familiar with fire escape routes and have received sufficient training
on the procedure to be followed in such circumstances must have access to appropriate measures.

Q. Discuss the role of inspector under the factories act 1948

Role of Inspector

SYNOPSIS

1. Introduction

2 Appointment of an inspector

3. Factory Inspectors_Powers_ S.9

4. Additional authorities of an Inspector

5. Consequences of obstructing an Inspector S.95

Conclusion

Introduction

The government is responsible for the appointment of an inspecton staff for the factories. The S- 8 gives
room for the Chief Inspector, Additional Chief Inspectors, Joint Chief Inspectors, Deputy Chief Inspectors
and Inspectors to be appointed The section provides the State government, through the Official Gazette
with the with the power to have

anyone as the Chief Inspector whose powers will be recognized throughout the entire state.

The State Government also has the power to instill local limits to the Inspectors in the manner it finds best.

Appointment of an Inspector
Through the Official Gazette, the State Government has the mandate to appoint other officers who may
include additional Chief Inspectors, Joint Chief Inspectors, and Deputy Chief Inspectors; to give a helping
hand to the Chief Inspector. All these inspectors are termed to be public servants according to the Indian
Penal code, 1860

People who act as inspectors are not allowed to be directly or indirectly involved in a factory even in the
simplest of interests, process, business or machinery.
Furthermore, the State Government may also select additional Inspectors in the stated local limits through
the Official Gazette

Factory Inspector- Powers- S.9

In the local limits assigned to him, and Inspector reserves,the authority to:

1. Enter a factory with an assistant who is employed by the government or local public officers or a
professional
2. Examine the plant, machines, articles or substances on the premises

Look into accidents or any life-threatening eventualities that have or could give rise to injuries on the body
and or lead to disabilities. He reserves the right to question any individual considered helpful in reaching to
the bottom of the findings

1 Receive any register or document that he prescribes that is connected to the factory.

2. Take hold of copies of all registers, records and any other document and portion that he deems to be a
necessity in any offense stated in the Act that has been committed.

3. Give the order that any occupiers of the factory premises should refrain from trespassing stated areas be
it generally or particularly, for as long as it is required for the reasons of examination stated in clause.

 Acquire samples, measurements, recordings, photos and any equipment or instrument he deems
necessary for the execution of an examination as stated in clause (ii)
 Direct any article or substance in anr place that seems to be the cause or possibility of causing
harm to the safety or health of workers to be dismantled or take it through processes of testing
with the permission to destroy it only if it is mandatory in accordance to this Act. He may also take
the article or substances into custody for the required duration of time for the completion of the
examination.


Make use of any other authority as may be given

Any other rules that may be formed by the State Government hold the mentioned authorities of an
Inspector subject to them

Additional authorities of an Inspector

An Inspector also reserres the authority to:1. Inquire for the medical examination of a suspected minor
working in a factory (S. 75)2. Collect samples of substances that are used and or are set to be used in a
factory wviththe objective of determining whether the substance is harmful to the health of thefactory
workers

Consequences of obstructing an Inspector S.95

Individuals who intentionally obstruct an Inspector in the execution of any authority given to him by the
Act, or fails to give up any registers or documents as demanded by the inspector is liable to a punishment
of up to 6 months imprisonment or a fine of up to 10,000 rupees or both

Conclusion

Chief Inspectors have been given authority by the State Government to exercise power in factories
regarding every aspect that he deems to be of safety purposes. They are appointed for local limits as the
government finds best. They should not have any direct or indirect interest in what goes on in factories.
The work of the factory inspector is to ensure that the Factories Act, 1948 is fully adhered to by owners of
factories

Q- Explain the detail health and welfare measure under the factories act 1948

Ans –

Welfare measures

 Washing facilities (Section 42)

 Facilities for storing and drying clothing (Section 43)
 Facilities for sitting (Section 44)
 First aid appliance (Section 45)
 Canteen (Section 46)
 Shelters, restrooms and lunch rooms (Section 47)
 Creches (Section 48)

Welfare measures

 Washing facilities (Section 42)

 Facilities for storing and drying clothing (Section 43)
 Facilities for sitting (Section 44)
 First aid appliance (Section 45)
 Canteen (Section 46)
 Shelters, restrooms and lunch rooms (Section 47)
 Creches (Section 48)

Introduction –

Health is an important part of everyone’s life. Being healthy does not only mean being ‘disease free’. It
includes physical, social, and mental health too. Maintaining sound health is undoubtedly a concern for
everyone but it is more necessary for those who are constantly under threat of health hazards. These are
the factory workers. They are constantly under the danger of health risks. Hence, it becomes necessary to
concentrate on the health of the workers in the factories as well as people in society. In order to
standardize the health measures and safety provisions, the Factories Act, 1948 lays down certain ‘health
measures’.

The first Act which is made for laborers working in factories is the Factories Act,1934 but there are various
defects and weaknesses. Due to defect and weakness, these provisions are not working properly and there
is a need to bring changes in the provision to the effective implementation of the provision. After that
amendment Factories Act, 1948 came into force. In previous Act provisions related to welfare, health, and
safety not so good but in this Act the main focus of makers is to provide a healthy and safe life of workers.
If we see the definition of a factory is not that much wider. But to protect the labors we made this Act in a
wider sense. The provision of welfare, health, and safety is not adequate in various industries and does not
cover the large numbers of workers working in a factory. If the workers are working in a factory then it was
the duty of every employer to take the health and safety of workers. The number of industries in a country
is increasing speedily so that there is a need for a proper provision related to health and safety-related. The
inspector has a great responsibility to check that there is a proper implementation of health and safety
provision or not. Various factories do not provide an adequate working condition of workers which causes
several diseases to workers and this will also create a danger to the working class of a factory. Safety and
health are very important for workers. Employers have to do their duty not to see the chance to escape
their duty.

Labour and welfare

The word ‘labour welfare’ refers to the services offered to employees within as well as outside the factory,
such as canteens, restrooms, recreation areas, housing, and any other amenities that support employee
well-being. States that take welfare measures care about the overall well-being and productivity of their
workforce. Early on in the industrialization process, social programmes for manufacturing workers did not
receive enough priority. In the past, industrial labour conditions in India were terrible. Due to a growth in
industrial activity in the latter part of the twenty-first century, several attempts were made to improve the
working conditions of the workforce through the recommendations of the Royal Commission.

After gaining knowledge about the deficiencies and limitations of the previous Act, the Factories Act of
1948 was amended. The definition of ‘factory’ was expanded to encompass any industrial facility employing
10 or more people that uses power or any industrial establishment employing more than 20 people that
uses no power, which was a significant development.

Other significant amendments included-

 Raising the minimum age of children who can work from 12 to 14 years old.
 Reducing the number of hours a child can work from five to four and a half.
 Preventing the kids from working between the hours of 7 p.m. and 6 a.m.
 The health, safety, and well-being of all types of employees are given particular attention.

Welfare measures

The three main components of welfare measures are occupational health care, appropriate working hours,
and appropriate remuneration. It speaks of a person’s complete health, including their physical, mental,
moral, and emotional states. The goal of welfare measures is to integrate the socio-psychological demands
of the workforce, the particular technological requirements, the organisational structure and procedures,
and the current socio-cultural environment. It fosters a culture of work dedication in enterprises and
society at large, ensuring increased employee happiness and productivity.

Washing facilities (Section 42)

 All factories should supply and maintain enough appropriate washing facilities for the use of the
employees.
 For male and female employees, separate, well-screened facilities must be provided; these facilities
also need to be easily accessible and maintained clean.
 The standards for appropriate and suitable facilities for washing must be set by the state
government.

Facilities for storing and drying clothing (Section 43)

The state government has a specific authority. It specifies that the state government has the authority to
give instructions to the manufacturers regarding where to store the worker’s clothing.
They can also provide them with instructions on how to dry the workers’ clothes. It refers to the
circumstance in which workers are not dressed for work.

Facilities for sitting (Section 44)

All factories should provide and maintain seating arrangements in appropriate areas for all workers who
are required to work in a standing position in order to take advantage of any chances for rest that may
arise throughout the course of the job.

According to the chief inspector, workers in any factory involved in a certain manufacturing process or
working in a specific room are able to perform their work effectively while seated.

First aid appliance (Section 45)

 All factories must have first aid kits, appliances, or cupboards stocked with the required supplies
during all working hours, and they must be easily accessible for all manufacturing employees to
access. Accordingly, there must be more first aid boxes or cupboards than the usual ratio of one for
every 150 industrial employees, which must be fewer than that.
 The first aid box or cupboard should only include the recommended supplies.
 Throughout the factory’s operating hours, each first aid box or cupboard should be kept under the
supervision of a specific person who is accountable for it on a separate basis and must be readily
available at all times during the working hours of the factory.

Canteen (Section 46)

 A canteen must be provided and kept up by the occupier for the benefit of the workers in any
specified factory where more than 250 people are usually employed, according to rules that the
state government may set.
 Food must be served, and prices must be established for it.

Shelters, restrooms and lunch rooms (Section 47)

 Every factory with more than 150 employees must have appropriate and suitable restrooms or
shelters and a lunchroom with drinking water where employees can eat food they have brought
with them and that is kept for their use. If a lunchroom is available, employees should stop eating
in the work area.
 The shelters or restrooms need to be well-lighted, ventilated, kept clean, cool, and in good
condition.
 The state government sets the standards.

Creches (Section 48)

 Every factory with more than 30 female employees must have a suitable room for the use of
children under the age of six of such women.
 Such rooms must be well furnished, well-lighted, and ventilated, and they must be kept clean and
hygienic. They must also be under the care of women who have received training in child and infant
care.
 In addition, facilities for washing and changing clothes can be made available for the care of the
children of female workers.
 Any factory may be forced to provide free milk, refreshments, or both to such children.
 Small children can be fed by their mothers in any industry at necessary intervals.

Health
Sections 11-20 of Chapter III of the Act deal with the Health of the Factories Act, 1948.

Cleanliness (Section 11)

Every factory needs to be kept clean and clear of any effluvia from drains, latrines, or other annoyances. In
particular:

 Dirt must be cleaned daily from floors, benches, staircases, and passages by sweeping or by
another method, and it must be properly disposed of.
 The floor should be disinfectant-washed at least once a week.
 During the manufacturing process, the floor becomes moist; this must be drained via drainage.

Disposal of wastes and effluents (Section 12)

Every factory has to have a method in place for treating wastes and effluents produced by the
manufacturing process they use.

Ventilation and temperature (Section 13)

 In order to ensure worker comfort and prevent health problems, sufficient ventilation must be
created for the circulation of air in a factory, which should be maintained at a specific temperature.
 Walls and roofing should be made of a material that is intended for a particular temperature that
shouldn’t go over as much as possible.
 Certain precautions must be taken to protect the employees in facilities where the manufacturing
process requires extremely high or low temperatures.

Dust and fume (Section 14)

 Every factory has to have efficient measures to remove or prevent any dust, fumes, or other
impurities that might harm or offend the employees employed and cause inhalation and buildup in
any workroom.
 No factory may operate an internal combustion engine unless the exhaust is directed outside, and
no other internal combustion engine may be used. Additionally, precautions must be made to avoid
the buildup of fumes that might endanger the health of any employees inside the room.

Overcrowding (Section 16)

 There should be no overcrowding in factories that might harm the health of the workers.
 All employees must have ample space in a room to work in the building.

Lighting (Section 17)

 Every area of a factory where employees are employed must have adequate natural, artificial, or
both types of lighting installed and maintained.
 All glass windows and skylights that provide lighting for the workroom in factories must be kept
clean on the inside and outside.
 The production of shadows should not cause eye strain during any manufacturing process, and all
factories must have preventative measures that should not cause glare from the source of light or
via reflection from a smooth or polished surface.

Drinking (Section 18)

  All factories must have the appropriate installations in place, and maintain convenient locations
with an adequate supply of clean drinking water.
 The distance between any drinking water and any washing area, urinal, latrine, spittoon, open drain
carrying sullage or effluent, or another source of contamination in the factory must be 6 metres
unless the chief inspector approves a shorter distance in writing. The labelling must be legible and
in a language that workers could understand.
 In all factories with more than 250 regular employees, there needs to be a suitable method for
providing cold drinking water during hot weather.

Latrines and urinals (Section 19)

 All factories should have enough restrooms, and urinal accommodations of the required types must
be offered in a location that is convenient and always accessible to workers.
 Male and female employees must have separate enclosed rooms.
 These locations must be thoroughly cleaned, kept in a hygienic state, and have sufficient lighting
and ventilation.
 Sweepers must be used to maintain latrines, urinals, and washing facilities clean.

Spittoons (Section 20)

 All factories must have spittoons in easily accessible locations, and they must be kept clean and
hygienic.
 The state government specifies the number of spittoons that must be given, their placement in any
factory, as well as their maintenance in a clean and hygienic manner.
 Except for spittoons designed, for this reason, no one should spit within the premises of a factory. A
notice must be posted if any violations occur, with a fine of five rupees.

Conclusion

The safety measure and health measure are very important for the workers. In India, the number of
industries is increasing day today and it was necessary that we can take care of the health of workers.
Various factories and industries do not follow any rules and regulation which causes danger to the life of
the worker. Inspector is appointed so that every factory does their work properly.

Q. Explain the hazardous processess under the factories act 1948

Ans –

Provisions Relating to Hazardous Processes

In general terms, the word ‘hazardous ‘ is not new to anyone. Generally, it means ‘dangerous’. If we talk
about the dangerous or hazardous processes then it means the processes which may cause damage to life
or health. This topic is very important in the context of factories due to the main involvement of big pieces
of machinery in production.

Table of content

1 Introduction to Hazardous Process under Factories Act

2 Hazardous Processes Under Factories Act, 1948

2.1 Section 41A: Constitution of Site Appraisal Committees

 2.2 Browse more Topics under The Factories Act

2.3 Special Point:

2.4 Section 41B: Compulsory disclosure of information by the occupier

2.5 Section 41C: Specific responsibility of the occupier in relation to hazardous processes

2.6 Section 41D: Power of Central Government to appoint an Inquiry Committee

2.7 Section 41E: Emergency standards

2.8 Section 41F: Permissible limits of exposure of chemical and toxic substances

2.9 Section 41G: Workers’ participation in safety management

Introduction to Hazardous Process under Factories Act

In terms of the law, ‘hazardous processes’ means any process or activity in relation to an industry where,
unless special care is taken, raw materials used therein or the intermediate or finished products, by-
products, wastes or effluents thereof would-

(a) cause material impairment to the health of the person

(b) result in pollution or the general environment

In this article, we will look at the various rules and provisions related to the hazardous processes in the
Factories Act, 1948.

Hazardous Processes under factories act

Hazardous Processes Under Factories Act, 1948

 Section 41A: Constitution of Site Appraisal Committees

This section states that the factory should appoint a ‘Site Appraisal Committee’ consisting. This committee
will be responsible for suggesting the location of the factory which includes hazardous process. This
committee will include:

(a) the Chief Inspector of the State

(b) a representative of the Central Board for the Prevention and Control of Water Pollution

(c) a representative of the Department of Environment in the State

(d) a representative of the Meteorological Department of the Government of India

(e) an expert in the field of occupational health

(f) a representative of the Town Planning Department of the State Government

Special Point:

The Site Appraisal Committee shall have the power to call for any information from the person making an
application for the establishment or expansion of a factory involving a hazardous process

Section 41B: Compulsory disclosure of information by the occupier

This section states:

 Firstly, the occupier of every factory involving a hazardous process shall disclose in the prescribed
manner all information regarding dangers and the measures to overcome the same.
 Secondly, the occupier shall, at the time of registering the factory lay down a detailed policy with
respect to the health and safety of the workers
 Thirdly, the information should be completely accurate
 Lastly, every occupier shall, with the approval of the Chief Inspector, draw up an on-site emergency
plan. He should also draw up detailed disaster control measures for his factory. Moreover, the
factory should announce it to all the workers and the public in general.

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

This section states that every occupier of a factory involving any hazardous process should:

 accurately maintain the health and medical records of all the workers in a factory. It is mainly for
those workers who are working in the manufacturing of toxic or harmful substances.
 appoint persons who possess qualifications and experience in handling hazardous substances. They
should also be competent to supervise such handling within the factory. Moreover, they should
provide 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.

 provide for medical examination of every worker before assigning any production task involving
hazardous substance.

Section 41D: Power of Central Government to appoint an Inquiry Committee

 This section states that The Central Government in some extraordinary situations may appoint an
Inquiry Committee for a factory manufacturing hazardous material.
 They inquire into the standards of health and safety observed in the factory. They do so to find out
the causes of any failure or neglect in the adoption of all measures or standards.
 Moreover, the committee should consist of a Chairman and two other members. The Central
Government determines the tenure of the members. Also, the recommendations of the Committee
shall be advisory in nature.

Section 41E: Emergency standards

This section states that in certain cases when The Central Government thinks that the factory is unable to
apply certain security measures then it is allowed to direct the Director-in-charge of the factory to
implement the measures or standards on an immediate basis. This mainly applies to factories involving the
production of hazardous substances.

Section 41F: Permissible limits of exposure of chemical and toxic substances

This section states:

 Firstly, the maximum permissible threshold limits of exposure of chemical substances should be as
per Schedule Two.
 Secondly, the Central Government may, at any time, for the purpose of giving effect to any
scientific proof may make suitable changes in the said Schedule.

Section 41G: Workers’ participation in safety management

This section states that the occupier shall, in every factory where a hazardous process takes place, should
set up a Safety Committee. This safety will comprise an equal number of representatives of workers and
management.

It is mainly formed to promote co-operation between the workers and the management in maintaining
safety and perfect health at work.

Conclusion

The wellbeing and strength of labourers is of most extreme significance, and no mischief is to be caused to
labourers at any expense. Everything within the limit of the focal government is just as the occupier is to be
taken to guarantee something similar.

A stage towards accomplishing total security has been taken by starting enactment against dangerous
exercises occurring in production lines and keeping ladies and kids away from the equivalent.

In any case, the genuine issue exists in the execution of the laws recorded. Appropriate safeguards are to
be taken by the labourers associated with unsafe cycles. For example, stuff and information on risks are
to be passed on to one another just as directions for scrutiny of machines.

Normal reviews are to be fundamentally completed by the guard dogs, for example, controller cum
facilitator and wellbeing overviews, just as clinical trials are to be done on an ordinary premise. The
workers have clear obligations and duties towards their own security Also, wellbeing, so they shouldn't be
careless and bring about any mischief because of absence of consideration. They have an obligation
towards their associates also and should be mindful of any emerging risks in the processing plant and pass
on something similar to the occupier.

Legitimate information is to be achieved by the representatives while utilising apparatuses or machines

which are engaged in unsafe cycles What's more, no mischief or threat to life is to be caused to his own life
or that of any individual specialist because of any sort of carelessness. Subsequently, wellbeing and
government assistance a two-way street which is to be maintained by both the Business just as the worker.

The business and representatives in matters of security and government assistance of labourers resemble
the heads and tails of a similar coin and henceforth go inseparably with one another. "

Normal reviews are to be fundamentally completed by the guard dogs, for example, controller cum
facilitator and wellbeing overviews, just as clinical trials are to be done on an ordinary premise. The
workers have clear obligations and duties towards their own security Also, wellbeing, so they shouldn't be
careless and bring about any mischief because of absence of consideration. They have an obligation
towards their associates also and should be mindful of any emerging risks in the processing plant and pass
on something similar to the occupier.

Legitimate information is to be achieved by the representatives while utilising apparatuses or machines

which are engaged in unsafe cycles What's more, no mischief or threat to life is to be caused to his own life
or that of any individual specialist because of any sort of carelessness. Subsequently, wellbeing and
government assistance a two-way street which is to be maintained by both the Business just as the worker.

The business and representatives in matters of security and government assistance of labourers resemble
the heads and tails of a similar coin and henceforth go inseparably with one another. "

Q. Discuss the provision relating to adjudicatory provision under the state insurance act 1948
ADJUDICATION OF DISPUTES AND CLAIMS

ADJUDICATION OF DISPUTE AND CLAIMS

74. Constitution of Employees' Insurance Court.-

(1) The State Government shall, by notification in the Official Gazette, constitute an Employees' Insurance
Court for such local area as may be specified in the notification.

(2) The Court shall consist of such number of Judges as the State Government may think fit.

(3) Any person who is or has been a judicial officer or is a legal practitioner of five years' standing shall be
qualified to be a Judge of the Employees' Insurance Court.

(4) The State Government may appoint the same Court for two or more local areas or two or more Courts
for the same local area.

(5) Where more than one Court has been appointed for the same local area, the State Government may, by
general or special order, regulate the distribution of business between them.

75. Matters to be decided by Employees' Insurance Court.-

(1) If any question or dispute arises as to-

(a) Whether any person is an employee within the meaning of this Act or whether he is liable to pay the
employee's contribution, or

(b) the rate of wages or average daily wages of an employee for the purposes of this Act, or

(c) the rate of contribution payable by a principal employer in respect of any employee, or

(d) the person who is or was the principal employer in respect of any employee, or (e) the right of any
person to any benefit and as to the amount and duration thereof, or

1[(ee) any direction issued by the Corporation under Section 55-A on a

review of any payment of dependants' benefits, or-]

2[***]

(g) any other matter which is in dispute between a principal employer and the Corporation, or between a
principal employer

and an immediate employer, or between a person and the Corporation or between an employee and a
principal or

immediate employer, in respect of any contribution or benefit or other dues payable or recoverable under
this Act, 3[or any other matter required to be or which may be decided by the Employees' Insurance Court
under this Act], such question or dispute 4[subject to the provisions of sub-section (2-A)], shall be decided
by the Employees' Insurance Court in accordance with the provisions of this Act.

(2) 5[Subject to the provisions of sub-section (2-A), the following claims] shall be decided by the Employees'
Insurance Court, namely:-

(a) claim for the recovery of contribution from the principal employer;

(b) claim by a principal employer to recover contributions from any immediate employer;
1[***]

(d) claim against a principal employer under Section 68;

(e) claim under Section 70 for the recovery of the value or amount of the benefits received by a person
when he is not lawfully entitled thereto; and

(f) any claim for the recovery of any benefit admissible under this Act.

2[(2-A) If in any proceedings before the Employees' Insurance Court a disablement question arises and the
question of a medical board or a medical appeal tribunal has not been obtained on the same and the
decision of such question is necessary for the determination of the claim or question before the Employees'
Insurance Court, that Court shall direct the Corporation to have the question decided by this Act and shall
thereafter proceed with the determination of the claim or question before it in accordance with the
decision of the medical board or the medical appeal tribunal, as the case may be, except where an appeal
has been filed before the Employees' Insurance Court under sub- section (2) of Section 54-A in which case
the Employees' Insurance Court may itself determine all the issues arising before it.]

3[(2-B) No matter which is in dispute between a principal employer and the Corporation in respect of any
contribution or any other dues shall be raised by the principal employer in the Employees' Insurance Court
unless he has deposited with the Court fifty per cent of the amount due from him as claimed by the
Corporation:

Provided that the Court may, for reasons to be recorded in writing waive or reduce the amount to be
deposited under this sub-section.]

(3) No Civil Court shall have jurisdiction to decide or deal with any question or dispute as aforesaid or to
adjudicate on any liability which by or under this Act is to be decided by 4[a medical board, or by a medical
appeal tribunal or by

the Employees' Insurance Court].

76. Institution of proceedings etc.-

(1) Subject to the provisions of this Act and any rules made by the 5[State] Government, all proceedings
before the Employees' Insurance Court shall be instituted in the Court appointed for the local area in which
the insured person was working at the time the question or dispute arose.

(2) If the Court is satisfied that any matter arising out of any proceeding pending before it can be more
conveniently dealt with by any other Employees' Insurance Court in the same 6[State], it may, subject to
any rules made by the 7[State] Government in this behalf, order such matter to be transferred to such
other Court for disposal and shall forthwith transmit to such other Court the records connected with that
matter.

(3) The 1[State] Government may transfer any matter pending before any Employees' Insurance Court in
the 2[State] to any such Court in another State with the consent of the 3[State] Government of that
4[State].

(4) The Court to which any matter is transferred under sub- section (2) or sub-section (3) shall continue the
proceedings as if they had been originally instituted in it.

77. Commencement of proceedings.-

(1) The proceedings before an Employees' Insurance Court shall be commenced by application.
5[(1-A) Every such application shall be made within a period of three years from the date on which the
cause of action arose.

Explanation.-For the purpose of this sub-section,-

(a) the cause of action in respect of a claim for benefit shall not be deemed to arise unless the insured
person or in the case of dependants' benefit, the dependants of the insured person claims or claim that
benefit in accordance with the regulations

made in that behalf within a period of twelve months after the claim became due or within such further
period as the

Employees' Insurance Court may allow on grounds which appear to it to be reasonable;

6[(b) the cause of action in respect of a claim by the Corporation for recovering contributions (including
interest and damages) from the principal employer shall be deemed to have arisen on the date on which
such claim is made by the Corporation for the first time:

Provided that no claim shall be made by the Corporation after five years of the period to which the claim
relates;

(c) the cause of action in respect of a claim by the principal employer for recovering contributions from an
immediate

employer shall not be deemed to arise till the date by which the evidence of contributions having been paid
is due to be received by the Corporation under the regulations.]

(2) Every such application shall be in such form and shall contain such particulars and shall be accompanied
by such fee, if any, as may be prescribed by rules made by the State Government in consultation with the
Corporation.

78. Powers of Employees' Insurance Court.-

(1) The Employees' Insurance Court shall have all the powers of a Civil Court for the purposes of
summoning and enforcing the attendance of witnesses, compelling the discovery and production of
documents and material objects, administering oath and recording evidence and such Court shall be
deemed to be a Civil Court within the meaning of 7[Section 195 and Chapter XXVI of the Code of Criminal
Procedure, 1973 (2 of 1974)].

(2) The Employees' Insurance Court shall follow such procedure as may be prescribed by rules made by the
State Government.

(3) All costs incidental to any proceeding before an Employees' Insurance Court shall, subject to such rules
as may be made in this behalf by the State Government, be in the discretion of the Court.

(4) An order of the Employees' Insurance Court shall be enforceable as if it were a decree passed in a suit
by a Civil Court.

79. Appearance by legal practitioners, etc.-

Any application, appearance or act required to be made or done by any person to or before an Employees'
Insurance Court (other than appearance of a person required for the purpose of his examination as
witness) may be made or done by a legal practitioner or by an officer of a registered trade union authorised
in writing by such person or with the permission of the Court, by any other person so authorised.
80. [Benefit not admissible unless claimed in time.]-

Repealed by the Employees' State Insurance (Amendment) Act, 1966 (44 of 1966) S.34. (w.e.f. 28- 1-1968).]

81. Reference to High Court.-

An Employees' Insurance Court may submit any question of law for the decision of the High Court and if it
does so, shall

decide the question pending before it in accordance with such decision.

82. Appeal.-

(1) Save as expressly provided in this section, no appeal shall lie from an order of an Employees' Insurance
Court.

(2) An appeal shall lie to the High Court from an order of an Employees' Insurance Court if it involves a
substantial question of law.

(3) The period of limitation for an appeal under this section shall be sixty days.

(4) The provisions of Sections 5 and 12 of the 1[Limitation Act, 1963 (36 of 1963)] shall apply to appeals
under this section.

83. Stay of payment pending appeal.-

Where the Corporation has presented an appeal against an order of the Employees' Insurance Court, that
Court may, and if so directed by the High Court, shall, pending the decision of the appeal, withhold the
payment of any sum directed to be paid by the order appealed against.

Q. Examine the various provision regarding the contribution of general procedure to recover the
contribution under the insurance act 1948
Ans –

Contributions

1. All employees to be insured

2. Contribution
3. Principal employer to pay contribution in the first instance
4. Recovery of contribution from the immediate employer
5. General provisions as to payment of contribution
6. Method of payment of contributions
7. Employers to furnish returns and maintain registers in certain cases
8. Social Security Officers and their functions
I. Determination of Contribution in certain cases
II. Appellate Authority
III. Recovery of contributions
IV. Issue of certificate to the Recovery Officer
V. Recovery Officer to whom the certificate is to be forwarded
VI. The inability to recover the amount solely through the sale of property alone
VII. Stay of proceedings under certificate and amendment or withdrawal thereof
VIII. Other modes of recovery
 IX. Application of certain provisions of the Income-tax Act

Contributions

All employees to be insured

All employees employed in the factories which meet ESIC prescribed rules (under Section 2) are insured for
all the benefits offered by it.

Contribution

 The contribution is a determinable amount of money payable by both the employer and the
employee, as per the situation, to the corporation.
 The rates, while usually prescribed by the government, are not set in stone, and are subject to
change. Rates defined by the government are mostly set as the unit standard for the contribution
payable by the employer.
 In the case of the employee’s contribution, the wage period in relation to the respective employee
shall be held as a unit to determine the compensation payable, and are normally due on the last
day of the wage period.
 Failure to pay contributions by the employer will make him liable to pay an interest rate of 12%.

Principal employer to pay contribution in the first instance

 The primary employer has to collectively pay the contribution, both his own and that of his
employees, regardless of whether they are directly employed under him or are working through an
immediate employer.
 If a directly employed employee fails to pay his contributions, then the employer can recover that
contribution only by deducting the wages of said employee.
 The employer bears all the transfer costs of the payment to the Corporation.

Recovery of contribution from the immediate employer

In the case of an employee who is indirectly employed under the principal employer, via an immediate
employer, the principal employer shall be entitled to recover the payment made on behalf of an indirect
employee, from the immediate employer, as a debt payable to him.

The immediate employer also has to prepare a list of all the employees under him and submit the same to
the principal employer, before paying his dues.

General provisions as to payment of contribution

In case an employee’s wage falls below the prescribed wage range prescribed by the Central Government,
the employee shall not be liable for his contribution and it shall not be payable.

Method of payment of contributions

The manner for payments which the Act provides regulations for, has been elaborated in the following
conditions:

 The nature and time of contribution being paid.

  Payment which involves the usage of stamps or other adhesives fixed upon the books of accounts,
or any other documents.
 The evidence of the contributions, which reaches the Corporation, is to be dated.
 The different entries in the books of accounts along with the details of the insured persons.
 The replacement of documents which have been lost, destroyed or defaced.

Employers to furnish returns and maintain registers in certain cases

According to the provisions given as per the ESI Act, the principal and immediate employers are to submit
all the investment profits, as well as any and all details relating to their employees in any factory under
their jurisdiction. In case of failure to submit a return, that the corporation had reasonable cause to believe,
should have been submitted, the corporation can require the employers to present all the details.

Social Security Officers and their functions

ESIC has the power to appoint persons as Social Security Officers. Their functions are mostly to serve a role
in inspecting the function of the corporation.

 If required, he can acquire any information from any employer as he sees fit.
 He can enter any corporation at any time and can get all the accounts, books and other
employment documents presented to him without any due notice. This can include information like
wages, expenses, etc.
 He can inspect and look into any matter regarding the employers and employees as and when
required under the jurisdiction of the court.
 He can make copies or take extracts from any register or account back as per his discretion.

Determination of Contribution in certain cases

A Social Security offer is restricted from exercising his functions and discharging his duties, if the accounting
statements of the factory/establishment are not submitted, or not maintained in accordance with Section
44 of the ESI Act. As such, the Corporation may, with the available information, determine the
contribution(defined under Section 39) amount payable to employees. However, this procedure will not
take place until after the person in charge has been given a reasonable opportunity to be heard regarding
the absence of such records.

Appellate Authority

In the scenario specified in Section 45A, once the employer in charge is heard, and he is not satisfied with
the verdict given by the corporation, he may prefer an appeal to an appellate authority as may be provided
by regulation, within sixty days of the date of the verdict. He must also pay a sum of 25% of his calculated
contribution, in order to file the appeal. In case he is successful, the corporation will also refund the
contribution paid by him.

Recovery of contributions

Any and all contributions which are payable under the provisions of ESI Act, can be recovered, termed as
‘arrears of land revenue’.

Issue of certificate to the Recovery Officer

In lieu of Section 45B, where the contribution is to be recovered, an authorised officer of the corporation
issues a certificate bearing his signature and the amount to be recovered, to a Recovery Officer, who then
proceeds to recover the amount specified from the factory where the default took place. He does this via:
  Attachment or sale of the property of the factory, or the employer, as per the situation.
 The arrest of the employer and getting him detained in prison.
 Appointing a receiver for the management of the property acquired, be it from the factory or the
employer.

Recovery Officer to whom the certificate is to be forwarded

For the contribution certificate to be forwarded to the Recovery Officer, the factory employer must be
under the jurisdiction of the Officer in the following ways:

 The location where the employer carries on his business and where the factory is located.
 The location where the employer resides or he has any personal property situated within the
Officer’s jurisdiction.
 The inability to recover the amount solely through the sale of property alone.

The inability to recover the amount solely through the sale of property alone

The analysis of the recovery amount, as per the certificate issued to the Recovery Officer, operates on his
word only. The factory or any authority related to it cannot question the Officer on the correctness of the
mount, and no objection shall be entertained. However, with a prior intimation, an arithmetical mistake
can be corrected by an authorised officer, along with any orders about withdrawal or cancellation of a
certificate.

Stay of proceedings under certificate and amendment or withdrawal thereof

It is at the discretion of the Recovery Officer, within the boundaries of the ESI Act, to halt legal proceedings
if the time he has allocated for the recovery of an amount, has expired.

The Recovery Officer is also entitled to receive constant updates about the status of payment of any due
amount.

If, as a result of an appeal, the amount due is decreased, then the Recovery Officer temporarily halts the
recovery of the now decreased amount.

Other modes of recovery

Some of the other modes of recovery are elaborated within Section 45G. These are rarer modes of
recovery, due to the primary modes of recovery often being preferred:

 The defaulting employer may be required to pay a sum which was deducted from the arrears after
the sale of the property.
 There might not be any penalty issued but the defaulting employer would be required to pay the
entire outstanding amount directly to the Director-General of the Corporation.
 Any joint shareholders who held money with the defaulting employer might be forced to give up
their shares to the Corporation until they are equal to the defaulting employer’s shares, as
compensation.

Application of certain provisions of the Income-tax Act

The arrears of the amount of contributors, which are to be sold to cover the remaining costs, can be
affected by decisions from the Assessing Tax Officer or Tax Recovery Officer. They can make changes which
shall apply to all the interests and damages.