FACTORIES ACT

BY SAKSHEE SAHAY
Roll NO: 23IP62040
LLM 2nd Year, RGSOIPL, IIT Kharagpur ©SaksheeSahay
 OVERVIEW Satyamev Jayate to
Shramev Jayate
 The Factories Act, 1948, is a key Indian law ensuring factory workers' safety, health,
and welfare. It defines factories, sets health and safety standards, limits working hours,
and imposes penalties for violations. Below, we explore its sections, committees, case
laws, and international ties.
 The object of the Act is to protect human beings from being subject to unduly long
hours of bodily strain or manual labour. It also seeks to provide that employees should
work in healthy and sanitary conditions so far as the manufacturing process will allow
and that precautions should be taken for their safety and for the prevention of
accidents.
 The Act extends to whole of India. It applies to all factories including factories belonging
to Central or any State Government unless otherwise excluded.
 The benefits of this Act are available to persons who are employed in the factory and be
covered within the meaning of the term "worker" as defined in the Act. It would,
therefore, be desirable to discuss the meaning and definition of the term "factory" and
"worker". Since the term "factory" refers to manufacturing process, it would be helpful
to know the meaning of the term "manufacturing process" as defined by the Act.
©SaksheeSahay
 CONSTITUTIONAL BACKING
1. Fundamental Rights (Part III)
• Article 19(1)(g) – Right to practice any profession or carry on any occupation, trade, or
business, subject to reasonable restrictions in the interest of public health, safety, and welfare.
• Article 21 – Right to life and personal liberty, which extends to safe and humane working
conditions.
• Article 23 & 24 – Prohibits forced labor and child labor in hazardous industries, reinforcing
the Act’s provisions on minimum working age and worker safety.
2. Directive Principles of State Policy (Part IV)
• Article 39(a) & (e) – Mandates that the state should ensure the health and strength of
workers, particularly preventing abuse due to economic necessity.
• Article 41 – Right to work, education, and public assistance in cases of unemployment, old
age, sickness, and disablement.
• Article 42 – Directive to ensure just and humane working conditions and maternity
relief, directly influencing provisions on working hours, welfare, and safety under the Factories
Act.
• Article 43 – Encourages a living wage and decent standard of life for workers.
©SaksheeSahay
LABOUR JURISDICTION :
CONSTITUTIONAL STATUS
Union List Concurrent List
Entry No. 55 Regulation of labour and safety in mines and oil fields
Entry No. 22 Trade Unions; industrial and labour disputes.
Entry No. 61 Industrial disputes concerning Union employees
Entry No. 23 Social Security and insurance, employment and
unemployment.
Entry No. 65 Union agencies and institutions for "Vocational ...training..."
Entry No. 24 Welfare of labour including conditions of work, provident
funds, employers "invalidity and old age pension and
maternity
Entry No 36 Factories

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HISTORICAL CONTEXT
 The Factories Act evolved from the 1881 Act, which first regulated child labour,
to the 1948 Act, consolidating earlier laws. Amendments have aligned with
industrial growth and global standards.
Abolished Provisions
 The 1948 Act removed the seasonal vs. non-seasonal factory distinction,
standardising regulations for all factories.

Minimum Age for

Act/Year Additional Restrictions
Employment
1881 7 years 9 hours/day for 7-14, 4 holidays/month
7 hours/day for 9-14, women 11 hours/day
1891 9 years
with break
1948 (initial) 15 years Defined under Section 2(c)
1948 (post-1976) 14 years 4.5 hours/day, no work 7pm-6am

©SaksheeSahay
 PRE-INDEPENDENCE ERA
Act Key Provisions Limitations Significance
- Applied to factories with 100+ workers
- First factory law in India
Factories - Banned child labor below 7 years - No strict enforcement
- Response to British
Act, 1881 - Limited child working hours to 9 hrs/day - No mention of adult workers
Parliament pressure
- Required sanitation & ventilation
- Reduced factory size requirement to 50+
workers - Weak implementation
Factories - Recognized need for weekly
- Increased minimum working age to 9 years - No specific protections for
Act, 1891 rest for workers
- Limited child working hours to 7 hrs/day women workers
- Mandated Sunday as a weekly holiday
- Reduced child working hours to 6 hrs/day
- Lacked enforcement powers - Came after Swadeshi
Factories - Introduced workplace safety for hazardous
- Women workers still not movement, marking
Act, 1911 industries
covered adequately expansion of Indian industries
- Required first aid and ventilation
- First time adult working hours were restricted (12 - Many factories did not comply
Factories hrs/day) - Recognized the need for
Act, 1922 - Restricted night shifts for women - No strong penalties for work-hour regulation
- Improved fire safety measures violations

- Reduced adult working hours to 10 hrs/day - Enforcement still weak

Factories - Laid the foundation for the
- Strengthened workplace safety measures - No clear inspection
Act, 1934 Factories Act, 1948
- Introduced penalties for violations mechanism
©SaksheeSahay
 POST INDEPENDENCE: NEED
OF A LABOR LAW
1. Need for a Comprehensive Labor Welfare Legislation
• Economic Growth & Industrialization: Post-independence, India adopted a planned
economy, with the Five-Year Plans emphasising industrial development. A strong
labour law framework was necessary to ensure fair wages, safety, and social security.
• Eliminating Colonial Exploitation: Pre-independence factory laws were designed to
serve British economic interests rather than truly protect Indian workers. A
modernised labour code was needed.
• Workers' Movements & Trade Unions: With growing labour movements and trade
unions, the government had to balance industrial productivity with workers' rights.
• Constitutional Mandate: Articles 39, 39A, 42, 43 and 43A of the Indian Constitution
mandated the protection of workers’ welfare, leading to the demand for stronger
legal frameworks.
• Health & Safety Concerns: Rising industrial accidents, occupational diseases, and
unsafe factory environments require stringent laws for workplace safety and health
What is the
standards. nature of these
©SaksheeSahay principles ?
2. Enactment of the Factories Act, 1948
 In response to these needs, the Factories Act, 1948, was enacted to:

✅ Ensure worker safety, health, and welfare

✅ Regulate working hours, leave policies, and employment conditions
✅ Provide special protection for women and young workers
✅ Set up inspection mechanisms for enforcement

Amendment Impact on Minimum

Key Changes
Year Age/Abolished Provisions
Incorporated ILO conventions, No direct change to minimum
1954 amended machinery safety, working age, focused on safety and
hours, leave hours
Safety officers, expanded worker Increased minimum age to 14,
1976 definition, numerous section reduced child hours, night work
amendments bans
No direct change to minimum
Added Chapter IV A for hazardous
1987 age, focused on hazardous
processes, post-Bhopal safety
regulations
©SaksheeSahay
 INTERNATIONAL
CONVENTION
A. International Labour Organization (ILO) Conventions
The ILO sets global labour standards that influence national laws, including the
Factories Act. Some relevant conventions include:
1.ILO Convention No. 1 (1919) – Hours of Work (Industry) Convention
1. Limits working hours to 8 hours/day and 48 hours/week.
2. Influenced Sections 51 & 54 of the Factories Act, 1948 (Work Hours).

2.ILO Convention No. 81 (1947) – Labour Inspection Convention

1. Mandates a proper inspection system to ensure compliance.
2. Reflected in Section 9 of the Factories Act (Appointment of Inspectors).

3.ILO Convention No. 115 (1960) – Radiation Protection Convention

1. It requires protective measures in industries that are exposed to radiation.
2. Reflected in Section 41B (Hazardous Processes).

4.ILO Convention No. 155 (1981) – Occupational Safety & Health Convention
1. Ensures safe working conditions and mandates a national policy on health & safety.
2. Reflected in Chapters III & IV of the Factories Act (Health & Safety Measures).

©SaksheeSahay
5. ILO Convention No. 182 (1999) –
Worst Forms of Child Labour Convention
1. Prohibits hazardous work for children.
2. Reflected in Section 67 of the Factories
Act (Ban on Employment of Children Below
14).
B. UN Sustainable Development Goals
(SDGs)
The Factories Act aligns with global efforts
like the UN SDGs, particularly:
• Goal 8 (Decent Work & Economic
Growth): Promotes safe working
environments.
• Goal 3 (Good Health & Well-being):
Focuses on occupational health.
• Goal 5 (Gender Equality): Addresses
working conditions for women (e.g.,
Section 66 – Restriction on Night Shifts
for Women)
©SaksheeSahay
 IMPACT ON INDIAN
LABOR LAWS
• Increased Workplace Safety
Regulations: Provisions for fire safety,
hazardous processes, and ventilation
have been strengthened.
• Stronger Inspection and Compliance
Mechanisms: Inspired by ILO
Convention No. 81, India's labour
inspection system has been reformed.
• Alignment with International Best
Practices: India's safety regulations
now emphasise worker training, risk
assessment, and employer liability.

©SaksheeSahay Source: Times of India Article

https://indianexpress.com/article/explained/what-labour-law-changes-mean-
 Committees Related to
the Factories Act
Committee Year Key Recommendations
Royal Commission on Led to the Factories Act,
1931
Labour 1934.
Dhar Committee on Strengthened workplace
1971
Industrial Safety safety laws.
Introduced hazardous
T.S. Rajagopala
1980 process safety (Section
Iyengar Committee
41B).
Ramakrishna Post-Bhopal stricter
1992
Committee hazardous industry laws.
Proposed merging labor
Second National
2002 laws (led to OSHW Code,
Commission on Labour
2020).
©SaksheeSahay
 INQUIRY COMMITTEES INFLUENCING
AMENDMENTS
Ad-hoc committees have shaped the Act through investigations into industrial disasters or labor
conditions:
1.Royal Commission on Labour (1929-1931):
1. Purpose: Examined labor conditions in British India, influencing the 1934 Act and indirectly the 1948 Act.
2. Composition: British and Indian members, chaired by J.H. Whitley.
3. Findings: Recommended welfare measures (e.g., rest rooms, hours regulation), carried forward into 1948.
4. Significance: Historical foundation for the Act’s welfare focus.

2.National Commission on Labour (1966-1969):

1. Purpose: Reviewed labor laws post-independence, influencing the 1976 Amendment.
2. Composition: Chaired by D.A. Gajendragadkar, included labor experts and policymakers.
3. Findings: Suggested including contract labor and safety officers, adopted in 1976. Significance: Broadened
worker protections in an industrializing economy.
3. Bhopal Gas Tragedy Inquiry Commission (1985):
1. Purpose: Investigated the 1984 Bhopal disaster, leading to the 1987 Amendment.
2. Composition: Chaired by Justice N.K. Singh (initially), later a multi-member panel under government
oversight.
3. Findings: Inadequate safety regulations for hazardous processes were highlighted, prompting Chapter IVA
(Sections 41A-41H).
©SaksheeSahay
4. Significance: Catalyst for stricter safety laws, exposing enforcement gaps.
 OVERVIEW OF FACTORIES
Chapter
ACT 1948 Focus Area Notable Sections

Preliminary Definitions and Applicability Section 2 (Definitions)

The Inspecting Staff Enforcement Section 8 (Inspectors)

Sections 11-20 (Cleanliness,
Health Worker Health Standards
Ventilation)
Sections 21-41 (Fencing, Fire
Safety Machine and Process Safety
Precautions)
Provisions Relating
Hazardous Process Sections 41A-41H (Site
to Hazardous
Regulation Appraisal, Disclosure)
Processes
Sections 42-50 (Washing,
Welfare Worker Welfare Facilities
Canteens, Creches)
Working Hours of Sections 51-66 (Weekly, Daily
Work Hour Limits
Adults Hours)
Employment of Child and Adolescent Sections 67-77 (Prohibition,
Young Persons Protection Hours)
Annual Leave with
Leave Entitlements Section 79 (Annual Leave)
Wages
Penalties and Sections 92-106 (General
Compliance and Penalties
Procedure Penalty, Obstruction) ©SaksheeSahay
 FACTORIES ACT 1948
Chapter I: Preliminary
• Section 2: Definitions
• Defines critical terms such as "adult"
(≥18 years), "child" (<15 years),
"adolescent" (15-18 years), "factory"
(premises with manufacturing process,
≥10 workers with power, ≥20 without),
"manufacturing process" (making,
altering, packing, etc.), "worker"
(employed in manufacturing process),
and "occupier" (person with ultimate
control over factory affairs).
• These definitions are foundational for
determining the act's applicability, as
seen in cases like Mohan Singh & Ors v.
The Chairman Railway Board & Ors
(2015), discussing factory definitions.
©SaksheeSahay
 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 5 [the Mines Act, 1952
(35 of 1952)], or 6 [a mobile mobile unit belonging to the armed forces of the
Union, railway running shed or a hotel, restaurant or eating place].

 [Explanation 2 [I]—For computing the number of workers for the purposes of this
clause all the workers in 3 [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;]
©SaksheeSahay
 Section 2 (w) of OSH Code defines "factory” as means any premises including
the precincts thereof—
 (i) 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 with the aid of power, or is ordinarily so carried
on; or
 (ii) whereon forty 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 mobile unit belonging to the armed forces of the Union,
railways running shed or a hotel, restaurant or eating place:
 Provided that where under any law for the time being in force in a State
immediately before the commencement of this Code, the number of workers
specified is more or less than the number specified in clause (i) or clause (ii),
then, the number specified under the law of the State shall prevail in that State
till it is amended by the competent Legislature.
 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 ©SaksheeSahay
is installed in any premises or part thereof, shall not be construed as factory if no
manufacturing process is being carried on in such premises or part thereof;
 PREMISE-
 The word 'premises' means open land or land with building or building alone
 Any `premises' to be categorised as factory two conditions must be fulfilled.
 i) Ten or more persons are employed in the premises using power or be employed
not using power.
 ii) Twenty or more workers must be employed not using power.

 .Therefore, salt works where the process of converting seawater into salt is
carried on in the open comes within `premises' as defined in the Act.
[(ARDESHIR H. BHIWANDIWALA v. State of Bombay, A.I.R. 1962 SC
29.)]
 Section (zc) of OSH Code "industrial premises" means any place or
premises (not being a private dwelling house), including the precincts
thereof, in which or in any part of which any industry, trade, business,
occupation or manufacturing is being ordinarily carried on with or without
the aid of power and includes a godown attached thereto;
 Precincts mean a space enclosed by a wall. [(in re K.V.V. Sharma v.
Manager, Gemini Studio, Madras, A.I.R 1953 Mad. 29.)] Any
©SaksheeSahay
`premises' to be categorised as factory two conditions must be fulfilled.
 MANUFACTURING PROCESS
 The expression "manufacturing process" has been defined in Section 2(k)
to mean any process.
 i) making, altering, repairing, ornamenting, finishing, packing, oiling,
washing, cleaning, breaking up, demolishing, or otherwise treating or
adapting any article or substance with a view to its use, sale, transport,
delivery or disposal; or
 ii) pumping oil, water, sewage, or any other substance; or
 iii) generating, transforming or transmitting power; or
 iv) composing types for printing, printing by letter press, lithography,
photogravure or other similar process or book binding; or
 v) constructing, reconstructing, refitting, finishing or breaking up ships or
vessels; or vi) preserving or storing any article in cold storage.

©SaksheeSahay
 Section (zi) Of OSH Code "manufacturing process" means any process for—
 (i) making, altering, repairing, ornamenting, finishing, packing, oiling,
washing, cleaning, breaking up, demolishing, or otherwise treating or
adapting any article or substance with a view to its use, sale, transport,
delivery or disposal; or
 (ii) pumping oil, water, sewage or any other substance; or
 (iii) generating, transforming or transmitting power; or
 (iv) composing, printing, printing by letter press, lithography, offset,
photogravure screen printing, three Dimensional or four Dimensional
printing, prototyping, flexography or other types of printing process or book
binding; or
 (v) constructing, reconstructing, repairing, refitting, finishing or breaking up
ships or vessels; or
 (vi) preserving or storing any article in cold storage; or
 (vii) such other processes as the Central Government may notify;
©SaksheeSahay
 It was held in State of Bombay v Ali Saheb Kashim Tamboli, -
[(1995) 2 LLJ 182.)] that bidi making is a manufacturing process.
 In Ardeshir v Bombay State [(Air 1962 SC 29.)] the process carried
out in the salt works comes within the definition of `manufacturing
process' in Section 2 (k) in as much as salt can be said to have been
manufactured from sea water by the process of treatment and
adaptation of sea water into salt. In re K. V V Sharma [((1950) 1 LLJ
29.)] conversion of raw films into a finished product was held to be a
manufacturing process.
 Similarly in New Taj Mahal Cafe Ltd., Managalore v. Inspector of
Factories, Managalore, 1956 1 LLJ 273 the preparation of foodstuffs
and other eatable in the kitchen of a restaurant and use of a
refrigerator for treating or adapting any article with a view to its sale
were also held to be manufacturing process.

©SaksheeSahay
 WORKER
 Section 2 (1) of the Factories Act, 1,948 defines a "worker" to mean:
 i) who is employed;
 ii) who is employed either directly or through any agency;
 iii) with or without knowledge of principal employer,
 iv) whether for remuneration or not,
 iii) who is employed in any manufacturing process, or in clearing 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.
 In Dharangadhra Chemical Works v. State of Saurashtra, [(A I R
1957 SC 264)] the Supreme Court held that the test of the relationship
of master and servant is -the master's right of superintendence and
control of the method of doing the work.
©SaksheeSahay
 Section (zzl) of OSH Code "worker" means any person employed in any
establishment to do any manual, unskilled, skilled, technical,
operational, clerical or supervisory work for hire or reward, whether
the terms of employment be express or implied, and includes working
journalists and sales promotion employees, but does not include any
such person—
 (i) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or
the Navy Act, 1957; or
 (ii) who is employed in the police service or as an officer or other
employee of a prison; or
 (iii) who is employed mainly in a managerial or administrative
capacity; or
 (iv)who is employed in a supervisory capacity drawing wage
exceeding eighteen thousand rupees per month or an amount as may
be notified by the Central Government from time to time;
©SaksheeSahay
In Chintaman Rao v State of Madhya Pradesh,[(AIR 1958 All 44.)] the
factory entered into contracts with independent contractors known as sattedars.
The sattedars were supplied tobacco by the factories and, in some cases, bidi
leaves. The sattedars were neither bound to work in the factory nor were they
bound to prepare the bidis themselves but could get them prepared by others.
In fact, they engaged coolies for rolling bids and made payments to them. They
used to collect bidis from these coolies and take them to the factory, where the
bidis were sorted and checked by the workers of the factory. The factory made
payments to the sattedars for work of rolling bidis. The Supreme Court gave the
restricted meaning to words "directly or through any agency" in Section 2(l) and
held that (i) worker was a person employed by the management and (ii) there
must be a contract of service and a relationship of master and servant between
them. On the facts of the case the Supreme Court held that the
sattedars were independent contractors and they and the coolies
engaged by them for rolling bidis were not workers.
In State of Kerala v V M Patel, [1961(1) LLJ 549 (SC)] the Supreme Court held
that the work of garbling pepper by winnowing, cleaning, washing and drying in
lime and laid out to dry in a warehouse are manufacturing processes. Therefore
the persons employed in these processes were workers within the meaning of
Section 2(I) of the Act.
©SaksheeSahay
 In Shankar Balaji Waje v. State of Maharashtra, [(AIR 1957 SC 517)] Pandurang was
engaged for rolling bidis. Although the hours of work were fixed but there was no
obligation to attend during those hours. There was freedom to come and go. There
was no faxed salary nor actual supervision on the work. Payment was made on the
quantum of work. The Supreme Court held that such person were not workers
because there was no control and the supervision over pandurang.
 In Birdh Chand Sharma v First Civil Judge, Nagpur, [(AIR 1961 SC 644)] where , the
respondents prepared bidis at the factory, and they were not at liberty to work at
their homes. They worked within certain hours which were the factory hours. They
were, however, not bound to work for the entire period and they could go whenever
they like. Their attendance was noted in the factory. They could come and go away
at any time they liked. However no worker was allowed to work after midday even
though the factory was closed at 7 p.m. and no worker was allowed to continue
work after 7 p.m. There were standing orders in the factory , and according to these
orders, a worker who remained absent for eight days, presumably without leave,
could &_ removed. The payment was made on piece rate according to the quantum
of work done, but the management had the right to reject such bidis as dad not
come up to the proper standard. On these facts the Supreme Court held that
respondents were workers under section 2 (1) of the Act.
©SaksheeSahay
 INSPECTION PROCEDURE OF FACTORIES

Chapter II: The Inspecting Staff

• Section 8: Inspectors
• Empowers state governments to
appoint inspectors with authority to
enter factories, examine processes,
and ensure compliance, crucial for
enforcement.

In ION Exchange India Ltd. V. Deputy

Chief Inspector of factories, Salem
(1996).It was held that owner can
nominate any person tobe in ultimate
control over the affairs of a factory. If no
one else has been nominated to be in
ultimate control over the affairs of the
company, Director of a company or any
partner of partnership is deemed to be
the occupier.
Source: Government of Rajasthan
©SaksheeSahay
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htm
Chapter III: Health
• Sections 11-20: Focus on worker health, including:
• Section 11: Cleanliness – Factories must be kept clean, with waste disposal systems.
• Section 12: Disposal of Wastes and Effluents – Ensures effective drainage to prevent health
hazards.
• Section 13: Ventilation and Temperature – Mandates adequate ventilation and temperature
control.
• Section 14: Dust and Fume – Requires systems to control dust and fumes, protecting
respiratory health.
• Section 17: Lighting – Ensures sufficient lighting in all factory areas.
• Section 18: Drinking Water – Provides for clean drinking water availability.
• Section 19: Latrines and Urinals – Mandates sufficient sanitary facilities.
Chapter IV: Safety
• Sections 21-41: Address safety measures, including:
• Section 21: Fencing of Machinery – All dangerous machinery parts musxt be securely fenced.
• Section 22: Work on or Near Machinery in Motion – Prohibits unsafe work near moving
machinery.
• Section 23: Employment of Young Persons on Dangerous Machines – Prohibits children and
adolescents on dangerous machines without training.
• Section 28: Hoists and Lifts – Requires regular inspection and certification.
• Section 35: Protection of Eyes – Mandates eye protection in risky processes.
©SaksheeSahay
• Section 38: Fire Precautions – Ensures adequate fire-fighting equipment and exits.
Chapter IVA: Provisions Relating to Hazardous Processes
• Added by the 1987 amendment post-Bhopal tragedy, covering:
• Section 41A: Constitution of Site Appraisal Committees – Requires committees to
assess hazardous processes.
• Section 41B: Compulsory Disclosure of Information – Occupiers must disclose
hazardous process details.
• Section 41C: Specific Responsibility of the Occupier – Ensures safety compliance for
hazardous processes.
Chapter V: Welfare
• Sections 42-50: Focus on worker welfare, including:
• Section 42: Washing Facilities – Adequate washing facilities must be provided.
• Section 43: Facilities for Storing and Drying Clothing – Ensures storage and drying
facilities for wet clothing.
• Section 44: Facilities for Sitting – Workers must have sitting facilities where possible.
• Section 45: First-Aid Appliances – First-aid boxes must be available in every factory.
• Section 46: Canteens – Required for factories with over 250 workers.
• Section 47: Shelters, Rest Rooms, and Lunch Rooms – Provides rest facilities.
• Section 48: Creches – Mandated for factories employing over 30 women.
©SaksheeSahay
Chapter VI: Working Hours of Adults
• Sections 51-66: Regulate adult working hours, including:
• Section 51: Weekly Hours – Limits to 48 hours per week.
• Section 54: Daily Hours – Limits to 9 hours per day.
• Section 55: Intervals for Rest – Ensures at least a half-hour rest every five hours.
• Section 56: Spread Over – Total work period, including intervals, not to exceed 10.5 hours.
• Section 59: Weekly Holidays – Entitles workers to a weekly holiday.

Chapter VII: Employment of Young Persons

• Sections 67-77: Protect young workers, including:
• Section 67: Prohibition of Employment of Children – No child below 14 can be employed.
• Section 68: Adolescents – Requires a certificate of fitness for employment.
• Section 71: Working Hours for Children – Limits to four and a half hours per day.

Chapter VIII: Annual Leave with Wages

• Sections 78-84: Ensure leave benefits, with:
• Section 79: Annual Leave with Wages – Workers with 240 days of service get annual leave
with wages.
©SaksheeSahay
Chapter X: Penalties and Procedure
• Sections 92-106: Enforce compliance, including:
• Section 92: General Penalty – Up to two years imprisonment and fines up to ₹2 lakh
for violations.
• Section 94: Enhanced Penalty After Previous Conviction – Up to three years
imprisonment and fines up to ₹2 lakhs for repeat offences.
• Section 95: Penalty for Obstructing Inspector – Up to six months imprisonment and
fines up to ₹10,000.

General Manager, Wheel & A. P, Bangalore v. State of Karnataka (1996). It was

held in this case that the requirement of obtaining sanction to prosecute is mandatory,
and taking cognisance of an offence in the absence of sanction cannot be allowed to
stand and has to be quashed.

Provincial Government v. Ganpat, AIR 1943 Nag 243.It was held in this case where
the occupier or the manager of the factory admits the guilt under Section 92 of the Act
but alleges the clerk of the Factory to be the actual offender, the onus of establishing the
innocence is on such occupier or the manager as the case may be.

©SaksheeSahay
©SaksheeSahay
CHECKLIST FOR APPROVAL OF
BUILDING PLANS:
1) Form No-1 (Online e-form and submission/filling in online mode only through the web
application)
2) Form No 1-A (Online e-form and submission/filling in online mode only through the web
application)
3) Questionnaire (Online e-form and submission/filling in online mode only through the
web application)
4) Flow-chart of manufacturing process.
5) Detailed write up chart of manufacturing process.
6) List of machinery.
7) Site Plan of the factory.
8) Building drawings including elevations, plans & cross sections.
9) Machine lay out.
10)Copy of approval from Department of Industries in case of industrial unit or copy of
approval from Director, Energy or HIMURJA or any other competent authority in case of
hydroelectric
©SaksheeSahay power project
©SaksheeSahay
©SaksheeSahay
CHECKLIST FOR REGISTRATION AND
GRANT OF LICENSE UNDER THE
FACTORIES ACT, 1948
1)Form No.3. (Online e-form and submission/filling in online mode only through the
web application)
2)Certificate of Stability duly signed by a Chartered Engineer/Chartered Architect.
3) Resolution passed by Board of Directors in which one of the Directors has been
declared as occupier OR resolution passed by partners in case of firm in which one of
the partners has been declared as occupier or declaration of proprietor in case of
proprietorship concern.
4) List of Directors/Partners (Parentage and complete residential addresses of
Directors/Partners may be clearly mentioned).
5) In case of proprietorship concern, name, parentage and complete residential
address of proprietor is required to be given through declaration which is self attested.
6) Certificate regarding incorporation from Registrar of company in case of company.
©SaksheeSahay
7) Copy of power sanction certificate from the
authority of HPSEBL (issuing authority should
not be below the rank of Sr. Executive
Engineer).
8) Valid NOC from Chief Fire Officer.
9) Valid NOC from Himachal Pradesh State
Pollution Control
10) Drug Licence issued by Health & Family
Welfare Department (in case of
pharmaceuticals industry)
11) Certificate of Chartered Engineer (Civil) or
Chartered Architect who has signed the
Certificate of Stability and Building Drawings.
12) Undertaking regarding registration as
employer in Employment Exchange
Management Information System (EEMIS)
Portal and notification of Vacancies Act, 1959.
©SaksheeSahay
 THE
OCCUPATIONAL
SAFETY, HEALTH
AND WORKING
CONDITIONS
CODE, 2020
VS
FACTORIES ACT,
1948:
COMPARATIVE
©SaksheeSahay
 BRIEF INTRODUCTION TO
OSHWC CODE, 2020
 Enacted on September 28, 2020, it replaces 13
previous labor laws, streamlining them into a single
framework to enhance worker welfare and ensure
safer workplaces.
 Introduces unified compliance mechanisms for
better labor law enforcement.
 Expands coverage to new categories of workers,
including gig and platform workers.
 Ensures
better workplace safety and health
measures across various industries.
 While it aims to balance worker protection with ease
of doing business, the OSHWC Code has sparked
debates over its implementation and the dilution of
certain labor safeguards. Nonetheless, it represents
a significant
©SaksheeSahay
step toward modernising India's labor
laws.
BRIEF COMPARISON
Occupational Safety, Health and
Aspect Factories Act, 1948
Working Conditions Code, 2020
Applies factory-specific provisions to
factories with twenty workers (with
Applies to factories with ten
Applicability power) or forty workers (without power);
workers (with power) or twenty
to Factories general provisions apply to all
workers (without power).
establishments with ten or more
workers.
Requires registration for all covered
Requires registration or licenses establishments; additional licenses for
Registration
for factories. factories, contractors (5-year), beedi
workers (3-year).
Inspectors conduct surprise Inspectors-cum-facilitators conduct
Authorities checks; advisory inspections; national/state advisory
committees/boards exist. boards provide advice.
Ensure safety with hazardous Ensure hazard-free workplaces; issue
Duties of articles; provide training; appointment letters; additional duties
Employers contractors handle migrant include risk-free workplaces/training;
worker details/welfare.
©SaksheeSahay contractors provide welfare facilities.
 One paid annual leave per One paid annual leave per twenty days
Leave
twenty days worked. worked.
Central government sets
Health and Specific provisions vary by conditions/facilities; additional
Welfare sector e.g., drinking requirements like ambulance
Facilities water/toilets/canteens/creches. rooms/welfare officers for specific
sectors.
Women can work extended hours with
Special Women work limited hours; no consent/approval; children below
Provisions underground work in mines. fourteen prohibited; age restrictions in
mines.
Offences Imprisonment one-two years; Higher penalties including up to two
and fines one hundred-five thousand years imprisonment/fines up to five lakh
Penalties rupees. rupees; settlement option available.
State governments can exempt new
Exemptions -
factories.
Contract
Labour©SaksheeSahay- Raised from twenty to fifty contractors.
1. APPLICABILITY AND
SCOPE
Aspect Factories Act, 1948 OSHWC Code, 2020

Applies factory-specific provisions to 20+ workers

Applies to "factories" with 10+ workers
(with power) or 40+ workers (without power); general
Coverage (with power) or 20+ workers (without
provisions to all establishments with 10+ workers
power) [Section 2(m)].
[Section 2(zd)].

Broader scope: Covers factories, mines, docks,

Limited to manufacturing premises
plantations, construction, and other establishments
Scope defined as factories; excludes smaller
with 10+ workers, plus all hazardous activities
units and non-factory workplaces.
regardless of size [Section 2(w)].

Higher thresholds reduce compliance for small units

Narrow focus reflects post-independence
but may exclude workers from safety nets; broader
Critical Insight industrial priorities, leaving informal
coverage modernizes scope yet risks dilution of
sectors unprotected.
factory-specific protections.

Analysis: The OSHWC Code’s raised thresholds (20/40 vs. 10/20) aim to ease business for smaller
firms, aligning with states like Rajasthan’s prior amendments. However, this shift could leave
workers in smaller factories vulnerable, a policy trade-off between economic flexibility and labor
rights.
©SaksheeSahay
 2. REGISTRATION AND
LICENSING
Aspect Factories Act, 1948 OSHWC Code, 2020

Single electronic registration within 60 days

Requires annual registration/license via for establishments with 10+ workers;
Registration Form 2 [Section 6]; state-specific additional licenses for factories, contractors
processes. (5-year validity), and beedi workers (3-year
validity) [Sections 3, 34].

State governments can exempt new

Limited exemptions during public
Exemptions factories to boost economic activity, no
emergencies for 3 months [Section 5].
fixed duration [Section 79].

Streamlined registration reduces

Rigid, annual renewal burdens small
compliance load, but broad exemption
Critical Insight businesses; emergency exemptions are
powers raise concerns about unchecked
narrow.
deregulation.

Analysis: The OSHWC Code’s unified registration and longer license validity reflect a business-
friendly approach, reducing administrative overhead. However, the open-ended exemption for new
factories contrasts with the Factories Act’s time-bound emergency clause, potentially weakening
oversight.
©SaksheeSahay
3. HEALTH AND SAFETY
PROVISIONS
Aspect Factories Act, 1948 OSHWC Code, 2020

Central government notifies health standards

Health Mandates cleanliness, ventilation, (e.g., ventilation, sanitation); includes free
Measures water, sanitation [Sections 11-20]. annual health check-ups for workers over 45 in
specified industries [Sections 6, 24].

Retains machinery safety, adds Site Appraisal

Requires machinery fencing, fire exits,
Safety Committees for hazardous factories, and
hazardous process controls [Sections
Measures mandates employer risk assessments
21-41H].
[Sections 6, 83].
Safety Committee (hazardous factories, Continues Safety Committees; expands
Committees Section 41G); Site Appraisal post-1987 advisory boards at national/state levels
[Section 41A]. [Sections 16-17, 41].
Goal-based standards offer adaptability, but
Detailed, prescriptive rules ensure
reliance on government notifications may
Critical Insight baseline safety but lack flexibility for
delay implementation; check-ups enhance
modern risks.
proactive health focus.

Analysis: The Factories Act’s specificity (e.g., fencing every flywheel) contrasts with the OSHWC
Code’s broader, delegated approach, potentially better suited to diverse industries. Yet, the shift
from statutory detail to rule-making risks inconsistency across states.
©SaksheeSahay
5. WORKING CONDITIONS
AND HOURS
Aspect Factories Act, 1948 OSHWC Code, 2020
8 hours/day, 6 days/week; overtime at
48 hours/week, 9 hours/day;
double pay with worker consent;
Work Hours overtime at double pay [Sections 51-
government sets max hours [Sections 25-
66].
26].

1 paid leave per 20 days, max 30 days

1 paid leave per 20 days worked
Leave carryover with encashment option
[Section 79].
[Section 28].
Allowed beyond 7 pm/before 6 am with
Women’s Restricted to 6 am-7 pm, no night
consent and safety conditions [Section
Work shifts [Section 66].
43].

Rigid hours protect workers but limit Flexible hours and women’s night work
Critical
flexibility; women’s restrictions reflect modern needs, though consent
Insight
outdated. requirements may be exploited.

Analysis: The OSHWC Code modernizes work hours and gender provisions, aligning with global
norms (e.g., ILO flexibility), but the consent clause for women’s night shifts raises enforcement
concerns in a country with weak labor oversight.
©SaksheeSahay
6. OFFENCES AND
PENALTIES
Aspect Factories Act, 1948 OSHWC Code, 2020

Up to 2 years imprisonment, ₹5 lakh fine for

Up to 2 years imprisonment, ₹2 lakh fine
Penalties death; ₹1 lakh for obstruction; settlement
(e.g., death/injury) [Section 92].
option for minor offences [Sections 95-100].

Occupier/manager liable; directors Occupier liable; directors exempt unless

Liability exempt unless nominated [Section 92, managing; compounding introduced
J.K. Industries]. [Sections 85, 106].

Modest penalties limit deterrence; Higher fines strengthen enforcement, but

Critical
liability clarity protects higher settlement options may weaken
Insight
management. accountability in serious cases.

Analysis: The OSHWC Code’s steeper penalties (₹5 lakh vs. ₹2 lakh) signal stronger deterrence,
addressing past critiques (e.g., Bhopal’s weak penalties). However, compounding minor offences could
undermine worker protections if misused by influential firms.
©SaksheeSahay
 FACTORIES
IN INDIA
ASI - STATE WISE NUMBER OF
FACTORIES FOR 2022-23

Source: MoSPI, India

https://www.mospi.gov.in/asi-state-wise-number-factories-2022-23

©SaksheeSahay
©SaksheeSahay
CRITICISM
Criticism Details Implication
Complexity and World Bank (2008) calls it restrictive, hindering Discourages formal employment,
Restrictiveness manufacturing growth. pushes to informal sector.
Covers only factories with 10/20 workers,
Limited Scope Leaves many workers unprotected.
excludes smaller units.
Slow Response to 1987 amendment post-Bhopal, indicating reactive
Delays in addressing safety risks.
Hazards regulation.
Exclusion of Contract Pre-1976, contract labor unprotected;
Exploitation of contract workers.
Labor enforcement still weak.
Fines up to ₹2 lakh seen as low for large
Insufficient Penalties Weak deterrence for violations.
corporations.
Legal delays (e.g., Uttam Nakate, 22 years),
Enforcement Issues Ineffective implementation.
accountability gaps.
Rigidity hinders hiring, affects labor-intensive
Impact on Job Creation Reduces formal job opportunities.
industries.
Outdated provisions, calls for reform (Manmohan Inflexible for current industrial
Need for Modernization
Singh, 2005). needs.
State relaxations compromise safety, exploit Risks worker health, industrial
Potential for Abuse
crises (e.g., COVID-19). unrest.
Broader Economic True constraints are demand, infrastructure, not
©SaksheeSahay Need for holistic economic policy.
Constraints just labor laws.
GLOBAL
COMPAR
ISON
©SaksheeSahay
UNITED STATES OF AMERICA
Occupational Safety and Health Act, 1970
Criteria Factories Act, 1948 (India)
(USA)
Occupational Safety and Health
Governing Ministry of Labour & Employment,
Administration (OSHA), U.S. Department of
Body Government of India
Labor
Ensures safety, health, and welfare of Ensures safe and healthful working conditions for all
Objective
factory workers (Preamble) workers (Section 2)
Scope &
Factories with ≥10 workers (with power) Covers most private-sector employees and some
Applicabilit
or ≥20 (without power) (Section 2(m)) public-sector workers (Section 3(5))
y
Max 48 hours/week, 9 hours/day Max 40 hours/week, 8 hours/day under Fair Labor
Work Hours
(Sections 51, 54); Overtime pay required Standards Act (FLSA); Overtime pay for extra hours
& Overtime
(Section 59) (29 U.S.C. § 207)

Worker Focuses on health programs, emergency

Requires canteens, creches, restrooms,
Welfare preparedness, and medical evaluations (29 U.S.C. §
and first aid facilities (Sections 42-50)
Measures 655)
Mandates fencing of machinery,
Safety Requires hazard communication, machine guarding,
ventilation, fire safety, protective gear
Regulations
©SaksheeSahay personal protective equipment (29 CFR 1910)
(Sections 21-41)
 Clean drinking water, ventilation, dust &
Health Focus on toxic substances, industrial hygiene,
fumes control, waste disposal (Sections
Provisions respiratory protection (29 CFR 1910.1000)
11-20)
No child labor (<14 years), restricted work
Child labor prohibited under Fair Labor Standards
Child & Female hours for adolescents (14-18) (Sections 67-
Act (FLSA, 29 U.S.C. § 203); No gender-based
Labour 71); Women restricted in hazardous work
restrictions
(Section 66)
Hazardous Sections 41A-41H regulate hazardous
Strict Hazardous Chemical & Process Safety
Work processes (added after Bhopal Gas
Standards (HCS, PSM – 29 CFR 1910.119)
Regulation Tragedy, 1984)
State-appointed Factory Inspectors
Inspection & OSHA inspectors conduct random and complaint-
conduct periodic inspections (Sections 8-
Compliance driven inspections (29 U.S.C. § 657)
10)
Penalty for
Fine up to ₹2 lakh, imprisonment up to 2 Penalties range from $15,000 per violation to
Non-
years for violations (Sections 92-96) criminal prosecution (29 U.S.C. § 666)
Compliance
Replaced by OSHWC Code, 2020, easing Updated with OSHA Modernization Act,
Recent Reforms
compliance burden increasing penalties
Influenced by ILO conventions on labor
International Based on global workplace safety standards and
rights (ILO Convention No. 1, 81, 115, 155,
Influence ILO guidelines
182)
©SaksheeSahay
 UNITED KINGDOM
Health and Safety at Work Act,
Criteria Factories Act, 1948 (India)
1974 (UK)
Ministry of Labour & Employment, Health and Safety Executive (HSE),
Governing Body
Government of India UK
Ensures health, safety, and welfare of
Ensures safety, health, and welfare of factory
Objective employees and the public at workplaces
workers (Preamble)
(Section 2)
Scope & Applies to factories with ≥10 workers (with Covers all workplaces, including self-
Applicability power) or ≥20 (without power) (Section 2(m)) employed persons (Section 3)
Max 48 hours/week, 9 hours/day; Overtime Governed by Working Time Regulations,
Work Hours &
beyond 48 hours requires extra pay (Sections 51, 1998: 48 hours/week max, but workers
Overtime
54, 59) can opt-out
Employers must provide welfare
Worker Welfare Canteens, creches, restrooms, first aid required
facilities (rest areas, first aid, clean
Measures for factories with ≥250 workers (Sections 42-50)
drinking water) (Section 2(2)(c))
Employers have a general duty to
Fencing of machinery, ventilation, fire safety, ensure the safety of employees and
Safety Regulations
protective equipment required (Sections 21-41) others affected by workplace operations
(Section 2)
Clean drinking water, ventilation, dust & fumes Employers must identify and mitigate
Health Provisions
control, waste disposal (Sections 11-20) risks to health and safety (Section 3)
©SaksheeSahay
 Prohibits child labor (<14 years); women Strict child labor laws; No gender-
Child & Female
restricted in night shifts for hazardous work based restrictions (Employment Rights
Labour
(Sections 67-71) Act, 1996)
Control of Substances Hazardous to
Hazardous Work Sections 41A-41H regulate hazardous processes Health Regulations (COSHH), 2002
Regulation (introduced post-Bhopal Gas Tragedy, 1984) governs exposure to dangerous
substances
HSE Inspectors conduct random &
Inspection & State-appointed Factory Inspectors conduct
targeted audits and issue enforcement
Compliance periodic inspections (Sections 8-10)
notices (Section 20)
Unlimited fines and up to 2 years
Penalty for Non- Fine up to ₹2 lakh, imprisonment up to 2 years
imprisonment for serious offenses
Compliance for violations (Sections 92-96)
(Section 33)
Replaced by OSHWC Code, 2020, reducing Regularly updated with specific
Recent Reforms
compliance burden regulations for industries
International Influenced by ILO conventions on labor rights Influenced by ILO standards; Aligns
Influence (ILO Convention No. 1, 81, 115, 155, 182) with EU workplace safety directives

©SaksheeSahay
 JAPAN
Industrial Safety and Health Act,
Criteria Factories Act, 1948 (India)
1972 (Japan)
Ministry of Labour & Employment, Ministry of Health, Labour and Welfare
Governing Body
Government of India (MHLW), Japan
Ensures worker safety, prevention of
Ensures safety, health, and welfare of
Objective occupational hazards, and promotion of health
factory workers (Preamble)
(Article 1)
Applies to factories with ≥10 workers (with
Scope & Covers all workplaces, including factories,
power) or ≥20 (without power) (Section
Applicability offices, and construction sites (Article 2)
2(m))
Max 48 hours/week, 9 hours/day; Overtime Max 40 hours/week, 8 hours/day; Overtime
Work Hours &
beyond 48 hours requires extra pay pay required beyond 40 hours (Labour
Overtime
(Sections 51, 54, 59) Standards Act, Article 36)
Employers must provide rest areas, drinking
Worker Welfare Requires canteens, creches, restrooms,
water, ventilation, and emergency medical
Measures and first aid facilities (Sections 42-50)
care (Article 10)
Mandates fencing of machinery, Requires risk assessment, machinery safety,
Safety Regulations ventilation, fire safety, protective fire prevention, and personal protective
equipment (Sections 21-41) equipment (PPE) (Article 20)
Clean drinking water, ventilation, dust & Strict work environment measurement,
Health Provisions fumes control, waste disposal (Sections 11- chemical safety, and exposure limits for
20) hazardous substances (Article 22)

©SaksheeSahay
 Prohibits child labor (<14 years); Strict child labor laws; No gender-based
Child & Female
women restricted in night shifts for work restrictions (Equal Employment
Labour
hazardous work (Sections 67-71) Opportunity Law)
Sections 41A-41H regulate hazardous Workplace Hazardous Materials
Hazardous Work
processes (introduced post-Bhopal Regulation System (WHMRS) governs
Regulation
Gas Tragedy, 1984) hazardous processes (Article 41)
State-appointed Factory Inspectors Labour Standards Inspection Office
Inspection &
conduct periodic inspections (Sections (LSIO) conducts random & targeted
Compliance
8-10) audits (Article 88)
Fine up to ₹2 lakh, imprisonment up Fines up to ¥500 million (~₹30 crore),
Penalty for Non-
to 2 years for violations (Sections 92- imprisonment up to 5 years for serious
Compliance
96) violations (Article 120)
Regularly updated with amendments for
Replaced by OSHWC Code, 2020,
Recent Reforms AI-based monitoring, ergonomic safety,
reducing compliance burden
and mental health
Influenced by ILO conventions on Influenced by ILO standards and follows
International
labor rights (ILO Convention No. 1, 81, ISO 45001 for occupational health &
Influence
115, 155, 182) safety

©SaksheeSahay
CONCLUSION
The Factories Act of 1948 has played a pivotal role in safeguarding worker
rights and ensuring workplace safety in India's industrial sector. Rooted in
constitutional principles and aligned with international labor standards, the Act
has evolved to address the needs of a growing economy. Its provisions on
health, safety, welfare, working hours, and employment conditions have
significantly improved labour conditions.
However, with changing industrial dynamics, the Act has faced criticism for its
complexity and outdated provisions. The introduction of the Occupational
Safety, Health, and Working Conditions (OSHWC) Code, 2020 attempts to
streamline labor laws but raises concerns about the dilution of certain
protections.
To balance industrial growth and worker welfare, India must continuously adapt
its labour policies, ensuring robust enforcement mechanisms while addressing
the evolving challenges of workplace safety and employment rights.

©SaksheeSahay
REFERENCES
 https://egyankosh.ac.in/bitstream/123456789/6923/1/Unit-7.pdf
 S.C. Srivastava, Commentaries on the Factories Act, (1948), Universal Book
Company, New Delhi (1999).
 B.R. Seth, Indian Labour Laws A Supervisor should know. Revised Eleventh
Edition 1997, All India Management Association, Delhi

©SaksheeSahay