factories act and s&ce act
TRANSCRIPT
Factories act 1948 and S&CE act 1953
Introduction
The early version of the Factories act came into effect in 1881
during the onset of industrial revolution. However, it did not
cover all the aspects relating to the safety and welfare of
workers.
It underwent many changes and the Factories act was brought
into force in 1948, which practically became a parent act.
It was amended a couple of times to include or redefine
some changes to reflect the changing dynamics of the
country’s economy.
The parent act has 106 main sections and 14
supplemental sections which describe the various areas
that come under the act.
Objectives
To ensure adequate safety measures and to promote the health and
welfare of the workers employed in factories.
To prevent haphazard growth of factories through the provisions
related to the approval of plans before the creation of a factory.
To regulate by imposing restriction as to hours of work including rest
and provisions for availing of leave.
To make stringent provisions as regards employment of women and
young persons and duration of their work.
Scope and coverage
Regulates working condition in factories.
Basic minimum requirements for ensuring safety, health and welfare of
workers.
Applicable to all workers.
Applicable to all factories using power and employing 10 or more
workers, and if not using power, employing 20 or more workers on any
day of the preceding 12 months.
The various areas covered in the act are:
Compulsory approval, licensing and registration of
factories
Health measures
Safety measures
Welfare measures
Working hours.
Employment of women and young persons
Annual leave provision
Accident and occupational diseases
Dangerous operations
Penalties
Obligations and rights of employer and employees
When to consult and refer
On starting a factory.
Throughout the life of the factory.
Important concepts and definitions
Factory means any premises including the precincts
thereof:-
i) Wherein 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) Wherein 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.
Worker
Worker means a person (employed directly 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 kind of work incidental
to or connected with the manufacturing process, or the
subject of manufacturing process (but does not include any
member of the armed forces of the Union).
Occupier
Any person who has ultimate control and management
over the affairs of the factory will be deemed to be an
occupier.
(i) In a partnership firm, the individual partners and in
the case of association of individuals, members
thereof shall be regarded as occupier.
(ii) In companies, the directors are regarded to be
occupier because they are vicariously liable for the
functions of the company.
(iii) In government owned and controlled factories, the
person or persons appointed to manage the affairs of
the factory shall be deemed to be the occupier.
(iv) In the case of partnership firm or association of
individuals, and partner or member may be prosecuted. A
manager cannot be regarded as an occupier, unless he is
entrusted with the control and management of the factory.
(v) Owner, lessee or a licensee having control over the
factory with regard to its management is deemed to be the
occupier
Power
It means mechanical or electrical energy transmitted as a
step or aids to carry out manufacture and not energy
generated by human or animal agency. Mere use of power
not connected with activities of manufacturing will not
make the premises a factory.
Manufacturing process
means any process for: -
i) Making, altering, repairing, ornamenting, finishing,
packing, boiling, 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
i) Composing types for printing, printing by letter press,
lithography, photogravure of other similar process or
book binding,
ii) Constructing, reconstructing, repairing, refitting, finishing
or breaking up ships or vessels,
iii) Preserving or storing any article in cold storage.
Hazardous Process
means any process or activity in relation to an industry
specified in the First Schedule where, unless special care
is taken, raw materials used therein or the intermediate or
finished products, by- products, wastes or effluents thereof
would cause material impairment of the health of the
persons engaged in or connected therewith, or results in
the pollution of the general environment.
Provided that the State Government may, by notification in
the Official Gazette, amend the First Schedule by way of
addition, omission or variation of any industry specified in
the said Schedule.
Fatal Injury means injury resulting from industrial accident
which caused death to the worker.
Non-Fatal Injury means injury resulting from industrial
accident, which prevented injured worker from attending to
work for a period of 48 hours or more immediately
following the injuries.
Adult means a person who has completed his eighteenth
year of age.
Adolescent means a person who has completed his
fifteenth year of age but has not completed his eighteenth
year.
Child means a person who has not completed his fifteenth
year of age.
Average Daily Number of Workers Employed
The average daily number of workers employed is
calculated by dividing the aggregate number of
attendance on working days (that is, mandays worked)
by the number of working days in the year.
Attendance on separate shifts (e.g. night and day shifts)
should be counted separately.
Days on which the factory was closed for whatever cause
and days on which the manufacturing process was not
carried on should not be treated as working days.
Partial attendance for less than half a shift on a working day
should be ignored, while attendance for half a shift or more
on such day should be treated as full attendance.
Mandays Worked - Mandays Worked means total
Number of attendance during a calendar year.
Average Number of Hours Worked per week The
Average number of hours worked per week means the
total actual hours worked by all workers during the year
excluding the rest intervals but including overtime
worked, divided by the product of average number of
workers employed daily in the factory and 52 weeks.
In case the factory has not worked for the whole year,
the number of weeks during which the factory worked
should be used in place of 52
Administrative Machinery
This legislation is being enforced by technical officers i.e.
Inspectors of Factories, Dy. Chief Inspectors of Factories
who work under the control of the Chief Inspector of
Factories and overall control of the Labor Commissioner
under the state government labor conditions of the state.
Each state has the right to adapt the Factories act as
befitting to the geographic, economic and social status.
Compulsory approval, licensing and registration of factories
To establish a factory under the purview of the Act, the factory
management should
1. Obtain prior permission for construction of the factory
building
2. Obtain license before commencement of manufacturing
activity;
3. Comply with applicable provisions of law, which are in vogue
The licensee should renew the license every year by
submitting the relevant documents to the Chief inspector
of Labor of the particular area.
In case of change of the occupier, management, number
of workers or power, or if the license is lost, then the
relevant changes (transfer/amendment/duplicate) will
need to be sought with the Labor inspector.
Health measures
Cleanliness
Disposal of wastes and effluents
Ventilation and temperature
Dust and fume
Artificial humidification
Overcrowding
Lighting
Safety measures
Work on or near machinery in motion
Employment of young persons on dangerous machines
Striking gear and devices for cutting off power
Self-acting machines
Casing of new machinery
Prohibition of employment of women and children near
cotton openers and other dangerous machines
Hoists and lifts
Lifting machines, chains, ropes and lifting tackles
Revolving machinery
Pressure plant
Floors, stairs and means of access
Pits, sumps, opening in floors, etc
Excessive weights
Protection of eyes
Precautions against dangerous fumes, gases, etc.
Precaution regarding the use of portable electric light
Explosive or inflammable dust, gas, etc
Precautions in case of fire
Safety of buildings and machinery
Safety officers
Welfare measuresStatutory amenities have to be provided in the factories as
a compliance of Welfare measures. The type of amenities
and its number relates to the number of men/women
workers employed in the factory.
Sl.No. Type of amenity NO. of workmen required
Nos. to be provided.
1 Drinking water points Adequate supply at 5litres/worker
2 Cooled supply of water >250 One for 150
3 Latrine accommodation One for 25 separately for male and female
4 Urinal accommodation One for 50 workers.
5 Washing facility
6 First aid appliances One equipped first aid box per 150 persons.
7 Ambulance room >500 With all amenities and personnel.
8 Rest room/shelter/lunch room
>150 With adequate accommodation and facilities
9 Crèche >30 female With adequate facilities and personnel
10 Canteen >250 With adequate facilities and personnel
11 Occupational Health Centres >50 With adequate facilities and personnel
(in respect of hazardous process industries)
Annual leave with wages
The Act provides that every worker who has worked for a
period of at least 240 days during a calendar year shall
be allowed during the subsequent year leave with wages
at the rate of (a) one day for every twenty days worked in
the case of adults, and (b) one day for every fifteen days
worked in the case of children.
The leave is exclusive of holidays that occur during or at either
end of the leave period. Provision is also made for
proportionate leave with wages for a worker who is discharged
or dismissed before he has rendered 240 days service.
There is also a provision that any days of lay off by agreement
or contract or as permissible under the Standing Orders
Maternity leave period for female workers for days not
exceeding 12 weeks and leave earned in the previous
year in which leave is enjoyed may be counted as days
on which workers have worked in a factory for the
purpose of computation of period of 240 days or more.
Exemption provision under the act
1. Exceptional pressure of work- exemption to work
overtime
2. Exemption for maintaining registers in prescribed forms
3. Exemption for employing women workers up to 10 pm in
certain factories
List of exempted factories
Ready made garment – clothes industries;
Leather goods industries ( foot wear, fancy leather
articles, leather garments etc.,)
Fruit canning and processing industries;
Electronics, telecommunication, informatics, computers (
hardware and soft ware) allied industries;
Agarbathi, perfumery industries;
Horological industries, watch assembly, component
manufacturing, jewel manufacturing etc.,
Precision instruments, electrical, electromechanical,
electronic manufacturing industries;
Lamps, lamp filament and lamp component industries;
Food processing industries, instant foods etc.,
Units manufacturing domestic appliances, sports goods, toys
etc.,
Cosmetics, drugs ( formulation) manufacturing units;
Biscuit and confectionery units;
Cotton, woolen, hosiery industries;
Jarada industries;
Cotton ginning and pressing factories;
Penalties
If convicted, occupier/and management may face a
punishment that includes payment of fine from Rs. 25,000
to Rs. 1 lakh and/or imprisonment up to two years.
Latest Amendments
Night shift working for women – 2005
Inclusion of Hotel industry under Factories act - 2008
VEDASANTHUR TEXILE INDUSTRY in Dindigul – A case of violation of the Factories act
Textile workers in Vedasanthur block of Dindigul district, located in Tamil Nadu are enduring numerous rights violations, with respect to the factories act.
BACKGROUND
While employers in the area are earning large profits with the export of yarn, the industry is characterized by the use of forced overtime, child labor, and the denial of fundamental union rights, reports the CCC Task Force – Tamil Nadu. Information on working conditions in Vedasanthur was gathered by local unions and during interviews with workers organized by HOPE, a local NGO. Workers reported age-based discrimination. They said that experienced workers are forced to resign and have no option other than getting jobs at other textile mills at beginner’s wages.
Workers in Dindigul are regularly denied their right to free association. Of the 167 cotton mills in Dindigul, only 56 mills allow trade unions. One obstacle to worker organizing is the prohibition on trade unions conducting gate meetings in front of the mills. The unions view these meetings as important opportunities to strengthen workers’ solidarity and organizing efforts, as it is the only opportunity for workers who are drawn from scattered villages to meet together. Mill owners have obtained a stay from the Munsif Vedasanthur DistrictCourt to prevent workers from assembling in front of the mill gate for a radius of 300 meters.
Workers report that employers will dismiss them if they try to start trade Unions or join any existing trade unions, and that they will be placed ona blacklist and unable to obtain work in the region. There have been several cases of workers being beaten up and dismissed for their organizing efforts.
An estimated 950 children are employed in the Dindigul cotton mills. In some of the area’s textile mills workers, including child workers, are beaten with sticks, either as punishment or to keep them working at a fast pace. Conditions are unsafe, with old machinery in use, fingers are often cut and sometimes amputated. Conditions are also unhealthy due to poor air quality – the fine cotton dust in the air has negative effects on the respiratory system of the workers.
Textile workers are regularly denied benefits they are legally entitled to.For example, workers do not receive Employees State Insurance (ESI), Provident fund (a social security retirement system for which workers make contributions through wage deductions and employersare also required to make contributions), paid maternity leave, and other benefits. Workers who have worked for as long as three years are still categorized as temporary workers.
.
Workers are paid below the legal minimum wage. Workers generally live in 300 square foot tiled houses, without toilet facilities, and are unable to maintain a nutritious diet on the wages they earn
The Tiruppur Saga
Tiruppur is one of the success stories of the Indian Textile industry but
one which is still export driven. There are about 10,000 production
units in Tiruppur, employing more than 4,00,000 workers. Tiruppur
accounts for nearly 90% of India’s cotton knitwear exports
It has an amazing compliance to an internally imposed code of conduct
as opposed to one that is regulatory driven. These labor or production
standards may not be internalized by all the firms but most big firms
have embraced these concepts. The generic ethical code of conduct
covers the following areas.
Compliance with the local labor laws and workplace regulations
Prohibition of child labor
Regulation of contract labor
Non discrimination
Prohibition of forced labor
Freedom of association and Right to Collective bargaining
Humane treatment
Minimum wages, living wages and other benefits
Regulation of working hours
Working conditions related to health and safety
The interesting fact is that these codes and compliance thereof do not
follow from any labor laws.
The Shops and Establishments act, 1953
This act provides for the regulation of conditions of work
and employment in shops and commercial establishments.
This is on the concurrent list of the Labor ministry and is
under the supervision of the State government.
In Karnataka, the government adapted the act to its
geographical region in 1961. The act comes under the
purview of the Deputy Labor Commissioner.
Objective
To provide statutory obligation and rights to employees and
employers in the unorganized sector of employment, i.e.,
shops and establishments.
The Constitution of India, while ensuring under Article 19(1)
(g) to all citizens the right to practice any trade, business or
profession, has maintained a clear distinction between
carrying on a trade or business as against practicing a
profession.
The reason underlying the distinction is that unlike in a
trade or business, a profession is practiced without any
underlying profit motive. What a practicing professional
renders to his clients is his services essentially based on
his qualification, personal skill and intellectual capacity.
Earning of fees is considered only an incidental part.
Scope and Coverage
A state legislation; each state has framed its own rules for the
Act.
Applicable to all persons employed in an establishments with or
without wages, except the members of the employer's family.
State government can exempt, either permanently or for a
specified period, any establishments from all or any provisions of
this Act.
Main Provisions
Compulsory registration of shop/establishment within thirty days of
commencement of work.
Communications of closure of the establishment within 15 days from the
closing of the establishment.
Lays down the hours of work per day and week.
Lays down guidelines for spread-over, rest interval, opening and closing
hours, closed days, national and religious holidays, overtime work.
.
Rules for employment of children, young persons and
women
Rules for annual leave, maternity leave, sickness and
casual leave, etc.
Rules for employment and termination of service.
Maintenance of registers and records and display of
notices.
Obligations of employers.
Obligations of employees
When to Consult And Refer
o At the time of start of an enterprise. o When framing personnel policies and rules.