Factory Compliance
Factory Act, 1948
The Factory Act contains several laws and regulations to protect workers' rights, safety, and well-being in factories and other industrial establishments. These acts establish standards for working conditions, working hours, wages, and other aspects concerning employment to prevent exploitation and ensure a safe working environment.
Key Provisions Commonly Found in the Factory Act
Working Hours
It stipulates the hours employees need to work per day or week.
Child Labour
Prohibiting or regulating child employment and setting minimum ages to start working.
Safety and Health
Putting in place safety measures, including offering protective equipment, ensuring ventilation and lighting, and implementing precautions against accidents.
Wages
Fixing the minimum wage rate or ensuring fair compensation to workers for their work.
Employment Conditions
The Factory Act regulates aspects such as overtime pay, leave entitlements and rest breaks.
The Factory Act’s specifics, which vary from one country to another, have been continuously adapted to changing social, economic, and industrial conditions. The act helps strike a balance between industrial productivity and the protection of workers' rights and well-being.
Why Complying with the Factory Act, 1948 is Important
Child Labour Regulation
The Factory Act is focused on prohibiting or restricting child labour. Children were often employed in jobs that invite physical perils, hurting their overall growth and development. The act helps protect children by limiting their working hours so that they can study and grow in their lives.
Social Justice
The Factory Act, which ensures social justice and workers' rights, helps strike a power balance between employers and workers. It results in fair wages, reasonable working hours, and reasonable living conditions for workers and their families.
Economic Stability
More stable and productive workforce results from the Factory Act, which sets minimum standards for wages and working conditions. These standards allow individuals the time during which they can care for themselves. This makes them healthy and satisfied, improving their productivity and lifting the organisation to new heights.
Overall, the Factory Act mandates industrial activities that allow human dignity, improve public health and support sustainable economic growth. It acts as a social contract that keeps the interests of all - employers, workers and society - intact.
The first thing to do is to find whether your establishment comes under the purview of the Factory Act in your jurisdiction. Factories are premises where companies undertake manufacturing processes using a specified number of workers. (The threshold, however, varies by jurisdiction).
Steps to Follow to Comply with the Factory Act, 1948
Understanding Applicability
More stable and productive workforce results from the Factory Act, which sets minimum standards for wages and working conditions. These standards allow individuals the time during which they can care for themselves. This makes them healthy and satisfied, improving their productivity and lifting the organisation to new heights.
Overall, the Factory Act mandates industrial activities that allow human dignity, improve public health and support sustainable economic growth. It acts as a social contract that keeps the interests of all - employers, workers and society - intact.
The first thing to do is to find whether your establishment comes under the purview of the Factory Act in your jurisdiction. Factories are premises where companies undertake manufacturing processes using a specified number of workers. (The threshold, however, varies by jurisdiction).
Document Preparation
Gather necessary documents such as:
Proof of ownership or tenancy of the premises where the factory operates.
Identity and address proofs of the owner or occupier of the factory.
Plan of the factory premises showing the layout.
Details of machinery and equipment installed.
Employment details including the number of workers employed.
Application Submission
This stage involves preparing and submitting an application for registration to the appropriate authority, typically the Inspectorate of Factories or a similar department under the labour ministry or local government.
Inspection and Compliance
After receiving the application, the inspectorate may inspect the premises to gauge compliance with safety and health standards as stipulated under the Factory Act. This includes checking for adequate ventilation, lighting, sanitation facilities, and safety measures for machinery.
Registration Certificate
If the factory meets all requirements and passes inspection, a registration certificate under the Factory Act will be issued, serving as proof that the factory is compliant with legal standards and can operate lawfully.
Renewal and Compliance Reporting
Ensure that the factory registration is renewed periodically as required by law (typically every year or every few years depending on local regulations). Maintain records and report any changes in operations or employment to the relevant authority as per legal requirements.
Factory Compliance with Additional Regulations
Apart from registration under the Factory Act, ensure factory compliance with other applicable labour laws, environmental regulations, and local building codes that may govern factory operations. It's important to consult with local authorities or legal experts to understand specific requirements and procedures applicable to your jurisdiction.
Fines and Penalties in Case of Non-compliance
1. Health and Safety Violations
Failure to Provide Safety Measures
The act stipulates fines on companies for providing or maintaining necessary safety equipment. They will incur fines even when failing to ensure safe working conditions or neglecting proper safety training.
Dangerous Machinery
Operating unsafe machinery or not being able to provide safety guards can result in accidents and the penalties that follow for companies.
2. Working Conditions
Excessive Working Hours
If companies make employees work beyond the permissible working hours or don’t provide them with adequate rest periods, they can be made to pay fines.
Poor Working Conditions
Companies can be subject to fines and penalties for not providing the necessary facilities such as clean drinking water, sanitation, or adequate lighting and ventilation.
3. Employment of Children and Young Workers
Child Labour Violations
Employing children before they attain the minimum legal age for work is an act of child labour violations, resulting in fines for organisations involved in these.
Regulation of Young Workers
Non-adherence to regulations concerning employment of young workers can lead to penalties. The regulations include restrictions on their working hours and type of work.
4. Record Keeping and Documentation
Failure to Maintain Records
Failing to keep the required records concerning employment, wages, working hours and safety measures can lead to fines.
Non-Compliance with Notices
If companies fail to display the required notices and information for employees, they are liable to pay penalties.
5. Health and Welfare Provisions
Welfare Facilities
Not providing adequate facilities for workers, such as canteens, restrooms, and medical aid, can invite penalties for organisations.
Health Services
Providing health services to workers and adhering to medical examination requirements is critical to ensuring a smooth working environment. In its absence, companies may have to pay fines.
6. Inspections and Compliance
Obstructing Inspections
Causing obstructions to factory inspectors while carrying out their duties or failing to adhere to the inspection requirements can lead to penalties.
Failure to Report
The act stipulates fines for not reporting workplace accidents or incidents as required.
7. Compensation and Benefits
Failure to Provide Compensation
Not providing compensation or benefits for workplace injuries or illnesses can invite fines.
8. Examples from Specific Legislation
India (Factories Act, 1948)
General Penalties: Under Section 92, the first offence with regards to general non-compliance will attract a fine of up to INR 1,000. Subsequent offences will attract higher penalties.
Serious Offences: Serious violations that lead to significant harm or repeated non-compliance will lead to severe penalties. These include higher fines or imprisonment.
United Kingdom (Factory Act)
Fines: Not complying with safety regulations or working conditions can lead to significant fines.
Imprisonment: Serious breaches or repeated offences may lead to imprisonment of responsible individuals.
Our Factory Compliance Services in India
1. Record-Keeping
For Factories
1. Employee Records
Personal Information: Detailing the records of all employees in an organisation. These records include personal details, job roles, and employment dates.
Health Records: Showcasing the health records of employees by keeping pre-employment medical examinations and periodic health checks.
2. Attendance Records
Daily Attendance: Record daily attendance of employees, including details of any absences or leave taken.
Shift Details: Document shift timings and any changes to shift patterns.
3. Wage Records
Wages Paid: Records showing wage payments include amounts and payment dates and methods.
Overtime Records: Showcasing records of overtime work and money received for manning hours beyond the normal working time.
4. Safety and Health Records
Accident Records: Documentation of all accidents that have taken place and the actions taken by the organisation. Accident records feature details of the incident, the injuries suffered and the steps the organisation has taken regarding the same.
Safety Measures: Records showing the implementation of safety measures, including the adoption of safety equipment, imparting of training and incorporation of safety audits.
Health and Safety Training: Demonstrating records of health and safety training offered to employees.
5. Welfare Records
Welfare Facilities: Records showing the provision of welfare facilities that include canteens, rest rooms, drinking water, first-aid facilities, etc.
Medical Records: Keep records of any medical facilities or services provided to employees.
6. Compliance Records
Legal Compliance: Showing records that demonstrate compliance with various provisions of the Factories Act. These include working hours, safety measures, and welfare facilities.
Inspection Records: Embrace a successful inspection by labour authorities by keeping accurate and complete records concerning factory operations and compliance.
7. Working Hours and Leave Records
Work Hours: Record working hour details involving daily and weekly limits, as well as any deviations from normal hours.
Leave Records: Maintain records of leaves employees have availed at different periods. These include annual and sick leaves with dates.
For Employees
1. Personal Records
Employment Details: Keep personal records related to employment, including job roles, attendance and wages.
2. Health and Safety
Medical Records: Retain records of any medical examinations or treatments related to workplace injuries or health checks.
3. Wage Slips
Wage Statements: Maintain copies of wage slips or statements employers issue. These include detailed earnings, deductions, and net pay.
Compliance and Audits
Regular Audits
Successful inspection experience of factories is ensured by proper record-keeping. It helps address any issues or discrepancies.
Legal Updates
Stay updated on any amendments or changes to the Factories Act to comply with the latest regulations in place.
Form | Significance |
|---|---|
| Form 1 | Application for Permission to Construct, Extend or take into use any building as a factory |
| Form 2 | Application for Registration and Grant or Renewal of Licence |
| Form 3 | Notice of Change of Manager |
| Form 4 | Licence to Work a Factory |
| Form 5 | Certificate of Fitness |
| Form 6 | Humidity Register |
| Form 7 | Record of Lime Washings, Paintings, etc. |
| Form 8 | Report of Examination of Pressure Vessel |
| Form 9 | Register Of Compensatory Holidays |
| Form 10 | Overtime Muster Roll for Exempted Workers |
| Form 10-A | Overtime Slip |
| Form 11 | Notice of Periods of Work for Adult Workers |
| Form 12 | Register of Adult Workers |
| Form 12-A | Identity Card of Workers |
| Form 13 | Notice of Periods of Work for Child Workers |
| Form 14 | Register of Child Workers |
| Form 16 | Health Register |
| Form 17-A | Notice of Accident or Dangerous Occurrence |
| Form 18 | Notice of Poisoning or Disease |
| Form 19 | Abstract of the Act |
| Form 20 | Annual Return |
| Form 21 | Half Yearly Return |
| Form 22 | Muster Roll |
| Form 23 | Register of Accidents |
| Form 24 | Special Certificate Of Fitness |
| Form 25 | Certificate of Fitness for Dangerous Operations |
| Form 26 | Register of Surgeon's fees for the issue of Duplicate Certificate |
| Form 27 | Certifying Surgeon's Visit Note |
| Form 28 | Diary of Inspector of Factories |
| Form 29 | Diary of Inspector of Factories |
| Form 30 | Register of Water-sealed Gas Holders |
| Form 31 | Report of Examination of Water-sealed Gas Holders |
| Form 32 | Register of Trained Adult Male Workers Employed to Carry Out Mounting or Shifting or Belts, Lubricants, etc. |
| Form 33 | Report of Examination of Water-sealed Gas Holders |
| Form 34 | Register of Trained Adult Male Workers Employed to Carry out Mounting or Shifting or Belts, Lubricants, etc. |
| Form 35 | Certificate to Young Persons Considered fit to work at Machine, Plant or Process of Dangerous Character |
| Form 36 | Form of Certificate of Stability |
| Form 37 | Record of Eye Examination |
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