Factories Act

A "factory" is, broadly speaking, a facility or building where humans employ machinery to make items. But generic concepts lose their meaning when something gets very essential and intricate. An economy or nation must include the production of things. Without a doubt, everything associated with manufacturing is significant if the output is significant. As a result, factories play a significant role in the economy. Due to its broad definition, extra measures are needed to ensure that all actions are conducted without hiccups.

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This Story also Contains

1. Evolution of factories and industries
2. Factory Act of 1881
3. Background of the Factories Act of 1881
4. Important provisions of the Factories Act 1881
5. The Factory Act of 1891:
6. Factories Act, 1948
7. Background of the Factories Act of 1948
8. Clauses of the 1948 Factories Act
9. Application period: 1948 Factories Act
10. Factories Act, 1948; Objectives
11. New Amendments of Factories Act
12. Amendment of the Factories Act 1976
13. Amendment of the Factories Act 1987
14. The Factories Amendment Bill, 2014
15. Case laws
16. Conclusion

Evolution of factories and industries

• There is almost a century of history behind the Factory Act. Over a hundred years following its inception in the UK, the process of modern industrialization was introduced to India. In Bombay, the initial cotton textile industry was established in 1854. By 1870, Bombay, Nagpur, Kanpur, and Madras had all witnessed the establishment of numerous factories.
• In Bihar, the initial iron and steel production facilities were established in 1873. Rishra saw the development of jute spinning mills in 1855. In 1881, the Bengal region was home to 5,000 power looms in use. Throughout the 1870s, Bally's paper mills were constructed in the Hooghly area, and numerous tanning and leather businesses were established in Kanpur, leading to the expansion of manufacturing companies in India.
• The early entry of women and children into the workforce, extended working periods, and dangerous and unclean working environments led to issues and emergencies in India. Consequently, laws were put in place to govern all factories and industries. The need for laws to protect workers, especially women and children, in terms of their work environments, was acknowledged as early as 1850, yet the British government took no action.
• In 1878, Sasipad Bannerjee established the Bara Bazar organization to improve the welfare of workers in jute mills. Records show that strikes occurred at the Nagpur Empress Mill in 1877. Throughout the Industrial Revolution in England, which spanned from 1760 to 1820, there were significant changes in how goods were made. This era saw the beginning of the creation of many mechanical devices, such as the steam engine, which allowed for the use of strong machinery.

Factory Act of 1881

In 1875, a group was formed to examine the employment conditions of Indian workers in factories. The initial Factory Act received approval in 1881, spearheaded by Lord Ripon. The Factory Act is a crucial legislation in India. This legislation was derived from the framework of Great Britain's Factory Act of 1937. The Factory Act of 1881 granted power to municipal authorities to implement rules for the enforcement of the Act's stipulations concerning child labour, the protection of machinery, the duty to notify employees of accidents happening in the workplace, and various other aspects of work. The Council made changes to this Bill (1881) and approved it on July 1, 1881, after receiving permission from the Viceroy. The law was quickly incorporated into the Indian Factories Act of 1881. The Factory Act of 1881 enacted labour protection measures.

Background of the Factories Act of 1881

• The Factory Act of 1881 may be traced back to the worker's movement in Europe, namely England. Sir Robert Peel initiated the first Factory Act, which was approved in 1802. However, the Act did not generate the intended results.
• In 1805, weavers organised to petition the British Parliament to adopt a minimum wage act, rather than strike for greater wages. The Bill was heavily rejected in the House of Commons. In 1808, it sparked a significant industrial revolution in the manufacturing areas.
• Workers in new industrial regions across Lancashire, Yorkshire, the East Midlands, and South Wales identified shared challenges that afflicted them all. After 1865, the workers' movement in England took on a distinct identity and philosophy. During the early and late 19th century in England, there was a distinct split in thought, which facilitated additional impact. In 1870, India's industrial boom paved the way for the rise of the working class movement.

Important provisions of the Factories Act 1881

The key provisions of the Factories act 1881 are as follows:

• Registration for a factory with 50 or more employees.

• Local governments were required to disclose operations involving even 20 employees in a factory.

• Employing minors under the age of nine was illegal.

• Children aged 9 to 14 received seven hours of work.

• Women were assigned eleven hours of labour each day, with a 1.5-hour break in between.

• Every worker is entitled to a weekly break.

• A bare minimum of 30 minutes of rest time is mandatory.

• State governments have the power to enforce rules on cleanliness and comfort.

The Factory Act of 1891:

• Another Factory Act was passed in 1891 to protect the rights of female workers.

• The Act prohibited employers from forcing female workers to work more than 11 hours a day.

• Working hours for children were lowered from 9 to 7 hours per day.

• Children under the age of nine were not allowed to work in factories.

Factories Act, 1948

The Factories Act of 1948 was established to preserve workers' well-being in factories by regulating employment terms, working conditions, working environments, and other industry-specific welfare standards. In the case of Ravi Shankar Sharma v. State of Rajasthan (1993), the Supreme Court determined that the Factory Act is a social legislation designed to protect the health, safety, well-being, and various concerns of workers in factories. The Factories Act sets standards and safety measures for operating equipment, and it also gives proprietors guidelines to guarantee thorough adherence. The Factories Act came into being due to the exploitation and mistreatment of employees by their employers, who offered them low wages.

Background of the Factories Act of 1948

• The Factory (Amendment) Act of 1948 had a greater impact on India's development. In the period between Interim Congress Regimes, a five-year strategy was created to enhance specific working conditions in India. This strategy drew inspiration from the Factory Act of 1934, the Great Britain Factory Act, and the latest International Labour Organization Convention in addressing issues related to safety, health, and welfare, working hours, industrial hygiene, medical check-ups for young workers, and the submission of plans for factory buildings.
• In 1942, the government, employers, and employees made their initial effort to work together on matters related to labour. Consequently, following the Conference in 1942, a Plenary Tripartite Conference and a Permanent Labour Committee were established to counsel the government regarding labour matters.
• This led to the creation of legal measures, such as the proposed legislation. The Industry legislation was launched on January 30, 1948, and ratified by the Constituent Assembly on August 28, 1948. Additionally, it received approval from India's Governor-General on September 23, 1948, and became effective on April 1, 1949.
• The 1948 Factory Act is more detailed and all-encompassing than its predecessor, emphasizing health, safety, the well-being of factory employees, the regulation of working hours, the minimum age for employment, paid vacation, and additional matters. The sector is a steady and systematic process that supports trade.
• A factory is a place where specific operations occur. The Factories Act of 1948 regulates the routine operations of a company. This includes not just Jammu and Kashmir but the entire nation of India.
• The legislation was later updated in 1891, 1911, 1922, 1934, 1948, 1976, and 1987. The sole amendment to the Factories Act took place in 1948.

Clauses of the 1948 Factories Act

• The Factories (Amendment) Act of 1976 expanded the scope of "factory" to encompass contract work when determining if a company falls under the ten or twenty-employee threshold.

• The legislation increased the age at which children could be employed in companies from 12 to 14 while reducing their daily working hours from 5 to 4 and a half.

• The legislation eliminated the difference between those that operate year-round and those that are only active during certain seasons.

• The legislation encompasses provisions for registering and obtaining licenses for factories.

• The state authorities need to make certain that every factory is officially registered and that its licenses are up-to-date and periodically renewed.

• The legislation gives the power to state authorities to establish guidelines and laws mandating that management and labour unions must provide advantages to workers.

Application period: 1948 Factories Act

The Factories Act was passed in India on June 15, 1951, after the nationwide elections for the State Legislative Assemblies and Union Territories that constitute the Indian Union. The 1948 Factories Act underwent changes in 1951, 1960, 1961, and 1972. Furthermore, the Rules from 1951, 1960, and 1961 have also been updated. In 1965, the newly formed State Chief Secretaries put into action the Factories Act.

Factories Act, 1948; Objectives

The main objectives of the 1948 Act include:

Heath

The law states that every factory is required to be kept tidy, and all required safety measures should be implemented to safeguard the well-being of employees. The plant needs to have adequate water flow, illumination, air circulation, and climate regulation. Clean water sources are essential. Facilities for separate restrooms and urinals need to be set up in accessible locations for everyone.

Safety

The legislation requires that machinery is properly protected, prohibits young adults from operating hazardous equipment in confined spaces, and mandates the provision of appropriate access points for workers to evacuate during a crisis.

Welfare

The law mandates that adequate and appropriate cleaning amenities for employees be provided and kept in every factory. This includes areas for storage and drying, as well as seating areas, first-aid kits, protection areas, restrooms, and dining areas.

Working hours

The law states that no working adult can be employed for more than 48 hours each week at their job. They are entitled to weekly vacation days.

Penalties

The legislation also specifies specific regulations that are implemented through its provisions, along with documented guidelines that are violated. It is considered a criminal offence, with penalties ranging from one year in jail to a fine of one lakh rupees, or possibly both.

New Amendments of Factories Act

Amendment of the Factories Act 1954

When the Indian authorities consented to ILO conventions prohibiting the hiring of women and children in factories during nighttime hours. Parts 66, 70, and 71 of the Factories Act of 1948 underwent amendments to mirror this approval. The remaining provisions were revised simultaneously. Consequently, on December 25, 1954, the Factories (Amendment) Act of 1954 took effect, implementing the following significant modifications:

• Revision to Subsection 4.

• Subsection 29 underwent revision to precisely define the safety requirements for lifting machinery.

• Updating Section VIII regarding salary leave to set a 240-day record of attendance and raise the limit on accumulated leave, among other measures.

• Section 93 has been updated to make the responsibilities of the owner and the occupant clearer.

Amendment of the Factories Act 1976

Following the 1948 and 1954 amendments, industrial expansion continued, necessitating the appointment of safety officers to advise management on industrial safety and health issues. In response to multiple rulings regarding the definition of a worker, a tendency to exclude contract labour from that definition and instead require evidence of a master-servant relationship, and the need for changes to numerous other provisions, including the penal Section, the Factories (Amendment) Act 1976 was passed and went into effect on October 26, 1976.

• The phrases "manufacturing process," "employee," "factory," and "occupier" were added to the definition. Contract employment was also included under the word "worker."

• In 1976, this Amendment included extra parts concerning the employment of portable lighting (Section 36A), the role of safety authorities (Section 40B), alerting people to dangerous occurrences (Section 88A), and the conduct of safety and health assessments (Section 91A).

• Section 40B required that companies with 1,000 or more employees must have safety officers, but a new Section 40A was created, giving the power to enforce the adoption of building upkeep plans.

Amendment of the Factories Act 1987

The Bhopal disaster forced nations to enact stronger laws about public health and safety as well as worker safety, raising awareness of safety issues on a global scale. Consequently, the federal government and the state governments made the necessary amendments to their respective statutes and regulations. On May 23, 1987, two fresh legislations were enacted: the Environment (Protection) Act of 1986 and the Factories (Amendment) Act of 1987. A new Chapter IV A on dangerous practices, a plethora of prohibitions, and severe penalties and jail terms for infractions were all added to these rules.

The Factories Amendment Bill, 2014

The Bill to Amend the Factories Act was introduced in the Lok Sabha on August 7, 2014. It seeks to alter the Factories Act of 1948. The Act strives to provide proper safety measures while also promoting the health and well-being of factory workers. As per the Statement of Objects and Reasons, the modifications suggested in the Bill stem from shifts in production methods and technologies, the approval of International Labour Organization (ILO) agreements, rulings from the judiciary, advice from different committees, and outcomes from the Chief Inspectors of Factories meetings.

The Act authorises the state government to create rules on any topic that:

• Is covered by the Act or may be prescribed; or

• Is suitable to carry out the Act's aims.

According to the Bill, the jurisdiction of the state government to create rules would be limited to subjects over which the central government lacks authority. The federal government may develop rules in conjunction with state governments to ensure uniformity in areas such as workplace safety, health, and other matters.

Case laws

Shankar Balaji Waje v. State of Maharashtra, (1961)

In this case, the appellant owned a firm that made bidis. The applicant and fellow workers in the production sector made bidis out of tobacco and time off given by the employer. The proprietor and the applicant were without any formal agreement or contract. He was not compelled to labour at the workplace during specified hours or days. He had complete freedom to enter and exit the facility. He has the right to request a day off whenever he wants, and with the owner's consent, he can also request a leave of 10 days. Even though he wasn't requested to make bidis at the location, he has permission to bring them home and make the ones he was given with the permission of the owner.

Judgement of the case; As per Section 2(l) of the Factories Act of 1948, the individual filing the complaint is not considered an employee.

Shri Suresh Kumar Jalan & Ors v. State of Bihar, (2011)

In this instance, the individuals filing the petition were the board members of Carbon Resources Private Limited. A factory inspector discovered numerous violations of the Factory Act at the facility. As a result, the inspector submitted a criminal complaint targeting the board members, who were the directors of the factory. According to Section 92 of the Factories Act, the Chief Judicial Magistrate held responsibility for the offence. The appellants submitted a request for a review to the Patna High Court, aiming to challenge the decision made by the Chief Judicial Magistrate.

Judgement of the case; The petitioner's lawyer showed proof that, according to Section 92 of the Factories Act, only the owners or those in charge of the factory can be responsible for violations. Nonetheless, as per the ruling by the Chief Judicial Magistrate, the factory's board members are exempt from punishment under Section 92 of the Factories Act. The decision made by the Chief Judicial Magistrate was reversed by the Patna High Court, as Section 92 of the law does not permit directors to be subject to fines. This situation showed that directors are not responsible for violations of Acts; it's only the management or the person using the property that is answerable.

Conclusion

In 1948, the Indian Parliament passed the Factories Act, which is a significant piece of legislation designed to increase profits for India's industrial sector. The Factories Act, formally known as the Factories (Amendment) Act of 1951, has undergone four modifications since its inception to adapt to India's evolving industrial environment and business strategies. The Factories Act of 1948 represents one of India's labour regulations. The 1948 Factories Act repealed the Child Labour (Prohibition and Regulation) Act of 1956, which was only in effect for factories with 20 or more employees.