MODULE 6

A. FACTORIES ACT,1948

Introduction:

The Factories Act of 1948 is significant because it addresses crucial

aspects such as workers' health, safety, and welfare in manufacturing and
industrial establishments.

Understanding the provisions of this Act is essential for legal professionals

and students. It governs factory regulations and protects workers from
exploitation and unsafe working conditions, thereby ensuring social justice
in the industrial sector.

 Working Hours and Overtime Regulations : There are legal

restrictions on the number of hours workers can be required to work
and provisions for overtime pay.
 Child and Adolescent Labour: Safeguards against the exploitation
of child labour, setting minimum age limits, and regulating working
conditions for adolescents.
 Health and Safety Provisions: Requirements for safe machinery,
proper ventilation, sanitation, clean drinking water, and emergency
exits to protect workers from industrial hazards.
 Welfare Measures: Ensuring basic welfare facilities like first-aid,
canteens, restrooms, and shelters for workers in large factories.

Historical Overview of the Factories Act 1948:

The Factories Act, 1948 is a central piece of legislation first introduced in

1881 to regulate the working conditions of factory workers. It outlines
health, safety, and welfare provisions, addresses hazardous processes, and
establishes violation penalties.

The Act has undergone several amendments, with significant changes in

1891, 1911, 1922, 1934, 1948, 1976, and 1987. The 1948 amendment is the
most comprehensive. It expanded on previous versions by focusing on
workers’ health, safety, welfare, working hours, and provisions like leave
with pay.

The Act drew heavily from the 1937 Factory Act in Great Britain.
However, it’s important to distinguish between the terms "factory" and
"industry." An industry refers to organized trade activities, while a factory
is the physical location where such activities are conducted. The Factories
Act governs day-to-day operations within these premises and applies across
India, including Jammu & Kashmir.

The 1984 Bhopal Gas Tragedy highlighted the risks associated with
factory operations and stressed the need for stricter regulations.
Consequently, the government made timely amendments to the Act. The
Factories Act applies to establishments with 10 or more workers when
using power and to those with 20 or more workers when no power is used.

Salient Features of the Factories Act, 1948

1. Expanded Definition of Factory: The Factories (Amendment) Act

of 1976 broadened the definition of "factory" to include contract
labour when determining if a factory employs 10 or 20 workers.
2. Child Labor Restrictions: The Act raised the minimum working age
for children from 12 to 14 and reduced their working hours from 5 to
4.5 hours daily.
3. Restrictions on Women and Children: The Act prohibits women
and children from working in factories between 7 p.m. and 6 a.m.
4. Seasonal Factory Classification Removed : The distinction between
seasonal and non-seasonal factories was abolished.
5. Factory Registration and Licensing: The Act mandates factory
registration and licensing, with the state government responsible for
ensuring all factories are appropriately registered and licensed, with
renewals as required.
6. State Government’s Role: The Act grants state governments
authority to create rules for the benefit of employees, including
encouraging employee-management associations.
7. Applicability Beyond Factory Size : State governments can apply
the provisions of the Act to any establishment, regardless of its
number of employees or whether it engages in manufacturing.
8. Legal Precedence: In Rabindra Agarwal v. State of Jharkhand
(2010), the Jharkhand High Court ruled that the Factories Act, a
special legislation, takes precedence over the Indian Penal Code.

Objectives of the Factories Act, 1948

1. Safety Measures: The primary goal of the Act is to establish

comprehensive safety measures for workers and to improve their
overall health and welfare in factories. It aims to protect workers
from industrial and occupational hazards.
2. Health Provisions: The Act mandates that factories maintain
cleanliness, provide sufficient drainage, ventilation, and lighting,
and ensure the availability of clean drinking water. It also requires
separate, clean, and accessible restrooms for men and women.
3. Safety Provisions: Machines must be adequately fenced, and young
workers cannot operate dangerous machinery. Factories must have
emergency exits to allow workers to escape in case of accidents.
4. Welfare Provisions: Factories must provide suitable washing
facilities, storage and drying spaces, first-aid equipment, and
restrooms. Larger factories are required to have shelters and
canteens for workers.
5. Regulation of Working Hours: The Act limits working hours to 48
per week and mandates weekly holidays for all workers.
 6. Protection from Exploitation: The Act imposes strict rules on
factory owners and occupiers to ensure workers' safety, protect them
from exploitation, and improve working conditions.
7. Penalties for Violations: Violations of the Act can lead to
imprisonment of up to one year, fines of up to ₹1 lakh or
both. Workers who misuse safety or welfare equipment may face
fines of up to ₹ 500.

Application of the Factories Act, 1948

1. Geographical Scope: The Act applies across India, including Jammu

and Kashmir, and covers all premises involved in manufacturing as
defined under Section 2(m).
2. Factories Using Power: The Act applies to factories that use power
and employ ten or more people on any working day in the previous
12 months.
3. Factories Not Using Power: It also applies to factories without
power that employ 20 or more people on any working day in the past
12 months.
4. State Government’s Role: The Act grants state governments and
Union Territories the power to apply its provisions to specific
factories under Section 85.

Important Definitions under the Factories Act, 1948

1. Adult and Child: An adult is a person aged 18 or older (Section

2(a)), while a child is defined as someone under 15 (Section 2(c)).
2. Adolescent: Defined in Section 2(b), an adolescent is between 15
and 18.
3. Calendar Year: Defined as 12 months starting January 1st (Section
2(bb)).
4. Competent Person: Someone authorized by the Chief Inspector to
conduct inspections or tests in a factory (Section 2(ca)).
5. Hazardous Process: A process involving materials that threaten
health or the environment (Section 2(cb)).
6. Machinery: Includes prime movers, transmission machinery, and
any other equipment related to manufacturing (Section 2(j)).
7. Power: Mechanically transmitted energy not generated by humans or
animals (Section 2(g)).
8. Week: Seven days starting at midnight on Saturday (Section 2(f)).
9. Day: 24 hours starting at midnight (Section 2(e)).
10. Young Person: A term including children and adolescents (Section
2(d)).
11. Factory: A premises where a manufacturing process is conducted,
with 10 or more workers when power is used, or 20 or more workers
without power, as defined in Section 2(m).
12. Manufacturing Process: Defined in Section 2(k), this includes
processes like generating, altering, repairing, cleaning, packing, or
storing goods for sale, transport, or disposal.
 13. Worker: A person employed directly or indirectly in a factory,
either with or without the knowledge of the principal employer
(Section 2(l)).

Important Provisions of the Factories Act, 1948

1. Approval, Licensing, and Registration of Factories (Section 6):

The Factories Act mandates that state governments establish rules
requiring factory plans and site details to be submitted to the Chief
Inspector or the state government for approval before any construction or
extension. This section also requires factories to be registered and licensed,
with fees paid for registration, licensing, and periodic renewals.

No license is issued or renewed unless the occupier notifies the Chief

Inspector. If the state government denies permission for a site or factory
construction, the applicant can appeal to the central government within 30
days of the refusal.

2. Labour Welfare:
Labour welfare encompasses services offered to workers both within and
outside the factory, including canteens, restrooms, recreational facilities,
and housing. These services contribute to worker well-being and
productivity. During the early stages of industrialization, welfare measures
for factory workers were not prioritized, but with industrial growth in the
20th century, efforts were made to improve working conditions through
recommendations like those of the Royal Commission.

The 1948 Act expanded the definition of “factory” to include any industrial
facility with ten or more workers using power or 20 or more workers
without power. Other significant changes included raising the minimum
working age for children from 12 to 14, reducing their working hours, and
prohibiting them from working between 7 p.m. and 6 a.m. Special emphasis
was placed on employees' health, safety, and welfare.

3. Welfare Measures:
The Act focuses on three main welfare aspects: occupational health care,
appropriate working hours, and fair remuneration. Welfare measures aim to
integrate the workforce's socio-psychological needs with technological and
organizational requirements. These measures help foster a culture of work
commitment, ensuring higher employee satisfaction and productivity.

Key Provisions for Workers' Welfare and Safety:

 Washing Facilities (Section 42): Factories must provide sufficient

and well-maintained washing facilities for male and female
employees. These must be easily accessible and kept clean, with
standards determined by the state government.
 Clothing Storage and Drying Facilities (Section 43): The state
government can direct factories to provide proper storage and drying
facilities for workers' clothing when not dressed for work.
  Seating Arrangements (Section 44): Factories must provide seating
arrangements for workers who perform standing jobs, allowing them
to rest when possible.
 First Aid (Section 45): Factories are required to have first aid boxes
or cupboards with essential supplies accessible to workers. A trained
person should supervise each box and should be available during
working hours.
 Canteen (Section 46): Factories with more than 250 workers must
provide and maintain a canteen. The state government sets the rules
for food and pricing.
 Shelters, Restrooms, and Lunchrooms (Section 47): Factories
employing more than 150 workers must provide shelters, restrooms,
and lunchrooms where workers can eat food brought from home.
These areas must be clean, well-ventilated, and well-lit.
 Creches (Section 48): Factories with more than 30 female
employees must provide a clean, well-lit room for children under six
years old, supervised by trained personnel. Facilities for washing
and changing may also be provided, along with free milk and
refreshments for children.

Health Provisions (Sections 11-20):

 Cleanliness (Section 11): Factories must be kept clean, with floors

and surfaces regularly swept and disinfected. Waste materials must
be properly disposed of.
 Waste Disposal (Section 12): Factories must have proper systems
for disposing waste and effluents from their manufacturing
processes.
 Ventilation and Temperature Control (Section 13): Factories must
ensure proper ventilation and temperature control for workers'
comfort and safety.
 Dust and Fumes (Section 14): Factories must have adequate
measures to prevent the buildup of dust and fumes that could harm
workers.
 Overcrowding (Section 16): Factories must avoid overcrowding and
ensure that each worker has sufficient space to work comfortably.
 Lighting (Section 17): Adequate natural or artificial lighting must
be provided in all factory areas, and glass windows and skylights
must be kept clean.
 Drinking Water (Section 18): Factories must ensure that safe
drinking water is provided in easily accessible areas at least six
meters away from any source of contamination.
 Latrines and Urinals (Section 19): Factories must provide separate,
well-lit, ventilated, and hygienic restrooms for male and female
workers. Cleaners must be employed to maintain cleanliness.
 Spittoons (Section 20): Spittoons must be provided in accessible
locations, kept clean, and used exclusively.

Thornton v. Fisher and Ludlow Ltd. [(1968) Lab IC 1469] raised an important
issue regarding the adequacy of lighting arrangements. In this case, the
 management failed to provide suitable lighting arrangement. On certain date half
an hour before sunrise,a cleaner employed by the management of a factory who
was on her way to work in the factory, tripped over a coil of wire, one end of
which had been forced into the tarmac, and suffered injuries, because of the
obstruction of the pavement (which was the natural place for person to pass on
foot and it was necessary for pedestrians coming along to do their work in the
factory to walk down the roads). The court held that failure to turn on the lights
that was the effective cause of the accident that occurred.

Safety Provisions:

The safety of workers is a priority, and the Act mandates measures such as:

 Fencing of dangerous machinery (Sec. 21) : All hazardous

machinery must be securely fenced.
 Work on or near machinery in motion (Sec. 22) : Only trained
male workers wearing proper attire are allowed to work near
machinery in motion.

In State of Gujarat v. Nair, S.P., [(1965) I LLJ 528] the court explained that
one of the necessary conditions in section 22 is that all the spur, worm or other
toothed friction gearing in motion with which such worker is liable to come in
contact shall be securely fenced to prevent such contact. In the absence of any
evidence to show that this was an excluded occasion by reason of the worker
permitted to do it in accordance with the provisions of section 22 (1) there was
breach of section 21(1)(iv)(e) which was punishable under section 92 of the
Factories Act, 1948.

 Employment of young persons on dangerous machines (Sec. 23) :

Young workers must be fully trained and supervised when operating
hazardous machinery.
 Hoists, lifts, and lifting machines (Sec. 28-29) : These must be
appropriately constructed, maintained, and inspected.
 Precautions against dangerous fumes and gases (Sec. 36) :
Factories must ensure proper ventilation and suitable equipment for
workers entering hazardous spaces.
 Protection against fire hazards (Sec. 38) : Factories must maintain
fire safety equipment, ensure clear escape routes, and train workers
in fire prevention and response.

Employment of young persons (Section 67 - 77)

Section 67 prohibits the employment of children below the age of 14 years.

Section 68 - A child who has completed his fourteenth year or an adolescent shall not
be required or allowed to work in any factory unless

(a) a certificate of fitness granted with reference to him under section 69 is in the
custody of the manager of the factory, and (b) such child or adolescent carries while
he is at work a token giving a reference to such certificate.
Section69 A- certificate of fitness certifying thatayoung person is fit to work at a
factory should be given in accordance with this section. An adolescent who possesses
a certificate of fitness should be considered as an adult.

Section 71 - Children can be employed only for 4.5 hours in a day. A female child
cannot be required to work between 8 am and 7 pm.

Section 72 - Notice of period of work for children Every factory must display and
correctly maintain a notice of periods work for children. Such notice should show
clearly the periods during which children may be required or allowed to work. The
periods shown in the notice shall be fixed beforehand as per section 61 regarding
period of work for adults, but there shall be no contravention of the provisions of
section 71.

Section 73 - Register of child workers The manager of every factory in which children
are employed shall maintain a register of child workers showing the child workers
engaged at the factory

Section 74 - Hours of work to correspond with notice under section 72 and register
under section 73 No child shall be employed in any factory otherwise than in
accordance with the notice of periods of work for children displayed in the factory
and the entries made before hand against his name in the register of child workers of
the factory.

Se75- empowers the inspector of factories to require the medical examination of

young persons.

Section 76-The State Government may make rules - prescribing the forms of
certificate of witness to be granted under section 69 and to prescribe the physical
standards to be attained by the children and adolescent working in factories

Section 77 - The provisions of this chapter shall be in addition to and not in

derogation of, the provisions of the Employment of Children Act, 1938

Annual Leave with Wages (Section 78 - 84)

Section 79: Every worker who has worked for a period of 240 days or more in a
factory during a calendar year shall be allowed during the subsequent calendar year,
leave with wages for a number of days calculated at the rate of-

(i) if an adult,one day for every twenty days of work performed by him during the
previous calendar year;
(ii) if a child, one day for every fifteen days of work performed by him during the
previous calendar year. For the purposes of this sub-section-

(a) any days oflay-off, by agreement or contract or as permissible under the standing
orders;
(b) in the case of a female worker, maternity leave for any number of days not
exceeding twelve weeks; and
(c) the leave earned in the year prior to that in which the leave is enjoyed; shall be
deemed to be days onwhich the worker has worked in a factory for the purpose of
computation of the period of 240 days or more, but he shall not earn leave for these
days. Ifa worker is discharged or dismissed from service or quits his employment or is
superannuated or dies while in service, during the course of the calendar year, he or
his heir or nominee, as the case may be, shall be entitled to wages in lieu ofthe
quantum of leave to which he was entitled immediately before his discharge,
dismissal, quitting of employment, superannuation or death,

In H.R. Sugar Factory Ltd., Bareilly v. Their Workmen [(1953) 1 LLJ 314],
certain workmen of the sugar factory enjoyed better terms regarding leave than
provided under the Factories Act, 1948. The question arose whether the leave should
be governed by the standing order or the Factories Act, 1948. The adjudicator held
that the question ofleave should be decided in accordance with the standing orders
and not in accordance with the Factories Act, 1948. It further held that the workers are
entitled to payment in lieu of periods of unavailed leave irrespective of whether they
applied for such leave and were refused or not.

In AmgaudSidram Hakke v. Maharashtra Small Scale Industries Development

Corporation Ltd.[1996 LLR 249], the Bombay High Court held that even if an
employee has earned leave to his credit that leave is to be sanctioned at the discretion
of the employer. If the employees choose to remain away from work, shoots
innumerable telegrams to the employer for extension of leave on vague excuses and
then finds himself in hot water, he does so at his peril.

Penalties (Sections 92-99):

The Factories Act imposes penalties for violations, including imprisonment
and fines. These range from two years of imprisonment or fines up to ₹2
lakh for general offenses, to specific penalties for violations involving
safety, obstructing inspectors, and employing children.

Penalties of the Factories Act, 1948

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

General Penalty for offences

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

 If there is any infringement of the Act’s laws, the occupier and manager of the
factory will be held responsible and equally liable for breaching the law. They
will both face two years in imprisonment and a fine of up to Rs.2 lakhs.
 If they continue to commit the same offence, they will be fined Rs.10,000 every
day for continued violations.
Liability of an owner of factory premises
Section 93 of the Factories Act, 1948 defines the liability of an owner of premises under
special circumstances.

 When a factory is leased to several occupiers or lessees or leaseholders, the

factory’s owner is still held liable for supplying and maintaining certain services
such as drainage, approach roads, water supply, power, lighting, sanitation, and so
on.
 The chief inspector has the authority to issue an order to the owner of the
premises in order to enforce the requirements.

The penalty is enhanced even after a previous

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

 First, a person who commits a general offence in a factory and does it again faces
a penalty of up to three years in jail or a fine of at least Rs. 10,000, or both.
 Second, the managers must count the offences committed during the previous two
years of the most recent offence to determine the application of this Section.

The penalty for obstructing an inspector

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

 Any person who stops an inspector from using any powers given to him or under
the Act, or if an individual fails to appear when requested by an inspector, may be
made responsible and subject to a punishment of up to six months imprisonment,
a fine of up to ten thousand rupees, or both.
 This Section is also applicable when anyone stops a worker from coming before
or being inspected by an inspector in a factory.

Penalty for wrongfully disclosing results of

analysis
Section 96 of the Factories Act, 1948 defines a penalty for wrongfully disclosing the results
of analysis under Section 91 of the Factories Act, 1948.
  Any individual who publishes or discloses to another person the results of an
analysis that is performed using samples is punishable by up to six months
imprisonment. He will be liable for at least an Rs. 10,000 fine.

Penalty for the contravention of certain

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

 Anyone who disobeys or violates any of the rules or the provisions of Sections
41B, 41C, or 41H will be sentenced to 7 years in prison and a fine of Rs.
2,00,000. If the offender continues to commit the same offence, he will also be
fined Rs. 5,000 every day after the conviction of the same offence.
 If the failure or violation persists more than a year after the conviction, the
offender will face a 10-year jail sentence.

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

 If any worker in the factory breaches the Act’s rules or provisions, causing
liabilities for other workers, he or she will be fined at least Rs. 500.
 When a worker is found guilty of a punishable offence, the owner or manager of
the factory is not held responsible for the violation unless it can be proven that he
failed to take reasonable precautions to prevent it.

False certificate of fitness

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

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

Double Employment of Child

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

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

Amendment of 1976

Following the amendments in 1948 and 1954, industrial growth continued,

leading to the need for safety officers to address concerns regarding
industrial safety and health. In response, the Factories (Amendment) Act of
1976 was passed and enacted on October 26, 1976. This amendment arose
from several judgments regarding the definition of a "worker" and the
tendency to exclude contract labour from this definition unless a clear
master-servant relationship could be proven. It also addressed the need for
updates to various provisions, including penal sections.

Key changes included revisions to the definitions of terms such as

"manufacturing process," "employee," "factory," and "occupier." The term
"worker" was expanded to include contract labour, and it became
mandatory for factories to have an approved site plan and permission for
construction.

Amended Provisions in the 1976 Act:

 Section 8: Inspectors.
 Section 10: Certifying surgeons.
 Section 11: Cleanliness.
 Section 12: Disposal of waste and effluents.
 Section 21: Fencing of machinery.
 Section 22: Work on or near machinery in motion.
 Section 24: Striking gear and devices for cutting off power.
 Section 31: Pressure plants.
 Section 32: Floors, stairs, and means of access.
 Section 36: Precautions against dangerous fumes.
 Section 38: Precautions in case of fire.
 Section 39: Specifications of defective parts.
 Section 40: Safety of buildings and machinery.
 Section 45: First aid devices.
 Section 48: Creches.
 Section 56: Spread over of working hours.
 Section 59: Overtime wages.
 Section 73: Register of child workers.
 Section 79: Leave with wages.
 Section 87: Dangerous operations.
 Section 88: Notices of accidents.
 Section 92: Penalties for offences.
 Section 101: Determination of the occupier in certain cases.
 Section 106: Limitation of prosecutions.

New Provisions Introduced:

  Section 36A: Use of portable power lights.
 Section 40A: Authority for ordering implementation of measures
recommended by the Inspector for building maintenance.
 Section 40B: Requirement of safety officers for factories employing
1,000 or more workers.
 Section 88A: Notice of dangerous occurrences.
 Section 91A: Safety and health surveys.

Amendment of 1987

The 1984 Bhopal Gas Tragedy heightened global awareness of industrial

safety and led to a push for stricter regulations on worker and public
health. In response, both the central and state governments revised their
laws. On May 23, 1987, two major pieces of legislation were introduced:
the Environment (Protection) Act of 1986 and the Factories (Amendment)
Act of 1987. These amendments added a new Chapter IV-A on hazardous
processes, introduced several restrictions, and imposed severe fines and
prison terms for violations.

Who is an Occupier?
According to Section 2 (n) of the Factories Act 1948, an occupier can be defined as a
person who has the ultimate control over the affairs of the factory. In simple terms,
Occupier is someone who is responsible for all the matters related to the factory.

What are the Duties of Occupier under Factories Act 1948?

The Duties of Occupier under the Factories Act 1948 are –

Obtain License for the Establishment of Factory

The first and foremost duty of the Occupier under the Factories Act 1948 is to obtain
permission in writing from the State Government or the Chief Inspector for the site on
which the factory is to be situated under section 6 of the Act.

Serve Notice to the Chief Inspector for the Permission of Factory

The Occupier needs to serve a notice to the Chief Inspector as per section 7 at least 15
days before starting using the factory premises. The Notice must contain the
following information –

 Name and Address of the Occupier and the factory

 Name of the owner of the premises
 Address for communication
  Nature of the manufacturing process which would be carried out in the factory
 Total No. of house powers that are required to be installed
 Name of the manager of the factory
 No. of employees that are likely to be employed in the factory
 Any other particulars as prescribed under the Act

Act as a Manager of the Factory

It is one of the Duties of the Occupier to act as a manager of the factory and manage
everything in the factory till the time an actual manager is appointed in the factory.

Maintain and Provide the Plant and Systems of Work

The Occupier is obligated to provide the required plant and factory work systems to
facilitate the smooth functioning of operations of the factory and avoid any delay in
the same.

Make Adequate Arrangements in the Factory to ensure Safety.

The duties of the Occupier include making arrangements within the factory to ensure
safety and avoid any risks of injuries or health of the workers by ensuring proper
arrangements for the use, storage, handling, and transportation of substances or
articles.

Provide Training to the Workers

The Occupier is responsible for providing adequate training, information, instruction

and supervision to its workers as are essential to ensure the safety and health of the
workers of the factory.

Maintain a Safe and Healthy Working Condition

The Occupier must ensure to provide safe and healthy working conditions to its
workers by keeping a check on the cleanliness and hygiene and fulfilment of basic
necessities like drinking water and sitting space to the factory workers.

Formulate a Policy for the Factory

The Occupier must formulate a policy for the factory consisting of the health and
safety measures within the factory and make sure that the workers abide by the policy.
Appoint Safety Officer

The Factories Act provides the Duties of Occupier such as the appointment of the
Safety Officer.

According to Section 40-B of the Act, the safety officer must be appointed by the
Occupier in case there are 1000 or more workers in the factory or

If the State Government is of the opinion that the manufacturing process carried out
within the factory can cause any bodily injury, disease, poisoning or any other hazard
to the workers’ health.

Disclose Compulsory Information

As per Section 41- B, it is the duty of the Occupier to disclose the compulsory
information and obtain approval of the Chief Inspector regarding the following.

 The hazardous process is carried on in the factory.

 The policy formulated by the Occupier about the health and safety measures untaken
for the workers involved in the hazardous process
 Design the site emergency plan and detailed disaster control measures for the
workers’ safety and obtain the chief inspector’s approval for the site plan and the
enlisted measures.

The Occupier must note that he is obligated to inform the same to the workers in the
factory as well as the general public within the vicinity of the factory.

 Measures for the use, storage, handling, and transportation of hazardous substances or
articles inside the factory and their disposal outside the factory and spread awareness
about such measures among the workers and general public within the vicinity of the
factory area.

Fulfil the Specific Responsibility regarding hazardous Process

Section 43-B, there are certain specific Duties of Occupier that he must fulfil. The
duties include the following –

 Maintenance of the (adequate and up-to-date) health or medical records of the

workers of the factory
 Appointment of qualified personnel for handling the hazardous substances
 Facilitation of the medical examination of the workers.
Set up a Safety Committee

Another duty as per the Duties of Occupier under Factories Act 1948 is to set up a
Safety Committee in the factory involving the hazardous process. the safety
Committee must comprise of equal representatives of workers and management to
promote co-operation between the both to maintain the health and safety standards
and review the same periodically.

Take Remedial action in case of Danger.

The Occupier is obligated to take instant remedial action in imminent danger and send
a report of the same to the Chief Inspector.

Provide the Welfare Activities

The Occupier must ensure to provide all the welfare facilities as mentioned in Chapter
V of the Factories Act 1948.

Formulate a Scheme for Annual Leave with Wages

The Occupier, along with the chief inspector, must formulate a scheme for annual
leave with the wage for the factory workers after agreement with the representatives
of the Works Committee established under Section 3 of the Industrial Dispute Act
1947 or any other relevant Act.

Conduct Occupation and Heath Survey

Another duty on the list of Duties of the Occupier is conducting health and
occupational surveys of the workers in the factory. The Occupier must ensure
sufficient arrangements for the testing and examining of the plant and machinery,
collection of samples or any relevant data required for conducting the survey.

Certifying surgeon:section 10

Who is a Certifying Surgeon under the Factories Act?

Certifying Surgeons, also known as Certified Surgeons, are qualified medical

practitioners appointed under the Factories Act 1948. Their appointment is integral to
ensuring compliance with the occupational health standards outlined in the Act. These
professionals are responsible for conducting medical examinations, issuing fitness
certificates, and upholding the health of workers within factory environments.
Duties of Certifying Surgeons:

Pre-Employment and Periodic Medical Examinations: Certifying Surgeons conduct

thorough medical examinations of workers before employment and at regular
intervals thereafter. These examinations assess the worker’s fitness for the tasks
assigned and detect any occupational health hazards or illnesses.
Fitness Certification: Based on the medical examinations, Certifying Surgeons issue
certificates of fitness to workers, affirming their ability to perform assigned tasks
without compromising their health and safety.
Health Education: Certifying Surgeons educate workers about occupational health
risks and preventive measures, fostering a safer work environment and reducing the
incidence of work-related illnesses or injuries.

Certifying Surgeon under Factories Act 1948:

Section 10 of the Factories Act 1948 explicitly outlines the appointment and duties of
Certifying Surgeons. It mandates the presence of these medical professionals in
factories to oversee the health and well-being of workers. Additionally, Section 69 of
the Act emphasizes the importance of medical officers within factory settings.

Requirements and Qualifications:

The Factories Act 1948 specifies the qualifications and requirements for Certifying
Surgeons and medical officers appointed within factories. These professionals must
possess the necessary medical qualifications and expertise to fulfill their duties
effectively.

Certificate of Fitness:

Under the Factories Act, the Certificate of Fitness issued by Certifying

Surgeons holds significant legal and regulatory importance. It serves as evidence of a
worker’s fitness for specific tasks within the industrial setting, ensuring compliance
with industrial laws and regulations.

Annual Leave With Wages Section 79 Factory Act 1948

1. If an adult one day for every 20 day of work performed by him during
previous calendar But condition must do work for 240 day then only Take leave
entitlement one day holiday salary not been cut.

2. Must giving an application before 15 days If work in public utility before 20

day If medical issue no limit given such kind of time to recover himself.
 3. Due to discharge ,dismissal ,resign ,death and qutting of employment His hier/
nominee shall be entitled to receive wages.

4. Treatment of friction of leave is there shall be half day or more than half day
shall be treated as full day leave but if less than half day shall Omitted.

5. Treatment of unavailed leave worker has not taken any leave in previous
calendar year his leave should be carried forward to next calender year but shall
not be exceed to 30 in case of adult or not exceed 40 in case of child.

6. Workers shall taken leave from work must given written application prior
before 15 days to factory manager but if any worker engaged in public utility
service so such work

7. Worker informed prior 20days to the factory manager that regarding to take
annual leave.

8. In case of illness not mandatory or required to give written application before

prayer has to taken leave because it Emergency situation.

9. Scheme for Grant of leave Occupier factory manager do a agreement with a

work committee or a similar committee or with worker may lodge scheme to
chief inspector to Grant leave maybe regulated.

10. Such schemes shall be displayed at such conspicious and convenient place in
factory and such scheme valid for 12 months after 12 months it may be renewed
With Or without modification for next 12 months.

11. If refusal of leave it shall be as per accordance of terms and conditions with
scheme.

landmark judgments related to the Factories Act, 1948 (India), which have
significantly influenced labor law and industrial safety jurisprudence:
1. M.C. Mehta vs. Union of India (1986) – [Oleum Gas Leak Case]

Citation: AIR 1987 SC 965

Facts: After a gas leak at Shriram Food and Fertilizers in Delhi, several people
were injured and environmental damage occurred.

Key Legal Principle:

Introduced the concept of "Absolute Liability" for industries engaged

in hazardous activities.

Employers cannot escape liability even if all safety measures are taken.

Relevance to Factories Act: Emphasized the importance of worker safety

and strict compliance with safety provisions in the Act.

2. Consumer Education and Research Centre vs. Union of India (1995)

Citation: AIR 1995 SC 922

Facts: Concerned the health of asbestos workers and their working conditions.

Key Legal Principle:

Right to health and medical care is a fundamental right under

Article 21 of the Constitution.

Employers are duty-bound to provide medical facilities and ensure

workplace safety.

Relevance: Strengthened the health and welfare provisions under the Factories
Act.

3. Indian Banks' Association vs. Workmen of Syndicate Bank (2001)

Citation: 2001 AIR SC 946

Facts: Related to overtime and working hours for bank employees.

Key Legal Principle:

Clarified who qualifies as a ‘worker’ under the Factories Act and the
applicability of overtime provisions.

Relevance: Helped interpret the definition of "worker" and "working hours"

under Sections 2(l), 51, and 59 of the Act.

4. S.M. Datta vs. State of Gujarat (2001)

 Citation: 2001 (7) SCC 659

Facts: Related to environmental hazards due to factory operations in Gujarat.

Key Legal Principle:

Emphasized corporate responsibility for environmental and safety

compliance.

Relevance: Reinforced compliance with Sections 7A (duties of occupiers)

and 41B (hazardous processes) of the Factories Act.

5. Regional Director, ESI Corporation vs. Francis De Costa (1997)

Citation: AIR 1997 SC 432

Facts: Questioned whether a certain worker was entitled to ESI benefits.

Key Legal Principle:

Interpreted the term "employee" under ESI Act, read in consonance

with Factories Act.

Relevance: Helped interpret overlap and consistency between Factories Act

and social welfare laws.

Tamil Nadu Shops and Establishments Act, 1947

Introduction
The Tamil Nadu Shops and Establishments Act, 1947 consists of a group of
regulations that help shops and establishments in the state of Tamil Nadu regulate
their operations and employee rights. The Tamil Nadu Shops and Establishment Act
was introduced in 1947. This Act regulates the conditions of workers in shops,
commercial establishments, restaurants, theatres, and other entertainment places,
protects employee rights, and helps them provide all benefits. For any establishment
or shop registered under this Act, it is mandatory to follow all rules and regulations in
this Act. If any establishment is exploiting labour or not following rules and
regulations, the organisation can face penalties, a fine, or even the closure of their
business.

The main objectives of the Act are to provide regulations for the payment of wages,
terms of services, work hours, overtime work, rest intervals, opening and closing
hours, holidays, closed days, work conditions, leaves, maternity leaves, and benefits;
rules for employment of children; and records maintenance.
Historical aspects of Tamil Nadu Shops and Establishment Act, 1947
In order to understand the present implication of the Act, it is essential to look into the
historical context of the Act. This Act replaced the old Madras Shops and
Establishment Act of 1945. After gaining independence in 1947, the post-
independence period witnessed a need to reframe the structure of the economy.
Labour plays an important role in the economy of a nation. For the growth of the
economy in the post-independence period, there was a need to secure and protect
labour rights in the nation so that labour could work more efficiently. To secure
labour rights after independence, many states at the time enacted the Shops and
Establishments Act. Tamil Nadu is one of the states that enacted this Act to create a
shield for employee rights and benefits.

During the time of pre-independence, there was a lot of labour exploitation, which
further led to several labour rights movements at that time, and this Act played a very
crucial role in controlling them and creating a proper structure for employees’
working conditions. This Act ensures employee’s rights and welfare, as well as
providing help to organisations to regulate their businesses.

After independence, several states experienced growth in urbanisation and

industrialization. Tamil Nadu also saw growth in these two sectors. To structure this
growth, they decided to enact the Tamil Nadu Shops and Establishments Act in 1947.
This Act helped the state protect the rights of employees and stop the exploitation of
labour. The main goal of the labour movement was to create proper working hours for
labour and stop unfair labour practices. This Act helped the state prevent the same and
regulate labour working conditions.

Purpose and objectives of the Act

Applicability
This Act is applicable to several organisations, shops, and industries, including
commercial and non-commercial establishments. It includes factories, shops, and
public entertainment places. If an organisation falls under this Act, they must ensure
that they comply with the provisions of this Act and follow all the rules and
regulations of this Act to avoid any penalty.

Working hours and overtime

As per Section 9, the maximum number of permissible working hours in a day is 8

hours and 48 hours in a week. If any employee works overtime, the timing of
overtime should not exceed ten hours in a single day and not more than fifty-four
hours in a week. According to Section 9(2) of this Act, no person is required or
permissible to work more than 4 hours in a day if he does not have a break of one
hour for rest.
Section 2 of the Factory Act, 1948, defined a young person as follows:- “young
person” means a person who is either a child or an adolescent. As per Section 18 of
the Tamil Nadu Shops and Establishment Act, a younger working person is not
allowed to work daily for more than 7 hours. In any establishment, a young person
cannot work before 6 A.M. or after 7 P.M., and in one week they must not exceed 42
hours of working. A normal working person must not work more than 8 hours a day
and not exceed 48 hours a week.

Weekly holidays and leave policy

Section 11 of this Act states that weekly holidays are mandatory to maintain the work
life balance of employees. Apart from that, there are annual holidays available, like
annual leave with wages, sick leave, and maternity leave, which are important for
employee welfare. Once any employee completes the 12-month period of their
employment, that employee is eligible for 12 days annual leave.

Safety rules for women employee

Under the Tamil Nadu Shops and Establishment Act 1947, women employees shall
not be required to work after 8 P.M. And if any woman employee works after 8 P.M.
and before 6 A.M, the employer must obtain written consent from that woman
employee, and employers must provide proper transportation facilities to women
employees who work on shift duty. A notice of the transportation facilities available
must be displayed at the main entrance of the establishment. Employees must provide
restrooms, washrooms, safety lockers, and other basic amenities. Also, every
employer must constitute an internal complaints committee against sexual harassment
of women under the Sexual Harassment of Women at Workplace Act 2013.

Health and safety

The Act also provides for taking care of the health and safety of employees. As per
Section 20, the working area of employees must be clean and free from odours arising
from any drain, privy, or other nuisance. As mentioned in Section 21, work premises
must have proper ventilation facilities. During working hours, they must have proper
lighting, as per the provisions mentioned in Section 22. Every establishment must take
precautions and maintain safety features in the workplace in case of a fire accident.

Employment of children

Children means a person who has not completed the age of 14 years. In the Tamil
Nadu Shops and Establishments Act,under Section 17, there is a strict prohibition on
the employment of children.

Employment of young people

Employment of young people also has a time limit for daily and weekly hours. A
young person is someone who is between 15 and 18 years old. Their working hours
must not exceed 42 hours on a weekly basis.

Records and Registers

Section 47 provides that employers must maintain all the records of employees, like
attendance registers, wages, and leave records, accurately because it is a legal
requirement and helps for effective business management.

Inspection and Penalties

Under Section 42 of this Act, the state government appoints the inspector. Section
43 further empowers the inspectors to enter into any organisation, which they believe
to be any establishment, but they must do so within reasonable hours and make
checks of the premises, registers, records, or notices as prescribed. And if any
establishment fails to comply with the provisions mentioned in Section 41A, that
establishment will face a punishment under Section 45 of this Act penalties, a fine, or
imprisonment.

Fine

Under this Act, Section 35 provides provisions for fines. A fine can only be imposed
on employees when specific acts or omissions are specified by the employer with the
prior approval of the state government or appropriate authority. However, before such
an imposition, notice of these specific acts and omissions must be placed where
employees are working, so they can easily read this notice. Minor workers who are
under 15 years of age are not eligible for any fines. Employers must collect fines
within 60 days of the imposition of fines. Fines cannot exceed a certain percentage of
employee wages for the wage period. Employers must maintain records of the
collected fines. Employers must use this fine amount for the benefit of employees.

Important definitions

Shop

As per Section 2(16) of the Tamil Nadu Shops and Establishment Act, shop means
any premises where any trade or business is carried on or where services are rendered
to customers and includes offices,store rooms, godowns, and warehouses, whether in
the same premises or otherwise, used in connection with such business but does not
include a restaurant, eating house, or commercial establishment.

Commercial Establishment

As per Section 2(3) of the Tamil Nadu Shops and Establishment Act, “commercial
establishment” means an establishment which is not a shop but which carries on the
business of advertising, commission, forwarding, or commercial agency, or which is a
clerical department of a factory or industrial undertaking, or which is an insurance
company, joint stock company, bank, broker’s office, or exchange, and includes such
other establishments as the state government may by notification declare to be a
commercial establishment for the purposes of this Act.

Establishment

As per Section 2(6) of the Tamil Nadu Shops and Establishment Act 1947,
establishment means a shop, commercial establishment, restaurant, eating-house,
residential hotel, theatre, or any place of public amusement or entertainment and
includes such establishment as the state government may, by notification, declare to
be an establishment for the purposes of this Act.

Person employed

As per Section 2(12) of the Tamil Nadu Shops and Establishment Act 1947, person
employed means:-

1. In the case of a shop, a person wholly or principally employed therein in

connection with the business of the shop;
2. In the case of a factory or an industrial undertaking, a member of the
clerical staff employed in such a factory or undertaking;
3. In the case of a commercial establishment other than a clerical department
of a factory or an industrial undertaking, a person wholly or principally
employed in connection with the business of the establishment, and
includes a peon;
4. In the case of a restaurant or eating house, a person wholly or principally
employed in the preparation or serving serving food or drink, in attendance
on customers, in cleaning utensils used on the premises or as a clerk or
cashier;
5. In the case of a theatre, a person employed as an operator, clerk, door-
keeper, usher or in such capacity as may be specified by the State
Government by general or special order;
6. In the case of an establishment not falling under paragraphs (i) to (v)
above, a person wholly or principally employed in connection with the
business of the establishment includes a peon;
7. In the case of all establishments, a person wholly or principally employed
in cleaning any part of the premises; but does not include the husband,
wife, son, daughter, father, mother, brother or sister of an employer who
lives with and is dependent on such employer;

Wages
As per Section 2(18) of the Tamil Nadu Shops and Establishment Act, 1947 wages
means any remuneration, capable of being expressed in terms of money, which
would, if the terms of the contract of employment, express or implied, were fulfilled,
be payable, whether conditionally upon the regular attendance, good work, conduct,
or other behaviour of the person employed, or otherwise, to a person employed in
respect of his employment or of work done in such employment, and includes any
bonus or other additional remuneration of the nature aforesaid, which would be so
payable, and any sum payable to such person by reason of the termination of his
employment, but does not include:

1. The value of any house-accommodation,supply of light, water, medical the

value of any house-accommodation, supply of light, water, medical
attendance or other amenity or of any service excluded by general or
special order of the StateGovernment;
2. Any contribution paid by the employer to any pension fund or provident
fund;
3. Any travelling allowance or the value of any travelling concession;
4. Any sum paid to the person employed to defray special expenses entailed
on him by the nature of his employment; or
5. Any gratuity payable on discharge.

Registration process under Tamil Nadu Shops and Establishment Act

Registering under the Tamil Nadu Shops and Establishment Act is mandatory for any
business, shop, or commercial establishment operating within Tamil Nadu. The first
step in the registration process is to identify whether the establishment falls under the
definition of a shop or commercial establishment as per the Act. This Act covers
several establishments, including shops, offices, hotels, restaurants, theatres, and other
establishments.

1. The first step in the registration process is to go to the website of the Tamil
Nadu Labour Department ([Link] to access the required
form and information for the registration process.
2. The second step is to download the necessary form and application.
3. The third step is to fill out the application form with the necessary details,
like the name and business details of the employer, address, and number of
employees. And after this, attach the necessary documents, such as:-

 Address proof of the establishment, rental agreement, and ownership

documents.
 Identify and address proof of the employer’s Aadhar card, PAN card, or
voter ID.

 Proof of incorporation.
 Details of the employees working in the establishment and shops.
 Once the application form is complete and the required documents are
attached, submit the application to the Labour Department office nearest to
your business. You may need to visit the office in person or send the
application by post.
 Pay the registration fees along with the application form. you will need to
pay registration fees according to the number of employees working in
your organisation.
 1. The fourth step is to submit the application form along with the necessary
fees.
After submitting the application form, the Labour Department of the State of Tamil
Nadu proceeds with the application, and if necessary, they can visit the organisation.
Once they ensure that the application form and documents are true, they approve the
application and provide a registration certificate. This certificate is legal proof for any
organisation that comes under the Tamil Nadu Shops and Establishment Act. The
registration certificate must be displayed in a prominent place in the organisation for
public view. The validity of registration certificates is five years. Owners can renew
their certificate’s validity every five years after paying appropriate renewal fees.

Registration charges for Shop and Establishments in Tamil Nadu

Number of Employees Fees
1 to 15 ₹ 6,500
6 to 11 ₹ 9,000
12 to 21 ₹ 15,500

Exemptions under the Tamil Nadu Shops and Establishment Act, 1947
As per Section 4 of this Act, the establishments which are exempted are:-

 The person employed in any establishment in a position of management;

 The person who works involve travel, and the person employed as
canvassers and caretaker;
 Establishments that come under the central and state governments, local
authorities, Reserve Bank of India, Railway administration,and cantonment
authorities are exempted from registering under this Act.
 Establishment in mines and oil fields;
 Establishments are in place where fairs or festivals are held temporarily
for a period not exceeding fifteen days at a time;
 Organisations that are not factories within the meaning of the Factories
Act, 1948, are, in respect of matters relating to this act, governed by
separate law for the time being in force of the state.

Benefits of registering under the Tamil Nadu Shops and Establishment Act, 1947

 The registration document gives legal proof to the business owner.

 Getting the establishment registered under this Act guarantees an
establishment smooth inspection process.
 Opening a current account for a business entity is only possible after
registering the business.
 Registration of shops and establishments allows owners to access benefits
that the government provides to small and medium scale business owners.

Landmark case laws

Regional Manager v. A. Kalyanasundaram (2008)
In this case, the first respondent, A. Kalyanasundaram, filed an appeal against the
appellate authority order. An appeal was filed under Section 41(2) of this Act.

The first respondent worked as a bill clerk in a management retail shop in

Kayalpattinam from March 14, 1975. Two more people also worked in the same shop.
On October 12, 1975, the senior regional manager inspected the shops and observed a
shortage of wheat, sugar, raw rice, and boiled rice. Consequently, he sent a memo to
the first respondent on December 20, 1975. Meanwhile, the Taluka Supply Officer
inspected the shops and submitted the report. Based on the report of the Tahsildar, the
first respondent was placed under temporary suspension. And charges were framed
against him. They concluded to discharge him from service, and after that, they
passed an order removing him from service.

The first respondent said that the inquiry was not conducted properly and he did not
get any chance to cross-examine the witness. On the other hand, management said the
first respondent admitted the misconduct and he repaid the amount of the shortage.
The appellate authority at the time of the hearing set aside the order of removal of the
first respondent that was passed by the senior regional manager of Tamil Nadu Civil
Suppliers Corporation. Because the senior regional manager agreed that a statement
was recorded in his presence, and he signed it as the senior regional manager, not as
an inquiry officer.

On the other hand, the first respondent counsel submitted that there is a G.O. passed
by the government of Tamil Nadu in G.O.M.S. no. 379 dated February 17, 1984,
which is only conferred by Section 6 of this Act. But the Tamil Nadu government
exempted all the establishments that come under the Tamil Nadu Civil Supply
Corporation from all the provisions of this Act except Sections 11(1), 25, 31, 41, 43,
45, 50, and 51. Hence, the writ appeal was dismissed accordingly.

Management of TVS and Sons Ltd. v. The Appellate Authority under Tamil

Nadu (2003)

In this case, Sivakumar, who worked as a customer relationship manager at TVS and
Sons Ltd., claimed that a workman named “Saravnam” created a duplicate invoice
and sent it to the finance company. He shared this with the sales manager,
Dhandapani but the sales manager told him to keep quiet. After that, a show cause
notice was issued 28-09-2009 for the dismissal of a workman. On 05-09-2009 a
worker made his representation, and management was not satisfied with that, so they
dismissed him from the service on October 28, 2009.

The worker was aggrieved by the decision order, so he filed an appeal before the first
respondent under the provisions of Section 41(2) of this Act. The authorities recorded
both sides of the evidence; they saw that charges were not proved, so they set aside
the order of dismissal. On the other hand, management said that petitioner started
work as a machine operator and worked as a sales executive at the Velipurnam
factory, a registered factory under the factory Act, and that petitioner is not entitled to
an appeal under Section 41(2) of the Tamil Nadu Shops and Establishment Act. On
the basis of this fact, the government decided to exempt all employers who are
registered under the Factory Act from the Shops and Establishments Act. The writ
petition was dismissed with no costs and other miscellaneous petitions were closed.