s- 10 factrories act(mktg a x201) 27 jan 10

8/9/2019 S- 10 Factrories Act(Mktg a X201) 27 Jan 10

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BUSINESS LAWS

SYMBIOSIS INSTITUTE OF

BUSINESS MANAGEMENTPune


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BUSINESS LAWS

Prof. Bala

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Session 10

The Factories Act 1948

Presentation on 20.1.201011.45 to 13.00 Hr.

Marketing A X-201


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BUSINESS LAWS

Agenda

1 Recap

The Transfer of Property Act 1882

2 Days discussion on

The Factories Act 1948


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Importance of the ActPrimarily object of:

protecting workers employed in factories

against industrial and occupational hazards.

to impose upon the owner / occupier certainobligations

to protect the workers and to secure for them

employment in conditions conducive to theirhealth and safety and the workingconditions


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Importance of the ActPost Bhopal tragedy

(Union Carbide case)

special chapter (IVA)has been added making

disclosures mandatory

for hazardous processes.


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Historyof labour enactments

Evolution of labour rights

- UK where it all started then moved to

- Other countries

From Master-Servant to

Employer-Workmen

From rules of status to

Law of contract

Post second World War to early 1970s thereforms momentum geared up and refinements /fine tunings were done on an ongoing basis


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The first labour law?

1349 England Statute ofLabourers

Placed restrictionson wage increases

Criminalized actionstaken by workersfordemanding wage increases

(organizing, agitations, refusing to work,

etc)

This was a period of labour shortage inEngland in the aftermath of the plague


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The important labour laws

The Factories Act, 1948

The Industrial Employment (Standing Order) Act, 1946

The Trade Union Act, 1926

The Industrial Disputes Act, 1947

The Payment of Wages Act, 1936

The Payment of Bonus Act, 1965

Shops and Establishment Acts of various states;

The Contract Labour (Regulation and Abolition) Act, 1970;

The Workmens Compensation Act, 1923;

The Employees Provident Funds and Miscellaneous ProvisionsAct, 1952;

The Employees State Insurance Act, 1948;


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History ofFactory Act in India

In India the first Factories Act was passed in 1881.

This Act was basically designed to protect children

and to provide few measures for health and safety ofthe workers. This law was applicable to only those

factories, which employed 100 or more workers. In

1891 another factories Act was passed which

extended to the factories employing 50 or more

workers.


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The

Factories Act 194

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It is a central Act

Monitored by States with suitable

ruled made by each of the state Basically the Act ensures the safety,health and working environmentconditions of the workers coupled

with Their rights wages /bonus/retiral

benefits etc.


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THE FACTORIES ACT,1948

The Act consists of 11 chapters with 120 sections and 3

schedules and following deals on SHE

Chapter Coverage

III Health

IV Safety

Iva Related to Hazardous Processes

V Welfare

VI Working hrs-adultsIX Special provisions relating to -

- Dangerous operations and

-Notifications


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SchedulesFirst schedule

- List of Factories involving Hazardous processes

(29)

Second schedule

- Permissible levels of certain chemical

substances in work environment.

Third schedule- List of modifiable diseases.

(29 categories)


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Factory definition

Factory is defined in Section 2(m) of the Act. It meansany premises including the precincts thereof-

Whereon ten or more workers are working, or wereworking on any day of the preceding twelve months, andin any part of which a manufacturing process is being

carried on with the aid of power, or is ordinarily so carriedon; or Whereon twenty or more workers are working, or were

working on any day of the preceding twelve months, andin any part of which a manufacturing process is beingcarried on without the aid of power, or is ordinarily socarried on;

But does not include a mine subject to the operation of theMines Act,1952 or a mobile unit belonging to the Armedforces of the Union, a railway running shed or a hotel,restaurant or eating place.


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FactoryFactory is:-

- as a place

- where manufacturing process iscarried out

- using 10 workers using electrical power or

- 20 workers without power.


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What are envisaged in the Factories Act,

1948

Appointment of Safety officer if > 1000workers

At least one first aid box with prescribedcontents for every 150 workers underresponsible person

Ambulance room to be provided if >500workers


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What are envisaged in the FactoriesAct, 1948

Minimum standard of lighting, ventilation,health, safety and welfare of workers andprecautions to be taken in cases of hazardous

processes Factories employing over 30 women to provide

crche for their children

If employing more than 150 workers shelters,rest rooms and lunch rooms to be provided

If more than 250 workers, a canteen

Appointment of welfare officer if >500 workers


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Manufacturing processManufacturing process also includes

- petrol pumps,

- retail workshops,- handicraft industries etc.


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Where the factory act does not

apply Factories working with the aid of power

wherein less than 10 persons areemployed;

F

actories working without the aid of powerwherein less than 20 persons areemployed;

Seasonal factories engaged exclusively inany of the following activities viz. Cotton

ginning, cotton or jute pressing,decortication of groundnuts, themanufacture of coffee, indigo, lac, rubber,sugar (including gur) or tea


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F

ollowing are held factories Salt works

A shed for ginning and pressing of cotton

A Bidi making shed A Railway Workshop

Composing work for Letter Press Printing

Saw Mills

Place for preparation of foodstuff andother eatables


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Occupier of the factory Under the Act the occupier is responsible for

all compliances and

in the case of an incorporated company theDirector on the board of the company must bedesignated for the purpose of an occupier.(Historical Judgment in J K Industries LtdLimited etc., Vs The Chief Inspector ofFactories & Boilers and others etc. 1996by Supreme Court)

Failing which all directors could become liable.


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Highlights of the Act of 1948

Came into force on the 1st day of April,1949

It was extended later to Dadra & Nagar Haveli,Pondicherry in 1963, to Goa in 1965 and to the Stateof Jammu & Kashmir in 1970.

Amended in 1949, 1950, 1954, 1956, 1976 and 1989. In Bhikusa Yamasa Kshatriya (P) Ltd. v UOI, the court

observed that the Act has been enacted primarily withthe object of protecting workers employed in factoriesagainst industrial and occupational hazards. For that

purpose, it seeks to impose upon the owner or theoccupier certain obligations to protect the workersand to secure for them employment in conditionsconducive to their health and safety.


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Important sections Registration &Renewal of

Factories

To be granted by Chief Inspector ofFactories on submission of prescribedform, fee and plan.

Only Director be appointed asOccupier of a factory (JK Tyresjudgment by Supreme Court)


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Important sections relating to

health Employerto ensure health of

workerspertaining to

Section 12 -Cleanliness Disposal ofwastes and effluents

Section 13 -Ventilation & temperaturedust and fume

Section 14 -Overcrowding Artificialhumidification Lighting

Section 18 Drinking water Spittoons.


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safety Section 21 - Fencing of machinery

Section 22 - Work on near machineryin motion.

Section 23 - Employment prohibitionof young persons on

dangerous

machines. Section 24 - Striking gear and

devices for cutting offpower.


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safety Section 26 - Casing of new

machinery.

Section 27 - Prohibition ofemployment of womenand children nearcotton-openers.

Section 28 - Hoists and lifts.


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working conditions / welfare Section 42 - Washing facilities

Section 43 - Facilities for storing and dryingclothing

Section 44 - Facilities for sitting Section 45 - First-aid appliances

one first aid box not lessthan one for every 150

workers- Canteens when there are 250

or more workers.


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working conditions / welfare Section 47 - Shelters, rest rooms

and lunch rooms whenthere are 150 or more

workers. Section 48 - Crches when there are

30 or more women workers.

Section 49 - Welfare office whenthere are 500 or moreworkers.


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working hours / wages Section 51 - Weekly hours not more than 48

Section 54 - Daily hours, not more than 9 hours.

Section 55 - Intervals for rest at least hour on

working for 5 hours. Section 56 - Spread over not more than 10 hours. -

Section 58 - Overlapping shifts prohibited.

Section 59 - Extra wages for overtime double than

normal rate of wages Section 60 Restrictions on employment of women

before 6AM and beyond 7 PM.


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Sections relating to Leav

eSection 79 - Annual Leave with

Wages

A worker having worked for 240 days@ one day for every 20 days and for achild one day for working of 15 days.

Accumulation of leave for 30 days.


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Offences and Penalties

4.

5

Offence

For contravention ofthe Act / Rules

On continuation ofcontravention

On contravention of

Chat IV to safety &dangerous operations.

PenaltyFor contraventionImprisonment 2 years

Rs. 1000 per day

Rs.5000 seriousinjury and not less

than Rs.25000 in caseof death


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Offence

SubsequentContravention of

some provisions

ObstructingInspectors

Penalty

Imprisonment upto3 years or fine and

not less thanRs.10, 000 whichmay extend to Rs.2lacs

Imprisonment upto6 months or fineupto Rs.10, 000 orboth


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Offence

Wrongful disclosingresult pertaining to

results of analysis.

Penalty

Imprisonment upto6 months or fine

upto Rs.10, 000 orboth.


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Off

ences

and Penalti

es

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Offence

For contravention of theprovisions of Sec. 41B,

41C and 41H pertainingto compulsory disclosureof information byoccupier, specific

responsibility of occupieror right of workers towork imminent danger.

Penalty

Imprisonmentupto 7 years with

fine upto 2 lacs &on Continuationfine @ Rs.5000per day Imprison-

-ment of 10 yearsfor continuesoffence


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Factories Act / Shops &establishment Act

The working hours, leave , weekly days off

and wages are similar to Shop and

Establishment Act Employers are required to follow stringent

licensing and safety measures.


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EMERGING TRENDS IN LABOURLAWS

There is a change in the mind-set of the courts and itis being seen that the courts are interpreting lawsmore liberally that is providing the employer moreflexibility now-a-days

Several amendments are on the anvil which will givethe freedom to the employers by not being required tomake an employee permanent, even if the employeehas completed 240 days.

Labour laws in the Special Economic Zone (SEZ) are

to be amended substantially with amendment in theContract Labour (Regulation and Abolition) Act, 1970which will allow the employers to follow a hire and firepolicy under certain conditions.


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In summary

It is a Social Welfare Legislation

Meant to take care of the employees

Safety

- Health,

- Welfare and Working Environment

- Working Hours

- Annual Leave with Wages and specialconditions of employment of women and

young persons


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Machineriestosettle disputes

1 Works Committees2 Conciliation

(conciliation officer/board of conciliation)

3 Arbitration (Voluntary)4 Labour Court5 Industrial Tribunal and6 National Tribunal

Relevant Sections 2A Sec 9A Sec 10 Sec 12(3) & Sec 18(1)


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WHEN WE MEETNEXTTIME

Next Session on

WEDNESDAY

3 FEBRUARY 2010

TOPICS

The Industrial Disputes Act1947


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THANK YOU

s- 10 factrories act(mktg a x201) 27 jan 10

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