The Factory Act 1948 is a legislation introduced by the Indian government to protect the rights and well-being of workers in the manufacturing sector. It mandates that all factory owners register their premises with the local authorities before commencing operations. The Department of Factories and Boilers is responsible for issuing Factory Licenses and ensuring the safety and welfare of workers.
Pursuant to the 1948 Factory Act, it is compulsory for each factory owner to register their premises with local authorities before starting a business. Factory License acts as an approval document provided by authorities to carry out manufacturing activities.
The Factories Act 1948 states that a factory must obtain approval from the labor and employment department for its building plan before it covers itself for registration of a factory. Under this act, Factory license registration and renewal is also done to ensure the safety of workers.
According to section 2(m) "factory" means any premises including the precincts thereof-
(i) whereon ten or more workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or
(ii) whereon twenty or more workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on, - but does not include a mine subject to the operation of the Mines Act, 1952 (XXXV of 1952) or a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place;
Under the Factory Act 1948, factories meeting specific criteria must comply with the guidelines. These guidelines are as follows:
Factories are further categorized into two subcategories:
Before starting construction, reconstruction of a factory, or in the event of factory expansion, the entrepreneur/applicant must apply for approval of the factory plan and obtain permission for construction.
Before applying for a Factory License, certain prerequisites must be fulfilled. These include:
Factory Building/Premises: The factory premises must be suitable for carrying out manufacturing activities safely.
NOC from Fire, Water, and Pollution Boards: No Objection Certificates must be obtained from the fire, water, and pollution control boards to ensure compliance with safety and environmental regulations.
Factory Layout Plan: A detailed layout plan of the factory premises, including machinery placement and workflow, must be submitted.
The factory owner must submit the factory plan to the state labor department for approval. This plan should adhere to the guidelines laid down by the department and ensure the safety and welfare of workers. Prior consent from the state government is required for any expansion or construction of industrial facilities including following details:
The factory owner needs to file an application for the Factory License with the state labor department or the department of factories. The application must be submitted in the prescribed format along with all the required documents.
Once the application is submitted, the prescribed fees for obtaining the Factory License must be paid. The fee structure varies depending on the state and the category of the factory (hazardous or non-hazardous).
In the event that the application and proposals are in accordance with the legislative requirements of the Factories Act, 1948 and Factories Rules, 1950, the factory plan shall be approved by the Factories Director after review of the recommendations of the Deputy Factories Director concerned
Upon payment of fees and inspection of the application, if the department is satisfied that all the documents and application form comply with the desired rules and norms, the Factory License is issued. The license is valid for a specified period, usually one year, and must be renewed before its expiration.
To obtain a Factory License, the following documents need to be submitted along with the application:
While obtaining a Factory License offers numerous benefits, there are certain challenges that factory owners may face during the process. These challenges include:
If any person violates the rule made under factories act 1948 then he will be penalties as per the act. Following penalties can be imposed
➲ Imprisonment for a term which may extend to one year, or,
➲ Fine which may extend to one lakhs, or
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