Which factory need to take license under Factories Act, 1948?

1. License is issued only to the premises where the Act is applicable.
   
   
2. A previous permission in writing from the Chief Inspector of Factories is to be obtained before any factory building or premises is so constructed, extended or taken into use as a Factory or part of the Factory..
   
   
3. License only be issued after the plans of factory is so approved by Chief Inspectors of Factories/Dy. Chief Inspector of factories and a Certificate of stability by the competent person in respect of engineering construction in Form No. I-A has been submitted.
   
   
4. License will be issued only after receiving the application for the same and verifying it if necessary by visiting the premises of the factory.
   
   
5. Application for the license shall be submitted to the Chief Inspector of Factories/Factory Inspector's Office before commencing the operation in Form No. 2 (Triplicate) for the registration & Form No. 3(Duplicate) for the grant of license accompanied by a treasury Chalan for payment of fees.As payable per Fees Chart.
   
   
6. A copy of the letter showing number and date of the plan approved by the Chief Inspector of Factories.
   
   
7. An Evidence for power i.e. copy of light Bill or order of releasing the connection by G.E.B. or A.E.C., as the case may be .
   
   
8. Detail of the Constitution of firm i.e. partnership deed in case of partnership, Memorandum and Article of Associations in case of limited or Pvt. Ltd. Firm and copy of office bearer and constitution in case of co-operative sector.

1. An application in form No. 3 (Duplicate)
2. Treasury receipt (chalan) of necessary fees.(as per Fees Chart)
3. Original License.
4. Process flow chart

1. A license granted under rule 5 may be amended by the Chief Inspector.
   
   
2. A licensee shall be required to have his license amended if there is a change in the name of factory, or if the factory for which the license is granted exceeds the limits specified in the license in regard to horsepower or the number of persons employed. The licensee whose license is required to be amended shall submit it to the Chief Inspector so as to reach him within a period of 30 days from the date the event requiring amendment of the license occurs with an application stating the nature of the amendment and reasons therefore :
   Provided that no amendment of the license shall be necessary in respect of changes in the number of workers or horsepower or both unless such changes involve higher license or renewal fee.
   
   
3. Where a license is required to be amended under sub-rule 6(2) the fee to be paid for such amendment shall be equal to the difference between the license or renewal fee on the basis of the higher number of worker and horse power and the fees for the grant of license or renewal thereof already paid for the year or part thereof.
   
   
4. If the application for the amendment of licence is received at any time after the expiry of the period specified in sub-rule 6(2) then notwithstanding any action which may be taken against the licensee for such default, the license may be amended on payment of an additional fee equal to 25% of the fee payable under sub-rule 6(3).

A) A license can be cancelled in following cases

1. When a Factory is totally closed
2. When the machineries installed are shifted and manufacturing activity ceases.
3. If the number of workers reduces & it no longer remains amenable under the factories Act (Sec. 2(m) (i), Sec 2 (m) (ii) or Sec 85 whatever the case may be)

B) Procedure for Cancellation

The occupier or manager immediately after it is decided to do so furnish following details along with a original license (due paid) to the inspector concern for cancellation of license

1. the date of intended closure;
2. the reasons for closure;
3. the number of workers on the muster-roll of the factory on the day
4. the number of workers likely to be affected by the closure; and
5. the probable period of closure;
6. Details of dues paid to the worker.

1. An application for obtaining previous permission for the site on which the factory is to be situated and for the construction or extension of a factory shall be made to the Chief Inspector of Factories.
   
   Application for such permission shall be made in Form No. 1 / Along with Questionnaires Form which shall be accompanied by the following documents:

1. A flow chart of the manufacturing process supplemented by a brief description of the process in its various stages;
   
   
2. Plans in duplicate drawn to the scale showing-

1. the site of the factory and immediate surroundings including adjacent buildings and other structures, roads, drains, etc.;
2. the plan elevation and necessary cross-sections of the various buildings, indicating all relevant details relating to natural lighting, ventilation and means of escape in case of fire. The plans shall also clearly indicate the position of the plant and machinery, aisles and passage ways;
3. for chemical factories material safety data sheet as per schedule-5 (M.S.D.S.) of all the chemical used.
4. Process and measure taken in detail as per schedule 7
5. Provisions for the safe disposal of the solid, liquid and gaseous waste arising out of the processes carried out in premises and Annexure 4, Annexure 6
6. Permission letter from local Authorities and N.O.C. Wherever it is necessary.

1. Muster Roll -> Form 28
2. Register of Leave with wages -> From 18
3. Register of Accidents,Major Accidents and dangerous occurrences-Form 29
   
4. Register of lime washing, & painting etc.-> Form 7
   
5. Inspection Book for the inspector & certifying person.-> Form 31
   
6. Register of adults workers -> Form 15
7. Wages Register -> Form IIA

In certain cases if need arises any of or all of the following records are required to be maintained depending upon the class of factories and machinery/equipment used by them.

1. Health Register -> Form 20 and Form32
2. Humidity Register -> Form 6
3. Test Reports
   1. Hoist &lifts -> Form 9
   2. Lifting machines, ropes and lifting tackles-> Form 10
      
   3. Pressure vessels or plants -> Form 11
   4. Water sealed Gas Holder -> Form 11A
   5. Overtime Register form for Exempted workers-> Form 13
      
   6. Register of workers employed for working or near moving machinery-> Form 8
      
   7. Register of child workers-> Form 17
      
   8. Register of working environment monitoring -> Form 37
      

1. Annual Return Form 24 to be submitted on or before 1st Feb.
2. Half yearly Return Form 25 to be submitted on or before 15th July and 15th Jan.
   

1. Notice of Period of Work for adult worker - Form 14 & for child workers - Form 16
   
2. Abstract of the Factories - Form23
   Act 1948
3. Cautionary Notice (For chemicals)
4. Name and addresses of local F. I. Factory Inspector incharge with phone number
5. List of weekly holidays.
6. Abstract of the Payment of wages - Form V
   Act 1923
7. Abstract of the Maternity Benefit Act 1961

To comply with all the provision of the Act and the rules made there under. It is responsibility of the occupier and in certain cases of the manager of the factories

General duties of the occupier in Section 7A is specifically mentioned as under.

7-A. General duties of the occupier.-

1. Every occupier shall ensure, so far as is reasonably practicable, the health, safety and welfare of all workers while they are at work in the factory.
2. Without prejudice to the generality of the provisions of sub-s (1), the matters to which such duty extends, shall include --
   
   
   1. the provision and maintenance of plant and systems of work in the factory that are safe and without risks to health;
   2. the arrangements in the factory for ensuring safety and absence of risks to health in connection with the use, handling, storage and transport of articles and substances;
   3. the provision of such information, instruction, training and supervision as are necessary to ensure the health and safety of all workers at work;
   4. the maintenance of all places of work in the factory in a condition that is safe and without risks to health and the provision and maintenance of such means of access to, and egress from, such places as are safe and without such risks;
   5. the provision, maintenance or monitoring of such working environment in the factory for the workers that is safe, without risks to health and adequate as regards facilities and arrangements for their welfare at work.
      
      
3. Except in such cases as may be prescribed, every occupier shall prepare, and, as often as may be appropriate, revise, a written statement of his general policy with respect to the health and safety of the workers at work and the organisation and arrangements for the time being in force for carrying out that policy, and to bring the statement and any revision thereof to the notice of all the workers in such manner as may be prescribed.
   
   

Following are the obligation of a workers working in a Factory
                      

No Worker in the Factory-

1. shall willfully interfere with or misuse any appliance, convenience or other thing provided in a factory for the purposes of securing the health, safety or welfare of the workers therein;
2. shall willfully and without reasonable cause do anything likely to endanger himself or others; and
3. shall willfully neglect to make use of any appliance or other thing provided in the factory for the purposes of securing the health or safety of the workers therein.
   

The list of the factories involving hazardous processes are as under

1. Ferrous Metallurgical Industries
   Integrated Iron and Steel
   Ferrow-alloys
   Special Sheets
2. Nonferrous Metallurgical Industries
   Primary Metallurgical Industries, namely, zinc, lead, copper, manganese and aluminum
3. Foundries (ferrous and nonferrous)
   Castings and forging including cleaning or smoothening/roughening by sand and shot blasting
4. Coal (including coke) industries
   Coal, Lignite, Coke, etc.
   Fuel Gases (including Coal Gas, Producer Gas, Water Gas)
5. Power Generating Industries
6. Pulp and Paper (including paper products) industries
7. Fertilizer Industries
   Nitrogenous
   Phosphatic
   Mixed
8. Cement Industries
   Portland Cement (including slag cement, puzzolona cement and their products)
9. Petroleum Industries
   Oil Refining
   Lubricating Oil and Greases
10. Petro-chemical Industries
11. Drugs and Pharmaceutical Industries
    Narcotics, Drugs and Pharmaceuticals
12. Fermentation Industries (Distilleries and Breweries)
13. Rubber (synthetic) Industries
14. Paints and Pigment Industries.
15. Leather Tanning Industries
16. Electro-plating Industries
17. Chemical Industries
    Coke Oven By-products and Coaltar Distillation products
    Industrial Gases (nitrogen, oxygen, acetylene, argon, carbondioxide, hydrogen, sulfur dioxide, nitrous oxide, halogenated hydrocarbon, ozone, etc.)
    Industrial Carbon
    Alkalies and Acids
    Chromates and dichromates
    Leads and its compounds
    Electrochemical (metallic sodium, potassium and magnesium, chlorates, perchlorates and peroxides)
    Electrothermal produces (artificial abrasive, calcium carbide)
    Nitrogenous compounds (cyanides, cyanamides, and other nitrogenous compounds)
    Phosphorous and its compounds
    Halogens and Halogenated Compounds (Chlorine, Fluorine, Bromine and Iodine)
    Explosives (including industrial explosive and detonators and fuses)
18. Insecticides, Fungicides, Herbicides and other Pesticides Industries
19. Synthetic Resin and Plastics
20. Man-made Fiber (Cellulosic and non-cellulosic) Industry
21. Manufacture and repair of electrical accumulators
22. Glass and Ceramics
23. Grinding or glazing of metals
24. Manufacture, handling and processing of asbestos and its products
25. Extraction of oils and fats from vegetable and animal sources
26. Manufacture, handling and use of benzene and substances containing benzene
27. Manufacturing processes and operations involving carbon disulphide
28. Dyes and Dyestuff including their intermediates
29. Highly flammable liquids and gases.

The machinery sited in following Schedules under Rule 54 are considered as a dangerous machines

(1) Textile machinery Except machinery used in Jute mills
(2) Cotton Ginnning
(3) Wood working machinery
(4) Rubber mills
(5) Centrifugal machines
(6) Power press
(7) Shears, Slitters and Guilletine machines.

The following operations when carried on in any factory are declared to be dangerous [manufacturing process or operations] under Rule 102 of Gujarat Factory Rules.1963:-

1. Manufacture of aerated water and processes incidental thereto.
2. Electrolytic plating or oxidation of metal articles by use of an electrolyte containing chromic acid or other chromium compounds.
3. Manufacture and repair of electric accumulators.
4. Glass manufacture.
5. Grinding or glazing of metals.
6. Manufacture and treatment of lead and certain compounds of lead.
7. "Generation of gas from dangerous petroleum as defined in clause (b) of section 2 of the Petroleum Act, 1934;"
8. Cleaning, smoothing roughening or removing of any part of the surface of articles, by a jet of sand, metal shot, or grit, or other abrasive propelled by a blast of compressed air or steam."
9. Liming and tanning of raw hides and skins processes incidental thereto.
10. Manufacture of chromic acid or manufacture or recovery of the bichromate of sodium of potassium or ammonium.
11. Manipulation of nitro or amido compounds.
12. Manipulation of acids or alkalis.
13. Manufacture of bangles and other articles from cinematography films and acetone, therachlorethane and other toxic and inflammable solvents,
14. Processes involving manufacturing, use or evolution of carbon disulphide and hydrogen sulphide.
15. Manufacture and manipulation of dangerous pesticides.
16. Compression of Oxygen and hydrogen produced by electrolysis of water.
17. Handling and processing of asbestos manufacture of any article of asbestos and any other process of manufacture or otherwise, in which asbestos is used in any form.
18. Manufacture of articles from refractory materials including manufacture of refractory bricks."
19. Chemical works
20. Manufacture and use of benzene or its allied product
21. Process of Extracting oils and fats from vegetable and animal sources in solvent Extraction plants.
22. Manufacturing process or operation in Carbon-Disulphide plants.
23. Operation involving High Noise levels.
    
24. Welding/Cutting operation with the use of LPG/Acetylene/Argon
25. Manufacture of pottery
26. Operations in Foundries.
    

Hazardous Chemical means

(1) any chemical which satisfied any of the criteria laid down in part I of schedule I and also listed in Column 2 of part II of schedule I.
(2) Any chemical listed in schedule II and III.

"Industrial Activity" Means

An operation or process carried out in an industrial installation referred to in schedule -4 Involving or likely to involve one or more hazardous chemicals and includes on site storage or on site transport which is associated with that operation or process as the case may be ; and
"Isolated Storage" means storage of hazardous chemical other than storage associated with an Installation on the same site specified in scheduled -4 where that storage involves at least the Quantities of that chemical set out in schedule -2.

Duties of the occupier who has control of an industrial activity is as under.

(1) Identify the major accident hazard.
(2) Take and provide evidence that the steps taken to prevent major accidents.
(3) Provide information training (includes antidotes) to the persons working on the site.
(4) Notify the major accidents in schedule - 6 and also steps taken to prevent repetition of such occurrences.
(5) Notification of sites in schedule - 7 to the concern authorities.
(6) Obtain or develop safety data sheet in schedule - 5 in respect of hazardous chemicals.

Provisions for safety report and safety audits are as under.

(1) Occupier has to submit safety report in schedule - 8 to the concern authorities (only in case of quantities equal to or higher than or specified in schedule -2 and 3)
(2) Safety report shall be prepared and submitted once in three years.
(3) Safety Audit shall be carried out once in a year by independent person / agency.
(4) Occupier shall submit audit report within 30 days along with comments and compliance of the comments.

On site Emergency plan is required to be prepared by the occupier and mock drill shall be conducted once in 6 months and report of the mock drill shall be forwarded to concern authority.
Off site emergency plan is required to be prepared by District collector or District Emergency Authority and conduct mock drill once in year.

Maternity benefits to the pregnant woman are as under.

(1) leave For 6 weeks before and 6 weeks after the date of the delivery or miscarriage.
(2) Medical bonus

After returning on duty the woman shall be allowed for two breaks each of 15 minutes duration for nursing the child on and above the regular interval until the child attains the age of 15 months.

She should have actually worked in the establishment in a period not less than 160 days in the 12 months and not covered under E.S.I.C.

Maternity benefits is payable in advance for 6 weeks by the employer on production of the proof that woman is pregnant and other 6 weeks payment shall be made within 48 hours on production of the proof that the woman has delivered a child. On death of woman it will be paid to her nominee. If woman dies during the period that the maternity benefit shall be paid only for day upto and including the day of death. If child survives, than the benefit for the period for 6 weeks shall be paid. If child also dies during the said period, than the benefit upto and including the day of death of child shall be paid to nominee.

(1) No woman shall work in any establishment during the 6 weeks immediately following the day of delivery or miscarriage.

(2) No employer shall knowingly employ a woman in any establishment during 6 weeks immediately following the day of her delivery or miscarriage.

Where a woman suffers illness arising out of her pregnancy, miscarriage, premature birth of a child or delivery, she shall be allowed in addition to above leave with wages for maximum 1 month.

Wages payable to employed person rupees one thousand six hundred a month or more.

All remuneration by way of salary & Allowances in terms of money to a person employed in respect of his work done during employment.
which includes

a) Remuneration payable under any award or settlement or order of court.
b) Remuneration in respect of overtime work, holidays, leave period.
c) Additional remuneration called a bonus or by any other name.
d) Sum by termination of employment of the person.
e) Any sum to which person employed is entitled under any scheme formed under law.
But does not include :-

a) Bonus (whether a scheme of profit sharing) which does not form part of remuneration payable under the terms of employment or which is not payable under any award or order of court.
b) Value of House accommodation, supply of light, water, medical attendance or other amenity.
c) Contribution paid by the employer, provident fund, and the interest accrued there on.
d) Traveling allowance or traveling concession.
e) Special expenses entitled by the nature of his employment.
f) Gratuity payable on the termination of employment.

a) Fines
b) Absence from duty
c) Damage to or loss of goods loss of money by the employed person
d) House accommodation
e) Amenities or service supplied by the employer.
f) Recovery of Advances or over payment of wages. Recovery of loans House building loans and the interest due in respect thereof
g) Income tax payable by the employed person
h) Deduction required to be made by order of court or competent authority

1) Provident fund with Written authorization of employed person president/secretary of registered trade union of which the employed person is a member.
2) National defense Fund and Defense saving scheme approved by State Government.

i) Payment to co-operative societies or scheme of insurance maintained by the Indian post office.
j) With the written authorization of the employed person :

1) premium on his L.I.C policy
2) contribution to fund constituted by the employer or a registered trade union for welfare scheme of his family.
3) Fees payable for the membership of any registered trade union.

k) Insurance premium on Fidelity Guarantee Bonds.
l) Losses sustained by railway administration on account of acceptance by the employed person of counterfeit of base coins or forged currency notes.
m) Losses sustained by a railway administration on account of the failure of the employed person to invoice, to bill, to collect the appropriate charges (freight, damage, whartage and carnage or in respect of sale of food in catring establishments, or sale of commodities in grain.
n) Losses sustained by a railway administration on account of any rebates or refunds.
o) Written authorization of the employed person for contribution to a Prime Minister's National Relief Fund or such other Fund, Notified by the control government.

a) An Inspector of Factories appointed Under Section : 8(1) of the Factories Act, 1948 in respect of all factories within their local limits.
b) The Inspectors appointed by the State Government.
c) By the notification of State Government appoint other persons, and may define their local limits for class of factories and establishment.

a) any railway, factory or other establishment in which less than one thousand persons are employed shall be paid before the expiry of the seventh day.
b) any other railway, factory or other establishment shall be paid before the expiry of the tenth day.
c) In case of termination of employment shall be paid before the expiry of the second working day from the day of termination.
d) The State Government may, be general or special order of any class of such persons.

a) Every "Factory where 500 or more workers are working or were working on any day of the twelve months immediately preceding the commencement of this Act, i.e., force on 7th October, 1981.
b) Every new factory where 200 or more workers are working.
c) The State Government may, after giving two months notice of the intention of so doing, by notification in the Official Gazette apply the provision of this Act to other factories where such lesser umber of workers working.

a) Occupier shall allocate one half percent or such higher percent not exceeding one percent as may be prescribed of the number of workers so working.

a) He is an adult.
b) His name is registered at any employment exchange in the State.
c) A certificate of fitness granted under section -5 is in the custody of manager of he factory.

a) Form - I
Certificate of fitness to a Physically handicapped Person issued by Certifying Surgeon.
b) Form - II
Register of Handicapped Workers for the period.

Worker who is rendered job less due to power cut, which is notified by Government and to whom the employer fails or refuses to provide alternative employment within 8 kilo meters.

Worker entitled for the Allowance has to be give 50% of his wages for which basic pay plus dearness allowance is considered.

Worker is not entitled for unemployment allowance if -

a) He refuses to accept alternative employment

b) If he is entitled for any lay off compensation under the provision of Industrial disputes Act, 1947