Factories Act, 1948

Overview with recent updates

Madhya Pradesh government recently allowed the companies to hire and fire workers to tackle the Covid-19 crisis.

In other words, Establishments will now be able to keep the laborers in service as per their convenience. And  No government intervention of the Department of labour and the labour court in action taken by the Industries. Recent updates in Factories Act, 1948 are over viewed as follows.

Labor Law Relief for Employers in Factories Act, 1948

Madhya Pradesh

  • Firstly, No major inspection, maintenance of registers.
  • Secondly, Factories may go for third party inspection
  • Thirdly, Employers allowed to extend shift hours, In other words factories can have a 12 hour working day by paying for 4 extra hours to the workers.
  • Fourthly, Factories to file single return
  • Moreover, New factories to be exempted from Filling annual return and License to be issued in a day.
  • And Lastly, Factories need not to contribute to State Labour Welfare board
  • In Addition Shops/Establishment remains open during midnight

In Addition, new establishments in the state will be exempt from the provisions of Industrial Disputes Act, 1947 for 1000 days (Or around 2.7 Years). If i say in general words then this decision of Madhya Pradesh Government led to “End of Inspector Raj”

Uttar Pradesh

To allure the manufacturing companies leaving China, Uttar Pradesh Government have also taking steps for providing exemption to Industry from all labour laws except:

  • Building and other construction Workers Act, 1996
  • Workmen Compensation Act, 1923
  • Bonded Labour System (Abolition) Act, 1976

Gujarat

In the race of catching manufacturing companies, Gujarat government have also provided following exemption from all labour laws except the following:

  • Minimum Wages Act
  • Industrial Safety Rules
  • Employees Compensation Act
  • 100% online approval within 15 days

However “Rashtriya Swayamsevak Sangh (RSS) affiliated Bhartiya Mazdoor Sangh (BMS) have opposed the decision taken by MP government.”

According to current scenario where the government is only focusing on Manufacturing units or Business owners (by providing relaxation provisions like above) but along with this government also have to think for the welfare of employee class. Above all, Taking decision solely from the prospective of Business owners will not go for a long way.

Therefore, Major decision that government should take is providing liquidity funds to MSME (Medium Small and Mid Sized Enterprises) which help the Business Person to recover from the Covid crisis loss and on the other side provide some liquidity in the hands of employee class.

According to the Provisions of Factories Act, 1948

Earlier Provisions are mentioned as follows:-

Applicability of Factories Act, 1948

  • Firstly, Premise where 10 or more workers work with the Aid of Power.
  • Secondly, Premise where 20 or more workers work without the aid of power

Working Hours guidelines

  • Weekly Hour not more than 48 Hours
  • Daily Hours not more than 9 Hours
  • No women shall work before 6 AM and after 7 PM
  • In addition, Children who are above the age of 14 years and till 18 years shall not work for more than 4.5 Hour per day and in Night shifts

Submission of Reports

  • Firstly, Annual Return in Form 21 by 31st Jan
  • Secondly, Half Yearly return in Form 22 by 31st July
  • Thirdly, Accident Annual Return in Form 31 by 1st week of February
  • Fourthly, Monthly return of hazardous happening in Form 34
  • And lastly Reports of Hoist of lifts in Form 37

Welfare Measures

  • Washing Facilities
  • Sitting Facilities
  • First aid Appliances (1 must be there for every 150 worker)
  • Canteen facility (When 250 or more workers)
  • Shelter/Rest Room (When there are more then 150 workers)
  • Dispensary (When there are more than 500 workers)
  • Creche (When more than 30 women worker)

Annual leave with wages

  • Employee who have minimum worked for 240 days shall be granted 1 Day leave for every 20 day of working and for Child 1 Day for every 15 day of working
  • Worker can Accumulate its leave up to 30 days

Registers to be maintained

  • Health register in Form 17
  • Health register (Hazardous Process) in Form 34
  • Register of white washing (Form 7), Adult worker, Accident

Change of Occupier/Manager

  • Notice of change of manager to inspector of Factories within 7 days of change in Form 2A
Factories Act, 1948 Overview with recent updates
Offences and Penalties

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