The Factories Act, 1948
CHAPTER I: PRELIMINARY
Section 2: Interpretation
Bare Act
In this Act, unless there is anything repugnant in the subject or context, -
- (a) "adult" means a person who has completed his eighteenth year of age;
- (b) "adolescent" means a person who has completed his fifteenth year of age but has not completed his eighteenth year;
- (bb) "calendar year" means the period of twelve months beginning with the first day of January in any year;
- (c) "child" means a person who has not completed his fifteenth year of age;
- (ca) "competent person", in relation to any provision of this Act, means a person or an institution recognised as such by the Chief Inspector for the purposes of carrying out tests, examinations and inspections required to be done in a factory under the provisions of this Act having regard to -
- the qualifications and experience of the person and facilities available at his disposal; or
- the qualifications and experience of the persons employed in such institution and facilities available therein, with regard to the conduct of such tests, examinations and inspections, and more than one person or institution can be recognised as a competent person in relation to a factory;
- (cb) "hazardous process" means any process or activity in relation to an industry specified in the First Schedule where, unless special care is taken, raw materials used therein or the intermediate or finished products, bye - products, wastes or effluents thereof would -
- cause material impairment to the health of the persons engaged in or connected therewith, or
- result in the pollution or the general environment : Provided that the State Government may, by notification in the Official Gazette, amend the First Schedule by way of addition, omission or variation of any industry specified in the said Schedule;
- (d) "young person" means a person who is either a child or an adolescent;
- (e) "day" means a period of twenty - four hours beginning at midnight;
- (f) "week" means a period of seven days beginning at midnight on Saturday night or such other night as may be approved in writing for a particular area by the Chief Inspector of Factories;
- (g) "power" means electrical energy, or any other form of energy which is mechanically transmitted and is not generated by human or animal agency;
- (h) "prime mover" means any engine, motor or other appliance which generates or otherwise provides power;
- (i) "transmission machinery" means any shaft, wheel, drum, pulley, system of pulleys, coupling, clutch, driving belt or other appliance or device by which the motion of a prime mover is transmitted to or received by any machinery or appliance;
- (j) "machinery" includes prime movers, transmission machinery and all other appliances whereby power is generated, transformed, transmitted or applied;
- (k) "manufacturing process" means any process for -
- making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal; or
- pumping oil, water, sewage or any other substance; or
- generating, transforming or transmitting power; or
- composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding; or
- constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or
- preserving or storing any article in cold storage;
- (l) "worker" means a person employed, directly or by or through any agency (including a contractor) with or without the knowledge of the principal employer, whether for remuneration or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process but does not include any member of the armed forces of the Union;
- (m) "factory" means any premises including the precincts thereof -
- 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
- 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 (35 of 1952), or a mobile mobile unit belonging to the armed forces of the Union, railway running shed or a hotel, restaurant or eating place.
Explanation II- For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof, shall not be construed to make it a factory if no manufacturing process is being carried on in such premises or part thereof; - (n) "occupier" of a factory means the person who has ultimate control over the affairs of the factory. Provided that -
- in the case of a firm or other association of individuals, any one of the individual partners or members thereof shall be deemed to be the occupier;
- in the case of a company, any one of the directors shall be deemed to be the occupier;
- in the case of a factory owned or controlled by the Central Government or any State Government, or any local authority, the person or persons appointed to manage the affairs of the factory by the Central Government, the Stale Government or the local authority, as the case may be, shall be deemed to be the occupier :
Provided further that in the case of a ship which is being repaired, or on which maintenance work is being carried out, in a dry dock which is available for hire, -
- the owner of the dock shall be deemed to be the occupier for the purposes of any matter provided for by or under -
- section 6, section 7, section 7A, section 7B, section 11 or section 12;
- section 17, in so far as it relates to the providing and maintenance of sufficient and suitable lighting in or around the dock;
- section 18, section 19, section 42, section 46, section 47 or section 49, in relation to the workers employed on such repair or maintenance;
- the owner of the ship or his agent or master or other officer - in - charge of the ship or any person who contracts with such owner, agent or master or other officer - in - charge to carry out the repair or maintenance work shall be deemed to be the occupier for the purposes of any matter provided for by or under section 13, section 14, section 16 or section 17 (save as otherwise provided in this proviso) or Chapter IV (except section 27) or section 43, section 44 or section 45, Chapter VI, Chapter VII, Chapter VIII or Chapter IX or section 108, section 109 or section 110, in relation to -
- the workers employed directly by him, or by or through any agency; and
- the machinery, plant or premises in use for the purpose of carrying out such repair or maintenance work by such owner, agent, master or other officer - in - charge or person;
- (p) "prescribed" means prescribed by rules made by the State Government under this Act;
- (r) where work of the same kind is carried out by two or more sets of workers working during different periods of the day, each of such sets is called a "group" or "relay" and each of such periods is called a shift.
STATE AMENDMENT
Maharashtra
Amendment of section 2 of 63 of 1948
In section 2 of the Factories Act, 1948 (63 of 1948), in its application to the State of Maharashtra (hereinafter referred to as "the principal Act"), in clause (m), -
- (a) in sub - clause (i), after the words "whereon ten or more workers" the words "or such number of workers as may be specified by the State Government by notification, from time to time" shall be inserted;
- (b) in sub - clause (ii), after the words "whereon twenty or more workers" the words "or such number of workers as may be specified by the State Government by notification, from time to time" shall be inserted;
- (c) after sub - clause (ii), the following proviso shall be inserted, namely : "Provided that, the number of workers to be specified by the State Government in sub - clauses (i) and (ii) shall not exceed twenty and forty workers, respectively. ".
Vide Maharashtra Act 40 of 2015, s. 2.
Ladakh (UT)
Section 2- In clause (m),
- (i) in sub - clauses (i) for the words "ten or more workers", the words "twenty or more workers" shall be substituted;
- (ii) in sub - clause(ii), for the words "twenty or more workers", the words "forty or more workers" shall be substituted.
Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S. O. 3774(E), dated (23 - 10 - 2020).
Jammu and Kashmir (UT)
Section 2- In clause (m), in sub - clauses (i) and (ii), for "ten" and "twenty", substitute "twenty" and "forty" respectively.
Vide Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S. O. 3465(E), dated (5 - 10 - 2020).
Uttar Pradesh
Amendment of section 63 of 1948
In section 2 of the Factories Act, 1948 as amended in its application to Uttar Pradesh, herein after referred to as principal Act, in clause (m), -
- (i) in sub - clause (i), for the words "ten or more", the words "twenty or more" shall be substituted;
- (ii) in sub - clause (ii), for the words "twenty or more", the words "forty or more" shall be substituted.
Vide Uttar Pradesh Act 13 of 2018, s. 2
Arunachal Pradesh
Amendment of section 2 - In section 2 of the Factories Act, 1948 (Central Act 63 of 1948), as in force in the State of Arunachal Pradesh (hereinafter referred to as the "principal Act"), in clause (m), -
- (i) in sub - clause (i), for the words "ten or more workers", the words "twenty or more workers" shall be substituted.
- (ii) in sub - clause (ii), for the words "twenty or more workers" the words "forty or more workers" shall be substituted.
Vide Arunachal Pradesh Act 6 of 2020, s. 2
Rajasthan
Amendment of section 2, Central Act No 63 of 1948 - In section 2 of the Factories Act, 1948 (Central Act No. 63 of 1948), in its application to the State of Rajasthan, hereinafter referred to as the principal Act, -
- (i) in sub - clause (i) of clause (m), for the existing word ten, the word twenty shall be substituted; and
- (ii) in sub - clause (ii) of clause (m), for the existing word twenty, the word forty shall be substituted.
Vide Rajasthan Act 20 of 2014, s. 2
Simplified Act
This section defines various terms used in the Factories Act, 1948:
- Adult: A person who is 18 years old or older.
- Adolescent: A person who is between 15 and 18 years old.
- Calendar year: A year that starts on January 1st and ends on December 31st.
- Child: A person who is under 15 years old.
- Competent person: Someone recognized by the Chief Inspector as qualified and experienced to conduct tests, examinations, and inspections in a factory.
- Hazardous process: A process that could harm the health of workers or pollute the environment, as listed in the First Schedule of the Act. The State Government can change this list.
- Young person: Either a child or an adolescent.
- Day: A 24-hour period starting at midnight.
- Week: A 7-day period starting at midnight on Saturday or another approved night.
- Power: Energy that is not created by humans or animals, like electricity or mechanical energy.
- Prime mover: A machine that generates power.
- Transmission machinery: Parts that move power from the prime mover to other machines.
- Machinery: Includes prime movers, transmission machinery, and other devices that generate, transform, or apply power.
- Manufacturing process: Any process that changes or repairs an item, or prepares it for sale, disposal, or storage, including printing and shipbuilding.
- Worker: Anyone employed in a factory, whether paid or not, and not part of the armed forces.
- Factory: A place where 10 or more workers (with power) or 20 or more workers (without power) have worked in the past year, and where manufacturing is done. This does not include mines, military units, railways, or food places. The number of workers is counted by including all shifts in a day.
- Occupier: The person in charge of the factory. This can be a partner in a firm, a director in a company, or someone appointed by the government.
- Prescribed: Defined by rules made by the State Government under this Act.
- Groups/Relays and Shifts: When workers are divided into teams working at different times, each team is called a "group" or "relay," and the time they work is called a "shift."
The Act also includes amendments specific to certain Indian states, adjusting the number of workers that define a factory.
Explanation using examples
Imagine a scenario where a manufacturing unit in Maharashtra employs 12 workers and uses machinery powered by electricity to produce textiles. According to the definition of "factory" in Section 2(m) of the Factories Act, 1948, this unit would qualify as a factory because it has more than ten workers and is carrying out a manufacturing process with the aid of power. This means the unit must comply with the Act's regulations, including workers' health and safety provisions.
Furthermore, as per the Maharashtra State Amendment, the State Government can adjust the number of workers required for an establishment to be considered a factory. If the government decides to raise this threshold to 15 workers, the unit would still qualify as a factory under the current scenario. However, if the threshold were increased to 25, the unit would no longer be classified as a factory under the Act unless the number of workers increased accordingly.
