Hi Seniors,
I am really thankful to you for your valuable and informative contributions on this portal.
Can a person be a factory manager of two units if:
1. The Occupier is one of both units.
2. The company name is the same; only one is unit-I, and another is unit-II.
3. ESIC and EPF registration is the same for both companies.
4. Salary sheets are prepared separately for both units.
5. The company is located in Uttarakhand.
So, for the submission of the Annual Return of Factory Act (Form-21) for Unit-I and Unit-II, can the factory manager be the same?
Please explain.
Thanks and Regards,
Jagdish Rawat
From India, Delhi
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3I am really thankful to you for your valuable and informative contributions on this portal.
Can a person be a factory manager of two units if:
1. The Occupier is one of both units.
2. The company name is the same; only one is unit-I, and another is unit-II.
3. ESIC and EPF registration is the same for both companies.
4. Salary sheets are prepared separately for both units.
5. The company is located in Uttarakhand.
So, for the submission of the Annual Return of Factory Act (Form-21) for Unit-I and Unit-II, can the factory manager be the same?
Please explain.
Thanks and Regards,
Jagdish Rawat
From India, Delhi
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Hi Jagdish,
This is a common issue, and most of the retail sector is appointing managers - marketing for 02 or 03 states and paying the ESIC if they are eligible. PF and TDS are common.
You can pay his salary as follows: For example, 90,000/- for one month for Bangalore, Hyderabad, and Chennai locations. If he is sitting in Bangalore location, you can show him in Bangalore location, and you need to pay all the statutory issues there itself. To show the budget of manpower, you can allocate 30k from each location.
I hope this helps clarify the payment structure for the managers across different locations.
Best regards,
[Your Name]
From India, Hyderabad
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This is a common issue, and most of the retail sector is appointing managers - marketing for 02 or 03 states and paying the ESIC if they are eligible. PF and TDS are common.
You can pay his salary as follows: For example, 90,000/- for one month for Bangalore, Hyderabad, and Chennai locations. If he is sitting in Bangalore location, you can show him in Bangalore location, and you need to pay all the statutory issues there itself. To show the budget of manpower, you can allocate 30k from each location.
I hope this helps clarify the payment structure for the managers across different locations.
Best regards,
[Your Name]
From India, Hyderabad
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Thank you, Ashok, for the immediate response. However, my company is located in Uttarakhand with both plants situated in Kashipur. One plant is on plot number 132, and the other is on plot 145. Interestingly, both plants share the same company name. As a result, the solution you provided cannot be implemented in this particular scenario.
Thanks, Jagdish
From India, Delhi
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Thanks, Jagdish
From India, Delhi
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Hi, You can designate him to plants like cluster manager for two units, and remaining are not to be change.
From India, Hyderabad
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From India, Hyderabad
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Your question is: Can an individual be nominated as a Factory Manager for two units under the Factories Act?
The answer is yes. The Act does not prohibit the nomination of the same person as Manager for more than one unit.
From India, Chennai
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The answer is yes. The Act does not prohibit the nomination of the same person as Manager for more than one unit.
From India, Chennai
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Dear team,
1. If there are two factory licenses, there should be two occupiers.
2. If the entry and exit to both the units are the same, there can be one occupier for both the plants.
3. When two factory licenses are obtained, you have to file two returns.
Regards,
VS
From India
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1. If there are two factory licenses, there should be two occupiers.
2. If the entry and exit to both the units are the same, there can be one occupier for both the plants.
3. When two factory licenses are obtained, you have to file two returns.
Regards,
VS
From India
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Thanks Sivasankaran But My Consultant is saying one cannot be a factory manager for two units. According to you if Yes Plz explain How can be ...........
From India, Delhi
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From India, Delhi
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Dear Sir Factory License is separate for both the unit and entry and exit is also not same but occupier is same.
From India, Delhi
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From India, Delhi
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Just check the previous returns ,for the reference and proceed along with that., and consult with the concerned departments for further details.
From India, Hyderabad
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From India, Hyderabad
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hai , You can nominate one manager for two units as the PF & ESI No. is same for the both units, you can proceed further with the same manger name for two units, Thanks,
From India, Hyderabad
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From India, Hyderabad
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Yes, A single person can be a factory Manager for 2 plants. A separate Factory License should be obtain for both the plants with same factory Manager / Occupier. S B Ramesh
From India, Madras
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From India, Madras
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Kindly ask your consultant which provision of the Factories Act or Rule prohibits a person from being nominated as a manager for more than one unit. There are four persons mentioned in the Factories Act:
1. Occupier
2. Manager
3. Welfare Officer
4. Safety Officer
The Occupier nominates a Manager. If the Occupier does not nominate or if a nominated Manager resigns, the Occupier will act as the Manager unless proven otherwise. The Act does not specify the duties of a Manager. Welfare officers and Safety Officers cannot be nominated for other units, but a Manager can be. It is not necessary for the Manager's name to be on the Muster Roll, but it is expected that the Manager attends to the day-to-day functions of the unit. A Consultant who only visits once a week cannot be appointed as a Manager. If the unit is located outside the city, it is assumed that the person cannot oversee day-to-day operations, requiring another person on-site as Manager. However, if you have two units in the same city, the Occupier can nominate the same person as Manager for both units since the law does not prohibit it.
Reviewing the rules in different states, you will find that the Manager is primarily responsible for maintaining registers and providing information to the Inspector. The Act addresses major issues involving the Occupier and sometimes the Manager. There is no prohibition on appointing a person as Manager for more than one unit.
From India, Chennai
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1. Occupier
2. Manager
3. Welfare Officer
4. Safety Officer
The Occupier nominates a Manager. If the Occupier does not nominate or if a nominated Manager resigns, the Occupier will act as the Manager unless proven otherwise. The Act does not specify the duties of a Manager. Welfare officers and Safety Officers cannot be nominated for other units, but a Manager can be. It is not necessary for the Manager's name to be on the Muster Roll, but it is expected that the Manager attends to the day-to-day functions of the unit. A Consultant who only visits once a week cannot be appointed as a Manager. If the unit is located outside the city, it is assumed that the person cannot oversee day-to-day operations, requiring another person on-site as Manager. However, if you have two units in the same city, the Occupier can nominate the same person as Manager for both units since the law does not prohibit it.
Reviewing the rules in different states, you will find that the Manager is primarily responsible for maintaining registers and providing information to the Inspector. The Act addresses major issues involving the Occupier and sometimes the Manager. There is no prohibition on appointing a person as Manager for more than one unit.
From India, Chennai
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DEAR JAGDISH,
1. Occupier can be the same for both units.
2. The company name can be the same, only one is unit-I, and another is unit-II.
3. ESIC and EPF registration can be one for both companies, with branch addition if the same local office is concerned.
4. Salary Sheet can be maintained separately for both units.
Regarding your question about the Factory Manager and Factory Act return, as per the rules, the establishment location and registration number of the factory are different, so separate returns are required for both factories. The manager can be the same for both factories, but the act states that:
(During any period for which no person has been designated as manager of a factory or during which the person designated does not manage the factory, any person found acting as manager, or if no such person is found, the occupier himself, shall be deemed to be the manager of the factory for the purposes of this Act.)
Thanks, I will share more information later.
From India, New Delhi
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1. Occupier can be the same for both units.
2. The company name can be the same, only one is unit-I, and another is unit-II.
3. ESIC and EPF registration can be one for both companies, with branch addition if the same local office is concerned.
4. Salary Sheet can be maintained separately for both units.
Regarding your question about the Factory Manager and Factory Act return, as per the rules, the establishment location and registration number of the factory are different, so separate returns are required for both factories. The manager can be the same for both factories, but the act states that:
(During any period for which no person has been designated as manager of a factory or during which the person designated does not manage the factory, any person found acting as manager, or if no such person is found, the occupier himself, shall be deemed to be the manager of the factory for the purposes of this Act.)
Thanks, I will share more information later.
From India, New Delhi
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Dear Rawat,
One person cannot be the manager for two industries at one time. An industry having more than one branch under one license, like yours, should ensure that the factory license is applied to cover both units. This clarification is important.
If both units operate under separate licenses, then one person cannot serve as the manager for both units. The Factory Act prohibits one person from managing two units with distinct identities. While a person can be the occupier for several units, they cannot manage more than one independent unit simultaneously.
Regards,
Ramesh Kumar Panchal
From India, New+Delhi
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One person cannot be the manager for two industries at one time. An industry having more than one branch under one license, like yours, should ensure that the factory license is applied to cover both units. This clarification is important.
If both units operate under separate licenses, then one person cannot serve as the manager for both units. The Factory Act prohibits one person from managing two units with distinct identities. While a person can be the occupier for several units, they cannot manage more than one independent unit simultaneously.
Regards,
Ramesh Kumar Panchal
From India, New+Delhi
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Dear Mr. Rawat, Your Consultant is right. As per Factories Act, one can not be Factory Manager for two units, Occupier can be same, no issues in that. Regards Ravinder Bhardwaj
From India, Delhi
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From India, Delhi
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Does the Factories Act really prohibit? Under what section? I had been going through the Act and Rules of some of the States and could not find any such prohibition. In the absence of any specific prohibition, legally, we cannot say that a manager cannot be nominated for two factories.
If I have missed any such clause, I would request you to correct me.
Thanks
From India, Chennai
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If I have missed any such clause, I would request you to correct me.
Thanks
From India, Chennai
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Hi all,
For your kind information, the Factory License is separate for both the units. According to me, the occupier can be one of many units, but the Factory Manager cannot be one person; it should be multiple members. The differing views on this matter have created confusion.
Please provide a legally correct explanation.
Thanks,
Jagdish Rawat
From India, Delhi
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For your kind information, the Factory License is separate for both the units. According to me, the occupier can be one of many units, but the Factory Manager cannot be one person; it should be multiple members. The differing views on this matter have created confusion.
Please provide a legally correct explanation.
Thanks,
Jagdish Rawat
From India, Delhi
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Dear Mr. Rawat,
As I have been mentioning, the Act does not prohibit the appointment of a Manager for only one factory. In my career, I have nominated the same Manager for different Units. I have reviewed the Act again and the rules of Maharashtra, Tamil Nadu, and Karnataka, and I have not found any clause that prohibits a Manager from being appointed for more than one unit.
From India, Chennai
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As I have been mentioning, the Act does not prohibit the appointment of a Manager for only one factory. In my career, I have nominated the same Manager for different Units. I have reviewed the Act again and the rules of Maharashtra, Tamil Nadu, and Karnataka, and I have not found any clause that prohibits a Manager from being appointed for more than one unit.
From India, Chennai
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The 'Manager' is not defined in the Act. It is defined in the state rules which state, 'the manager means the person responsible to the occupier for the working of the factory for the purpose of the Act.' Usually, the person who is in charge of the day-to-day function of the factory is made the manager. If the factories are in the same place, practically one can be a Manager for many factories. But if one factory is in Gouhati and another is in Kerala, one cannot perform that function, although the Factories Act does not prevent it.
VARGHESE MATHEW
9961266966
From India, Thiruvananthapuram
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VARGHESE MATHEW
9961266966
From India, Thiruvananthapuram
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Occupier has to be a Board of Director who has ultimate control and may have more than one factory under the company. They can be appointed for more than one factory. Since a factory manager is appointed for that factory and is working in the plant to manage the work, they have to be dedicated to that specific factory only.
From India, Pune
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From India, Pune
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dear all
here is some more information regarding the roll of manager i hope it will give some more illustration to our discussion.please go thru
**Central Government Act Section 101 in The Factories Act, 1948 101. Exemption of occupier or manager from liability in certain cases. Where the occupier or manager of a factory is charged with an offence punishable under this Act, he shall be entitled, upon complaint duly made by him and on giving to the prosecutor not less than three clear days' notice in writing of his intention so to do, to have any other person whom he charges as the actual offender brought before the Court at the time appointed for hearing the charge; and if, after the commission of the offence has been proved, the occupier or manager of the factory, as the case may be, proves to the satisfaction of the Court-- (a) that he has used due diligence to enforce the execution of this Act, and (b) that the said other person committed the offence in question without his knowledge, consent or connivance,- - that other person shall be convicted of the offence and shall be liable to the like punishment as if he were the occupier or manager of the factory, and the occupier or manager, as the case may be, shall be discharged from any liability under
**Central Government Act Section 2(n) in The Factories Act, 1948 (n) " occupier" of a factory means the person who has ultimate control over the affairs of the factory 6
**manager" means an individual (not being the managing agent) who, subject to the superintendence, control and direction of the Board of directors, has the management of the whole, or subsantially the whole, of the affairs of a company, and includes a director or any other person occupying the position of a manager, by whatever name called, and whether under a contract of service or not;
**A company shall not appoint or employ at the same time both a managing director and a manager. Section 197A makes prohibition on appointment or employment of certain different categories of managerial personnel at the same time. The prohibition is applied to both a public company and a private company.
Company cannot have more than one manager
**A company can have only one manager. The logic behind this is that only one individual can have the management of the whole, or substantially the whole of the affairs of a company.
Director may also be appointed as a manager
A director of a company may also be appointed as its manager. If he ceases to hold office of director then his office of manager will not come to an end and he will continue to hold the office of manager of the company as per terms of his appointment.
**Compulsion to appoint a managing or whole-time director or manager (Section-269)
**As per section 269(1), a public company or a private company which is a subsidiary of a public company, having a paid up share capital of rupees five crores or more shall have a managin
**2. Definition of "Manager" [Refer Section 2(24)]
Section 2(24) of the Companies Act, 1956 defines the term 'Manager', means an individual who, subject to the superintendence, control and direction of the Board of directors, has the management of the whole, or substantially the whole, of the affairs of a company, and includes a director or any other person occupying the position of a manager, by whatever name called, and whether under a contract of service or not.
**Sec. 2(30) "officer" includes any director, manager or secretary, or any person in accordance with whose directions or instructions the Board of directors or any one or more of the directors is or are accustomed to act.
Sec. 5. Meaning of "officer who is in default" — For the purpose of any provision in this Act which enacts that an officer of the company who is in default shall be liable to any punishment or penalty, whether by way of imprisonment, fine or otherwise, the expression "officer who is in default" means all the following officers of the company, namely –
the managing director or managing directors;
the whole-time director or whole-time directors;
the manager;
the secretary;
**any person in accordance with whose directions or instructions the Board of directors of the company is accustomed to act;
**any person charged by the Board with the responsibility of complying with that provision:
please give your opinion whatsoever you have
thanx
ramesh kumar panchal
From India, New+Delhi
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here is some more information regarding the roll of manager i hope it will give some more illustration to our discussion.please go thru
**Central Government Act Section 101 in The Factories Act, 1948 101. Exemption of occupier or manager from liability in certain cases. Where the occupier or manager of a factory is charged with an offence punishable under this Act, he shall be entitled, upon complaint duly made by him and on giving to the prosecutor not less than three clear days' notice in writing of his intention so to do, to have any other person whom he charges as the actual offender brought before the Court at the time appointed for hearing the charge; and if, after the commission of the offence has been proved, the occupier or manager of the factory, as the case may be, proves to the satisfaction of the Court-- (a) that he has used due diligence to enforce the execution of this Act, and (b) that the said other person committed the offence in question without his knowledge, consent or connivance,- - that other person shall be convicted of the offence and shall be liable to the like punishment as if he were the occupier or manager of the factory, and the occupier or manager, as the case may be, shall be discharged from any liability under
**Central Government Act Section 2(n) in The Factories Act, 1948 (n) " occupier" of a factory means the person who has ultimate control over the affairs of the factory 6
**manager" means an individual (not being the managing agent) who, subject to the superintendence, control and direction of the Board of directors, has the management of the whole, or subsantially the whole, of the affairs of a company, and includes a director or any other person occupying the position of a manager, by whatever name called, and whether under a contract of service or not;
**A company shall not appoint or employ at the same time both a managing director and a manager. Section 197A makes prohibition on appointment or employment of certain different categories of managerial personnel at the same time. The prohibition is applied to both a public company and a private company.
Company cannot have more than one manager
**A company can have only one manager. The logic behind this is that only one individual can have the management of the whole, or substantially the whole of the affairs of a company.
Director may also be appointed as a manager
A director of a company may also be appointed as its manager. If he ceases to hold office of director then his office of manager will not come to an end and he will continue to hold the office of manager of the company as per terms of his appointment.
**Compulsion to appoint a managing or whole-time director or manager (Section-269)
**As per section 269(1), a public company or a private company which is a subsidiary of a public company, having a paid up share capital of rupees five crores or more shall have a managin
**2. Definition of "Manager" [Refer Section 2(24)]
Section 2(24) of the Companies Act, 1956 defines the term 'Manager', means an individual who, subject to the superintendence, control and direction of the Board of directors, has the management of the whole, or substantially the whole, of the affairs of a company, and includes a director or any other person occupying the position of a manager, by whatever name called, and whether under a contract of service or not.
**Sec. 2(30) "officer" includes any director, manager or secretary, or any person in accordance with whose directions or instructions the Board of directors or any one or more of the directors is or are accustomed to act.
Sec. 5. Meaning of "officer who is in default" — For the purpose of any provision in this Act which enacts that an officer of the company who is in default shall be liable to any punishment or penalty, whether by way of imprisonment, fine or otherwise, the expression "officer who is in default" means all the following officers of the company, namely –
the managing director or managing directors;
the whole-time director or whole-time directors;
the manager;
the secretary;
**any person in accordance with whose directions or instructions the Board of directors of the company is accustomed to act;
**any person charged by the Board with the responsibility of complying with that provision:
please give your opinion whatsoever you have
thanx
ramesh kumar panchal
From India, New+Delhi
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Dear Ramesh kumar Where are sections 197A, 269, 2(24) 2(30) and Sec. 5 under the Factories Act 1948 to understand the implications of the provisions? B.Saikumar HR & Labour Law advisor Mumbai
From India, Mumbai
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From India, Mumbai
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We are discussing the Factories Act and Rules, not the Companies Act. As I mentioned, I have read and reread the Act multiple times in the last few days and have not come across any definitions, roles, prohibitions, or qualifications. In the absence of such definitions, we should stick with the general meaning.
From India, Chennai
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From India, Chennai
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