Dear Sir, We have start a new factory in Gujrat with 5 workers have required 600 HP. Wether we are coming under the factory act?. kindly give me your advise.
From India, Pune
From India, Pune
Factory Act does not speak about workmen but " employee" please refer defination of " Employee" under Factories Act......
From India, Pune
467From India, Pune
Factories Act 1948 does not refer to employee or define an employee but refers to only a worker under Sec.2(l). A factory employing five workers does not come under the purview of factory unless there is a any specific notification by your State Government covering factories employing less than 10 workers using power or 20 workers without using power.
B.Saikumar
HR & Labour law Advisor
From India, Mumbai
B.Saikumar
HR & Labour law Advisor
From India, Mumbai
Dear Sir,
As per the Factories Act 1948 , Sec2(m). below 10 employees it is not comes under the factories act , but voluntarily can obtain factory license. or approach state labour dept for establishment license shops and establishment Act
From India
As per the Factories Act 1948 , Sec2(m). below 10 employees it is not comes under the factories act , but voluntarily can obtain factory license. or approach state labour dept for establishment license shops and establishment Act
From India
dear Trivedi,
As per Section 7 of the Factories Act,1948, you are required to give a written notice to the Chief inspector of factories at least 15 before start using any premises, as a factory, containing the following information:-
(1) the name and situation of factory ;
(2) the name and address of the occupier ;
(3) the name and address of the owner of the premises or building (including the precincts thereof) ;
(4) the address to which communications relating to factory may be sent ;
(5) the nature of the manufacturing process to be carried on in the factory during the next twelve months ;
(6) the total rated horse power installed or to be installed in the factory,
(7) the name of the manager of the factory for the purposes of this Act ;
(8) the number of workers likely to be employed in the factory ;
(9) such other particulars as may be prescribed.
Your attention is drawn to S.no.8 relating to the number of workers likely to be employed in the factory.Since you are starting a factory,where there is always a chance of employing more workers.In view of the fact that the corresponding total rated horse power installed is 600 H.P in the factory, I suggest you to go for obtaining a licence for at least 20 number of workers to start with.
BS Kalsi
Member since Aug 2011
From India, Mumbai
As per Section 7 of the Factories Act,1948, you are required to give a written notice to the Chief inspector of factories at least 15 before start using any premises, as a factory, containing the following information:-
(1) the name and situation of factory ;
(2) the name and address of the occupier ;
(3) the name and address of the owner of the premises or building (including the precincts thereof) ;
(4) the address to which communications relating to factory may be sent ;
(5) the nature of the manufacturing process to be carried on in the factory during the next twelve months ;
(6) the total rated horse power installed or to be installed in the factory,
(7) the name of the manager of the factory for the purposes of this Act ;
(8) the number of workers likely to be employed in the factory ;
(9) such other particulars as may be prescribed.
Your attention is drawn to S.no.8 relating to the number of workers likely to be employed in the factory.Since you are starting a factory,where there is always a chance of employing more workers.In view of the fact that the corresponding total rated horse power installed is 600 H.P in the factory, I suggest you to go for obtaining a licence for at least 20 number of workers to start with.
BS Kalsi
Member since Aug 2011
From India, Mumbai
Dear Mr. Trivedi,
Your statement is that, "You are going to start a [B]factory[B] in Gujarat and your question is whether it will be coming under Factories Act? " .
To constitute a factory 3 factors are necessary. 1-Premises, 2-Manufacturing activity and 3- No of Workers engaged. You are using electrical power of 600 HP. However, what type of manufacturing your are having in the new unit is not mentioned by you.
In case you manage with 5 workers only ( In my opinion, 5 workers strength does not correspond to the power installed by you. There must be more no. of workers required by you than what you have stated)
then, you will not be required to get registered under the Factories Act.
Adv. K. H. Kulkarni
From India, Kolhapur
Your statement is that, "You are going to start a [B]factory[B] in Gujarat and your question is whether it will be coming under Factories Act? " .
To constitute a factory 3 factors are necessary. 1-Premises, 2-Manufacturing activity and 3- No of Workers engaged. You are using electrical power of 600 HP. However, what type of manufacturing your are having in the new unit is not mentioned by you.
In case you manage with 5 workers only ( In my opinion, 5 workers strength does not correspond to the power installed by you. There must be more no. of workers required by you than what you have stated)
then, you will not be required to get registered under the Factories Act.
Adv. K. H. Kulkarni
From India, Kolhapur
I quote a HC judgement----------------------------------------------------------------------------
pon
From India, Lucknow
pon
From India, Lucknow
Trivedi Your premise will not be factory unless the Govt declares it so under Sec 85 of the Factories Act. VARGHESE MATHEW
From India, Thiruvananthapuram
From India, Thiruvananthapuram
In my view, the Factories Act is applicable on it's own to any premises if once it carries on a manufacturing process within the meaning of Sec.2(k) and employs the minimum number of persons in such process as stipulated under Sec.2(m) as such premises ipso facto qualifies to be a factory under Sec.2(m) of teh Act.
B.Saikumar
From India, Mumbai
B.Saikumar
From India, Mumbai
Dear All,
I fully agree with Sh Saikumar that the most imporatnrt factor for becoming a factory is to examine whether any "Manufacturing Process" as defined under Sec.2(k) of the Factories Act ,1948, is carried out in the premises. In today's changing Socio-economic scenarios and in the age of automation, the employment of no. of workers to run a factory hardly matters.The time has gone when running of the factry was maily depending on the skill & proficiency of the manpower employed. In my view, there is a dire need to change the stipulation of number of workers i.e 10 workers using power or 20 workers without using power in the Factories Act.
The views of the members are solicited.
BS Kalsi
Member since Aug 2011
From India, Mumbai
I fully agree with Sh Saikumar that the most imporatnrt factor for becoming a factory is to examine whether any "Manufacturing Process" as defined under Sec.2(k) of the Factories Act ,1948, is carried out in the premises. In today's changing Socio-economic scenarios and in the age of automation, the employment of no. of workers to run a factory hardly matters.The time has gone when running of the factry was maily depending on the skill & proficiency of the manpower employed. In my view, there is a dire need to change the stipulation of number of workers i.e 10 workers using power or 20 workers without using power in the Factories Act.
The views of the members are solicited.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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