What is the procedure to add unit 2 to the factory license??? We have added one warehouse at a nearby company location. But there is government roads between the company premises and this warehouse. How can I add these premises? Please help me to resolve this issue.
From India, Vadodara
4From India, Vadodara
Dear Colleague,
There is a provision under the Factories Act 1948 which you can explore as provided under Section 4 Of the Act as reproduced. Kindly have a reading.
4. Power to declare different departments to be separate factories or two or more factories to
be a single factory.—The State Government may, 2 [on its own or] on an application made in this behalfby an occupier, direct, by an order in writing 2 [and subject to such conditions as it may deem fit that for all or any of the purposes of this Act different departments or branches of a factory of the occupier specified in the application shall be treated as separate factories or that two or more factories of the occupier specified in the application shall be treated as a single factory:]
Now, if the Unit 2 is a separate entity and no connection to manufacturing process between the Unit 1 and 2 and the boundaries/ premises is different/ Board of Directors are different then it will be treated as Separate Factory and you need to go for a Separate License.
Same in the case of Warehouse wherein if it is connected to the Factory ( Unit 1 ) you may show it as a Department if there is close connectivity with the Manufacturing Process of the Unit 1. If No connection, then depending on number of employees working there, Shops and Establishment Act provisions will be applicable.
It will be a good idea to consult the Director of Factories / Industrial Safety and Health - the State Government Official having jurisdiction over your location for more clarity which will be a practical way as he will be the better person who will visit and decide to declare Unit 1 and 2 as one Factory or Separate Factory etc.
All the Best and God Bless,
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
From India, Chennai
There is a provision under the Factories Act 1948 which you can explore as provided under Section 4 Of the Act as reproduced. Kindly have a reading.
4. Power to declare different departments to be separate factories or two or more factories to
be a single factory.—The State Government may, 2 [on its own or] on an application made in this behalfby an occupier, direct, by an order in writing 2 [and subject to such conditions as it may deem fit that for all or any of the purposes of this Act different departments or branches of a factory of the occupier specified in the application shall be treated as separate factories or that two or more factories of the occupier specified in the application shall be treated as a single factory:]
Now, if the Unit 2 is a separate entity and no connection to manufacturing process between the Unit 1 and 2 and the boundaries/ premises is different/ Board of Directors are different then it will be treated as Separate Factory and you need to go for a Separate License.
Same in the case of Warehouse wherein if it is connected to the Factory ( Unit 1 ) you may show it as a Department if there is close connectivity with the Manufacturing Process of the Unit 1. If No connection, then depending on number of employees working there, Shops and Establishment Act provisions will be applicable.
It will be a good idea to consult the Director of Factories / Industrial Safety and Health - the State Government Official having jurisdiction over your location for more clarity which will be a practical way as he will be the better person who will visit and decide to declare Unit 1 and 2 as one Factory or Separate Factory etc.
All the Best and God Bless,
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu
From India, Chennai
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