Dear Seniors,

Our plant is situated in Uttarakhand and is currently under construction, not in production mode due to some reason. We obtained the factory license from the appropriate authority a few months ago. My query is, even though no production or manufacturing activities are taking place, would the factory act still be applicable to us?

Thank you.

From India, Kashipur
Acknowledge(0)
Amend(0)

Dear If in your company 10 or more then it employees are working then the factory act must be applicable.
From India, New Delhi
Acknowledge(0)
Amend(0)

kknair
208

Dear Shri Bisht, Since you are yet to start the manufacturing process, the factories Act would not apply to you. Regards KK
From India, Bhopal
Acknowledge(0)
Amend(0)

Dear kk, But they have employees in their company as he is in HR department it means there are some employees are there so cant they apply factory act in it?
From India, New Delhi
Acknowledge(0)
Amend(0)

Dear Mr. Satish & Nair, Thanks a lot for your prompt response. Yes, the manufacturing process is yet to start may be next year or so on..... and the employees strength is 80.
From India, Kashipur
Acknowledge(0)
Amend(0)

"Factory" is defined under Section 2(m) of the Factories Act, 1948 as follows:

Factory means (i) any premises, including precincts thereof, wherein 10 or more workers are employed on any day of the preceding 12 months and a manufacturing process is carried on with the aid of power; or (ii) wherein 20 or more workers are employed on any day of the preceding 12 months and a manufacturing process is carried on with the aid of power.

From India, Madras
Acknowledge(0)
Amend(0)

Factories Act will apply where you have carried out the manufacturing process with 10 or more workmen on any day of the preceding 12 months. So, I think in your case, the Factories Act won't apply. But please check with the above.
From India, Visakhapatnam
Acknowledge(0)
Amend(0)

Dear Sir,

"Factory" is clearly defined in section 2(m) of the "Factories Act 1948," but the applicability of the Act is still unclear. Around 80 employees are working, but no manufacturing process is currently taking place.


From India, Kashipur
Acknowledge(0)
Amend(0)

Dear manufacturing does not only mean that some machines are moving in the premises. If it is so, the people sitting at the head office are not doing any manufacturing work. Even then, they are covered under the act. Dear, if your company is registered under the Companies Act and 80 employees are working there, you surely come under the Factory Act. You must follow.

Satish

From India, New Delhi
Acknowledge(0)
Amend(0)

Dear Satish Ji,

For Head Office/Corporate office/Branch Offices where commercial activities are carried out, the Shop & Establishment Act is applicable, even if there is only one employee or multiple employees working there. Please correct me if I am wrong.


From India, Kashipur
Acknowledge(0)
Amend(0)

Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.