What is the difference between industry and factory according to Indian law?
From India, Lucknow
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From India, Lucknow
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Better that the poster should go through the definition clauses of the terms occurring at sections 2(j) of the Industrial Disputes Act, 1947, and 2(m) of the Factories Act, 1948 respectively to understand the statutory meaning of the two terms in consonance with the overall purposes and objectives of both the enactments.
Regarding the term "industry" as used in the IDA, 1947, the poster should read the present definition of the term conjunctively with that of the amended term in the 1982 amendment which is yet to come into force. This amendment of the term was carried out mostly based on the honorable Supreme Court's interpretation of the term in the famous case of Bangalore Water Supply and Sewerage Board v. A. Rajappa and Others [1978 (2) SCC 213]. However, the amended definition is followed by Tribunals and the higher judiciary without exception. In short, "industry" refers to "any activity" based on the systematic cooperation between employers and employees to fulfill the material needs of society. For example, "Leather Industry" refers collectively to the whole leather business starting from procurement, tanning, manufacture of leather goods, or their marketing.
A "FACTORY," on the contrary, refers to a "place" or premise where any manufacturing process is carried out with or without the aid of power by employing a certain minimum number of workers. Here, for example, Tannery would mean a factory where the process of tanning animal hides is done whereas a leather factory is a place where products are made out of tanned leather.
From India, Salem
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6185Regarding the term "industry" as used in the IDA, 1947, the poster should read the present definition of the term conjunctively with that of the amended term in the 1982 amendment which is yet to come into force. This amendment of the term was carried out mostly based on the honorable Supreme Court's interpretation of the term in the famous case of Bangalore Water Supply and Sewerage Board v. A. Rajappa and Others [1978 (2) SCC 213]. However, the amended definition is followed by Tribunals and the higher judiciary without exception. In short, "industry" refers to "any activity" based on the systematic cooperation between employers and employees to fulfill the material needs of society. For example, "Leather Industry" refers collectively to the whole leather business starting from procurement, tanning, manufacture of leather goods, or their marketing.
A "FACTORY," on the contrary, refers to a "place" or premise where any manufacturing process is carried out with or without the aid of power by employing a certain minimum number of workers. Here, for example, Tannery would mean a factory where the process of tanning animal hides is done whereas a leather factory is a place where products are made out of tanned leather.
From India, Salem
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Thank you sooooo much Sir. You have solved my problems . I read the section but not understood . It is You that make it simple for me thanks
From India, Lucknow
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From India, Lucknow
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Sir , Could you tell me difference among employees , worker and workmen .
From India, Lucknow
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From India, Lucknow
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Dear friend,
Every word, irrespective of the language, has its basic literary meaning and other meanings associated with its usage. The latter one is called a connotation. That's how interchangeable usage of similar words occurs. But in law, every word or term has a certain specific meaning and hence the necessity of the definition clauses in its draft. The words thus defined in a particular law carry in their folds the positivity of the objectives of the Act carefully excluding the negativity of the mischief the Act intends to eliminate. Therefore, the differences between the words have to be understood in this background only.
"Employee" is a general term denoting every person employed for hire or reward under another person. Thus, it presupposes the existence of a contract of employment between them that will regulate their relationship as employer and employee. So, the term has no distinction as to capacity of employment or sometimes even the quantum of salary or wages received. The same connotation applies equally in certain employment laws too. The best example is the definition of the term "employee" u/s 2(e) of the PG Act, 1972. Both a Managing Director of a Company and a Fitter in its factory are employees only for the purpose of gratuity under the Act. In the case of the application of the EPF Act, 1952, a distinction as to the monthly salary limit is introduced.
The terms "workman" and "worker" may seemingly appear to be the same though the latter is gender-neutral. But legally, the meanings are totally different. As per section 2(s) of the ID Act, 1947, a workman can be anyone employed under a contract of employment for doing any skilled, unskilled manual, technical, clerical, operational, or supervisory nature of work for hire or reward. But only the supervisory capacity of such employment is limited by the quantum of salary drawn up to a sum of Rs. 10,000/=pm. If we carefully analyze the definition, we can easily understand that only those employed on jobs of repetitive nature having no scope of decision-making in tune with the qualitative changes in the flow of the work assigned are included in the definition without any restrictions. That's why administrative/managerial personnel are explicitly brought out of the definition. Thus the definition of the term "workman" under the IDA, 1947 syncs with the objective of investigation, prevention, and resolution of industrial disputes.
On the contrary, the purpose of the Factories Act, 1948 is the regulation of conditions of work in factories including health and safety of the people employed therein; it requires a different type of definition encompassing all the people directly involved in the manufacturing process sans the cadre differences. Therefore, the definition "worker" u/s 2(l) of the FA, 1948 includes all managerial, supervisory, and workmen engaged in the manufacturing operations within the factory premises.
If you look at the State Shops and Estts Acts, the term used would be "Person employed" denoting the employment being wholly and principally in connection with the business of the establishment. Of course, a managerial cadre employee who is authorized to act as the employer is exempted from the definition.
Hope I have answered to your satisfaction.
From India, Salem
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Every word, irrespective of the language, has its basic literary meaning and other meanings associated with its usage. The latter one is called a connotation. That's how interchangeable usage of similar words occurs. But in law, every word or term has a certain specific meaning and hence the necessity of the definition clauses in its draft. The words thus defined in a particular law carry in their folds the positivity of the objectives of the Act carefully excluding the negativity of the mischief the Act intends to eliminate. Therefore, the differences between the words have to be understood in this background only.
"Employee" is a general term denoting every person employed for hire or reward under another person. Thus, it presupposes the existence of a contract of employment between them that will regulate their relationship as employer and employee. So, the term has no distinction as to capacity of employment or sometimes even the quantum of salary or wages received. The same connotation applies equally in certain employment laws too. The best example is the definition of the term "employee" u/s 2(e) of the PG Act, 1972. Both a Managing Director of a Company and a Fitter in its factory are employees only for the purpose of gratuity under the Act. In the case of the application of the EPF Act, 1952, a distinction as to the monthly salary limit is introduced.
The terms "workman" and "worker" may seemingly appear to be the same though the latter is gender-neutral. But legally, the meanings are totally different. As per section 2(s) of the ID Act, 1947, a workman can be anyone employed under a contract of employment for doing any skilled, unskilled manual, technical, clerical, operational, or supervisory nature of work for hire or reward. But only the supervisory capacity of such employment is limited by the quantum of salary drawn up to a sum of Rs. 10,000/=pm. If we carefully analyze the definition, we can easily understand that only those employed on jobs of repetitive nature having no scope of decision-making in tune with the qualitative changes in the flow of the work assigned are included in the definition without any restrictions. That's why administrative/managerial personnel are explicitly brought out of the definition. Thus the definition of the term "workman" under the IDA, 1947 syncs with the objective of investigation, prevention, and resolution of industrial disputes.
On the contrary, the purpose of the Factories Act, 1948 is the regulation of conditions of work in factories including health and safety of the people employed therein; it requires a different type of definition encompassing all the people directly involved in the manufacturing process sans the cadre differences. Therefore, the definition "worker" u/s 2(l) of the FA, 1948 includes all managerial, supervisory, and workmen engaged in the manufacturing operations within the factory premises.
If you look at the State Shops and Estts Acts, the term used would be "Person employed" denoting the employment being wholly and principally in connection with the business of the establishment. Of course, a managerial cadre employee who is authorized to act as the employer is exempted from the definition.
Hope I have answered to your satisfaction.
From India, Salem
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All industries are factories and all factories are industries. With examples sir.
From India, Delhi
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From India, Delhi
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All industries cannot be factories. For example, an educational institution is an industry because of the employment of people to fulfill its objectives, but no manufacturing process is carried out there.
On the other hand, a factory is an industrial establishment where manufacturing activities are conducted by employing people.
From India, Salem
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On the other hand, a factory is an industrial establishment where manufacturing activities are conducted by employing people.
From India, Salem
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