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The Indian Government established the Factory Act of 1948 to safeguard the workers and guarantee that the factory owner maintains a healthy workplace. Every factory owner is required by the Factory Act of 1948 to register their property with the local Government before opening for business.
A factory licence is a certificate of authorization issued by the relevant authorities to conduct manufacturing operations—the Department of Factories and Boilers issues Factory Licenses. The Factories and Boilers Department must monitor employees' welfare, safety, and health.
Every employee enjoys equal benefits when the Factories Act is adequately followed
The factory owner is eligible to get the legal benefits that the government offers through various programs.
The Act helps factory owners to design up-to-date safety guidelines in the workspace.
The workforce's productivity is increased through proper implementation of the requirements and principles of the Factories Act 1948.
It helps manage issues like Defined Working Hours, Minimum Guaranteed Wages/Payments, Leaves (Annual, Sick, Paid Leaves), Holidays, Enlistment of Minors and Women, Hiring and Termination of Employment, and Other Terms of Service or any Conditions Related to the Individuals Working in Shops, Commercial Establishments, Public Amusement Establishments, etc.
Before applying for factory registration under the terms of the Factories Act of 1948, a factory must get the labor and employment department's approval of its building plan.
The government has established regulations that must be obeyed by those factories where-
1. where ten or more workers are working or were working on any day during the previous year and in any area where a manufacturing process is being carried out with the help of power or without the use of power;
2. where twenty or more workers are working or were working during the previous year, and in any area where a manufacturing process is carried out with the help of power or without the use of power.
1. Hazardous
2. Non-hazardous
According to the government, a licensee must hold a factory licence for at least 15 days before he intends to start of the factory’s operations.
The licence is valid for period of one year.
Anyone who violates the factories act of 1948 will face penalties in accordance with the statute.
1. Imprisonment sentence of up to two years, or
2. Fine, that might be up to ₹1,00,000 or both.
If the violation is still being committed after being found guilty, there will be an additional fine of up to ₹1,000 for each day that the violation is still being committed.
As per provisions of Chapter IV or any rule made under section 87, the fine for violation shall not be less than –
1. ₹25000 in the case of an accident-causing death
2. ₹5000 in the case of an accident-causing serious physical injury
Factory Document-
• Form-1
• form – 2 duly filled
• Factory building plan,
• Hazardous and non-hazardous wastes details
• Particulars on raw materials, by product and finishing product with the procedure in a flow chart.
• Details of equipment used
Document of Entity-
• Latest list of partners/directors or order of the managing agent appointed by central government/ state government / local authority as occupier.
• MOA, AOA, and Board resolution
• Bank account details
• Load sanctions copy & first electricity bill for registration.
Other Document-
• Photo id and address proof of the occupier.
• Photo id and address proof of the factory manager.
• Partnership deed, if any
• Payment receipts
• Deed of land used for factory
• Tax receipt.
As per the Factories Act 1948, a factory must have at least 10 workers to be considered a "factory" under Indian law. However, there is no upper limit on the number of workers in a factory.
A factory license is mandatory for all manufacturing industries in India, however certain exemptions are provided for small scale industries and home-based industries under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.
Non-compliance with the Factory Act 1948 can result in penalties, fines, and even imprisonment. It can also lead to cancellation of license, and legal action can be taken against the factory owner.
As per the Factories Act 1948, the state government has to grant or reject the application for a factory license within a period of 60 days from the date of application, unless it is extended by the State Government for a further period of 30 days.
As per the Factories Act 1948, an adult worker in a factory cannot be made to work more than 48 hours in a week. However, this limit can be extended to 60 hours per week with the permission of the state government.
Yes, a factory license in India is usually issued for a specific period of time and must be renewed before it expires. The renewal process typically involves submitting an application and paying a fee. The organization must also demonstrate continued compliance with labor laws and safety regulations.