39 The Factories Act, 1948
This chapter covers the Factories Act, 1948 — the most important protective labour statute in India. It governs health, safety, welfare, working hours, leave, and the employment of women and young persons in factories. The Act has been amended repeatedly — most consequentially after the 1984 Bhopal gas disaster — and has now been subsumed under the Code on Occupational Safety, Health and Working Conditions, 2020.
39.1 Background and Genesis
The first Factories Act in India was the Indian Factories Act, 1881 — the country’s earliest protective labour statute. It was followed by Acts of 1891, 1911, 1922 and 1934. The 1948 Act, drafted on the recommendations of the Royal Commission on Labour (1931), is a comprehensive statute that consolidated and significantly strengthened the earlier regime.
| Year | Highlights |
|---|---|
| 1881 | First Indian Factories Act — minimum age 10 for children, weekly day off, 9-hour day for children |
| 1891 | Extended to factories with 50+ workers; 11-hour day for women |
| 1911 | Further restrictions; introduced inspection regime |
| 1922 | First post-ILO statute; reduced hours to 60/week for adults |
| 1934 | Whitley Commission recommendations; consolidated earlier laws |
| 1948 | Comprehensive new Act — present statute |
| 1976, 1987 | Major amendments; 1987 added Chapter IVA on hazardous processes after Bhopal |
| 2020 | Replaced by OSH Code |
39.2 Object and Scope
The preamble states the object: “to consolidate and amend the law regulating labour in factories.” The Act applies to factories throughout India.
| Object | What it does |
|---|---|
| Health | Cleanliness, ventilation, lighting, drinking water, sanitation |
| Safety | Machinery fencing, fire precautions, hazardous-process safeguards |
| Welfare | Canteens, crèches, rest rooms, washing facilities |
| Working hours and leave | Maximum hours, weekly holidays, annual leave |
| Special protection | Women, young persons, hazardous processes |
39.3 Key Definitions — Section 2
Several definitions are foundational; the §2(m) definition of factory is the most-tested.
| Section | Term | Meaning |
|---|---|---|
| 2(m) | Factory | Any premises where on any day of the preceding 12 months: 10 or more workers are working with the aid of power, OR 20 or more workers are working without the aid of power, in any manufacturing process |
| 2(k) | Manufacturing process | Any process for making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, etc., goods; or pumping oil, water, sewage; or generating, transforming or transmitting power; or composing or printing; or constructing/repairing/breaking up ships; or preserving in cold storage |
| 2(l) | Worker | Person employed (directly or through a contractor) in any manufacturing process or in cleaning, maintenance, etc., whether for remuneration or not, but excluding members of armed forces |
| 2(n) | Occupier | Person who has ultimate control over the affairs of the factory; in a company — any director; in a partnership — any partner |
| 2(a) | Adult | A person who has completed 18 years |
| 2(b) | Adolescent | A person who has completed 15 but not 18 years |
| 2(c) | Child | A person who has not completed 15 years |
| 2(cb) | Hazardous process | A process listed in the First Schedule, which may cause material impairment to the health of workers or pollute the environment |
The OSH Code, 2020 raises the §2(m) thresholds to 20 workers with power and 40 without power — a significant change to factory coverage.
39.4 Approval, Licensing and Registration — Sections 6 and 7
The Act requires every factory to obtain prior approval, licence and registration from the Chief Inspector of Factories. Section 6 empowers the state government to make rules; Section 7 requires the occupier to give notice of occupation at least 15 days before commencing work in the factory.
The notice must contain particulars of the occupier, manager, premises, manufacturing process, total horsepower, number of workers and other prescribed details.
39.5 Inspecting Staff — Section 8
Section 8 provides for the appointment of Inspectors with powers to:
- enter, inspect and examine factories;
- inquire into accidents and dangerous occurrences;
- examine documents, registers and records;
- take statements from any person.
Inspectors are the front-line enforcement officers of the Act. The OSH Code introduces facilitator-cum-inspector roles with more advisory functions alongside enforcement.
39.6 Health Provisions — Sections 11 to 20
The Act devotes ten sections to health — the basic conditions of cleanliness and amenity in the factory.
| Section | Subject |
|---|---|
| 11 | Cleanliness — daily sweeping, weekly washing, periodic painting |
| 12 | Disposal of wastes and effluents |
| 13 | Ventilation and temperature |
| 14 | Dust and fumes — suction near point of production |
| 15 | Artificial humidification — water purity, washing water |
| 16 | Overcrowding — minimum 14.2 cubic metres of space per worker |
| 17 | Lighting — natural and artificial; prevention of glare |
| 18 | Drinking water — wholesome, marked “Drinking Water”; cooled in establishments with 250+ workers |
| 19 | Latrines and urinals — separate for men and women, kept in clean condition |
| 20 | Spittoons — sufficient number, conspicuous places |
39.7 Safety Provisions — Sections 21 to 41
The safety chapter is the longest and most detailed. It covers machinery, structural safety, hazardous operations and emergency procedures.
| Section | Subject |
|---|---|
| 21 | Fencing of machinery — every dangerous part must be securely fenced |
| 22 | Work on or near machinery in motion — only by trained adults |
| 23 | Employment of young persons on dangerous machines — prohibited unless trained and supervised |
| 24 | Striking gear and devices for cutting off power |
| 25 | Self-acting machines |
| 26 | Casing of new machinery — bolts, set-screws, gearing |
| 27 | Prohibition of employment of women and children near cotton openers |
| 28 | Hoists and lifts — annually examined |
| 29 | Lifting machines, chains, ropes, lifting tackles |
| 30 | Revolving machinery |
| 31 | Pressure plant — safe working pressure |
| 32 | Floors, stairs and means of access |
| 33 | Pits, sumps, openings in floors |
| 34 | Excessive weights — no worker required to lift loads beyond prescribed limits |
| 35 | Eye protection — goggles for processes involving glare or projectiles |
| 36 | Precautions against dangerous fumes — no entry without testing |
| 36A | Precautions against use of portable electric light |
| 37 | Explosive or inflammable dust, gas |
| 38 | Precautions in case of fire — fire-fighting equipment, escape routes, drills |
| 39 | Power to require specifications of defective parts or tests |
| 40 | Safety of buildings and machinery |
| 40A | Maintenance of buildings — to be in safe condition |
| 40B | Safety officers — required in factories with 1,000 or more workers, or where any hazardous process is carried on |
| 41 | Power of state government to make rules |
39.8 Hazardous Processes — Chapter IVA (Sections 41A to 41H)
Chapter IVA was added by the 1987 amendment in the wake of the Bhopal gas disaster (December 1984), in which methyl isocyanate leaked from a Union Carbide factory and killed thousands. The chapter provides a comprehensive framework for hazardous-process factories.
| Section | Provision |
|---|---|
| 41A | Constitution of Site Appraisal Committees before establishing a hazardous-process factory |
| 41B | Compulsory disclosure of information by occupier — to workers, public, local authority |
| 41C | Specific responsibilities of the occupier — accurate up-to-date health records, medical examination, training |
| 41D | Power of central government to appoint Inquiry Committees |
| 41E | Emergency standards |
| 41F | Permissible limits of exposure of chemical and toxic substances |
| 41G | Workers’ participation in safety management — Safety Committee in every factory carrying out hazardous processes |
| 41H | Right of workers to warn about imminent danger |
The First Schedule lists 29 hazardous industries (later expanded), including petroleum, asbestos, fertiliser, chemicals, dyes, pesticides, paints, paper and pharmaceuticals. The Second and Third Schedules list permissible exposure limits for chemical substances.
39.9 Welfare Provisions — Sections 42 to 50
The welfare chapter requires factories to provide a recognisable set of amenities. Several thresholds are commonly tested.
| Section | Provision | Threshold |
|---|---|---|
| 42 | Washing facilities | Always |
| 43 | Facilities for storing and drying clothing | As prescribed |
| 44 | Facilities for sitting — for workers obliged to work standing | Always |
| 45 | First-aid appliances — one box per 150 workers; ambulance room in factories with 500+ workers | 500+ workers |
| 46 | Canteens | 250+ workers |
| 47 | Shelters, rest rooms and lunch rooms | 150+ workers |
| 48 | Crèches | 30+ women workers |
| 49 | Welfare officers | 500+ workers |
| 50 | Power to make rules to supplement the welfare regime | — |
The four numerical thresholds — 250, 150, 30 women, 500 — are among the most-tested numbers in the labour-law module.
39.10 Working Hours of Adults — Sections 51 to 66
| Section | Provision | Limit |
|---|---|---|
| 51 | Weekly hours | 48 hours per week |
| 52 | Weekly holidays | One day off in a week |
| 53 | Compensatory holidays | If weekly holiday is missed, compensatory holiday within 2 months |
| 54 | Daily hours | 9 hours per day |
| 55 | Intervals for rest | At least half an hour after 5 hours of work |
| 56 | Spread-over | Work + intervals to fit within 10.5 hours per day |
| 57 | Night shifts | Cross over midnight — special rules |
| 58 | Prohibition of overlapping shifts | No worker to be in two shifts the same day |
| 59 | Extra wages for overtime | Twice the ordinary rate of wages |
| 60 | Restriction on double employment | A worker may not be allowed to work in two factories on the same day |
| 61 | Notice of periods of work — to be displayed | — |
| 62 | Register of adult workers | — |
| 63 | Hours of work to correspond with notice | — |
| 64 | Power to make exempting rules | State government rules |
| 65 | Power to make exempting orders | Specific cases |
| 66 | Restrictions on employment of women | Generally 6 a.m. to 7 p.m. (under original Act) |
The original §66 prohibited employment of women between 7 p.m. and 6 a.m. The OSH Code, 2020 has liberalised this — women may now be employed between 7 p.m. and 6 a.m. with their consent and subject to safety, transport, and other conditions.
39.11 Employment of Young Persons — Sections 67 to 77
| Section | Provision |
|---|---|
| 67 | No child below 14 to be employed in a factory |
| 68 | Adolescents — only with a certificate of fitness from a certifying surgeon |
| 69 | Procedure for certification |
| 70 | Effect of certificate of fitness |
| 71 | Working hours of children — maximum 4.5 hours/day; no night work between 10 p.m. and 6 a.m. |
| 72 | Notice of periods of work for children |
| 73 | Register of child workers |
| 74 | Hours of work to correspond with notice |
| 75 | Power to require medical examination |
| 76, 77 | Powers to make rules and exemptions |
39.12 Annual Leave with Wages — Sections 78 to 84
A worker who has worked 240 days or more in a calendar year is entitled to leave with wages in the following year.
| Worker category | Leave rate |
|---|---|
| Adult | One day for every 20 days of work performed in the previous year |
| Child | One day for every 15 days of work performed in the previous year |
| Maximum carry-over | 30 days for adults; 40 days for children |
| Wage rate during leave | Daily average of the basic wages and DA earned in the month preceding leave |
The leave is in addition to weekly holidays and any festival holidays. Encashment of unavailed leave on termination is also provided for under §79(11).
39.13 Special Provisions — Sections 85 to 91A
| Section | Provision |
|---|---|
| 85 | Power of state government to apply the Act to factories using power even if employing fewer than 10 workers |
| 87 | Dangerous operations — special rules may apply |
| 88 | Notice of accidents — every accident causing death or bodily injury preventing work for 48 hours must be reported to the Inspector |
| 88A | Notice of dangerous occurrences |
| 89 | Notice of certain diseases — notifiable occupational diseases (lead poisoning, silicosis, asbestosis, pneumoconiosis, etc.) listed in the Third Schedule |
| 90 | Power to direct inquiry into accidents or diseases |
| 91 | Power to take samples |
| 91A | Safety and occupational health surveys |
39.14 Penalties — Sections 92 to 106
| Section | Offence | Penalty |
|---|---|---|
| 92 | General offence | Imprisonment up to 2 years or fine up to ₹1,00,000 or both; ₹1,000 per day for continuing offences |
| 94 | Enhanced penalty for repeat offences | Up to 3 years’ imprisonment or fine up to ₹2,00,000 |
| 96 | Penalty for permitting double employment | Fine up to ₹500 |
| 96A | Penalty for contravention of provisions on hazardous processes | Imprisonment up to 7 years and fine up to ₹2,00,000; continuing — additional ₹5,000 per day |
| 97 | Penalty for offences by workers | Fine up to ₹500 |
| 98 | Penalty for using false certificate of fitness | Up to 2 months or ₹1,000 |
| 100 | Onus of proving a person is not adult | On accused |
| 101 | Exemption of occupier or manager who establishes another person is the actual offender | — |
| 105 | Cognisance of offences | Only on complaint by Inspector |
| 106 | Limitation of prosecutions | Within 3 months of the alleged offence |
The OSH Code, 2020 has revised these penalties upward and added compounding provisions.
39.15 Position under the OSH Code, 2020
The Code on Occupational Safety, Health and Working Conditions, 2020 consolidates the Factories Act, 1948 with twelve other safety-and-conditions statutes (Mines Act, Plantations Act, Contract Labour Act, Inter-State Migrant Workmen Act, BOCW Act, Beedi & Cigar, Working Journalists, Cine-Workers, Sales Promotion Employees, Motor Transport Workers, Dock Workers).
Key changes from the Factories Act:
| Change | What it does |
|---|---|
| Threshold for factory | 20 workers with power / 40 without power (raised from 10 / 20) |
| Single registration | Common registration across multiple labour codes |
| Women’s working hours | Permitted between 7 p.m. and 6 a.m. with consent and safeguards |
| Annual leave eligibility | Reduced from 240 to 180 days of work in the year |
| Hazardous-process safeguards | Substantially retained |
| Welfare thresholds | Largely retained — canteen 250+, crèche 50+ workers (revised) |
| Penalties | Revised upward; compounding provisions added |
The Factories Act, 1948 has been formally subsumed but its substantive content survives in the OSH Code in modernised form.
39.16 Significance and Impact
The Factories Act, 1948 is the foundational protective statute of Indian labour law. Three impacts stand out.
- It established the minimum standards of work that all subsequent statutes built on.
- Its enforcement architecture — Inspectors, certifying surgeons, registers — became the model for other labour statutes.
- The 1987 amendment, post-Bhopal, integrated occupational safety and environmental safety in a way that anticipated the OSH Code three decades later.
39.17 Practice Questions
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| Provision | Threshold | ||
|---|---|---|---|
| (i) | Canteen | (a) | 30+ women workers |
| (ii) | Rest room / lunch room | (b) | 250+ workers |
| (iii) | Crèche | (c) | 500+ workers |
| (iv) | Welfare officer | (d) | 150+ workers |
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- Factories Act, 1948 — replaces 1881, 1891, 1911, 1922, 1934 Acts; based on Whitley Commission. Subsumed by OSH Code, 2020.
- §2(m) factory: 10 workers with power / 20 without (OSH Code: 20 / 40).
- §2 categories: adult (18+), adolescent (15-18), child (under 15).
- §2(n) occupier — ultimate control; in companies — any director.
- Health (§§11–20): cleanliness, ventilation, dust, drinking water, latrines, lighting, overcrowding (14.2 cubic m per worker).
- Safety (§§21–41): fencing of machinery, hoists / lifts, pressure plant, eye protection, fumes, fire, building safety; §40B safety officers in factories with 1,000+ workers or hazardous processes.
- Chapter IVA (1987, post-Bhopal) — §§41A-41H — site appraisal committees, occupier disclosure, safety committees, emergency standards, exposure limits, right to warn.
- Welfare thresholds: canteen 250+, rest rooms 150+, crèche 30+ women, welfare officer 500+, ambulance room 500+.
- Hours: 48/week, 9/day, spread-over 10.5, rest after 5 hours, overtime at 2× wages.
- Young persons: no child under 14; adolescent only with fitness certificate; child max 4.5 hours/day; no night work.
- Annual leave: 240 days qualification; 1 day per 20 days for adults, 1 per 15 for children (OSH Code reduces qualification to 180 days).
- §88 — 48-hour bodily-injury accident notification; §89 — notifiable occupational diseases.
- OSH Code 2020 changes: 20/40 worker threshold, single registration, women in night work with safeguards, 180-day leave qualification, modernised welfare.