Factories Act, 1948

Definition

The Factories Act, 1948 is the primary central legislation governing the working conditions, health, safety, and welfare of workers employed in factories in India. A 'factory' under the Act means any premises where 10 or more workers are working and a manufacturing process is being carried on with the aid of power, or where 20 or more workers are working without the aid of power. The Act is administered by state governments through Inspectorates of Factories, and each state has notified its own Factories Rules under the central Act. Occupiers of factories must register their factories with the Chief Inspector of Factories and obtain a Licence before commencing manufacturing operations, renewing the licence annually.

The Factories Act contains detailed provisions across multiple compliance domains. On health: factories must ensure adequate lighting, ventilation, cleanliness, disposal of waste, adequate temperature control, and drinking water facilities. On safety: factories must maintain machinery guards, fencing of dangerous machinery, safe electrical installations, fire safety equipment, and first-aid boxes. On welfare: factories must provide canteen facilities (if 250 or more workers), restrooms, crèche (if 30 or more women workers), and washing facilities. On working hours: adult workers cannot be employed for more than 48 hours per week or 9 hours per day, and must be given one day of rest per week and one hour of rest after 5 continuous hours of work. Overtime work is permissible subject to prescribed limits, at double the ordinary rate of wages.

The Act requires maintenance of several statutory registers and records: Register of Adult Workers (Form 12), Register of Child Workers (Form 14), Register of Overtime (Form 25), Leave Register, and the Muster Roll. Annual returns must be filed with the Inspector of Factories by January 31 of the following year. Importantly, the Factories Act is one of the four labour codes being consolidated under the Occupational Safety, Health and Working Conditions Code, 2020 (OSHWC Code), which has been passed by Parliament but not yet notified into force. Once notified, the OSHWC Code will subsume the Factories Act along with 12 other labour laws, significantly changing the compliance framework for factories and other establishments covered by the new Code.

Key Points

• The Act applies to premises with 10+ workers using power for manufacturing, or 20+ workers without power; occupiers must register and obtain an annual Licence.
• The Act mandates detailed provisions on factory health (ventilation, cleanliness, drinking water), safety (machinery guards, fire safety), and worker welfare (canteen, crèche, restrooms).
• Adult workers cannot work more than 48 hours per week or 9 hours per day; overtime is payable at double the ordinary wages with prescribed annual limits.
• Factories must maintain statutory registers including the Register of Adult Workers (Form 12), Overtime Register (Form 25), and Leave Register, available for inspection.
• Annual returns must be filed with the Inspector of Factories by January 31 of the following year covering employment statistics, accidents, and overtime.
• The Occupational Safety, Health and Working Conditions Code, 2020 (once notified) will subsume the Factories Act along with 12 other labour laws into a consolidated framework.