Factory Act

What is the Factory Act?

The Factory Act, formally known as the Factories Act, 1948, is a legislation enacted by the Indian Parliament to regulate labor in factories. Its primary objective is to ensure that working conditions in factories are safe and conducive to the health and well-being of workers. The Act outlines various provisions related to working hours, safety measures, health requirements, and welfare facilities.

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Applicability of the Factory Act

The Factory Act primarily applies to factories employing a certain number of workers and using power-driven machinery. Here’s the general scope:

• Factories employing 10 or more workers with power-driven machinery.
• Factories employing 20 or more workers without power-driven machinery.
• Applies to manufacturing units and workplaces defined as factories under the Act.

If your company fits this category, the Factory Act rules are directly relevant to you.

Key Provisions of the Factory Act

1. Health and Safety Measures

The Act mandates several health and safety provisions, including:

• Cleanliness: Regular cleaning of workspaces to prevent health hazards.
• Ventilation: Adequate ventilation to ensure a comfortable working environment.
• Waste Disposal: Proper disposal of waste and effluents to maintain hygiene.
• Machinery Safety: Ensuring that machinery is safely installed and maintained to prevent accidents.

2. Working Hours and Overtime

To protect workers from exploitation, the Act stipulates:

• Maximum Working Hours: No adult worker shall work more than 48 hours a week.
• Daily Hours: Work should not exceed 9 hours a day.
• Rest Intervals: A rest interval of at least 30 minutes after 5 hours of work.
• Overtime: Workers are entitled to double wages for overtime work.

3. Employment of Women and Young Persons

The Act includes specific provisions to protect women and young workers:

• Prohibition of Child Labor: Children below 14 years are not allowed to work in factories.
• Working Hours for Women: Women are generally not permitted to work between 7 PM and 6 AM, ensuring their safety.
• Creche Facilities: Factories employing more than 30 women must provide creche facilities for children under six years of age.

4. Welfare Provisions

To promote the well-being of workers, the Act requires:

• Washing Facilities: Adequate and clean washing facilities for workers.
• Canteens: Factories with more than 250 workers must provide canteen facilities.
• Rest Rooms: Provision of restrooms and shelters for workers to relax during breaks.
• First Aid: Availability of first aid boxes and medical facilities in case of emergencies.

5. Annual Leave with Wages

Workers are entitled to annual leave with wages:

• Eligibility: Workers who have worked for 240 days or more in a year are entitled to leave.
• Leave Entitlement: One day of leave for every 20 days of work performed.

Role of HR in Ensuring Compliance

Human Resource professionals play a crucial role in implementing the provisions of the Factory Act:

• Policy Formulation: Developing policies that align with the Act's requirements.
• Training and Awareness: Conducting training sessions to educate employees about safety protocols and their rights.
• Regular Audits: Performing regular checks to ensure that safety measures and welfare facilities are up to standard.
• Record Keeping: Maintaining accurate records of working hours, leaves, and other relevant data.

Penalties for Non-Compliance

Failure to adhere to the provisions of the Factory Act can result in severe penalties:

• Fines: Monetary penalties for violations.
• Imprisonment: In cases of serious breaches, responsible individuals may face imprisonment.
• Operational Disruptions: Non-compliance can lead to factory shutdowns or suspension of licenses.

Integrating Compliance with HRMS Software

Modern HRMS (Human Resource Management System) software can significantly aid in ensuring compliance with the Factory Act:

• Automated Record-Keeping: Efficient tracking of working hours, leaves, and employee details.
• Alerts and Notifications: Timely reminders for compliance-related tasks and deadlines.
• Reporting: Generation of compliance reports for audits and inspections.
• Training Modules: Provision of e-learning modules to educate employees about safety and compliance.

Ready to Enhance Compliance and Employee Well-being?

Discover how Qandle's HRMS software can simplify adherence to the Factory Act and elevate your HR operations. Schedule a Demo Today!