Friday, October 21, 2016

Factories Act 1948 Notes & Video Lecture : CA CS CMA Coach

Factories Act 1948 is one of the chapter of the subject ILGL of CS executive course. In addition to notes we have also provided short video on Factories Act 1948

Factories Act 1948 (notes & video)


Object of the Act

To secure
  • Health, Safety, Welfare
  • Proper Working Hours, and
  • Other Benefits to workers
It provides that precaution should be taken for
  • Safety of workers and Prevention of Accidents
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Meaning of Factory

Factory means
  • any premises, including the precincts thereof,
  • in any part of which manufacturing process is carried on
  • with or without the aid of power,
  • provided that at least 10 or 20 persons respectively are employed or were employed
  • On any day of the preceding 12 months.
Note:
  • The Act is applicable to all the factories.
  • The term 'premises' is a generic term meaning open land or land with building or building alone.
  • The term 'precincts' is usually understood as a space enclosed by walls.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Manufacturing Process

Section 2(k) It means any process for:
i). Making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise, treating or adopting any article or substance with a view to its use, sale, transport, delivery or disposal; or
ii). Pumping oil, water or sewage or any other substance; or
iii). Generating, transforming, transmitting power; or
iv). Composing types for printing, printing by letter-press, lithography, photogravure or other similar process, or book-binding; or
v). Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or
vi). Preserving or storing any article in cold storage.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

DECIDED CASES

The Madras High Court in the case of in Re. Seshadrinatha Sharma, held that to constitute a manufacture there should not be essentially some kind of transformation of substance and the article need not become commercially as another anddifferent article from that at which it begins its existence so long as there has been an indisputable transformation of substance by the use of machinery and transformed substance is commercially marketable
In the case of Shri Laxmi Dass Premji Ghee Merchant v. R. Inspector of Factories Gantur, where ghee brought from various customers was sampled chemically, analysed and packed in tins for transportation to the Head Office of the concern for sale in the market, the court held that manufacturing process was going in the premises.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Occupier of factory

Occupier of factory means
  • a person who has ultimate control over affairs of factory.
It includes a
o Partner in case of a firm and
o Director in case of a company.
[J. K. Industries v. Chief Inspector of Factories)
It may be noted that if a factory is run by a company, then only the director of the company can be treated as occupier.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)
Notes:
  •  The occupier shall ensure, as far as possible health, safety, and welfare of workers while they are working in a factory.
  •  The name of the occupier of the factory is required to be informed to the Chief Inspector of Factories.
  •  The occupier will be held responsible if the provisions of the Factories Act, 1948 are not complied with.

Duties of the Occupier

1) Every occupier shall ensure, so far as is reasonably practicable, the health, safety and welfare of all workers while they are at work in the factory.
2) Without prejudice to the generality of the provisions of sub-section (1), the matters to which such duty extends shall include:
a) The provision and maintenance of plant and systems of work in the factory that are safe and without risks to health;
b) The arrangement in the factory for ensuring safety and absence of risks to health in connection with the use, handling, storage and transport of articles and substances;
c) The provisions of such information, instruction, training and supervision as are necessary to ensure the health and safety of all workers at work;
d) The maintenance of all places of work in the factory in a condition that is safe and without risks to health and provisions and maintenance of such means of access to, and egress from, such places as are safe and without such risks;
e) The provision, maintenance or monitoring of such working environment in the factory for the workers that is safe, without risks to health and adequate as regards facilities and arrangements for their welfare at work.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Facilities and Conveniences

a. Factory should be kept clean.
b. There should be arrangement to dispose off wastes and effluents.
c. Ventilation should be adequate.
d. Reasonable temperature for comfort of employees should be maintained.
e. Dust and fumes should be controlled below permissible limits.
f. Artificial humidification should be at prescribed limits.
g. Over crowding should be avoided.
h. Adequate lighting, drinking water, toilets, and spittoons should be provided.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Additional facilities in case of large factories:

1. Ambulance room, if 500 or more workers are employed.
2. Canteen, if 250 or more workers are employed.
3. Rest rooms/ Centers with drinking facility, if 150 or more workers are employed.
4. Creches, if 30 or more women workers are employed.
5. Full time Welfare Officer, if 500 or more workers are employed.
6. Safety Officer, if 1000 or more workers are employed.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Welfare Measures

1) All machines should be properly fenced to protect workers when machinery is in motion.
2) Hoist and lifts should be in good condition and tested periodically.
3) Pressure Plant should be checked as per the rules.
4) Floor, stairs, and means of access should be of sound construction and free from obstructions.
5) Safety appliances for eyes, dangerous dust, gas, fumes should be provided.
6) In case of hazardous substances, additional safety measures have to be taken.
7) Adequate firefighting equipment should be available.
8) Safety Officer should be appointed if number of workers in factory is 1000 or more.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Working Hours

· A worker cannot be employed for more than 48 hours in a week.
  • Weekly holiday is compulsory.
  • If the worker is asked to work on weekly holiday, he should avail the holiday on one of the 3 days immediately after the normal day of holiday.
  • A worker cannot be employed for more than 9 hours in a day.
  • At least Half-hour rest should be provided after every 5 hours.
  • Total period of work including rest interval cannot be more than 10.5 hours.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Overtime Wages

  • If a worker works beyond 9 hours a day and 48 hours a week, overtime wages are paid at double the rate of normal wages. (However, overtime wages are not payable on tour.)
  • Total working hours including overtime should not exceed 60 hours in a week and
  • Total overtime hours in a quarter should not exceed 50 hours.

1.Leave

NORMAL WORKER

Worker is entitled in every calendar year annual leave with wages at the rate of 1 day for every 20 days of work performed in the previous calendar year (provided that he had worked for 240 days or more in the previous calendar year).

CHILD WORKER

Child worker (who is 14 years and above but less than 15 years) is entitled to 1 day leave with wages for every 15 days.

2.Leave

MATERNITY & LAYOFF

While calculating 240 days earned leave, (maternity leave up to 12 weeks and lay off days will be considered but leave shall not be earned on those days).
Leave can be accumulated up to
  • 30 days in the case of an adult and
  • 40 days in the case of a child.

3.Leave

-Leave admissible is exclusive of holidays occurring during or at either end of leave period.
-Leave cannot be taken for more than 3 times in a year.
It may be noted that above-mentioned benefit are the minimum benefits. Employer can of course provide additional or higher benefits.

Employment of Women (Factories Act 1948)

· A women worker cannot be employed beyond 6 a.m. to 7 p.m.
  • State Government can grant exemption to any factory from such provisions
  • But in no case a woman can be permitted to work during 10 p.m. to 5 a.m.
  • Shift change can be done only after weekly or other holiday and not in between.

Young Person and Adult (Factories Act 1948)

"Young Person" Section 2(d) means
  • A person who is either a child or an adolescent.,

"Adult” Section 2(a) means

  • A person who has completed his 18 year of age.

Employment of Children & Adolescent (Factories Act 1948)

  • Children below 14 years of age cannot be employed.
  • A child of age 14 Years but below 15 years can be employed for only 4.5 hours per day.
  • He should be certified fit by certifying surgeon.
  • He cannot be employed during night from 10 p.m. to 6 a.m.
  • A person of 15 years of age but below 18 years of age is termed as adolescent.
  • An adolescent is not permitted to work between 7 p.m. to 6 a.m.
  • He can be employed as an adult if he has certificate of fitness for a full days work from a certifying surgeon.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Display on Notice Board (Factories Act 1948)

A Notice containing
  • an abstract of the Factories Act, 1948 and the rules made there under
  • The name and address of Inspector of factories and Certifying Surgeon
  • In English and local language shall be displayed by employer.
Shall be displayed on the notice board
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Punishment to Welfare Officer (Factories Act 1948)

No punishment to Welfare Officer without prior sanction of Chief Commissioner of Factories.
However, simple order of termination as per terms of appointment is not punishment and such termination order is valid. [Arun Kumar Bali v. Government, NCT of Delhi]
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Powers of Inspectors (Factories Act 1948)

An inspector may exercise any of the following powers within the local limits for which he is appointed:
1. He can enter any place which is used or which, he has reasons to believe, is used as factory.
2. He can make examination of the premises, plant, machinery etc.
3. He can require the production of any prescribed register or any other document relating to the factory.
4. Take measurement and photographs and make such recordings as he considers necessary for the purpose of any examination.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

Special Provisions relating to Hazardous Processes

(Chapter IVA: 41A – 41H via Factories (Amend) Act 1987)

"Hazardous process" (Factories Act 1948)

It means
  • any process or activity in relation to an industry specified in the First Schedule
  • where, unless special care is taken,
  • raw materials used therein or the intermediate or finished products, bye products, wastes or effluents thereof would
a) cause material impairment to the health of the persons engaged in or connected therewith; or
b) result in the pollution of the general environment;
Special provisions relating to hazardous processes under Chapter IVA (Sections 41 A to 41 H) were inserted by the Factories (Amendment) Act, 1987..
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

CONSTITUTION OF SITE APPRAISAL COMMITTEES [Section 41A] (Factories Act 1948)

Site Appraisal Committee
  • shall be constituted by the State Government
  • to advise the Government in the matter of examination of applications
  • for establishment of factories involving hazardous processes.
The Site Appraisal Committee shall examine an application for the establishment of a factory involving hazardous process and make its recommendation to the State Government within a period of 90 days in the prescribed form.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

COMPULSORY DISCLOSURE BY THE OCCUPIER [Section 41B] (Factories Act 1948)

It is compulsory on the part of the occupier of every factory involving a hazardous process to disclose all information regarding dangers, including health hazards to the
  • workers employed in the factory,
  • the Chief Inspector,
  • the local authority within whose jurisdiction the factory is situated and
  • the general public in the vicinity.

SPECIFIED RESPONSIBILITY OF THE OCCUPIER [Section 41C]: (Factories Act 1948)

Accurate and up-to-date
o health records or medical records
o of the workers of the factory who are exposed to any chemical toxic or any other harmful substances which are manufactured, stored, handled or transported and
o Such records shall be maintained by the occupier of a factory involving any hazardous process.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

INQUIRY COMMITTEE [Section 41D]: (Factories Act 1948)

In the event of occurrence of
  • an extraordinary situation,
  • the Central Government may appoint an Inquiry Committee
  • to inquire into the standards of health and safety observed in the factory
  • With a view to finding out the causes of any failure or neglect in the adoption of any measures prescribed for the health and safety of the workers or the general public.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

EMERGENCY STANDARDS [Section 41E] (Factories Act 1948)

The Director-General of Factory Advice Service and Labour Institutes
  • May be directed by the Central Government
  • To lay down emergency standards in respect of hazardous process.

PERMISSIBLE EXPOSURE OF CHEMICAL AND TOXIC SUBSTANCES (41F): (Factories Act 1948)

  • The Second Schedule added to the Act,
  • indicates maximum permissible threshold limits of exposure of chemical and toxic substances
  • In manufacturing processes in any factory.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

WORKERS PARTICIPATION IN SAFETY MANAGEMENT (Section 41G): (Factories Act 1948)

The occupier in every factory
  • shall set up a safety committee
  • consisting of equal number of representatives of workers and management
  • to promote co-operation between the workers and the management in maintaining proper safety and health at work and
  • To review periodically the measures taken in that behalf where hazardous process is involved.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)

WARNING ABOUT IMMINENT DANGER (Section 41H): (Factories Act 1948)

If there is reasonable apprehension regarding likelihood of imminent danger
  • to the lives or health of the workers employed in a factory,
  • They may bring the same to the notice of the occupier, agent, manager, etc.
(furthermore in addition to notes you can also try our full length videos at www.cacscmacoach.com)


Posted by at
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)