Factory Act Applicability If No Production/ Manufacturing Activities - CiteHR
Industrial Relations
Freelancer In Hr &indirect Taxes For
Sunil Upreti
Hr At Shree Baidyanath Ayurved Bhavan Pvt
Hr, Ir, Law, Disc. Matters
K C S Kutty
Labour Laws
Pandit Satish
Hr Manager.
Junior Manager (hr)
+8 Others

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Dear Seniors,
Our plant is situated in Uttarakhand & that is under construction and not in production mode due to some reason. We have already got factory license from the appropriate authority few months back. My query is, though no production/ Manufacturing activities is carrying on then in that case the factory act shall applicable upon us or not?

Dear If in your company 10 or more then it employees are working then the factory act must be applicable.
Dear Shri Bisht, Since you are yet to start the manufacturing process, the factories Act would not apply to you. Regards KK
Dear kk, But they have employees in their company as he is in HR department it means there are some employees are there so cant they apply factory act in it?
Dear Mr. Satish & Nair, Thanks a lot for your prompt response. Yes, the manufacturing process is yet to start may be next year or so on..... and the employees strength is 80.
"Factory" is defined under Section 2(m) of the Factories Act 1948 as under
Factory means (i) any premises including precincts thereof wherein 10 or more workers are employed on any day of the preceding 12 months and a manufacturing process is carried on with the aid of power; or (ii) wherein 20 or more workers are employed on any day of the preceding 12 months and a manufacturing process is carried on with the aid of power.

factories act will apply where u have carried the manufacturing process with 10 or more workmen on any day of PRECEDING 12 months ...
so i think in ur case Factories act wont apply ..
bt pls check with the above

Dear Sir,
"Factory" is clearly defined in section 2(m) on the "Factories Act 1948" but the applicability of the Act is still confused. Around 80 employees are working but no manufacturing process is going on.

manufacturing does not only mean that some machines are moving in the premises if it is so the people sitting at the head office they are not doing any manufacturing work even then they are covered under the act dear if your company is registered under the companies act and 80 employees are working there so you are surly comes under the factory act you must follow.

Dear Satish Ji,
For Head Office /Corporate office/ Branch Offices where commercial activities are carried on a Shop & Establishment Act is applicable. Even one employee or N no's of employees employing there.
Pls correct me if I am wrong.

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