Boss2966
Industrial Relations
Bijay_majumdar
Freelancer
Sunil Upreti
Hr At Shree Baidyanath Ayurved Bhavan Pvt
Kknair
Hr, Ir, Law, Disc. Matters
K C S Kutty
Labour Laws
Pandit Satish
Hr Manager.
Harshal16
Junior Manager (hr)
8125797292
Hr-executive
+8 Others

Thread Started by #bhuwansbisht

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?
7th September 2012 From India, Kashipur
Dear If in your company 10 or more then it employees are working then the factory act must be applicable.
7th September 2012 From India, New Delhi
Dear Shri Bisht, Since you are yet to start the manufacturing process, the factories Act would not apply to you. Regards KK
7th September 2012 From India, Bhopal
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?
7th September 2012 From India, New Delhi
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.
7th September 2012 From India, Kashipur
"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.
7th September 2012 From India, Madras
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
7th September 2012 From India, Visakhapatnam
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.

7th September 2012 From India, Kashipur
Dear
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.
Satish
7th September 2012 From India, New Delhi
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.

7th September 2012 From India, Kashipur
Hi, if ever you had confusion, why did you go for License, once you have taken the Factory license, it means that you are covered under Factory act. Regards Shekhar
7th September 2012 From India, Mumbai
If the manufacturing process was not started then factories act was not applicable.if it is under construction then u have to fallow the guide lines of BOCW Act and contract Labour Act(If any Contract Labour are there).
Regards,
Ajay Kumar.N
8125 797292
7th September 2012 From India, Narsapur
Dear all, As there are 80 employees working in the premises, what is to be seen is whether any 'manufacturing process' as defined under the Factories Act is being carried out in the premises. The scope of "manufacturing process' as defined under the Act is very wide and practically includes all types of organised industrial activity. Since the factual position regarding the activities being carried out in the premises is not made available , the full answer to the query is unable to be made.
Regards
KK
8th September 2012 From India, Bhopal
dear mr bisht, If the 80 employees are doing work which fit in the definition of manufacturing process, which is quite wide, the act will apply.
8th September 2012 From India, Pune
Mr. Bhuvan,
If the factory is not commissioned and manufacturing process is yet to be started, what the 80 employees are doing, why so many are employed? If the project is under construction, then when will the erection of machinery starts? You can apply for factory licence one month before commissioning of the plant, not earlier. Even after commissioning there are bound to be trial runs, then only actual manufacturing process starts. All these things take lot of time. Why are you in a hurry to implement Factories Act. Unless there is manufacturing process, the Act need not be implemented.
Best of luck.
Joga Rao
8th September 2012 From India, Eluru
Dear Sir,
Thanks for your inputs.
Actually we are in gas based power project whose first phase is completed and ready for trial run, but unfortunately due to unavailability of raw material (Natural GAS) it could not. From our side we got all the permission, clearances, NOC, License etc... from the concerned authority at the relevant time. About manpower all 80 employees related to O&M and commercial deptt. who all were hired to operate the plant. Further the availability of GAS is tentative we canít say when will be the manufacturing process start.


8th September 2012 From India, Kashipur
Dear Collegue,
Factories Act definition is clearly addressed that the act is applicable when the manufacturing process is on. In your case even though Factory license is obtained the relevant may not applicable due to manufacturing process is not started.
In my view the act is not applicable. Kindly respond my queries pls.
S Rajasekaran
DGM - HR
8th September 2012 From India, Madras
Hi,
As Mr. Bhushan has stated that the factory licence is issued to them it clearly means that the factory is registered under the said act.Therfore it the factory act will be applicable with that effect irrespective of the production activity is on or not.As it is also mentioned that the 80 employees are on role,therefore their compliances will be met as per the factories act and covered under the same.
Thanks
Bijay
9th September 2012 From India, Vadodara
Dear all concerns,
No doubt, in this case factory act apply. You have already taken factory license; which is known as " to work as a factory". Either you have started production or not started production; this is not matter.Taking a permisiion to construct a factory or to work a factory has intention for manufacturing activities. If the production is not started, in your annual/half yearly return you have mention that plant is under construction.
Your manpower is also more 80; and in your premises some activities might be going on such as erection, painting, etc. Hence; your said factory is under the perview of factory act.
If; any accident will happens; then you will be trated only as per factory act.
Thanks,
B.K.Sinha
9th September 2012 From United Arab Emirates, Abu Dhabi
Dear bhuwan .. u are telling that you have 80 workmen are in ur workplace....but ur saying there is no manufacturing process..........

then what the work all these 80 workmen doing ???????

pls refer sec.2 (k) of Factories Act 1948 .....which says Manufacturing Process means process for -

(i)making , altering, repairing, finishing, packing, oiling , washing, cleaning , breaking up , or otherwise treating or adapting any article or substance with a view to its use, sale , transport , delivery , disposal or

(ii) pumping oil , water , sewage , or any other substance or

(iii) generating , transforming , transmitting power or

(iv) composing types for printing or book binding

(v) constructing , reconstructing , repairing , refitting , breaking up of ships or vessels or

(vi) preserving or storing any article in cold storage

if ur so called workmen have been doing any of the above said activity, then it means they have been in a manufacturing process....if they have been in manufacturing process , then ur plant will comes under the factories act as said in sec .2 (m) of the act
10th September 2012 From India, Visakhapatnam
dear sir
greetings
I am working in a partnership firm, registered under factory's Act. what all are the registers for staffs & workers details we have to maintain.
Kindly help
sridevi
coimbatore
Tamilnadu
10th September 2012 From India, Coimbatore
Dear Sir,

There are different sections into it. Like the definition of Factories and definition of manufacturing process.

1.The definition of "manufacturing process" does not depend upon and is not co-related with any end product being manufactured out of a manufacturing process. It includes even repair, finishing, oiling or cleaning process with a view to its use, sale, transport, delivery or disposal. It cannot be restricted to an activity which may result in manufacturing something or production of a commercially different article. The "manufacturing process" cannot be interpreted in a narrow sense in respect of an act which is meant for the purpose connected with social welfare; M/s Qazi Noorul Hasan Hamid Hussain Petrol Pump v. Deputy Director, Employee's State Insurance Corporation, 2003 LLR 476.

2.The definition of factories is similar as mentioned in above threads.

If your manufacturing process comes under the ambit of any two definitions then Factories act 1948 must be applicable.

Regards

Sunil Upreti
10th September 2012 From India, Nagpur
dEAR,
iF YOUR FACTORY WAS UNDER CONSTRUCTION, YOU WERE UNDER BUILDING & OTHER CONSTRUCTION WORKERS aCT 1996..bUT, SINCE YOU HAVE A VALID FACTORY LICENSE, IT MEANS NOW YOU ARE COVERED UNDER FACTORIES ACT AND YOU WILL HAVE TO FOLLOW ALL THE PROVISIONS.bUT, Y R YOU SO WORRIED, WHEN THE MANUFACTURING PROCESS IS YET TO START YOU MUST NOT BE HAVING WORKERS OTHER THAN MANAGEMENT STAFF.iN THAT CASE, AS PER DEFINITION OF WORKER UNDER FACTORIES ACT, U MUST NT BE HAVING PPL.. SO YOU HAVE TIME TO FOLLOW ALLL THE PROVISIONS TILL YOU HAVE THOSE WORKERS ...
10th September 2012 From India, Asansol
Dear Sridevi
greetings!!!!!!!!
pls go through this link
https://www.citehr.com/118308-all-ac...liances-3.html
u wl find an excel format file uploaded by mr.rajeev abt the compliance to be maintained with respect to all labor acts including FACTORIES ACT 1948
regards,
raja
10th September 2012 From India, Visakhapatnam
Dear Sridevi
greetings!!!!!!!!
pls go through this link
https://www.citehr.com/118308-all-ac...mpliances.html
u wl find an excel format file uploaded by mr.rajeev abt the compliance to be maintained with respect to all labor acts including FACTORIES ACT 1948
regards,
raja
10th September 2012 From India, Visakhapatnam
It has been well in the rules of each govt. That provisional licence to be obtained while the factory is under construction stage and the manufacturing process shall start at later stage
10th September 2012 From India, Gurgaon
Dear Bhuvan
For constructing a Factory in any locality one must first get approval from the Factories Department (Inspector of Factories) as per the Factories Act. But during Construction and before commencement of Manufacturing Process, the Factories act will not apply. The Building & Other Construction Workers Act will only apply till the construction activities are on. Once the Manufacturing process is started in that premises then obviously the BOCW Act will cease and Factories Act will apply.
Hope your doubt is cleared. Further any querry please do not hesitate to ask.
10th September 2012 From India, Kumbakonam
I feel that if the factories license is already obtained and if aleady 80 persons are working in the premises looking after support operations for making the factory ready for manufacturing activities, in that case, initial compliances such as factories returns, attendance cum wages registers, shift timings etc. have to be followed in case of those 80 employees. they should not wait the factory to start the production activities (manufacturing process) in order to start making compliances.
patwardhan
11th September 2012 From India, Thana
The license Authority is not innocent when it has issued the license when you had applied for..... when you have already got the license/in possession of the license, implies that you have fulfilled the requirements to establish as factory or would be considered as factory... Hence no other discussions would fit in for the acts already been done, except the duties as demanded by the license shall be performed in order to retain the same........
12th September 2012 From India, Bangalore
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