Are Warehouses Covered Under Factories ACT - CiteHR
Essykkr
Statutory Complaince/labour & Employment
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
+1 Other

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Hello All,

I am trying to understand the labour practices in Warehouses.

As a part of IT I need to know whether Warehouses are considered under factories act or not.

Factories act says : “Factory” means any premises including the precincts thereof – a) 10 or more with aid of power b) 20 or more without the aid of power caries out manufacturing activity.According to the ACT.. manufacturing activity has been defined as follows..

“Manufacturing Process” means any process of 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 pumping oil, water or sewage or generating, transforming or transmitting power, or composing types for printing, printing by letter press, lithograph, photogravure or other similar process or book binding or constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels.

So my question is ."Does a warehouse comes under factory as per the definition above".. ? purpose of a warehouse is to just store and dispatch the stored materials.. with a view of sale. I hope a warehouse doesn't comes under factories act.Please clarify my doubt..

If its not covered then HSW aspect...i.e health, safety and welfare is not a mandate then??? or any other special act applies to it???

Also,PLEASE SHARE SOME of the BEST PRACTICES FOLLOWED in the Industry for the CONTRACT labours please...
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Dear Ramchander Soundararajan ji,
Answer to your question is depends upon various aspects.
If the warehouse or BSR is located within the precincts of your factory, you can not escape from the provisions of FA. It is very much a factory.
If the warehouse or BSR is located out side the precincts of your factory, it is not a factory under FA but it is a shop as defined under the S&E Act. Provisions of S&E Act including in regards with health, safety and welfare are applicable to such warehouse or BSR.
However, if it is established that in such warehouse or BSR (which is located out side the precincts of factory) there is a manufacturing activity carried out with 10 / 20 persons such as packing, wrapping etc.provisions of FA will be applicable.
Dear Ramchander Soundararajan ji,
Answer to your question is depends upon various aspects.
If the warehouse or BSR is located within the precincts of your factory, you can not escape from the provisions of FA. It is very much a factory.
If the warehouse or BSR is located out side the precincts of your factory, it is not a factory under FA but it is a shop as defined under the S&E Act. Provisions of S&E Act including in regards with health, safety and welfare are applicable to such warehouse or BSR.
However, if it is established that in such warehouse or BSR (which is located out side the precincts of factory) there is a manufacturing activity carried out with 10 / 20 persons such as packing, wrapping etc., provisions of FA will be applicable.
Agreed, warehouse not situated within the pricint of factory premises, are not covered by the Factories Act, instead covered by S&E Act of that particular state.
i have registration of few warehouses under Shop Act of Haryana and UP.
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