Madhu.T.K
Industrial Relations And Labour Laws
Sagar Gulani
Hr Manager
+2 Others

Thread Started by #Anonymous

Dear sir,
We are manufacturers of industrial speciality chemicals and there are total 7 employees in our factory and 3 employees are getting salary below Rs. 15000/- . You are requested to kindly suggest whether are liable to register under Factory Act?
5th August 2015 From India, Nagpur
Dear Anonymous,

DEFINITIONS UNDER THE FACTORIES ACT

.Factory. The term Factory is defined in Section 2 (m) of the Act as follows: "Factory means any premises including the precincts thereof- .

(i). whereon ten or more workers are working, or were work¬ing on any day of the preceding twelve months, and in

any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so

carried on, or

(ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on

but does not include a mine subject to the operation of the Indian Mines Act, 1952 (Act XXXV of 1952), or a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place.

Since you have 10 Employees/workman (Staff Personnel & Workmen), you shall register your factory and do the necessary formalities.

Thanks,

Sagar Gulani
5th August 2015 From India, Surat
First of all i would like to tell about factory than i think you would know. you should take registration or not.
factory: A premises where 10 or more worker are working in any prescribed day of year with use of Electricity.
6th August 2015 From India, Delhi
It is true that as per Factories Act, an establishment engaged in any manufacturing activity with the aid of power (not necessarily electric power) wherein 10 or more are working (no mention about their salary for coverage- and if we take the salary as the criterion there will not be any factory in India!!) is required to be registered under the Factories Act.

But as per section 85 of the Factories Act, the state government can notify that provisions of the Factories Act shall apply to factories where lesser number of workers are employed. Accordingly, there are plenty of industries which are covered by the provisions of the Factories Act even though the number of workers is less than 10. In the case of Chemical industries, I doubt, if there is any notification that chemical factory with 3 persons will come under the coverage of the Act. Please refer to the State rules/ notification because in Kerala an establishment in Paints and chemicals industry should follow the provisions of the Factories Act if the establishment employs 3 persons.

Madhu.T.K
6th August 2015 From India, Kannur
Yes ,the number of employees matters.If the number of workers is below 10 the unit will not be a Factory unless it is declared so by appropriate Govt under section 85 of the Factories Act.
Varghese Mathew
0471 2542059
6th August 2015 From India, Thiruvananthapuram
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