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Labour Law IndexFirstly if you are not indulged in Manufacturing Activity you cannot be a factory under the act.
MEANING OF FACTORY UNDER FACTORY ACT:-
“Factory” Under the Factories Act, 1948 means:-
1. Any premises including the precincts (A Place enclosed with walls or fences) thereof.
2. In any part of which a manufacturing process is being carried on.
3. Where on any day of the preceding twelve months,
4. Whereon TEN OR MORE WORKERS are working, or were working in any part of a MANUFACTURING PROCESS BEING CARRIED ON WITH THE AID OF POWER.
5. Whereon TWENTY OR MORE WORKERS are working in any part of a MANUFACTURING PROCESS IS BEING CARRIED ON WITHOUT THE AID OF POWER.
6. For this clause, the mere fact that an ELECTRONIC DATA PROCESSING UNIT OR A COMPUTER UNIT IS INSTALLED in any premises or part thereof, shall not be construed to make it a factory IF NO MANUFACTURING PROCESS IS BEING CARRIED on in such premises or part thereof.
7. But “Factory” does not include:-
a. A mine subject to the operation of , The Mines Act, 1952 (35 of 1952)], or
b. A mobile unit belonging to the armed forces of the Union or
c. Railway running shed or a hotel, restaurant or eating place.
Here we need to understand the meaning of a Manufacturing Process under the act. “MANUFACTURING PROCESS” means any process that includes:-
A. That brings into EXISTENCE A PRODUCT THAT IS DIFFERENT from the raw materials that made them.
B. The new product produced must has a “DIFFERENT COMMERCIAL IDENTITY THEN THE RAW MATERIAL”
C. The Process must involve TREATING OR ADAPTING any article or substance with a view to :-
a. Use or Self-Consumption.
d. Delivery or Disposal.
The Process of Treating and Adapting includes making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or such other process.
D. Some Activities are “DEEMED MANUFACTURE” :-
a. Pumping oil, water, sewage or any other substance.
b. Generating, transforming or transmitting power.
c. Constructing, reconstructing, repairing, refitting, finishing or breaking up SHIPS OR VESSELS; or preserving or storing any article in COLD STORAGE.
d. Composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding.
From India, Kolkata