Dear Experts, Is there any provision under the act to take license for the canteen in the factory if there is more than 250 staff is there??
What is the legal requirement to run canteen into the company premises??

From India, Vadodara
The Factories Act, 1948 mandates[1] for maintaining and providing the canteen facility for the employees/workers where the number of workers employed in a factory exceeds 250.

In this regard, an employer can either provide such facility on their own or it can be outsourced to the third party caterers.

The company has to form a canteen committee to monitor the function of the canteen & its house keeping. The food stuff at canteen to be provided at subsidy rate.

The employer has to provide room for dining, cooking, washing with toiletry facility and required furniture.

You need to follow the state rules of the factories act to know what else to do.

No separate licence is required for canteen inside the factory premises because factory inspector is the authority as per the statute.

From India, Mumbai
Thank you sir for your information.

But some auditors inform us that in gujarat you need to take canteen food license from FSSAI for running canteen inhouse.

Can you please give any guildeline for the same.

From India, Vadodara
In 2006, FSSAI, became mandatory to have industrial canteen licence, that meet the basic health, safety standards and can assure food safety & health safety of their food.
From India, Madras
Can you give me any reference to process for Canteen license??
From India, Vadodara
The applicant has to go to the FosCos website to make a fresh application.
From India, Madras
Dear Colleague,

As rightly clarified by the Colleagues, the applicability of Industrial Canteen is depending on the Number of Workers employed and the threshold specified by the respective State Government under the Provisions of the Rules applicable under the Factories Act 1948. Here there is no license separately for Industrial Canteen under the provisions of Factories Act but it is a mandatory welfare measure to be provided under the Act. The details are to be furnished in the Annual Return.
With regard to the Provisions of Food Safety license Kindly go through full details given by Govt of India using the below link:

All the Best, God Bless,
Doctor Siva Global HR
Tamil Nadu

From India, Chennai
The employees of a statutory canteen (a canteen set up as mandated by the Factories Act) are employees of the establishment 'with respect' to the Factories Act. Therefore, due care should be taken while outsourcing the activity of canteen. The workers deployed by the canteen contractor are workers of the establishment just because they form part of the operations of the factory.

In G B Pant University of Agriculture & Technology, Nainital vs. State of U.P. (AIR 2000 SC 2695) it was observed that employees of the cafeteria where food were provided to the students and staff members were employees of the university. The reason was that as per the University Act and regulations the inmates of the hostel (students and staff members) were not allowed to have food from outside. Therefore, setting up of a cafeteria/ canteen was an obligation of the University and as such the employees employed in the cafeteria could not be treated otherwise than the employees of the University.

However, in Indian Petrochemicals Corporation Ltd. vs. Shramik Sena (1999 (6) SCC 439-1999 LLR 961 (SC), it was observed that "the workmen of a statutory canteen would be the workmen of the establishment for the purpose of the Factories Act only and not for all other purposes". This means that you can have the function of canteen given to a contractor. The workers deployed in the canteen cannot demand any regularisation or absorption provided the contract is genuine and not sham. What the Factories Act provides is that the employer should provide food to his workers at subsidised rates. The Act also provides for neatness and food safety arrangements in the canteen. Once these are met, the employer is said to comply with the requirements under Factories Act. Outsourcing will not come under the purview of Factories Act. Since the canteen activity is not a core function of the factory, there is nothing against Contract labour (Regulation and Abolition)Act also.

From India, Kannur

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