Applicability Of Factories Act To Small Manufacturing Units

korgaonkar k a
Dear [Login to view],
I appreciate your participation.
Factory Licence and Factory permit are statutory obligations.
Whreas registration under SSI or MSSI are, according to me not statutory one. The main purpose of Registration under SSI or MSSI is to maintain statistics and maintain a roll of such units for the purposes of providing incentives and support services.
There is another eactment called- The Micro, Small and Medium Enterprises Development Act, 2006. The object of this enactment is to facilitate the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental. Under this Act, a micro or small enterprise or a medium enterprise engaged in providing or rendering of services may file the memorandum to the authority at discretion.
I am not expert in this area but I tried to share the knowledge with I have.
saiconsult
You are welcome. keshav ji.Learning is a continuous process.
B.Saikumar
HR &Labour Law advisor
Mumbai
vgb45
If it is clear that you employ in a day ( 24 hours) 10 or more workers and use power for any manufacturing activity you need to register under Factories Act. There are certain judgments from High Court and Supreme court. If needed I can share them it with you.
moneypolymerspvtltd
Dear Sir,
In our company above 10 workers bellow 20 workers as worked and we have Registered in SSI,Can we should be registration in factory act ?
Kindly suggested.
Warm Regard
Pappu Sharma
Madhu.T.K
For registration under the Factories Act, it is immaterial whether it is an SSI unit or not. The latter depends on investment whereas the former depends on the number of employees employed. Therefore, you should get Factory Registration.
In some industries, like chemical, paints etc the number of employees to make it obligatory to get Factory licence is even less than 10.
Madhu.T.K
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