Understanding Factory Licenses: Why Do Employers Opt for 100-Worker Permits and What It Means for Closure?

Please explain what the statutory difference is if the factory license is obtained for 50, 100, 250, 500, and 1000 workers.

Also, why do most employers take a license for only 100 employees? Is there a relationship in case the factory is to be closed?

Thanks & Regards,
Shivani

Dear friend,

The difference shows the strength of the license based on which a fee is to be paid to the concerned authorities. There is no relation between the strength of the license and the closing of the factory.

Regards

Regarding obtaining or renewing a factory license, there is a correlation between the strength of employees and the horsepower used in running a factory. The license fees are decided based on this criterion. I have a table detailing this information.

Hi Shivani,

Please read the Factories Act, 1948. You'll come to know everything related to the factory license.

Best Regards,
Sushma

Dear Shivani,

Please provide us with the required points as per your specifications or contact me for any inquiries.

Regards,
Dileep Kumar
9873648885

Dear Shivani,

You apply for a factory's license when the establishment falls under the definition of "Factories" as per the Factories Act, 1948. The maximum number of workers required should be specified; it can be any number, such as 82, with applicants usually rounding it off. Various compliances arise based on this number; for instance, if there are 500 or more workers, a Labour Welfare Officer needs to be appointed, and if there are more than 150 workers, you need to have more than one first aid box, and so on.

The closing/retrenchment of an establishment is governed by the Industrial Disputes Act, 1947. The permissions required, notice period, and pay depend on the number of workers employed.

Regards,
SC

Hi, it's me Mitali Rashmi. I want to have a proper article regarding organizational development and the importance of an OD consultant in any particular organization. Please help me out in this regard.

Dear Seniors,

I have just transferred to a plant location from the corporate office and don't have any exposure to it except for a few words of mouth. The plant license from the Chief Inspector of F&B was issued for 150 persons to our plant (including contractual and permanent employees). The current manpower strength is a maximum of 100 during the day in the previous year, as per our gate register showing a 24-hour turnover of manpower. The validity of the existing license is until December 2010.

Could you kindly guide me on how to obtain an updated license with a strength of 750 (proposed maximum manpower for the upcoming years 2011/12/13) by our factory manager? Is it possible to obtain this license for 3 years in one instance?

Your early suggestions would be greatly appreciated.

Dear Sakshi,

We have to renew the factory license on or before the 31st of October every year. The factory license can be renewed for a maximum of 5 years.

For an increase in manpower:
a. We need to amend the existing factory license.
b. Treasury receipted challan for Rs. 100/- is required for each amendment.
c. Please check the mandatory requirements under the Factories Act and other labor laws.

Also, have a meeting with DCIF for the amendment.

Regards,
Ramalingam V.

Dear Seniors, please let me know what documents are required for renewing the license under the Factory Act of 1948. It's urgent. Please reply promptly. Thank you.

Regards

During one of the all-hands meetings, my HR Head mentioned that we are engaged in partial production and partial software development, a decision that has been approved by our MD. In light of this, could you please advise on which regulations we should adhere to for statutory compliances?

Thanks & Regards,
Jayant

If you have submitted the license within the due date along with the required fees, it is fine. You don't have to pay anything. The license may be returned for corrections, which you may carry out on receipt of the application. Otherwise, you may approach the Department of Factories to find out on what grounds the application was returned and then take action to correct it.

Production Continuation During License Renewal

For your second question, you don't have to stop the production since you have applied for the renewal of the license and it is with them. Keep the production going. Stopping production arises only in critical cases where the factory is shut down by the department for not complying with regulations in a serious case.

Regards,
Jayakumar

Dear Authority,

Kindly help to know if any compliance needs to be followed if the actual number of workers is 300 and a license for 500 has been obtained.