Is There a Limit to How Many Factories One Person Can Occupy? Let's Discuss!

Dear All,

Is there any limit for appointing a single person as the occupier of factories?

Thank you.

Under the Factories Act, there seems to be no provision restricting a person from becoming the occupier of different factories. In fact, the occupier himself is the principal employer, the person who has ultimate control over all activities in the factory. He can set up any number of factories and become the occupier of all these factories. Whether or not the MRTP Act has anything to do with this is to be looked into.

Regards,
Madhu.T.K

Hi DSV,

There is no such limit; rather, the person who starts or manages the factory is considered the occupier of the factory.

Notice by Occupier

(1) The occupier shall, at least fifteen days before he begins to occupy or use any premises as a factory, send to the Chief Inspector a written notice containing:

(a) the name and situation of the factory;
(b) the name and address of the occupier;
(bb) the name and address of the owner of the premises or building (including the precincts thereof) referred to in section 93;
(c) the address to which communication relating to the factory may be sent;
(d) the nature of the manufacturing process -
(i) carried on in the factory during the last twelve months in the case of factories in existence on the date of the commencement of this Act, and
(ii) to be carried on in the factory during the next twelve months in the case of all factories;
(e) the total rated horsepower installed or to be installed in the factory, which shall not include the rated horsepower of any separate standby plant;
(f) the name of the manager of the factory for the purposes of this Act;
(g) the number of workers likely to be employed in the factory;
(h) the average number of workers per day employed during the last twelve months in the case of a factory in existence on the date of the commencement of this Act;
(i) such other particulars as may be prescribed.

(2) In respect of all establishments that come within the scope of the Act for the first time, the occupier shall send a written notice to the Chief Inspector containing the particulars specified in subsection (1) within thirty days from the date of the commencement of this Act.

(3) Before a factory engaged in a manufacturing process, which is ordinarily carried on for less than one hundred and eighty working days in the year, resumes working, the occupier shall send a written notice to the Chief Inspector containing the particulars specified in subsection (1) at least thirty days before the date of the commencement of work.

(4) Whenever a new manager is appointed, the occupier shall send to the Inspector a written notice and to the Chief Inspector a copy thereof within seven days from the date on which such person takes over charge.

(5) During any period for which no person has been designated as manager of a factory or during which the person designated does not manage the factory, any person found acting as manager, or if no such person is found, the occupier himself, shall be deemed to be the manager of the factory for the purposes of this Act.

41B. Compulsory disclosure of information by the occupier.

The occupier of every factory involving a hazardous process shall disclose, in the manner prescribed, all information regarding dangers, including health hazards and the measures to overcome such hazards arising from the exposure to or handling of the materials or substances in the manufacture, transportation, storage, and other processes, to the workers employed in the factory, the Chief Inspector, the local authority within whose jurisdiction the factory is situated, and the general public in the vicinity.

The occupier shall, at the time of registering the factory involving a hazardous process, lay down a detailed policy concerning the health and safety of the workers employed therein and inform the Chief Inspector and the local authority of such policy. Thereafter, at prescribed intervals, the occupier shall inform the Chief Inspector and the local authority of any changes made to the policy.

The information provided under subsection (1) shall include accurate details about the quantity, specifications, and other characteristics of wastes and the method of their disposal.

With the approval of the Chief Inspector, every occupier shall establish an on-site emergency plan and detailed disaster control measures for the factory. The safety measures required to be taken in case of an accident shall be made known to the workers and the general public living in the vicinity of the factory.

Every occupier of a factory engaged in a hazardous process shall inform the Chief Inspector about the nature and details of the process within a specified period before or after the commencement of such process.

In case an occupier contravenes the provisions of subsection (5), the license issued to the factory may be liable for cancellation, notwithstanding any other penalties under this Act.

The occupier of a factory involving a hazardous process shall, with the previous approval of the Chief Inspector, establish measures for the handling, usage, transportation, and storage of hazardous substances within the factory premises and their disposal outside the premises. These measures shall be publicized among the workers and the general public living in the vicinity as prescribed.