Factory License Dilemma: Do We Need to Update for Our Growing Team?

Dear Friends,

I have one question. X Company has a factory license for 100 employees. Currently, 80 employees are working in the company. The company has various marketing offices throughout India, where 30 employees are working. The company pays P.F. for 130 employees.

My question is: does the company need to change its factory license? Please reply and provide suggestions.

Thank you.

Dear Harish Shah,

Your P.F. compliance is for 130 workers, and your record also shows 130 workers. Your application for a factory license states that you have 130 workers.

Thank you.

Dear friend,

I believe that the number of workers employed in the factory contributes to the strength of the factory. In my opinion, the marketing staff who work outside the factory premises should not be taken into account for the factory licensing purposes.

Please feel free to correct me if my viewpoint is incorrect.

Regards,
Vara Prasad AVGN

If your strength is 130 due to marketing employees, and you have marketing offices, the offices are covered under S & E Act along with the marketing employees. For the purpose of the Factory License, the strength will be 80 only.

Regards,
N. Ramamurthy

Dear Mr. Harish,

A factory license is entirely based on the strength and power load at the factory premises only. This means that any company may have more than one factory license, but they would fall under compliance with EPF & ESI under a single code. Therefore, there is no need for modification in the license in your case.

Ajay Shukla
Labour Laws Consultant, Kanpur

It will be better to apply for an amendment in the factory license since marketing people are also your employees receiving a salary from the same organization.

Abinash Sinha
Manager-HR

Please refer to the Factories Act, 1948, and the respective State Factories Rules. There you will find the definition of a 'Factory.' Following that, you will not need to seek further advice.

Head Offices, Marketing, and Sales offices are distinct and fall under the Shop and Establishment Act. Factory licenses are issued based on the specific number of employees and power load in HP.

If your license is for 100 employees and currently 80 workers are employed in your factory, there is no necessity to modify or amend the license.

You can establish a good relationship with government officials and directly approach them with any queries. They, as public servants, will assist you. Give it a try; they can genuinely help you.

Can anybody tell who is the issuing authority of the Electricity Generator License for factories in West Bengal?

Suvro Das

Hi,

Please help me out. I am working in a steel plant; earlier it was Steel and Power Ltd. But from the first of January, our name has changed. Please suggest how I can change it on the factory license. What is the right process? It will be a great help from all you seniors' side.

Thank you. Regards, Shivali