Do Factories Act Rules Apply to Managers, and Why Is Overtime Often Excluded?

Application of Factories Act to Managerial Level

Do the Factories Act provisions apply to managerial level employees? If yes, then why do managerial employees not usually receive overtime?

Factory Act Compliance and Registration

I want to know about Factory Act compliance, such as license renewal, half-yearly return, yearly return, etc. What is the difference between the Shop Act and the Factory Act? Also, what is the procedure for the registration of the Factory Act?

Thank you,

Kashyap

Dear Kashyap,

Good question...

The Factories Act is basically related to three main basics:

Firstly, the health of the employees.
Secondly, the safety of the employees.
Finally, the welfare of the employees.

In relation to overtime (OT) for the laborers and not for managerial staff, there is no clear definition for the same. However, managers can also request overtime pay for the hours they worked. Usually, due to seniority and a better salary structure compared to laborers, executives, officers, managers, etc., do not ask for OT. However, there is no straightforward provision stating that they will not be eligible for OT.

Regarding the difference between the Shops Act and the Factories Act:

The Factories Act is applicable to manufacturing units where 20 or more persons are working on any day in a year and where any kind of manufacturing activities are being performed.

The Shops and Establishments Act is applicable to shops, offices, head offices, corporate offices, etc., where any kind of services are provided and not manufactured. The number of persons working could be any. As per the act, shops must open and close as per the specified times according to the industry.

I hope this information has answered some of your queries.

Inspection Schedules for "Shops" and "Factories"

What are the inspection schedules for "Shops" and "Factories"? Is the Labour Officer authorized to inspect SME Factories? This is regarding Andhra Pradesh.

Regards

Not a very accurate answer!!!

- Provisions in the Factories Act are applicable to 'Workman or Worker'. Refer to the Factories Act and check the definition of 'Workman or Worker'.
- Since Officers and Managers are not 'Workman or Worker' as defined in the Factories Act, the provisions are not legally applicable to them.

[QUOTE=vkokamthankar;1464978]Not a very accurate answer!!!

- Provisions in the Factories Act are applicable to 'Workman or Worker'. Refer to the Factories Act and check the definition of 'Workman or Worker'.
- Since Officers and Managers are not 'Workman or Worker' as defined in the Factories Act, provisions are not legally applicable to them.

"Worker" means a person employed, directly or by or through any agency (including a contractor), with or without the knowledge of the principal employer, whether for remuneration or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process but does not include any member of the armed forces of the union.

According to the above definition, how can you justify that managerial people are not workers?

The word "worker" itself sheds light on its exact meaning; hence, managers and executives could not be classified as workers as they are responsible for managing or executing work using their intelligence rather than physical labor. Otherwise, the law does not refer to them as workers. It would be more accurate to use the term "employee" instead of "worker."

Understanding the Distinction

I understand the distinction between the terms 'employee' and 'worker,' but does this mean that the provisions of the Factory Act apply only to workers engaged in physical work?

Regards,
Kiran Kale.