Understanding the Role of an 'Occupier' in the Factories Act, 1947: Can Employees Be Nominated?

Understanding the Role of an Occupier Under the Factories Act, 1947

Dear Experts, please provide your interpretation of "who is an occupier" as per the Factories Act, 1947. Is it compulsory for a board of directors? Can an employee be nominated as an 'Occupier' of the Factory?

I urgently require your valuable reply. If there are any case laws on this, please also supply.

Regards,
PBS KUMAR

An Employee with Full Authority in the Factory

An employee who has all the rights in the factory:

- Authority to sign anything.
- Authority to modify or damage any part of the building.
- Authority to sign cheques.
- A nominated power of attorney for the entire company.
- Authority to act as a nominee in legal affairs.

Then, he can be an occupier; otherwise, the Director should be the only occupier.

Re: Who is an Occupier as per the Factories Act, 1947

An employee who has managerial and/or supervisory power in the management of the factory, such as the authority to appoint and terminate the service of any person (worker, official of the factory, sanction of leave, gate pass), becomes the occupier of the factory. The Board of Directors has to declare that person as an occupier under the provisions of the Factories Act, 1948. Otherwise, any of the directors should be an occupier under the provisions of the Factories Act, 1948.

Thank you for your interpretation of "OCCUPIER" under the Factories Act, 1947. However, I have come across some additional information on this matter, which is attached for your review.

Regards,
PBS KUMAR

Dear Mr. Kumar, I have gone through the attached file. I think it is quite clear what I want to state in respect of the interpretation of the occupier.

Dear All, Really great discussion. I have gone through the attached file as well.

Conditions for an Occupier

This document states the following conditions: An employee can be an Occupier, and in the case of a company, the occupier must be a director or any of the board of directors.

"It was held that where the company owns or runs a factory, it is the company which is in ultimate control of the affairs of the factory through its directors. Even when the resolution of the board states that an officer or employee other than one of the directors shall have ultimate control over the affairs of the factory, it would only be a camouflage or an artful circumvention because the ultimate control cannot be transferred from that of the company to one of its employees or officers, except where there is a complete transfer of the control of the affairs of the factory.

An occupier of the factory in the case of a company must necessarily be any of its directors who shall be so notified for the purposes of the Factories Act. Such an occupier cannot be any other employee of the company or the factory. This interpretation of an 'occupier' would apply to all provisions of the Act wherever the expression 'occupier' is used, and not merely for the purposes of Sec. 7 or Sec. 7A of the Act."

Can anyone provide examples of organizations where employees are deputed as Occupier?

Great to hear your comments. In my previous company where I worked for 12 years, it was a corporate setting with many vertical businesses. Our factory head (VP/GM) served as the Occupier and used to attend legal hearings.

Thank you.

Regards.