Are Contract Laborers in Factories Covered by the Factories Act? Let's Discuss!

Can someone please elaborate on whether, in a factory where contract laborers are engaged and are regulated according to the Contract Labour Act, the Factories Act will be applicable? If so, which provisions of the Factories Act are applicable?

All provisions of the Factories Act concerning the 'worker' will be applicable to contract laborers, including the workers employed by the canteen contractor running the statutory canteen.

Regards

The contractor shall be solely responsible for strictly following all labor laws, industrial laws, the Factories Act, and such other laws that are applicable from time to time, including but not limited to the notifications, amendments, or additions made to these laws during the period of the contract. The contractor shall also be responsible for the various levies of the state government, Government of India, or any statutory body. The contractor shall have to, at his own expense, comply with labor laws and keep the company indemnified in respect thereof.

Answer to your queries are as under:

Your Query No.1: Applicability of the Factories Act to Contract Laborers

If in a factory, some contract laborers are engaged and these contract laborers are regulated as per the Contract Labor Act, then will the Factories Act be applicable? Yes, the provisions of the Factories Act (FA) are applicable to contract laborers also. Whether the contract laborers are regulated by the Contract Labor (Regulation and Abolition) Act (CLRA) or not is not material.

Your Query No.2: Provisions of the Factories Act Applicable to Contract Laborers

If yes, then which provisions of the Factories Act are applicable? You are requested to read section 2(l) of the FA. According to this section, contract labor is also considered a worker under this Act. The object of this Act is to ensure safety and provide health & welfare measures to all workers. In factory licenses, contract laborers are also included.

Hope you are satisfied with my answers.

Regards.

If a contractor is found to be a defaulter in respect of statutory compliances, who should be served with a non-compliance notice by the inspector/regulatory authority - the factory management or the contractor management?

I would like to add to the views expressed by our members that the Principal Employer of the factory is responsible for implementing the provisions of the Factory Act. The factory authorities issue a notice of non-compliance to the Principal Employer.

Regards,
Eswararao Ivaturi.

Compliance under the Factories Act mandates that only factory management, i.e., the manager and occupier of the factory, is responsible and liable. Conversely, compliance under the Contract Labour Regulation and Abolition, Payment of Wages, Minimum Wages, and other enactments holds both the principal and contractors responsible and liable jointly and severally. However, certain compliances hold only the Principal Employer (PE) responsible and liable.

In general, liability commences with a visit remark by the Inspectors. The Factory Inspectorate does not issue any notice to the contractor.

Regards,