Understanding the Factory Act: Does a Premises with 30 Workers Qualify as a Factory?

Sir,

As per the definition of the Factory Act amendment, the limit of workers is 40. If there are 30 workers (including contract workers) working in any premises where manufacturing processes are ongoing, can we classify that premises as a factory? If yes, how? Would all Factory Act and rules apply to that situation?

Thank you.

At present, as per the Factories Act, you need to have a license to run a factory if the employee strength is 10 with power. The amendment, which states 40, is yet to be passed in the parliament to become effective.

In the present situation, if there is a strength of less than 10 people and manufacturing is ongoing, it is still considered a factory or a workshop but is not covered under the Factories Act. You will be covered under other acts like the Payment of Wages Act, Minimum Wages Act, etc., where there is no minimum number of employee strength mentioned.

Regards.