Understanding Factory License Validity and Overtime Limits: Can You Help Clarify?

Dear all,

Greetings of the Day! I have a doubt and would appreciate it if you could confirm the answers to the following queries:

1. What is the validity of a Factory license? In some places, it is up to 3 years, while elsewhere it is 5 years or even 1 year. Do we have to pay fees every time we renew it?

2. What is the maximum overtime (OT) that a worker can do in a day? In some locations, the maximum OT in a day is 2 hours (i.e., 10 and a half hours), while in others, it is 12 hours. Could you please clarify this for me?

Thank you and Best Regards,
Vivek Kumar

Hi Vivek, the validity of the factory license is mentioned in your license. At the time of renewal, if you pay the fee for one year, then the license period is for one year. If you pay for three years, then it is valid for three years.

Factory Act and Work Hours

As per the Factory Act, Section 56 stipulates that the period of work of an adult worker in a factory shall be arranged so that, inclusive of his intervals for rest under Section 55, it shall not spread over more than ten and a half hours on any day. The Chief Inspector may, however, increase the spread over up to twelve hours on specific grounds.

Regards, Manish

Hi Vivek,

The factory license is valid for 3 years, and needs to be renewed by paying a fee once every 3 years.

As per KA factories rules, a person can do a maximum of 50 hours of overtime in a quarter.

Regards,
Sabanna

Thanks, but I'm a bit confused. It means the maximum OT allowed in a day is 2 hours. If the chief inspector allows, then it's 12 hours, which means 8 hours working + 1-hour break + 3 hours OT because we have to give a break of 1/2 hour after every 5 hours. In that case, OT is 3 hours. Am I right?

Weekly and Quarterly OT Limits

Is there any limit for weekly OT, and I guess OT for the quarter is revised to 100 hours. Please clarify if a factory license can also be obtained for the first time for 5 years or if we can renew it for 5 years.

Factory License Expiry

There is also confusion regarding when it expires: somewhere it expires in December, somewhere it expires after 1 year of commencement, and somewhere it is up to March 31st. Which one is correct?

1. Factory License Period

The period for the factory license depends on the state authority. For example, in Madhya Pradesh (MP), it is provided on a calendar year basis, while in Rajasthan, it is based on the financial year.

2. Break Hours and Working Hours

Break hours are included in the working hours. For instance, if the normal working hours are 8 hours, any additional hours worked are considered overtime. A half-hour break is allowed within 8 hours of normal working time, and a one-hour break is allowed for work exceeding 8 hours.

3. Spread Hours

The spread hours are typically 12 hours, but in MP, 13 hours are allowed.

4. Overtime Allowance

Overtime (OT) is allowed for up to 12 hours per week.

5. Quarterly Overtime Limit

The quarterly OT limit is increased to 100 hours, with MP allowing up to 125 hours. The state government notification for MP is attached herewith.

I have corrected the spelling, grammar, and formatting in your input. Let me know if you need any further assistance.

Why should the Factory License be renewed before 60 days of expiry?

Factory License Period and Renewal

The respective states have prescribed the factory license period in the concerned State Rules as per the Factories Act 1948. The rules vary from state to state, and the applicable rules have to be complied with.

Now, there is a realization that asking for the renewal of a factory license every year is a remnant of the License-permit raj and is cumbersome as well as uncalled for. Hopefully, in the rules being framed for the new Occupational Safety, Health, and Working Conditions Code, 2020, things would be more uniform across the states and friendly to the industries.