Does Your Assembly Business Fall Under the Factory Act? Seeking Advice and Insights

Advice needed on the Factory Act application. If a company is involved in the assembly of parts, will it come under the Factory Act?

Definition of a factory

The definition of a factory is as follows: If you are assembling and manufacturing a product or finished goods with the aid of power, you very much fall under the definition of 'Factory'.

Expert of the Section

The expert definition of a "factory" is as follows:
(m) "factory" means any premises including the precincts thereof-
(i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or
(ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on.

Dear Ms. Neha,

It falls under the factory category. If you have any further queries, please provide more details on the same.

The finishing of any article comes under the definition of manufacturing in reference to Section 2(k)(i) of the Factories Act, 1948. Therefore, it is a factory provided it substantiates the provision 2(m)(i) or (ii) of the Factories Act.

Dear Madam HR Colleague,

If you are employing 10 or more workers and carrying out a manufacturing process using power, or employing 20 or more workers without power, or have employed on any single day during the preceding 12 months, then yours is considered a factory under the Factories Act.

Please remember that running a factory without a proper license under the Factories Act is an offense punishable by a fine and imprisonment.

Regards,
Vinayak Nagarkar
HR Consultant