Can Two Separate Manufacturing Units Share a Common Access Gate Legally? Seeking Insights on Factory Rules

Common Access for Independent Manufacturing Units

We have two independent manufacturing units in one survey number. Both manufacturing units have separate management, different product lines, balance sheets, factory licenses, etc. There is no integration between the two units. Both units are separately registered under the Companies Act and also under the Factory Act. However, the access to both units is common. Employees and vehicles of both units use the same access gate. Therefore, I would like to know what the provision is under the Factories Rules in this regard. Is there any rule or provision that prohibits common access for two independent units with different factory licenses?

Can anyone shed light on the above situation? Thanks.

Functional Integrality and Factory Classification

The basic question is that of functional integrality, meaning whether the two units are closely interlinked but are artificially kept separate or not. As explained by you, both units are separately registered, managements are distinct, product lines are distinct, etc., so it appears to be two independent units.

As per Section 4 of the Factories Act 1948, the State Government has powers to declare two or more factories of the occupier shall be treated as a single factory. So long as the occupier of the two factories is different, they cannot be clubbed together. Since they have been notified to be two factories, it cannot be changed without giving an opportunity to you. Merely because of a common entrance, two factories cannot be clubbed together. There are cases where more than one factory has the same entrance, but for certain statutory facilities like those related to health, safety, and welfare, there has to be due compliance by each unit.

There is no such bar in the Factories Act 1948 or the rules framed thereunder. Is there any problem?

Regards, S.K. Mittal

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Change in Gate Pass for Distinctive Employee Identification

You need to change the gate pass for both units to ensure distinctive identification of the employees.