Actually, I want to know if a factory that is under construction will be covered in the definition of Section 2m of the Factory Act (1948). Please give your suggestions. I am awaiting your replies. Kindly provide the links to the related judgments.
From India, Bhopal
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1From India, Bhopal
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Hi,
If it is under construction, it will come under the labor department, not under the Factory Act. Once you finish and submit your documents to the factory inspectorate for a license, then it will fall under the Factories Act.
Regards,
Eswar.K
From India, Chennai
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If it is under construction, it will come under the labor department, not under the Factory Act. Once you finish and submit your documents to the factory inspectorate for a license, then it will fall under the Factories Act.
Regards,
Eswar.K
From India, Chennai
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If a factory is under construction, it will be covered under the Building and Other Construction Workers (BOCW) Act. You need to obtain a license under the BOCW Act. Once the construction is completed and production starts, you must apply for a factory license. BOCW falls under DISH.
Regards,
Bhavin Pandya
From India, Surat
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Regards,
Bhavin Pandya
From India, Surat
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Pramod, please refer to Bhavin Pandya. You need to obtain the necessary license and permission from the municipal corporation to proceed with the construction until this is completed. Additionally, for commencing manufacturing operations and establishing the factory, you must acquire the factory license. If you require any assistance, do not hesitate to engage with the community in Cite HR, where experienced professionals are available to support you.
From India, Delhi
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From India, Delhi
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Dear Mr. Pramod,
To start the new factory setup, you have to get the plan approved by the Inspector of Factories by submitting Form 1. Once you get approval, you can commence your operations. Meanwhile, you should also seek approval from the Fire Department, Health Department, Pollution Control Board, the local Municipal, etc.
Thank you,
Naveen
0-9677-010-010
From India, Madras
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To start the new factory setup, you have to get the plan approved by the Inspector of Factories by submitting Form 1. Once you get approval, you can commence your operations. Meanwhile, you should also seek approval from the Fire Department, Health Department, Pollution Control Board, the local Municipal, etc.
Thank you,
Naveen
0-9677-010-010
From India, Madras
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Dear Pramod,
Once you are planning to construct a factory, you must convert the land to commercial land. If the land is agricultural, you will not get permission to construct a factory. Approval for the construction of the factory must be obtained from the Inspector of Factories as per the Factories Act.
When engaging a contractor and contract workmen for construction, the Contract Labour Act will apply. During the construction phase, the Building & Other Construction Workers Act will be in effect until the commencement of production in the completed factory premises.
Once production begins in the premises, the BOCW Act will cease to apply, and the Factories Act will take effect.
From India, Kumbakonam
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Once you are planning to construct a factory, you must convert the land to commercial land. If the land is agricultural, you will not get permission to construct a factory. Approval for the construction of the factory must be obtained from the Inspector of Factories as per the Factories Act.
When engaging a contractor and contract workmen for construction, the Contract Labour Act will apply. During the construction phase, the Building & Other Construction Workers Act will be in effect until the commencement of production in the completed factory premises.
Once production begins in the premises, the BOCW Act will cease to apply, and the Factories Act will take effect.
From India, Kumbakonam
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Dear all,
Since the construction is being done as per the approved plan by the Factories Inspector and is being built for a factory, yet it is not a factory since it does not fulfill the definition of a Factory under the Factories Act as no manufacturing process as defined under the Act is being carried out at the construction stage. However, I am of the opinion that the BOCW Act won't be applicable as specific exemption is given for Factory Building from the purview of the Act and that will have no meaning if the Factory building under construction is not exempted.
Regards,
KK
From India, Bhopal
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Since the construction is being done as per the approved plan by the Factories Inspector and is being built for a factory, yet it is not a factory since it does not fulfill the definition of a Factory under the Factories Act as no manufacturing process as defined under the Act is being carried out at the construction stage. However, I am of the opinion that the BOCW Act won't be applicable as specific exemption is given for Factory Building from the purview of the Act and that will have no meaning if the Factory building under construction is not exempted.
Regards,
KK
From India, Bhopal
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Dear Nair,
The Factories Act is applicable only when the production starts. When there is no such production activity involved on the premises, the construction activity carried out in the factory construction is covered under the BOCW Act.
You can clarify from your nearer Factory Inspector Office or from the Labour Commissioner Office.
From India, Kumbakonam
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The Factories Act is applicable only when the production starts. When there is no such production activity involved on the premises, the construction activity carried out in the factory construction is covered under the BOCW Act.
You can clarify from your nearer Factory Inspector Office or from the Labour Commissioner Office.
From India, Kumbakonam
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Dear Shri. Bhaskar ji and other members,
Here I wish to bring to your notice a judgment of the Division Bench of Orrisa High Court in the case of Sterlite Energy vs. State of Orrisa. This judgment is based on an erroneous premise that the BOCW Act only excludes building and other construction works to which the provisions of the Factory Act and Mines Act apply. It cannot be said that the Act (BOCW) intended to exclude a factory under construction and a process being established even before being registered and commencing its manufacturing process.
Thanks and regards,
Keshav Korgaonkar
Shantadurgaent.com, Insurance Advisors, Corporate Advisors, Legal Advice, Wage and salary, Shantadurgaent.com, Labour Compliance Audit, SSI registration, NOC from
From India, Mumbai
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Here I wish to bring to your notice a judgment of the Division Bench of Orrisa High Court in the case of Sterlite Energy vs. State of Orrisa. This judgment is based on an erroneous premise that the BOCW Act only excludes building and other construction works to which the provisions of the Factory Act and Mines Act apply. It cannot be said that the Act (BOCW) intended to exclude a factory under construction and a process being established even before being registered and commencing its manufacturing process.
Thanks and regards,
Keshav Korgaonkar
Shantadurgaent.com, Insurance Advisors, Corporate Advisors, Legal Advice, Wage and salary, Shantadurgaent.com, Labour Compliance Audit, SSI registration, NOC from
From India, Mumbai
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who is an employer under BOCW Act? The owner of the establishment or the corporation which awards the contract is the principal employer or not? Thank You
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Whenever construction is happening under the MIDC zone, it is necessary to obtain a provisional NOC from the Chief Fire Officer and MIDC engineer. This is because when starting factory construction, there must be clearance from the MIDC engineer until the end of the construction phase, which means obtaining the final NOC. The Chief Fire Officer provides clearance based on the approved plan sanctioned by the MIDC engineer. They calculate the fire load according to your FSI. It is essential to obtain the plan approval copies from DISH, MIDC, and the Chief Fire Officer. If your factory falls under the boiler or explosive category, clearance from the CCE is also required.
The BOCW Act is applicable throughout the construction phase. As of today, the BOCW Act is in effect, but no specific inspector, such as a factory inspector, has been assigned. Therefore, it is necessary to obtain clearance from DISH before commencing any construction activities.
Regards,
SSP
From India, Mumbai
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The BOCW Act is applicable throughout the construction phase. As of today, the BOCW Act is in effect, but no specific inspector, such as a factory inspector, has been assigned. Therefore, it is necessary to obtain clearance from DISH before commencing any construction activities.
Regards,
SSP
From India, Mumbai
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Dear Sir,
We are an engineering company that has been awarded a project by our client for the supply and erection of our equipment, which consists of various steel materials. We have subcontracted the erection work to a subcontractor with 17 workers currently on-site. In this regard, I would like to seek clarification on the following:
1) Should the registration under the BOCW act be completed by us (the primary contractor) or by the owner of the project?
2) If we proceed with the registration under the BOCW act, would our subcontractor also need to register under the same act?
3) Who is responsible for paying the CESS amount under the BOCW - us, the subcontractor, or the owner of the project?
4) If we apply for registration under the BOCW act, is it necessary for us to also apply for the Contract Labour Act, or should only our subcontractor apply for it?
Please note that the owner of the project does not currently hold BOCW registration.
Your valuable guidance on these matters is greatly appreciated.
Regards,
Manjiri Joshi
From India, Thana
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We are an engineering company that has been awarded a project by our client for the supply and erection of our equipment, which consists of various steel materials. We have subcontracted the erection work to a subcontractor with 17 workers currently on-site. In this regard, I would like to seek clarification on the following:
1) Should the registration under the BOCW act be completed by us (the primary contractor) or by the owner of the project?
2) If we proceed with the registration under the BOCW act, would our subcontractor also need to register under the same act?
3) Who is responsible for paying the CESS amount under the BOCW - us, the subcontractor, or the owner of the project?
4) If we apply for registration under the BOCW act, is it necessary for us to also apply for the Contract Labour Act, or should only our subcontractor apply for it?
Please note that the owner of the project does not currently hold BOCW registration.
Your valuable guidance on these matters is greatly appreciated.
Regards,
Manjiri Joshi
From India, Thana
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Dear Manjiri ji,
First of all, you need to tell whether the supply and erection job of equipment/plant and machinery, which you are going to execute, is in an existing factory or in a factory under construction falling under the BOCW Act.
If it is in an existing factory, the BOCW Act is not applicable to any of the activities on the factory premises. If it is in a factory under construction, the BOCW Act is applicable to the entire worksite, including your supply and erection work. The Principal Employer and all the contractors under him employing 10 or more persons need to apply for and obtain an RC under the BOCW Act. Each beneficiary (in service for more than 90 days) is required to be registered with the Board under the BOCW Act.
According to me, Cess is payable by the PE in case your PE is non-PSU/Govt. U/T. However, the PE can make a recovery of the cess amount from your billing if it is provided in the agreement signed by you.
If the PE is PSU/Govt. U/T, cess is payable by you.
Regarding the License under CLA, if you are employing 20 or more persons, you are liable for the License. However, the PE is liable to endorse your details in his RC under CLA irrespective of the number of persons you employ.
Hope you find it in order.
Thanks with regards,
Keshav Korgaonkar
From India, Mumbai
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First of all, you need to tell whether the supply and erection job of equipment/plant and machinery, which you are going to execute, is in an existing factory or in a factory under construction falling under the BOCW Act.
If it is in an existing factory, the BOCW Act is not applicable to any of the activities on the factory premises. If it is in a factory under construction, the BOCW Act is applicable to the entire worksite, including your supply and erection work. The Principal Employer and all the contractors under him employing 10 or more persons need to apply for and obtain an RC under the BOCW Act. Each beneficiary (in service for more than 90 days) is required to be registered with the Board under the BOCW Act.
According to me, Cess is payable by the PE in case your PE is non-PSU/Govt. U/T. However, the PE can make a recovery of the cess amount from your billing if it is provided in the agreement signed by you.
If the PE is PSU/Govt. U/T, cess is payable by you.
Regarding the License under CLA, if you are employing 20 or more persons, you are liable for the License. However, the PE is liable to endorse your details in his RC under CLA irrespective of the number of persons you employ.
Hope you find it in order.
Thanks with regards,
Keshav Korgaonkar
From India, Mumbai
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Hi Manjiri Joshi,
Please note that there are two separate orders - one for supply and one for erection. The erection part has been offloaded to our subcontractor, who directly employs the workforce for the erection work. Our employer is the owner of the plant. It is an existing plant already in production; however, the plant where the current construction is going to be is a separate entity, and a separate factory license for the same will be applied for.
The question is, under this situation, whether the BOCW Act is applicable? If yes, then do we have to obtain BOCW registration as well as a separate license for our subcontractor?
Thank you.
With regards
From India, Thana
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Please note that there are two separate orders - one for supply and one for erection. The erection part has been offloaded to our subcontractor, who directly employs the workforce for the erection work. Our employer is the owner of the plant. It is an existing plant already in production; however, the plant where the current construction is going to be is a separate entity, and a separate factory license for the same will be applied for.
The question is, under this situation, whether the BOCW Act is applicable? If yes, then do we have to obtain BOCW registration as well as a separate license for our subcontractor?
Thank you.
With regards
From India, Thana
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Dear Manjiri ji,
Construction activity within factory premises, including precincts (boundaries) thereof, will not come under the purview of the BOCW Act. However, you mentioned that new construction activity is a separate entity, etc. One needs to carefully examine all the facts and papers and provide an expert opinion accordingly. Generally, within boundaries, there is no separate entity.
Thanks with regards,
Keshav Korgaonkar
From India, Mumbai
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Construction activity within factory premises, including precincts (boundaries) thereof, will not come under the purview of the BOCW Act. However, you mentioned that new construction activity is a separate entity, etc. One needs to carefully examine all the facts and papers and provide an expert opinion accordingly. Generally, within boundaries, there is no separate entity.
Thanks with regards,
Keshav Korgaonkar
From India, Mumbai
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BOCW Act for construction in factory premises- SC (1).PDF
FACTORY ACT 1948.xls