ramesh_geddada
Dear Colleagues
Sub: Is Factories Act applicable to Construction companies.
We are constructing a bridge across the river. Adjacent to the bridge location we have taken a land on lease and established a yard where in we manufacture the Segments ( part of construction and will be placed on the pillars in the river)
The Inspector of Factories saying that the location of bridge will not comes under Factories Act, but the yard where in we cast the segments will comes under the Act.
I invite your views in this regard.
Ramesh

From India, Rajamahendri
R.N.Khola
363

Dear Ramesh,
If you are doing manufacturing process at any premises as per section 2(k) of the Factories Act, 1948 with the number of workers as detail out in section 2(m) then you are covered under the Factories Act. Keeping in view your brief, the Inspector of Factories have rightly asked you to implement this law.If the construction company is doing any manufacturing process then he is also covered under the Factories Act. For finalise the matter of coverage we are required to go through the definition of factory,manufacturing process & worker under the Factories Act, 1948.
Opinion submitted as requested.

[SIZE=1]R.N.KHOLA

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From India, Delhi
ramesh_geddada
Dear Sir,
Thanks for the reply,
I wish to submit some more information in this regard.
As per our activity manufacturing means some kind of concreting process to construct segment (It is like slab ) and these segments (slabs) will be placed on the pillars to join them together to pave the way to pass the vehicles etc., on it.
As we cannot make these slabs in the river, we are doing this process near to the river and taking them in to river.
Therefore we feel it is part of construction of the bridge.
Kindly spare few minutes to express your opinion which will be very much helpful to us.
Ramesh

From India, Rajamahendri
R.N.Khola
363

Dear Ramesh,
In my opinion construction work is not covered under the preview of the Factories Act, 1948 but if the material like brick kiln, steel material, cement etc. is manufactured at nearby or at any other premises then in that case that establishment will be covered under this Act & because of this the Inspector of Factories must be saying to implement the Factories Act.
R.N.KHOLA
[SIZE=1]
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From India, Delhi
boss2966
1166

Dear Mr. Ramesh
Have you obtained BOCW Registration for this construction.
If your answer is Yes, then obviously it will not be considered as Factories.
But if the factories inspector has been entrusted for BOCW Act, then he will be behaving like factories inspector as like in Gujarat.
He will try to find out the faults as like factory inspector and try to extract some _______ (details) from you.
BOCW is not applicable for those registered under Factories Act and Mines Act.
ESI is not applicable for those registered and obtained licence under Contract labour act.

From India, Kumbakonam
ramesh_geddada
Dear Mr.Bhaskar
Thanks for the reply and information.
Yes, we have obtained Registration under BOCW Act. Here in Andhra Pradesh BOCW act is monitoring by Labour Department only, not by the Factories Dept.
As you said ESI is not applicable to us, as we have obtained the Registration under Contract Labour Act.
Case Details:
The Factories inspector visited our site and insisted for Registration under Factories Act. Though our company has not taken registration in any state, our site management agreed to take the regn. to avoid unnecessary complications with Govt.Dept.
But the Inspector demanded a huge amount to give the registration. We have refused to pay then he filed a case in the court. We are challenging in the court.
Thanks and Regards
Ramesh

From India, Rajamahendri
ramesh_geddada
Dear All
Ours is a construction company, work will be completed with in a couple of months. Due to reduction of work we are going to reduce the work force. Please suggest what are the formalities to be followed to retrench the workers, also requesting you send me a format/ retrenchment letter to issue to workers.
Regards
Ramesh

From India, Rajamahendri
boss2966
1166

Dear Mr. Ramesh

On Ugadi day, while discussing with one Joint Commissioner of Labour at AP, he was telling that the inspecting authority for BOCW Act is entrusted to Factories Inspector as the technical aspect is more in BOCW Act and ALO will only issue license and Construction Worker I Card to any construction Site.

If the work period is within 2 months period you need not to have any retrenchment formalities. but while closing the subcontractors please obtain a certificate that the subcontractors have paid the full and final settlement to all the workmen and their wages due to them have been paid fully and no payment is outstanding against any worker. In case of any complaint, the subcontractor will take the complete responsibility to clear the dues and to that effect he will get the certificate and other relevant documents required to be produced to appropriate authority.

The above certificate is only for keep the subcontractor bound to do his duty. Whereas you cannot shed your responsibility towards payment of any unpaid wages to any sub-contract workmen whatever it may be, as the onus of payment of Wages as per the Minimum Wages Act lies with the Principle Employer and not with the Contractors or Sub-contractors.

Hope I have addressed your querry properly. Any amendment / alteration please let me know.

From India, Kumbakonam
ramesh_geddada
Dear Mr.Bhaskar
Thanks for the reply
We have started the work 2 years back and we have recruited some workers like drivers, helpers etc., on temporary basis exclusively for this project only.
Now we are going to reduce the work force due to reduction of work. Hence I request you to kindly let me know what are the formalties to be followed in the retrenchment process.
Awaiting you early reply
Regards
Ramesh

From India, Rajamahendri
boss2966
1166

Dear Ramesh
If the workers in retrenchment list worked for more than 1 year and worked for 240 working days, you will have to pay 26 days Notice Pay, 15 days Retrenchment Compensation per each completed year and 1 day leave wages for every completed 20 working days he worked.
If a worker worked less than 1 year but more than 240 working days then 26 days Notice Pay and 1 day leave wages for every completed 20 working days he worked to be paid.
If a worker worke less than 240 working days then he is entitled for only 3 days notice pay and 1 day leave wages for every completed 20 working days he worked.

From India, Kumbakonam
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