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Unit - IV Factories Act 1948

The document summarizes key aspects of the Factories Act of 1948 in India. It defines what constitutes a factory according to the Act, including requiring a minimum number of workers and involvement in manufacturing processes. It outlines the objectives of the Act related to worker health, welfare, safety and conditions. It also describes roles like those of the occupier and inspector and their powers and responsibilities under the Act.

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0% found this document useful (0 votes)
208 views9 pages

Unit - IV Factories Act 1948

The document summarizes key aspects of the Factories Act of 1948 in India. It defines what constitutes a factory according to the Act, including requiring a minimum number of workers and involvement in manufacturing processes. It outlines the objectives of the Act related to worker health, welfare, safety and conditions. It also describes roles like those of the occupier and inspector and their powers and responsibilities under the Act.

Uploaded by

Aditi Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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UNIT – IV

FACTORIES ACT, 1948


INTRODUCTION:

In common parlance, invariably factory and industry are understood as interchangeable. This is
incorrect. The term industry refers to a steady and systematic activity in which a trade is organised,
whereas a factory is the place where such activities are being carried on.
The entire day-to-day administration of the factories is governed by the principal Act of 1948
amended Act, which is an improvement of 1934 Act. This Act extends to the whole of India, including
Jammu and Kashmir. Unless otherwise provided, it also applies to factories belonging to the Central
and State Governments. (Section 116)
The Bhopal tragedy of 1984 has created awareness among the public for preventing pollution and
this has made the government to take steps in amending the present 1948 Act by incorporating
Chapter IV A from Sections 41A to 41 H, pertaining to provisions as regards hazardous processes.
OBJECT OF THE ACT:
The object of the Factories Act of 1948 is
(a) To improve health, welfare and safety of the workmen.
(b) To regulate by imposing restriction as to hours of work including rest and provisions for availing
of leave.
(c) To make stringent (Strict) provisions as regards employment of women and young persons and
duration of their work.
MEANING OF THE TERM ‘FACTORY’:
Factory means any premises including the precincts (area) therefore –
(i) Wherein 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.
Factory does not include a mine as it is covered by Indian Mines Act, 1952 or a mobile unit belonging
to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place.
To put it in a nutshell, factory means (i) any premises including precincts (ii) where ten or more
persons are engaged in manufacturing process with the aid of power or (iii) twenty or more persons
are engaged in manufacturing process without the aid of power.
MANUFACTURING PROCESS – Section 2 (k)
Manufacturing Process means any process for –
(i) Making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up,
demolishing or otherwise treating or adopting any article or substance with a view to its use, sale,
transport, delivery or disposal, or
(ii) Pumping oil, water, sewage or any other substance, or
(iii) Generating, transforming or transmitting power, or
(iv) composing types for printing, printing by letter press, lithography (method of printing) taking
photography and other similar process or book binding;
(v) Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or
(vi) Preserving or storing any article in cold storage. [Section 2 (k)].

Industrial Laws notes by Manish Srivastava


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POWER [Section 2(g)]
It means mechanical or electrical energy transmitted as a step or aids to carry out manufacture and
not energy generated by human or animal agency. Mere use of power not connected with activities
of manufacturing will not make the premises a factory.
Manufacturing process must be done with the aid of power, according to Section 2 (m). Use of
power may be incidental or consequential to manufacturing process. According to Section 4, on
application by the occupier of a factory, different departments or branches of the factory may be
treated as separate factories. Likewise, two or more factories specified by the occupier can also be
treated as a single factory by the State government by passing suitable orders.
WORKER [Section 2 (l)]
Worker means a person employed directly or through any agency (including a contractor) with or
without the knowledge of the principal employer, whether for remuneration or not, in any
manufacturing process or in cleaning any part of the machinery or premises used for a
manufacturing process or in any other kind of work incidental to, or connected within the
manufacturing process, or the subject of the manufacturing process but does not include any
member of the armed forces of the Union [Section 2 (1)].
In order to term a person as a worker, there must be employer – employee relationship. That is, the
employer must not only be in a position to direct what work the employee should do but also how
the work has to be done by him.
RIGHTS OF WORKERS (Section 111A INSERTED BY 1987 AMENDMENT ACT)
A worker shall have the right to (i) obtain from the occupier information relating to workers’ health
and safety at work; (ii) get trained in the factory or at a training centre or institution when sponsored
by the occupier and approved by the Chief Inspector; and (iii) represent to the Inspector, directly or
otherwise, the matter of inadequacy of health or safety in the factory.
OCCUPIER [Section 2(m)]
Any person who has ultimate control and management over the affairs of the factory will be deemed
to be an occupier.
(i) In a partnership firm, the individual partners and in the case of association of individuals,
members thereof shall be regarded as occupier.
(ii) In companies, the directors are regarded to be occupier because they are vicariously liable for the
functions of the company.
(iii) In government owned and controlled factories, the person or persons appointed to manage the
affairs of the factory shall be deemed to be the occupier.
(iv) In the case of partnership firm or association of individuals, and partner or member may be
prosecuted. A manager cannot be regarded as an occupier, unless he is entrusted with the control
and management of the factory.
(v) Owner, lessee or a licensee having control over the factory with regard to its management is
deemed to be the occupier.
LICENSING AND REGISTRATION OF FACTORIES [SECTION 6]
Under Section 6, the State government may make rules regarding the submission of plans and
approval, licensing and registration of factories. The site chosen to locate the factory must have the
previous permission in writing of the State government of Chief Inspector of factories. Such
permission will be granted to applicant unless he had duly complied with the directions of the
government.
Every application must be duly accompanied with a certified plan, showing all the details together
with the challan representing the fees payable for such registration, licensing or renewal of licence.

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If permission is not granted either by the State government or the Chief inspector, within 3 months
from the date of submission of such application, permission is presumed to have been granted.
On the refusal of the State government to grant permission, the aggrieved applicant can prefer an
appeal within the 30 days from the date of refusal. Every order refusing to grant permission or
licence must be a speaking order (a speaking order is an order passed after hearing both the sides
and it is passed with reasons stated). Licence or permission cannot be denied merely on the
direction by the government without hearing the applicant.
Under Section 7, the occupier must give 15 days’ notice to the State government or chief inspector
of factories before he begins to occupy or use any premises as a factory. Such notice should contain
the following:
(a) The name and situation of the factory;
(b) The name and address of the occupier;
(c) The name and address of the owner of the premises or building (including the precincts thereof);
(d) The address to which communications relating to the factory may be sent;
(e) The nature of the manufacturing process to be carried on in the factory during the next 12
months;
(f) The total rated horse power installed or to be installed in the factory (not including the rated
horse power of any separate stand-by plant);
(g) The name of the manager of the factory for the purpose of this Act;
(h) The number of workers likely to be employed in the factory; and
(i) Such other particulars as may be prescribed.
It is essential to intimate by notice the inspector with a copy addressed to the chief inspector of the
factories if any new person is appointed as manager in a factory. Even an acting manager or a person
without any designation as manager will be deemed to be an occupier if control and management of
the factory is governed by them. In the absence of a designated person as manager who ever is an
occupier is deemed to be an occupier.
INSPECTOR:
The State Government may, by notification in the Official Gazette, appoint such persons as
possess the prescribed qualification to be Inspectors for the purposes of this Act and may assign to
them such local limits as it may think fit. A person cannot be appointed to act as an inspector if he is
directly or indirectly interested in a factory or in any process or business carried on.
POWERS OF INSPECTORS:
According to Section 9 of the Act, an inspector has the following powers within the local limits for
which he is appointed:
(a) He may enter any place which is used or he has reason to believe is used as a factory.
(b) Make examination of the premises, plant, machinery, article or substance.
(c) Inquire into any accident or dangerous occurrence, whether resulting in bodily injury, disability or
not, and take on the spot or otherwise statements of any person which he may consider necessary
for such inquiry.
(d) Require the production of any prescribed register or any other document relating to the factory.
(e) seize, or take copies of, any register, record or other document or any portion thereof, as he may
consider necessary in respect of any offence under this Act, which he has reason to believe, has been
committed.
(f) Direct the occupier that any premises or any part thereof, or anything lying therein, shall be left
disturbed (whether generally or in particular respects) for so long as is necessary for the purpose of
any examination.
(g) Take measurements and photographs and make such recordings as he considers necessary for
the purpose of any examination taking with him any necessary instrument or equipment;

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(h) In case of any article or substance found in any premises, being an article or substance which
appears to him as having caused or is likely to cause danger to the health or safety of the workers,
direct it to the dismantled or subject it to any process or test (but not so as to damage or destroy it
unless the same is, in the circumstances necessary, for carrying out the purposes of this Act), and
take possession of any such article or substance or a part thereof, and detain it for so long as is
necessary for such examination;
(i) Exercise such other powers as may be prescribed no person shall be compelled under this section
to answer any question or give any evidence tending to incriminate him.

PENALTY FOR OBSTRUCTING INSPECTOR (SECTION 9)


When a factory inspector is prevented or obstructed from exercising his powers, such person shall
be punished with imprisonment for 6 months or fine up to Rs, 10,000 or with both.
CERTIFYING SURGEONS (SECTION10)
Certifying surgeons are qualified medical practitioners, who are appointed by the State government
for specified areas or factories. With the approval of the State government, a certifying surgeon may
authorize and qualified medical practitioners to exercise any of the powers used by him. However,
an occupier of a factory or any parson who becomes directly or indirectly interested in such factory
cannot be appointed as a certifying surgeon. These restrictions could be exempted by the State
Government in appropriate cases by passing orders in writing.
HEALTH, SAFETY AND WELFARE MEASURES
By way of implementing the recommendation of the Royal Commission on Labour in India, the
present Factories Act, has underlined the importance of health, safety and welfare of the workers. It
has made special provisions for health under Sections 11 to 20, for safety under Sections 21 to 40
including Chapter IV A (1987 Amendment Act) and welfare of the workers under Sections 42 to 50.
HEALTH (SECTIONS 11 TO 20)
Cleanliness (Section 11): Housekeeping is the modern term used for keeping the factory premises
clean and tidy. Factories must not only be kept clean but must be maintained with cleanliness in
such a way that accumulation of dirt and refuse must be avoided. Constant cleaning of effluvia
(disagreeable vapours) arising from any drain is needed. Removal of dirt and refuse alone is not
enough, but they have to be disposed of in a suitable manner without, causing detriment to the
residents of the locality.
Disposal of wastes and effluents (Section 12): Wastes and effluents are to be disposed of in order to
maintain the hygiene inside the factory. However, such wastes cannot be let out without treatment.
This is because wastes would pollute the surroundings. Norms laid down by the State Pollution
Control Board have to be observed strictly in this regard.
Ventilation and Temperature (Section 13): Ventilation and air circulation ensure normal health to
the workmen. In order to maintain ventilation and fresh air circulation, temperature in the working
place should be secured. For this purpose, the interior walls and roofs of the factory must be
properly designed and provided with heat resisting or heatproof materials by way of insulation.
Reasonable care should be taken for colour washing interior walls with psychologically pleasing
colours such as light green, etc.
Dust and Fumes (Section 14): Effective measures have to be adopted in order to prevent the
workers inhaling dusts, fumes and other impurities that are present (which cannot be seen through
naked eye) in the air. Control devices or tools have to be used for the purpose of preventing dust
and fumes. Use of exhaust fans is highly recommended in such places. No stationary internal
combustion engine is allowed to be operated unless proper arrangements are made to prevent
accumulation of injurious fume are caused thereon.

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4
Artificial Humidification (Section 15): In factories where artificial humidification is adopted from the
point of view of manufacturing a product (e.g., in a textile mill), the norms prescribed by the
Government must be strictly followed for increasing or decreasing or maintaining such artificial
humidification, Humidifiers for keeping air moisture at even level shall be provided.
Water used in these plants must constantly be changed and it must be pure. Otherwise it will give
room for water borne diseases among workers.
Overcrowding (Section16): Every worker requires at least 350 cubic feet (now after the
commencement of the Act, 500 cubic feet) for the purpose of enabling him to work with ease and
comfort ensuring mobility. However, while calculating the aggregate space, no account shall be
taken of any space, which is more than 14 feet above the level of the floor. The Chief Inspector of
Factories, by notice may specify the number of persons to be employed in a room.
Lighting (Section17): Too much light throws glare on normal vision. Diffused light does not help to
promote proper vision. Hence, the required light with minimum power must be provided. Glazed
windows and sky lights through which rooms are ventilated have to be constantly cleaned from the
inner and outer surfaces. Glares and shadows must be avoided from distorting the vision of eye.
Otherwise, workmen would strain their eyes leading to risks.
Drinking water (Section18): Potable, pure or wholesome drinking water shall be made available to
workmen at convenient points, A notice board must be displayed indicating availability of such
facility. The notice shall also contain the caption,’ drinking water’ in local language. If the strength of
the workers increases beyond 250, cool water equipment must be provided to ensure supply of
chilled water. The points at which drinking water is supplied shall legibly marked “Drinking water” in
a language understood by a majority of employees.
Such water points must be located beyond 6 meters or any washing place, urinals, latrine, spittoon
and open drainage, carrying silage or effluent. Shorter distance shall be permitted for locating water
points only with the approval of Chief Inspector of Factories.
Latrines and Urinals (Section 19): For a human being, two places are very important and both of
them have to dept clean and tidy. They are – (i) Latrines and urinals; (ii) Places where people rest
and relax.
Factories where more than 250 workers are ordinarily employed, the latrine and urinal
accommodation shall be of the prescribed sanitary type. The floors and internal walls up to a height
of 3 feet and above from the floor level should be laid in glazed tiles. If tiles are not provided for, the
latrines cannot be dept clean, as the bad water would pass through the pores of latrine walls.
Sweepers shall be employed whose primary duty is to keep the latrines and urinals clean and
washing places tidy.
Spittoons (Section 20): Spittoons are nothing but pots that are specially provided for, into which, the
workers have to spit. Workers cannot spit, as they like, as that would spoil the cleanliness and
hygiene of the factory. Sufficient number of spittoons should be provided, taking into account the
number of persons employed. A fine of Rs.5 would be imposed on any one who violated the rule.
SAFETY (Sections 21 to 40)
Safety is prior to security. According to this concept, the present Factories Act ensures several safety
measures as sound in Sections 21 to 40, which are enumerated below:
Fencing of Machinery (Section 21)
In every factory the following namely,
• Every moving part of a prime mover, and every fly-wheel connected to a prime mover, whether
the prime mover or fly-wheel is in the engine house or not;
• The headrace and tailrace of every water wheel and water-turbine;
• Any part of a stock-bar, which projects beyond the headstock of a lathe;
• Every part of an electric generator, a motor or rotary converter;

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• Every part of transmission machinery; and
• Every dangerous part of any other machinery must be fenced in a secured manner by substantial
construction, which should be constantly maintained. They have to be dept in proper position when
the parts of machinery are in motion (Section 21).
The manager of the factory should take particular care to provide safeguard devices to deep the
machine intact, so that it cannot come into contact with workers and thereby cause injury.
Work on or near Machinery in motion (Section 22): Such of those parts of machine that are in
motion may have to be constantly examined in order to ensure that there is no friction, The
examination, including lubrication on these moving parts of the machinery must be done only by the
adult male workers with tight fitting clothes, It is better such tight fitting clothes are supplied by the
occupier.
Employment of Young person’s on Dangerous machines (Section 23):
Where complex machinery is functioning in a factory, it becomes very essential to stop any
machinery either by striking a gear or for cutting off power. In old type of machines, driving belts
were mounted on fast and loose pulleys. They were used forming part of transmission machinery.
Hence, power must be cut off in order to prevent the driving belts riding upon moving shafts.
Suitable, efficient mechanical device must be provided for instantaneously stopping the machines.
Self-acting Machines (Section 25): In a factory, traversing part of a self acting machine together with
a material carried on by it could be allowed to run over a space under which any person is liable to
pass.
However, such machinery shall be allowed to traverse both outward and inward directions only
beyond a distance of 45 cms from any fixed structure.
The fixed structure shall not be part of the machine. Workers must be capable of passing under the
moving part of self-acting machine in connection with their employment.
Casing of new machinery (Section 26): Power driven machinery, revolving shaft, spindle wheel and
pinion should be properly encased, i.e., covered and guarded effectively. Spur wheel, helical wheel,
fly wheel, friction gear not requiring adjustments which are in constant motion should be safely
encased.
Even hiring these machines without the safeguards is punishable with fine up to Rs.500 and
imprisonment for 3 months or both.
Prohibition of Employment of Women and Children near Cotton openers
(Section27): Women and children are generally prohibited in being employed in pressing cotton in
which a cotton opener is at work. If the feed end of a cotton opener is portioned by a separate wall
or screen extending up to the ceiling or roof from the delivery end, then women and children could
be employed on the side of the feeding end and definitely not at the delivery end.
Hoists and lifts (Section28): In a factory where hoists and lifts are in use, their construction must
have been done out of quality materials with adequate strength to withstand the strain of weight.
Such lifts should be fitted with gates and enclosures. Lifts have to be thoroughly examined at least
once in six months by competent persons, besides this, routine and other examinations have to be
conducted. Entries have to be made recording the date of examination.
Lifting machine, chains, and ropes and lifting tackles (Section29): Lifting machines and cranes that
are used in a factory must be properly fastened and strongly coupled with chains and ropes. These
chains and ropes tied up with the hoists sufficiently protect the lifts and cranes in contingencies like
power failure or mechanical failure. The lifts should be fitted with ropes or chains connected with a
cage so that the balance could be maintained with weights. The chief Inspector of factories has to
ensure whether these lifts and cranes including the ropes are maintained properly.
Revolving machinery (Section 30): In the case of use of revolving or grinding machines, it is
necessary that the optimum speed should be indicated for the safe working of the machine.

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Although indications may be there signifying the maximum speed, the optimum speed must be
written on the machine for the safe use of it. This would enable prevention of risk to the user and
reduction of strain to the machine. Such a notice must be displayed on the peripheral space of the
grinding stone, abrasive wheel, etc.
HAZARDOUS PROCESSES
Section 41-A-41-H: Hazardous process has become an important subject after the Bhopal gas
tragedy. Precautionary measures and for handling situations involving hazardous processes have
been highlighted under Chapter IV-A. What is hazardous process has become a major issue, so as to
enforce the provisions under Chapter IV-A. It is for this reason; a new concept under hazardous
processes has been introduced with effect from 1.10.1987.
With view to avoid hazards, in storing, handling, transporting and using dangerous materials, these
new provisions have been provided by way of addition to the existing ones under safety measures.

WELFARE OF WORKERS
The present Factories Act has provided several measures under Chapter V for welfare of the workers
under Sections 42 to 48, dealing with washing facilities, facilities for storing and dressing, facilities
for sitting, First-aid appliances, canteen, shelter, rest rooms, lunch rooms and crèches
Washing facilities (Section 42): Suitable and adequate washing facilities, as prescribed by the State
government have to be provided separately and exclusively for male and female workers. These
places should be accessible.
Facilities for storing and drying clothes (Section 43): Suitable places must be provided by the
occupier to enable the workers to keep their clothes safe so that there is no risk of theft in that
place.
Sitting Facilities (Section 44): Arrangements shall be made for workers to sit and take rest where
their work involves a standing posture.
First Aid appliances (Section 45): The term first aid itself signifies immediate medical help required
by the affected parties. First aid boxes containing essential medicines, including cotton must be
provided for every department with not less than 150 workers.
Where in a factory, 500 or more workers are employed, the occupier should provide an ambulance
room, which is indispensable in the matter of giving medical attention to workers who have e
sustained serious injuries.
Canteen (Section 46): Factories employing 250 or more workers shall provide one or more canteens
as per the rules of the State government. A managing committee consisting of representatives of
employees and employers should manage such canteens.
Shelters, rest rooms and lunch rooms (Section 47): Suitable shelters, rest rooms, lunch rooms with
provision for drinking water shall be provided for every factory employing 150 or more workers.
Creches (Section 48): Creche is a room or place for accommodating children below the age of six.
Such creche must be properly lighted and adequately ventilated. Trained women assistants shall be
employed to attend to the children and maintain them clean and healthy.
Welfare Officers (Section49): In factories, where 500 or more workers are employed, there shall be
such number of qualified welfare officers employed by the management as per norms prescribed by
the State government regarding their qualification, duties and conditions of service.

WORKING HOURS, HOLIDAYS & ANNUAL LEAVE


Adult [Section 2(a)], Adolescent [Section 2(b)] and Child [Section 2(c)]
An adult is a person who has completed the age of 18. An adolescent is a person who has completed
the age of 15 but has not completed the age of 18. A child is a person who has not completed the
age of 15.

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It is very important to note that according to Section 67, a child who has not completed the age of
14 cannot be employed to work in a factory.
WORKING HOURS
Weekly hours (Section 51): No adult worker shall be required or allowed to work in a factory for
more than 48 hours in a week. At present it is reduced to 40 hours. Work not done in the factory
under direction of office will not be counted.
Daily Hours (Section 54): No adult worker shall be required or allowed to work in a factory for more
than 9 hours in any day and 40 hours in a week. However, to facilitate the change of shift, this limit
may be exceeded, subject to the previous approval of the Chief Inspector of factories.
Where work of the same kind is carried out by two or more sets of workers working during different
periods of the day, each of such sets is called a “group” or “relay” and each of such periods is called
“shift” [Section 2(r)].
Classification of Workers: The manager of the factory shall classify the workers into such groups, as
he may deem fit and proper. This would depend upon the nature of work, the number of workers in
each group, wherein all the adult workers are not required for such work during the same period
[Section 61 (4)]. For each group, which is not required to work on a system of shifts, the manager of
the factory shall fix the periods during which the group may be required to work. [Section 61 (5)].
Group working on a system of shifts: The manager shall fix the period during which each relay of the
group may be required to work on shifts.
This is done in spite of the reason that there is already a pre-determined schedule that has been
fixed as a system specifying the shift in which the respective relays have to work [Section 61 (6)].
Register of Adult Workers (Section 62): Registers disclosing the particulars of adult workers working
in the factory shall be maintained by the manager incorporating the changes from time to time.
Registers shall show (a) the name of each adult worker in the factory, (b) the nature of his work, (c)
the group, if any, in which he is, included (d) the place or spot where his group works on shifts, the
relay to which he is allotted; and (e) such other particulars as may be prescribed.
Work in accordance with Notice (Section 63): All adult workers who are required or allowed to work
in the factory, shall be in accordance with the notice periods of work as displayed on the general
notice board and in conformity with the entries made in the register of adult workers.
It shall be the duty of the occupier or manager in the factory, not to allow any adult worker beyond
the stipulated period of hours of work.
Furthermore, he shall not allow the total number of workers to exceed the number that has already
been notified and allocated for work. The plea of payment of overtime wages would not justify
employing a worker to do work beyond the usual hours of work.
HOLIDAYS (SECTIONS 52 & 53)
No adult worker shall be required or allowed to work in a factory, on the first day of the week, which
is a Sunday. This would mean that a worker shall have a holiday for every six days of continuous
work.
However, the manager may call upon a worker to work on a Sunday. In such cases, one day holiday
must be given either out of the 3 days preceding the Sunday or out of the 3 days succeeding the
Sunday. Before making this arrangement, a manager shall deliver a notice to the office of the
inspector expressing his intention to that effect.
Furthermore, notice must also be displayed in the factory, intimating such change. No substitution
can however be made, in such a way that it makes a worker to work for more than l0 days
consecutively.
Sunday, shall for the purpose of calculating weekly hours of work be included in the preceding week,
where any worker works on a Sunday.

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Compensatory Holidays: It is mandatory that a worker shall be allowed compensatory holidays of
equal number to the holidays so lost. This arises on account of the worker being deprived of the
weekly holidays under Section 52 made by the State Government exempting the factory from such
provisions. The compensatory holidays must be allowed to the workman within 2 months or within a
month in which the substitution of such holidays becomes due. The manner in which compensatory
holidays has to be allowed, is prescribed by the State Government.
ANNUAL LEAVE WITH WAGES (SECTION 79 TO 82)
Section 78 to 84 of the Factories Act deal with annual leave with wages. If any award or agreement
including settlement or contract of service provides for a longer annual leave with wages under
provisions of Section 79 to 82, the worker shall be entitled to such leave. But there cannot be any
award or settlement reducing the annual leave as provided under the Act.
RULES RELATING TO ANNUAL LEAVE WITH WAGES (SECTION 79)
There are two cumulative conditions that are said to be mandatory for the purpose of availing of
annual leave with wages: (a) a worker should have put in continuous years of service which means
that he should have actually worked for 240 days or more during the calendar year. (b) During that
year, for every 20 days of actual work put in by him, a workman becomes eligible for one day rest
leave in the succeeding year.
In the case of a child, one day for every 15 days of work performed during the previous calendar
year.
In spite of the fact that a worker might not have completed 240 days in a calendar year, the legal
representative or nominee of such worker shall be entitled to claim such earned wages
proportionately before the expiry of the second working day from the date of such discharge or
dismissal or quitting.
(2) However, if a worker has been superannuated or has expired, then such earned wages must be
settled before the expiry of two months from the date of such superannuation or death [Section 79
(2)].
(3) In calculating leave period, fraction of leave of half a day or more shall be treated as one full day’s
leave. The unavailed leave by a worker shall be carried forward to the succeeding year, provided no
such accumulation of unavailed leave shall exceed 30 days in a year. In case of excess, unavailed
earned leave would lapse. But the number of times the leave that may be taken during any year shall
not exceed 3 times.

Industrial Laws notes by Manish Srivastava


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