Presented by: Rutuja Kshirsagar (PG - 26 ) Nitesh Pinge (MMS 41) Miloni Sanghrajka (MMS 45)

Factories Act, 1948

Brief Introduction

In force since 1.4.1949, enforced by State Govt.

Major amendments in 1987 keeping in mind the Bhopal Gas Tragedy Inclusion of Hazardous Industries
120 sections spread over 11 chapters Jurisdiction is limited to Factories

Objectives

Secure

Safety, Health, Welfare

Regulate

Working Hours

Ensure

Annual leaves with wages

Provide

Additional protection from hazardous processes Additional protection to women workmen Prohibition of employment of children

What we have already seen?

Safety Regulations

Welfare Facilities
Regulations on working hours

Prohibition on employment of children

Provision of leaves

Additional protection from hazardous processes

Penalties

Sec.92 to 106 OFFENCE For contravention of the Provisions of the Act or Rules On Continuation of contravention PENALTIES Imprisonment upto 2 years or fine upto Rs.1,00,000 or both Rs.1000 per day Not less than Rs.25000 in case of death. Not less than Rs.5000 in case of serious injuries. Imprisonment upto 3 years or fine not less than Rs.10, 000 which may extend to Rs.2, 00,000. Imprisonment upto 6 months or fine upto Rs.10, 000 or both. Imprisonment upto 6 months or fine upto Rs.10, 000 or both. Imprisonment upto 7 years with fine upto Rs.2, 00,000 and on continuation fine @ Rs.5, 000 per day. Imprisonment of 10 years when contravention continues for one year.

On contravention pertaining to safety or dangerous operations.

Subsequent contravention of some provisions Obstructing Inspectors

Wrongful disclosing result pertaining to results of analysis. For contravention of the provisions of Sec.41B, 41C and 41H pertaining to compulsory disclosure of information by occupier, specific responsibility of occupier or right of workers to work imminent danger.

What we didnt see?

Provisions for women workers

Prohibits employment of women from 7 pm to 6 am Govt. may reduced this period from 10 pm to 5 am under certain conditions Prohibits overtime work Bars employment to clean, lubricate any part of the equipment Bars employment in hazardous processes

Practicing the act

Survey conducted in Tamil Nadu, Karnataka & Haryana through 2006 to 2008 Only around 50% of the companies pay the correct overtime Many companies have 12 hour shifts, or extended breaks on paper Average overtime extended the stipulated 12 hours overtime permitted

Practicing the act

Workers dont get compensated for accumulated leaves

Other surveys indicate

Law says 47% of the fatal accidents cant be prevented

Reasons for lack of implementation

Unrealistic expectations

Lack of enforcement
Lack of transparency Production Management Practices Wage systems Endemic corruption and Auditor Bribery

Case

PETITIONER: Haldia Refinery Canteen Emps. Union & others RESPONDENT: M/s. Indian Oil Corporation Ltd. & others DATE OF JUDGMENT: 29/04/2005

BENCH: ASHOK BHAN & A.K. MATHUR

Overview

Two sets of writ applications were filed in the High Court of Calcutta

Taken up together by the Single Judge

Disposed of by the common judgment.

Issue in the case

Appellants are working in the statutory canteen run by the respondent through contractor in its factory at Haldia

Respondent was treating the appellants as the employees of the contractor

Other Facts

Canteen is maintained for the benefit of the workmen employed in the factory Contractor though shown as a contractor has no control over the management, administration and functioning of the canteen Contractor's work was perennial in nature.

The management had refused to grant the status of regular employees to the appellants and treated them as employees of the canteen contractor contrary to the statutory provisions and judicial pronouncements of this Court.

Single Judge Verdict

The learned Single Judge before whom the writ applications came up for hearing held that under the provisions of the Factories Act, it is the statutory obligation of the employer to provide and maintain a canteen for the use of its employees. The canteen becomes a part of the establishment and, therefore, the workers employed in such canteen are the employees of the management.

Final Decision

It is clear from this definition that a person employed either directly or by or through any contractor in a place where manufacturing process is carried on, is a workman" for the purpose of this Act.

Hence, it is fairly conceded by the learned counsel for the Management that the respondent workmen by virtue of the definition of the "workman" under the Act, are the employees of the appellant Management for purposes of the Act

Furthermore

The Court further analyzed the question as to whether such relationship as existed between the worker and the employer under the Factories Act could be extended to wider arenas.

It was held that the status of a workman under the Factories Act confine the relationship of employer and the employees to the requirements of Factories Act alone and does not extend for any other purpose.