THE FACTORY'S (AMENDMENTS) ACT 1948 (DRAFT)


Ministry of labour and employment  Inviting comments or suggestion on the proposed amendments to the factory act. 1948. In the regard a three member export committee was constituted to examine the proposal in consultation with the stakeholders. The ministry has received the proposal in accordance with the recommendations made by the expert committee.

Ministry of labour and employment requested that the comments on the proposed amendments may be sent to below address within 45 days.

Director (ISH),
Ministry of labour and employment,
Room No 303, Shram shakti Bhavan,
Rafi Marg, New Delhi, 110001.




The proposed amendments to the factory act 1948 are:



Sr.
No.
Existing Provision
Contents of proposed Amendments
Reason for proposed Amendments
1
2(cb)                “hazardous
process”
means       any     process
or activity in relation to an industry   specified   in the First Schedule where unless special   care is taken, raw materials   used   therein or the          intermediate      or finished      products,    bye products,        wastes        or effluents thereof would -
(i)  cause material impairment to the health of the   persons engaged or connected therewith, or
(ii)   result    in   the pollution   of   the   general environment:
Provided   that  the  State Government       may,     by notification         in         the Official Gazette, amend the First  Schedule  by  way of addition,  omission          or variation of any  industry specified     in     the     said Schedule.
1.    The  existing section 2(cb)  shall be
substituted by the following, namely -
(cb) “hazardous process” means any process where, unless special care is taken, raw materials, hazardous substances used therein or the intermediate or finished products, bye products, wastes or effluents thereof would-
(A) cause material impairment to the health of the persons engaged in or connected therewith; or
(B) result in the pollution of the general environment;
The term “hazardous process”    has
to      be redefined as a process in which  a  hazardous  substance  is used.
The       present       definition       of
‘hazardous process industry’  links it with the First Schedule under the Factories Act owing to the notation to  the  effect  that  “hazardous process means any process or activity in relation to a industry specified  in  the  First  Schedule”. The issues relating to the restrictive scope  of  the  first  Schedule  and some of the hazardous process activities being left out of the First Schedule    have been discussed at length in various Conferences   of Chief Inspectors of Factories.
Since the term ‘hazardous substance’ is also proposed to be defined as per the Environment (Protection) Act by introducing a new sub-section 2(cc). With this amendment, the hazardous process will be identified by use of hazardous substance which will be duly notified from time to time under new clause 2(cc).  In view of the above, the First Schedule is deleted.
2
Nil - New Section 2(cc)
After   the   clause 2(cb), a new  clause
2(cc) is to be added, namely, -
“2(cc)    “hazardous  substance”  means any substance as prescribed or preparation  of which  by reason  of its chemical or physio-chemical properties or handling is liable to cause physical or health hazards to human being or may cause harm to other living creatures, plants, micro-organisms, property or the environment;’;
The              term           ‘hazardous
substance’     had not   been earlier defined   though it has been    used at a number of places  in  Chapter IVA of the Act    which was introduced by the Factories (Amendment) Act, 1987.
It is now proposed to define it in a manner similar to that in the Environment     (Protection)     Act,
1986    approved      by    the    41
st
Conference of Chief Inspectors of
Factories.
3
Nil-New Section 2(ee)
After the clause 2(e), a new clause 2(ee)
is to be added, namely -
‘2(ee)  “disability”  shall  have  the meaning as assigned to it in clause (i) of section  2  of  the  Persons  With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995”;
Such  a  definition  is  necessary  in
view of proposed amendments concerning  persons  with disabilities.
4
2(f)      ‘week’      means   a
period of    seven days beginning at midnight   on Saturday  night  or     such other night as may be approved in writing for a particular     area     by  the Chief  Inspector  of Factories.
In the existing clause (f), after the words
“particular   area”,   the   words   “or   a factory” shall be inserted;
At  present  under  Section 2(f) the
Chief Inspector of   Factories   may allow all factories located in one area to observe a day other   than Sunday     as  the  weekly  holiday. The proposed amendment     would enable   factories   located   in   one area  to observe different days   as their    weekly  holiday.     This has become necessary     in    view    of shortage of power.
5
2(k)          “manufacturing
process”         means    any
process for -
...       ...      ...
(iv)    composing    types for printing,  printing  by letter   press, lithography, photogravure or other similar       process           or book-binding; or
...    ...       ...
In    Section   2(k),   the existing   sub-
clause  (iv)  shall be substituted by the following, viz.
(iv)     composing and processing for printing, printing by letter press, lithography, offset, photogravure, screen printing, flexography, or other similar process or binding; or;”;
The Government of India set   up
an    Empowered Committee to process    the      Recommendations of the  Expert   Committee  for Newspaper Employees.    One     of the recommendations of         the Expert Committee was to amend Section 2(k) (iv) of  the   Factories Act relating   to      the    definition of ‘Manufacturing    Process.’
This recommendation has been accepted     by the        Empowered Committee and   accordingly, definition of the manufacturing process    is    proposed    to be amended     to  also  cover  certain types of printing processes     such as   the   off-set   printing, Screen printing, flexography,       and processes   and   operations incidental thereto  as they are presently not covered.
6
2(n)    “occupier”    of    a
factory means the person who has ultimate control over the affairs of the factory.
Provided that –
(i)      xx        xx        xx (ii)     xx        xx        xx (iii) in the case of a factory owned  or controlled by the Central Government, or any
State  Government,  or  any
local  authority,  the  person or persons appointed to manage the affairs of the factory by the Central Government, the State Government   or   the   local
authority, as the case may
be, shall be deemed to be the occupier.
Clause (iii) of sub- section (n) may be
substituted by the following :-
“in the case of a factory owned or controlled by the Central Government, or any State Government, or any local authority,  the  person  or  persons appointed to manage the factory by the Central Government, the State Government or the local authority as may be prescribed, as the case may be shall be deemed to be the occupier;”.
Keeping  in   view  the   comments
received  from  the  Central Ministries of Government of India, the existing definition has been retained with only a modification in the proviso relating to the Government owned factories, prescribing the definition of the occupier through the Rules to be notified for such purposes.
7
2(p)    ‘prescribed’    means
prescribed  by  rules  made by the State Government under this Act.
After  the  word  ‘by’  the  words  ‘the
Central  Government        or’  shall  be
inserted.
This provision will also give power
to the Central Government to frame
Rules.
8
6. Approval, licensing and
registration                     of factories.-
(1)  ...  ...  ... (2)  …  ...  … (3) ...  ...  ...
Explanation.- A factory shall  not  be deemed to be extended  within  the meaning of this  Section by reason only     of the replacement of any plant or machinery, or within   such limits  as  may  be prescribed,  of  the
addition   of   any   plant or machinery,      if    such replacement    or   addition does  not       reduce       the minimum      clear      space required  for  safe working
around     the   plant  or
machinery/or   adversely affect  the    environmental conditions     from    the evolution  or  emission  of steam,    heat   or   dust   or fumes injurious to health.
The    explanation    clause    shall    be
substituted by the following, namely,
“Explanation.—  A     factory  shall not   be deemed to be extended within the meaning of this section by reason only of the replacement of any plant or machinery or within such limits as may be prescribed, or the addition of any plant or machinery, if such replacement or  addition  does  not  reduce  the minimum   clear   space   required   for safe  working around the plant  or machinery      or result in hazardous conditions likely to cause accident, dangerous occurrence or injuries to health of workers or public or adversely affect   the environmental   conditions from     the evolution or emission of steam,   heat   or   dust   or   fumes,   or chemical or biological wastes  injurious to health.
Provided that a certificate in writing given by the occupier by himself may be accepted
In  terms  of  Section 6 of the  Act,
an Occupier is not required to take permission     from the State Government   for   expansion of a factory within   certain   prescribed limits.     It  is, however,    possible that          such  expansion        may involve hazards   to   the   safety of workers   as  well  as  the people in the vicinity.   It       is, therefore, proposed to amend  the Explanation to 6   so     that     it     would     be necessary    for    an Occupier      to obtain permission of the State Government     before         making such an expansion.
Further, as suggested by the Ministry of Health and Family Welfare the words, “biological wastes” were also added.
Provision of self certification by the
Occupier has also been introduced.
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7.   Notice by occupier.-
(1)  The Occupier shall, at least   fifteen   days before he  begins to occupy  or use any   premises as a factory, send to the Chief Inspector a written notice containing
-
(a)  ...    ...    ...
(b)  ...    ...   ... (c)    ...    ...    ... (d)  ...    ...   ...
(e)      the  total rated horse-power installed or to be        installed     in     the
factory,   which   shall   not
include the rated horse- power of any separate standby plant;
(f)  ...    ...    ... (g)  ...    ...    ... (h)  ...    ...    ... (i)  ...    ...    ...
In sub-section (1), in clause (e), for the
words “horsepower” at both the places where  it occurs, the  words  “power  in Kilowatts” shall be substituted.
This is due to conversion of unit
from   the   British   to   the   Metric
System.
10
7-B  General            duties
of   manufacturers,     etc., as  regards             articles and substances    for    use in  factories.-
(1)  ...  ...  ... (2)  ...  ...  ... (3)  ...  ...  ... (4)  ...  ...  ...
(5) Where a person designs,   manufactures, imports    or  supplies  an
article   on   the basis of a written  undertaking by the
user   of   such   article   to
take the  steps specified in such undertaking to ensure, so far as is reasonably practicable,       that       the article   will   be   safe and without risks to the health of   the workers when properly  used, the undertaking   shall have the effect  of relieving the person designing, manufacturing,    importing or      supplying   the article from the   duty imposed by clause
(a)  of  sub-section (1) to such   extent  as  is reasonable having regard to the    terms of the undertaking.
(6)      For the purpose of this  Section,  an  article  is not      to   be   regarded   as
properly used if it is used
without regard to any information or advice relating   to   its use which has  been made available by the person who has designed,      manufactured,
imported  or  supplied  the
article.
Explanation.-    For the purpose   of   this Section, “article”   shall   include plant and machinery.
1(5), the following   sub-section shall   be
substituted, namely:—
“(5) It shall be the duty of a person, —
(a) who erects or installs any article for use in a factory, to ensure, so far as practicable, that such article so erected or installed does not make it unsafe or a risk to health when that article is used by the persons in such factory;
(b) who manufactures, imports or supplies any substance for use in any factory –
(i)    to ensure, so far as practicable, that such substance is safe and has no risks involved to health of persons working in such factory;
(ii)  to  carry out  or arrange  for  carrying out  of  such  tests  and examination    in relation to such substance as    may    be necessary;
(iii) to take such steps as are necessary to secure that the information about the results of tests carried out in connection with the use of the substance as referred to in sub-clause (ii) is available in   a factory along  with  conditions       necessary    to ensure its safe use and no risks to health;
(c) who undertakes the manufacture of any substance for use in any factory to carry out or arrange for the carrying out of any necessary   research   with   a   view   to discover and, so far as practicable, to ensure the elimination or minimisation of any risks to health or safety to which the
substance  may  give  rise  out  of  such
manufacture or research.”;
(b)   in  sub-section  (6),   for   the   word “article” at both the place where it occurs, the words “article or substance” shall be substituted;
(c) for the Explanation, the following Explanation  shall  be  substituted, namely:—
“Explanation.—  For  the purposes of this section -
(a) “article”   shall   include     plant and
machinery;
(b) “substance” means any natural or artificial substance   whether in a solid or liquid   form   or in the form of a gas or vapour; and
(c) “substance for use in any factory” means any   substance   whether or not intended for use    by  persons working in a factory.”
Section        7B        imposes        a
responsibility    on    the manufacturer    to    ensure,     inter alia, that plant and       machineries are        so manufactured   as to be safe  and    without    risk    to    the health   of the workers.   It       is proposed  to extend the   provisions of   the section     to     hazardous substances.    In  fact the title of the section      mention  both      articles and substances    though  provisions of   the section   deal only with the article.
The proposed amendment was examined with reference to provisions  existing  in  other countries and  was found  that similar provisions in the safety and health statutes do exist in the developed as well as developing countries.
11
18.Drinking water.-
(1) ...   ...   ...
(2) ...   ...   ...
(3)       In     every factory
wherein more than two hundred and   fifty workers are ordinarily  employed, provision shall be made for cool  drinking water during
hot   weather   by   effective
means  and for distribution thereof.
The  sub-section  (3) shall be   substituted
by  the following -
“(3)  In  every  factory, provision shall be made for cool and safe drinking water during hot  weather  by  effective means and   for   the distribution thereof.”
It  is  felt  that  this  is     a  basic
necessity which should be provided in every factory.
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20. Spittoons. -
(1)  ...  ...  ...
(2)  ...  ...  ... (3)  ...  ...  ...
(4)     Whoever spits in contravention           of sub- section (3) shall be punishable with fine not exceeding five rupees.
The sub-section (4) may be omitted.
This       is       consequential       to
introduction    of    a    new Section
92-B consolidating       the penalty provisions.
13
22.   Work   on   or   near machinery in motion.
(1)   xx    xx     xx
(2) No woman or a young
person shall be allowed to
clean,  lubricate  or  adjust any part of a prime mover or of any transmission machinery while the prime mover or transmission machinery is in motion, or
to clean, lubricate or adjust
any part of any machine if the cleaning, lubrication or adjustment thereof would expose  the  woman  or young person to risk of injury   from   any   moving part either or that machine or of any adjacent machinery.
11. In section 22 of the principal Act, in
sub-section (2), —
(a) for the word “woman” at both the places   where   it   occurs,   the   words “pregnant   woman   or   a   person   with
disability” shall be substituted;
The Sub Group I of Task Force on
women and child development recommended for restricting the employment only for pregnant women, person with disability and young person below the age of 18
years.  This was suggested in order
to promote gender equality at the work place.
14
26.     Casing     of     new
machinery
(1)   xx    xx     xx
(2)   xx    xx     xx
(3)   xx    xx      xx
Section 26 may be omitted.
This aspect has been covered in the
proposed amendment under Section
7 B
15
27.        Prohibition        of employment   of   women and children near cotton- openers.  -  No  woman  or child shall be employed in any  part  of  a  factory  for pressing cotton in which a cotton-opener is at work: Provided  that  if  the  feed- end of a cotton-opener is in a room separated from the delivery end by a partition
extending to the roof or to such height as the Inspector may in any particular case specify in writing, women and children may be employed on the side of the partition where the feed- end is situated.
For Section 27, following section shall
be substituted namely-
“No young person or pregnant woman or a person with disability shall be employed in any part of a factory for pressing   cotton   in   which   a   cotton- opener is at work.”
The Sub Group I of Task Force on
women and child development recommended for restricting the employment    only    for    pregnant
women, person with disability and young person below the age of 18 years.  This was suggested in order
to promote gender equality at the
work place.
16
Nil - New Section 35-A
After section 35 of the principal Act, the
following section shall be     inserted, namely: -
“35A. (1) The occupier, having regard to the nature of the hazards   involved in the  work  and  processes  being  carried out, shall supply to the workers exposed to such hazards, suitable personal protective equipment and protective clothing as    may be necessary.
(2) The personal protective equipment and protective clothing supplied to the workers  as  required  under  sub-section (1) shall conform to an international standard  where  national  standard  for such protective equipment or clothing is not available.
(3) The occupier shall maintain all items of personal protective equipment and protective clothing referred to in sub- section (1) in a clean and hygienic condition and in good repair.
(4) The State Government or the Central Government  may  make  rules prescribing  the  standards  of maintenance,  issue  of  personal protective equipment and protective clothing with a view to ensure their effectiveness  in  relation  to  the conditions  of  use  and  conformity  to their quality standards.”.
Section  35  of  the  Act  provides
measures only to protect the eye of a worker  in certain circumstances.
It   is   proposed   to   extend   the coverage   of   the   provisions   to include measures for protection of other parts of the body as well.
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36.   Precautions against dangerous fumes, gases, etc.-
(1)    No  person  shall  be
required      or   allowed   to enter  any  chamber,  tank, vat,    pit,    pipe,    flue    or other confined space in any factory  in  which any gas, fume, vapour or dust is likely   to   be   present   to such  an  extent  as  to involve  risk to persons being  overcome thereby unless  it is provided with a manhole of adequate size or other effective means of egress.
(2)     No  person  shall be required      or   allowed   to enter any confined space as is     referred    to    in sub- section     (1), until all practicable   measures have been  taken  to  remove any gas,   fume,   vapor or dust, which may be present, so as to   bring   its level within the  permissible  limits  and to   prevent   any ingress of such  gas, fume, vapour, or
dust and unless -
(a)    certificate  in  writing has been given by a competent person based on a test carried out by himself that   the  space  is reasonably free from dangerous  gas,  fume, vapour or dust; or
(b)  such person is wearing suitable   breathing apparatus   and a      belt securely      attached   to   a rope, the free end of which is held by a person outside the confined space.
For section 36 of the principal Act, the
following section shall be substituted, namely :—
“36. (1) No person shall be required or allowed to enter any chamber, tank, vat, pit, pipe, flue or other confined space in
any factory in which any gas, fume vapour or dust is likely to be present
such an extent as to involve risk to persons being overcome thereby, unless it   is   provided   with   a   manhole   of adequate size or other effective means of egress or wherein the oxygen content
is  less  than  the  prescribed  content  of
oxygen.
“Explanation. – for the purpose of this sub-section, the expression “adequate size” means, —
(a) in the case of rectangular shape manhole, of not less than 50 cms. x 30 cms;
(b) in the case of oval shape manhole, of not less than 50 cms major axis and 30 cms minor axis;
(c) in case of circular shape manhole, of not less than 50 cms diameter.
(2)  No  person  shall  be  required  or
allowed to enter in any boiler furnace,
boiler flue, chamber, tank, vat, pipe or other confined space in any factory  for the purpose of working     or     making any examination therein until –
(a) it    has   been sufficiently    cooled, by    ventilation    or   otherwise, and is
safe for persons to enter; and
(b) wherever   there     is likelihood   of deficiency of oxygen, -
(i)  a    certificate    in  writing  has been given by a     competent  person, based on test  carried    out    by himself,  that the space is not  deficient in oxygen so as to be unsafe for persons to enter; or
(3) No person with disability, or, any pregnant woman, shall be required or allowed to enter any chamber, tank, vat, pit, pipe, flue or other confined space in any factory as referred to in sub- section(1) and in any boiler furnace, boiler flue, chamber, tank, vat, pipe or other confined space in any factory as referred to in sub-Section(2).
(4) The suitable breathing apparatus, reviving apparatus   and   safety harness and ropes, shall be kept for instant use in every factory and in every such confined space as referred to in sub- section (1) or in clause   (b) of sub- section     (2),  which  any  person  may enter, and all such    apparatus shall be periodically   examined   and   certified by   a   competent person   to   be fit for use; and  a sufficient number of persons employed   in every factory   shall   be trained and practiced in the use of all such  apparatus and in the    method  of restoring respiration.
(5)  The  State  Government  may,  by order in writing, exempt, subject to such conditions as it may think fit to impose, any factory or class    or description of factories from compliance with any of the provisions of this section.
In the existing Section 36,     there
is  no  provision to     prohibit     a person from   entering a confined space      such as   boiler,   furnace, flue,  etc.,  while it is   hot.
Also   there is   no provision for checking    deficiency of oxygen in a    confined space.
The State    Governments have also no      power   to   make rules under this    Section.
It is   proposed   to   remove   these lacunae.
18
Section 37. Explosive or inflammable dust, gas, etc. -
(1) Where in any factory
any manufacturing process produces dust, gas,  fume or vapour of such character and to such   extent   as   to   be
likely   to   explode   on
ignition, all practicable measures shall be taken to prevent any such explosion by-
(a) effective enclosure of the  plant  or  machinery
used in the process;
(b)  removal  or prevention of the accumulation of such dust,  gas,  fume  or vapour;
(c) exclusion or effective
enclosure of all possible sources of ignition.
(2) xx xx xx (3) xx xx xx (4) xx xx xx (5) xx xx xx
In section 37 of the principal Act, - “
(a) in sub-section (1), for the opening portion beginning with the words “any manufacturing process produces” and ending with the words “any such explosion by—”, the following shall be substituted, namely : -
“any manufacturing process, storage or
handling of, raw material, intermediate product or finished product produces dust, gas, fumes or vapour to such an extent as to be likely to result in fire or explosion on ignition or otherwise, all practicable measures shall be taken to
prevent any such fire or explosion by—
”;
(b) after sub-section (4), the following sub-sections shall be inserted, namely : - “(4A) In any factory if any flammable gas, fume or dust is likely to be present in any area, the electrical equipment, apparatus and fittings in that area shall be selected, installed and maintained as per the National Electrical Code and shall conform to the relevant National Standards,  or  to  an  International Standard where National Standard is not available.
(4B)  The  electrical  equipment, apparatus and fittings referred to in sub- section (4A), shall be duly approved before use in factories by the “Directorate General of Occupational Safety and Health.”.
The provisions of sub-section (1) of
Section 37 require that all practical measures should be taken in any factory carrying on manufacturing process which products dust, gas, fume or vapour of such character and to such an extent to be likely to explode on ignition.   There are situations   in   which   vapours   or
fumes  or even flammable dusts on
contact with hot surface may catch fire without an explosion.   Such accidents have occurred in some factories.     As difficulties are experienced to apply the provisions of  this  Section  37,  if  it  does  not
result in an explosion, but only fire,
owing to the lack of legal validity of applying the provisions for situations involving fire, the necessity has arisen to amend sub- section (1) of Section 37 to include in its scope fire also.   The above amendment was  considered during the 41st  Conference which  decided that the provisions of Section 37(1) need to be amended
Presently there is no provision stating clearly that the use of flameproof equipment in hazardous areas should be tested and certified and approved by competent authorities.   As a result, the users are not aware of such certification.
The inspecting authority is not aware  of  such  equipment   being used   in   hazardous   locations   till their inspection.  As such it cannot be fully ensured that only certified and approved equipment are used. In view of the above, the amendment is proposed.
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41-B.(4)
Compulsory      Disclosure of   Information by the occupier.-
(1)  ...  ...  ...
(2)  ...  ...  ... (3)  ...  ...  ...
(4)         Every   occupier shall, with  the  approval  of the   Chief Inspector, draw up an on-site   emergency plan and detailed   disaster
control   measures   for   his
factory and    make  known to  the workers    employed therein and  to  the general public living    in    the vicinity of   the factory  the safety measures     required
to  be taken  in  the  event
of an accident taking place.
In section 41B of the principal Act,-
(i) For sub section (4), the following sub section shall be substituted namely:-
“(4)  (a).  The occupier of  a     factory involved in manufacture, storage or handling   such  hazardous substances in quantities equal to        or   more   than such quantities as may    be prescribed, shall   draw up in consultation with workers representatives an on-site emergency plan and detailed     disaster control   measures   for   his factory and submit     the  same  for  information of Chief            Inspector and          other authorities   as   may  be prescribed.
(b)     The occupier of the factory shall make known to the workers
employed  in  the  factory    and  to  the
general public    in   the vicinity  of  the factory, the         safety         measures required   to   be taken   in accordance with the on-site emergency plan and detailed disaster   control   measures drawn under   sub-clause (a)  above  in
the event of an accident taking place.
Provided  that  the  Central Government or the State Government or the  Chief Inspector may, subject to the prior approval of the Central Government or the State Government, by order in writing, require any factory carrying on hazardous process, irrespective of the quantity of hazardous substances in the premises, to draw up an on-site emergency plan and disaster control measures.”.
Section              41B           requires
submission   of   emergency    plans for       all hazardous       factories irrespective  of    the     quantity   of the hazardous            substances handled      by     them.            It   is proposed    to    limit    the requirement   of  emergency    plan to the factories using   hazardous substance beyond    a      prescribed threshold quantity.     Consultations with    workers’    representative is envisaged      under the ILO Convention No.174 which has been recently ratified by the Government of India.
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41-B(5)
(5)  Every  occupier  of  a factory shall, -
(a) if such factory engaged in   a   hazardous process on the commencement    of the Factories  (Amendment) Act, 1987  within  a  period of thirty      days   of   such commencement; and
(b)     if     such     factory proposes  to  engage  in  a hazardous process   at   any time           after           such commencement, within a period  of  30  days before the     commencement     of such  process,  inform  the Chief    Inspector    of    the nature and details   of   the process in such   form and in such manner      as    may be prescribed.
(6)  ...   ...    ...
In sub-section (5) -
(a) in clause (a), for the words “factory engaged”,  the  words  “factory  is engaged” shall be substituted;
2.In   clause   (b),   before   the   words
‘within  a  period  of”’  the  words  “at least” shall be inserted.
This  was  an  inadvertent error in
the     Act amended in 1987.
The purpose of clause   (b)  of  sub- section (5) is     to       inform    the Chief    Inspector  30 days prior to the   commencement of the hazardous process.  As such     the amendment is necessary.
.
21
41-C.                      Specific
responsibility      of      the occupier    in  relation  to hazardous processes.- Every occupier of a factory involving   any   hazardous
process shall -
(a)   maintain  accurate and up-to-date   health   records or,   as   the   case   may be, medical  records, of the workers  in the factory who are  exposed  to  any chemical,  toxic, or any other  harmful substances which are manufactured, stored,  handled or transported   and  such records shall be accessible to   the   workers subject to such  conditions  as may be prescribed.
(b)   ...   ...    ... (c)  ...  ...    ...
In section 41 C of the principal Act, in
clause (a), for the words “chemical, toxic, or any other harmful substances”, the words “hazardous substances” shall be substituted.
Since      the      term      ‘hazardous
substance’ is   proposed to       be defined,   the   section should     be recast accordingly.
22
41-D.    Power  of  Central
Government          to appoint Inquiry Committee.-
(1)           The           Central
Government may, in     the event    of    the occurrence of            an  extra-ordinary
situation  involving  a factory   engaged   in         a
hazardous  process, appoint
an     Inquiry Committee  to inquire into the standards of health    and     safety observed  in the
factory  with a  view to finding   out   the causes of any   failure   or neglect in the       adoption    of    any measures     or     standards prescribed   for   the health and  safety  of the workers employed  in the factory or the      general    public affected,  or likely to be affected,   due  to  such failure  or neglect and for
the      prevention    and recurrence      of    such extra-ordinary situations in future  in such factory or elsewhere.
(2)  ...  ...  ... (3)   ...   ...  ...
In section 41D of the principal Act, in
sub-section (1), for the words “prevention and recurrence”, the words “prevention of recurrence” shall be substituted.
This     was   an   inadvertent error
in the  Act Amendment in 1987.
23
41-E                 Emergency
Standards
(1)          Where the Central Government    is    satisfied that no standards of safety have    been  prescribed  in respect      of   a   hazardous process        or      class   of hazardous    processes,    or where   the   standards   so prescribed or     inadequate, it        may  direct          the Directorate              General Factory  Advice  Service  & Labour  Institutes  or    any institution  specialised      in matters     relating           to standards   of safety        in hazardous processes,       to lay     down        emergency standards    for enforcement of    suitable standards    in respect   of such hazardous processes.
(2) x x x
Schedule.
(2) ...  ...    ...
In section 41E of the principal Act, in
sub-section (1), for the words “Director- General of Factory Advice Service and Labour Institutes”, the words “Director General of Occupational Safety and Health” shall be substituted.
A   change   in   the   name   of   the
organisation   is     necessitated in view of the   following:
1)     The names DGFASLI, CLI and RLIS do not reflect     properly the activities     undertaken          by them  resulting  in erroneous understanding     of    the   functions of      the    organisation. At  times, the  functions  of  the  Labour Institutes  are  associated  with matters concerned with labour relations for which separate institutions  are  available.
Various National and  International agencies  of     repute    referred  to this       organisation,   other labour related       matters       not concerning   with   Safety,    Health as the existing   name   gives a different         perception  altogether and       does not truly reflect the nature       or     activities     carried out    by   the    organisation.
If  the  name  of the    organisation is changed to     reflect      properly the activities and functions of    the organisation,  then  the        services of       the  organisation     can     be utilised   by   all   who need safety- related        services    thereby fulfilling   the     purpose and objectives of the organisation.
24
41-F.-Permissible     limits
of exposure   of   chemical and toxic  substances.-
(1)           The     maximum
permissible           threshold limits     of  exposure     of chemical           and     toxic substances                        in manufacturing      processes (whether    hazardous   or otherwise)   in   any factory shall      be   of   the   value indicated    in   the   Second
In section 41F of the principal Act, in
sub-section (1), for the words and brackets “threshold limit of exposure of chemical and toxic substances in manufacturing processes (whether hazardous or otherwise)”, the words “limits  of  exposure  of  chemical  and toxic substances in manufacturing process” shall be substituted.
The            term            “hazardous
process”    is    presently    defined in  relation  to    industries specified in the    First  Schedule.  The scope of Section 41-F goes beyond “hazardous process” and encompasses      all      toxic substances  included in the  Second Schedule    irrespective  of whether it    is  used  in  a  “hazardous process”.     Since  it  is    proposed to define the term     “hazardous process”   more   broadly as one in
which any    hazardous    substance
is     used,         this       amendment becomes necessary.
25
Nil - New Section 41-I
After section 41H of the principal Act,
the following section shall be inserted, namely:-
“41-I. The Central Government or State
Government may make rules —
(a) specifying standards of health and safety to be followed in hazardous process;
(b) prohibiting          or restricting employment    of young    persons, pregnant women, and any class of adult workers in manufacture, storage or handling involving hazardous process;
(c)  prohibiting,  restricting  or controlling the use of hazardous substances.”.
At   present,   under   Chapter   IVA
of      the       Act,  the  State Governments  have  no power     to formulate      safety     standards  or to  make  rules    for        regulating the   employment   of women or young     persons in hazardous processes.
It is proposed       to confer rule making power    on     the   Central/ State Governments  for  these purposes.
Further, it was opined that giving powers to state and central government on same subject or under the same enabling provisions, may lead to conflicts.  Therefore, it is proposed to retain the power with State Governments in respect of specific provision and empower Central Government with general rule making powers under New Section 112-A.
26
Section 46
Canteens
For the section 46 of the principal Act,
the  following  section  shall  be substituted, namely: —
“46. (1) In every factory wherein two hundred or more workers are ordinarily employed,  there  shall be provided  and maintained a     canteen  or canteens by the occupier for the use of the workers.
(2) The State Government may prescribe

(a) the standards in respect of construction, location, accommodation,        furniture, cleanliness and   other equipment of the canteen;
(b) the   foodstuffs   to be served therein and   the charges   which   may be made therefore;
(c) the constitution of managing committee for the canteen and representation of  the
workers     in     the  management  of  the
canteen;
(d) the items of expenditure in the running of the canteen which are not    to be taken into account    in fixing the cost of foodstuffs  and    the  expenditure  of  the items shall be borne by the occupier;
(e) the periodical medical examination of canteen employees; and
(f) the delegation to the Chief Inspector, subject to such  conditions,  as may be prescribed,  of  the power to  make rules under clause (b).
(3) The Chief Inspector may, subject to such conditions as may be specified by him, after recording the reasons in writing relax the requirement of sub- section (1) for a period not exceeding twelve months for existing factories to provide  the facility of canteen.”.
The    National    Commission    on
Labour  in  its  report     submitted to  the Govt. of   India in 1969, had observed      that    in  a  unit  where there     is  an  established  demand for a canteen from majority       of workers, the employment       limit should   be   brought down to 200 workers.
The Section 46(1)   requires State Government    to  issue  notification in   the    Official   Gazette specifying the factories,   where canteen  facilities      are  to  be provided.   The      notification    as well  as    alteration  if  any  in the notification         require considerable  time  and administrative formalities and workers are deprived of       such facilities till then.
In other welfare provisions     such
as    those under Sections   45,   47
and 48 of    the    Act in  respect of ambulance room,   shelter,       rest room,    lunch  room  and    creche, the   Act   itself       stipulates the requirement    in specified factories.
27
47. Shelters, rest rooms and lunch rooms.
(1) In every factory wherein more than one hundred and fifty  workers  are  ordinarily
employed, adequate and suitable shelters or rest rooms
and a suitable lunch room, with provision for drinking water, where workers can eat meals brought by them, shall be provided and maintained
for the use of the workers;
Provided that any canteen maintained in accordance with the provisions of section
46 shall be regarded as part of the requirements of the sub-section:
Provided further that where a lunch room exists no worker shall eat any food in the workroom.
In section 47 of the principal Act, —
(a) in sub-section (1),—
(i)  for  the  words  “one  hundred  and fifty”, the word “seventy five” shall be substituted;
(ii) for the   words “suitable shelters or rest rooms”, the words  “suitable and separate shelters or rest rooms for male and  female  workers”  shall  be substituted;
(iii) in the first proviso, for   the words “as part of the  requirements”, the words “as part of the lunch room requirement” shall be substituted.
(b)  after sub-section (3), the following sub-section shall be inserted,     namely :

“(4) The Chief Inspector may, subject to such conditions as may be specified by him, after recording the reasons, relax the requirement of sub-section (1), for a period not exceeding twelve months for existing factories to provide the facility
of    shelters,    restrooms    and    lunch
rooms.”.
In      light      of      the      proposed
amendments  to  the  provisions under Section 46, reducing the applicability           of           canteen
requirement  from the  present  250 or  more  workers  to  200  or  more
workers,  it  was  felt  necessary  to
revise   the   limit,   for  rest   room, shelter and lunch room.
The Sub-Group I of Task Force on women and child development recommended separate shelters / rest rooms for male and female workers to ensure privacy and better relaxation amongst  the  workers  of  both  sex. This is also in line with the separate facilities for urinals, washing places as provided under Sections 19 and 42 of the Factories Act.
The expression ‘as part of the requirement was not explanatory enough   to   specify   it   as   ‘lunch room’.
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64.     Power     to     make exempting rules.-
(1)      xx     xx      xx
(2)      xx     xx      xx (3)       xx     xx      xx (4)  (i) xx     xx      xx (ii) xx     xx      xx
(iii) xx     xx      xx
(iv) the total number of hours of overtime shall not exceed fifty for any one quarter.
(5) Rules made under this section shall remain in
force for not more than five years.
In section 64 of the principal Act, —
(a) in sub-section (4), in sub-clause (iv), for the word “fifty”, the words “one hundred” shall be substituted;
(b) in sub-section (5), for the words “Rules made”, the words, brackets and figures “Rules made before the commencement of the Factories (Amendment) Act, 2010” shall be substituted.
The need for increasing the limit of
overtime work beyond 50 hours per quarter   as   it   was   felt   that   the existing limit was inadequate for urgent/seasonal work. did not cover season
The need for deleting the validity period of the Rules made under Section 64(5) was discussed during the    41
st      Conference    and    42nd Conference  of  CIFs.    The  delay caused     due     to     administrative exigencies in renotifying the set of Rules at the  end of five  years or making   changes  in  that  and  the legal   implications   of   the   delay resulting in the rules losing its force of law was deliberated.
29
65.     Power     to     make
exempting orders.- (1)   xx   xx     xx (2)   xx   xx     xx (3) (i) xx   xx     xx
(ii) xx   xx     xx
(iii) xx   xx     xx
(iv) no worker shall be allowed  to work overtime, for more than seven days at a stretch and the total number  of  hours  of overtime  work  in  any quarter shall not exceed seventy-five.
In section 65  of the  principal  Act, in
sub-section (3), in clause (iv), —
(a) for the words “seventy-five”, the words “one hundred and fifteen” shall be substituted;
(b) after Explanation, the following proviso shall be inserted, namely: —
“Provided that the State Government or the Chief Inspector may, subject to the prior approval of the State Government, by   order   further   enhance   the   total number of hours of overtime work in any quarter to one hundred and twenty- five in the public interest.”.
The        maximum        permissible
overtime work up to 75 hours per quarter   was   felt   inadequate   for some exceptional work such as in Govt. press where the workers are pressed in service for completion of urgent jobs like printing of ballot papers, budget books, annual plan and five year plan documents, etc. within a short period of time.   It was decided to enhance the limit under Section 65(3) from 75 up to
115 hours per quarter with exempting powers to State Governments/ CIFs, subject to the control of State Govt.   Further, extension of overtime up to 125 hours per quarter for the purpose of national imperative as prescribed was also proposed in the Act.
30
Section-66             Further
restriction   on employment of women. –
(1)     The provisions of this chapter shall, in their application to women in factories, be supplemented by   the   following   further
restrictions, namely:-
(a)      no         exemption from the provisions of Section  54  may  be granted in respect of any women.
(b)      no women shall be required or allowed to work  in  any  factory except between the hours of 6 A.M. and 7 P.M.
Provided that the State Government may, by notification in the Official Gazette,  in  respect  of any factory or group or class or description  of  factories, vary the limits laid down in clause (b), but so that no such variation shall authorize  the  employment of any woman between the hours  of  10  P.M.  and  5
A.M.
(c) there shall be no change of shift except after a weekly holiday or any other holiday.
(2)   The         State Government  may  make rules providing for the exemption from the restrictions set out in sub- Sec.(1), to such extent and subject  to  such  conditions as it may prescribe, of women working in fish- curing or fish-canning factories, where the employment of women beyond the hours specified in the said restrictions is necessary  to  prevent damage to, or deterioration in, any raw material.
(3)         The rules made
under sub-section (2) shall remain in force for not more than three years at a time.
For section 66 of the principal Act, the
following section shall be substituted, namely:—
“66.  The  provisions  of  this  Chapter shall, in their application to women in factories, be supplemented by the following further restrictions, namely,—
(a) no exemption from the provisions of
section 54 may be granted in respect of
any women;
(b) there shall be no change of shifts except after a weekly holiday or any other holiday; and
(c) no woman shall be required or allowed to work in any factory except between the hours of 6 A.M. and 7.P.M:
“Provided that where the State Government or any person, authorised by it in this behalf, is satisfied that adequate safeguards exist in a factory as regards occupational safety and health, provision of shelter, rest rooms, lunch rooms, night crèches and ladies’ toilets, equal opportunity for women workers, adequate protection of their dignity, honour and safety, protection from sexual harassment, and their transportation from the factory premises to  the  doorstep  of  their  residence,  it may, by notification in the Official Gazette, after due consultation with, and obtaining the consent of, the women workers, workers, the employer, representative organisation of the employer  and  representative organisation  of  workers  of  the concerned   factory,   allow   women   to work between 7.00 P.M. and 6.00 A.M. in  such  factory  subject  to  such conditions as may be specified therein:
Provided  further  that  no  such permission shall be granted to a woman worker during a period of sixteen weeks before and after her childbirth, of which at least eight weeks shall be before the expected childbirth, and for such additional period, if any, as specified in the medical certificate stating that it is necessary for the health of the woman worker or her child:
Provided    also    that    the    restriction
contained in the preceding proviso may
be relaxed at the express request of a woman worker on the basis of the medical  certificate  stating  that  neither her health nor that of her child will be endangered.”
Many women’s organisations have
filed writ petitions in High Courts of Chennai, Andhra Pradesh, Maharashtra challenging that the provisions contained in Section 66 are  discriminatory  and  biased. Some of the High Courts have allowed employment of women during night shifts.   The ILO had adopted a protocol relating to Night Work       (Women)       Convention
(Revised),      1948,      under      the
provision of the protocol the competent authority is a country under the national law and regulation is authorized to modify the duration of the night shifts or to introduce         exemption         from
provisions within certain limits.
This will also provide flexibility in the  matter  of employment  of women during night.
31
76.      Power      to   make
rules.-
The State   Government may make rules -
(a)   prescribing   the forms of  certificates of fitness to be  granted  under  section
69, providing for the grant of   duplicates in the event of loss of the original certificates,   and  fixing the fees   which   may  be charged           for         such
certificates   and   renewals
thereof   and  such duplicates;
(b)     prescribing  the physical standards to be attained by children and adolescents         working in factories;
(c) regulating the procedure of  certifying     surgeons under     this Chapter;
(d) specifying other duties which certifying surgeons may be required to perform in    connection with the employment    of young person in factories and fixing the fees  which  may be charged for  such  duties and  the persons  by whom they shall be payable.
Clause (b) may be omitted.
The     issue     relating     to     the
prescription   of  physical standards to be attained by       children and adolescents working in    factories, have    been  carefully examined in the light of the need expressed during  the  41
st       Conference     of CIFs.     Based       on  the   medical opinion,   the       42nd     Conference decided    that      it  would  not  be possible         to     prescribe    such physical  standards in view    of the differing  nature  of         work      in factories                    and       diverse anthropological and    physiological conditions  existing  in the country.
Accordingly, the clause (b) of Section   76   is proposed to be deleted.
32
77.        Certain        other
provisions of law not barred.-  The provisions of this   Chapter   shall   be in addition to, and not in derogation          of, the provisions of the Employment of Children Act, 1938 (XXVI of 1938).
In  the existing provision, the     words,
figures   and bracket “Employment    of Children Act, 1938 (XXVI of 1938)” may   be substituted by   the   words, figures and bracket  “the  Child Labour (Prohibition       and   Regulation)   Act,
1986”.
‘Employment   of   Children    Act,
1938’    has    been   repealed   and
the  new Act    has come into force.
33
79. Annual   Leave   with
wages.-   (1)  Every worker who   has   worked   for   a period  of    240    days    or more in a factory  during  a calendar year     shall     be allowed   during             the
subsequent calendar   year,
leave   with wages   for a number of days calculated at the rate of -
(i)   if   an   adult, one day for  every  twenty  days of work   performed   by   him during    the previous calendar year;
(ii)  if  a  child, one day for every  fifteen days of work performed   by   him during the         previous calendar year.
Explanation   1.-   For the purpose of this sub- Section
-
(a)   any days of lay-off by agreement or contract or as permissible under the standing orders;
(b)   in   the case of female worker, maternity leave for any  number of days not exceeding   twelve   weeks; and
(c) the leave earned in the year prior to that in which the leave is enjoyed;
shall  be deemed to be days on which the worker has worked in a factory for the purpose  of  computation of the  period  of 240 days or more, but he shall not earn leave for these days.
(2)     A worker  whose service commences otherwise than on the first day of January, shall be entitled to leave with wages at the rate laid down in clause  (i)  or,  as  the  case may be, clause (ii) of Sub-
Section    (1)    if    he    has
worked for two thirds of the total number of days in the remainder of the calendar year.
1.  In  Sub-section    (1),  for  the  words
“240”    the    words    “90”    may    be
substituted.
2. In the last para below explanation
1(c)  “240”    shall  be  substituted  with
“90”.
3.   In Sub-Section (2), for the words “two third”, the words “one fourth” may be substituted.
It   was   decided   that   lot         of
difficulties  are  caused        to    the Badli  workers who  are  unable  to enjoy  the    leave  with  wages  for not    being    able    to perform the required  number of days of    work for  no fault of   theirs.
Accordingly, the qualifying period has been reduced to 90 days from
240 days.
34
Section  87.  Dangerous
operations.-
Where        the        State
Government  is  of opinion that any manufacturing    process or  operation  carried  on in a factory exposes any
persons  employed  in  it
to   a   serious   risk   of bodily injury, poisoning or disease, it may make rules applicable to any factory or class or description  of  factories in which manufacturing process or operation is carried on -
(a) specifying the manufacturing    process or operation and declaring it to be dangerous;
(b) prohibiting or restricting the employment of women, adolescents or children in the  manufacturing  process or operation;
For clause (b) of Section 87 the following
clause will be substituted:
In clause (b) for the words “women, adolescents or children” the words, “young person or a woman or a person with disabilities” shall be substituted.
The Sub Group I of Task Force on
women and child development recommended for restricting the employment only for pregnant women, person with disability and young person below the age of 18 years.  This was suggested in order to promote gender equality at the work place.
However, it is felt that the power for restriction / prohibition may be in respect of all women workers rather  than only for pregnant women workers.
35
89.    Notice of certain
diseases.-
(1)  ...  ...  ... (2)  ...  ...  ... (3)  ...  ...  ...
(4)          If any medical practitioner    fails    to comply  with the provisions of       sub-section   (2),   he shall   be   punishable   with fine  which  may  extend to one thousand rupees.
(5) ...   ...    ...
Sub-section   (4)  may be omitted.
This is consequential to
introduction of new Section    92-B where     consolidated  penal provisions    are    available.
36
91A   -    Safety   and Occupational          Health Surveys
(1) The Chief Inspector, or the   Director  General Factory      Advice   Service and Labour   Institutes   or the
Director-General       of Health  Services,              to the Government   of  India, or such   other   persons as may  be      authorised      in this
behalf    by  the   State Government   or  the  Chief Inspector  or  the Director General       of       Factory Advice  Service            and Labour Institutes           or the    Director-General    of Health
Services   may, at any time during the  normal working hours   of   a factory, or at any  other time as is found by  him  to  be  necessary, after       giving   notice   in writing  to  the  occupier  or manager  of  the factory or any  other  person  who for the   time being purports to be    in    charge    of    the factory,   undertake   safety and   occupational  health surveys  and  such occupier or  manager or other person shall afford all facilities
for   such survey, including facilities   for the examination  and testing of plant  and machinery and collection  of  samples and other   data relevant to the survey.
In   Sub-Section   (1)   for   the   words
“Director General of Factory Advice Service & Labour Institutes” , the words “Director General    of Occupational Safety and Health” may be substituted.

37
92.   General penalty for offences -Save as is otherwise expressly provided in this Act and subject to the provisions of Section 93, if in, or in respect of any factory there is any contravention of any of the provisions of this Act or of any rule made thereunder or of any order in writing given thereunder
,the occupier and  manager of the factory shall each be guilty of an offence and punishable with imprisonment for a term which may extend to (two years) or with fine which may extend to (one lakh rupees) or with both and if the contravention is continued after conviction, with a further fine which may  extend  to  one thousand rupees  for each day on which the contravention is so continued.
Provided that where contravention of any of the provisions of Chapter IV or any  rule  made  thereunder or under section 87 has resulted in an accident causing death or serious bodily injury, the fine shall not be less than twenty-five thousand   rupees   in   the case of an accident causing death, and five thousand rupees in the case of an accident causing serious bodily injury.
Explanation.-  In  this section and in section 94 “serious bodily injury” means an injury which involves,  or  in  all probability will involve, the permanent  loss  of  the  use of, or permanent injury to, any limb or the permanent loss of, or injury to, sight or hearing,  or the  fracture  of
1. The existing Section 92 may be
substituted by the following : -
92. General penalty for offences.- (1)Save as otherwise expressly provided in this Act and subject to the provisions of section 93, if in, or in respect of, any factory there is any contravention of the provisions of Chapters I, III (except sections 11, 18, 19 and 20), IV, IVA (except sections 41B, 41C and 41H), VII and IX (except section 89) of this Act or of any rules made thereunder or any order in writing given thereunder, the occupier and the manager of the factory shall each be guilty of an offence and punishable with imprisonment  for  a  term  which  may extend to two years or with fine which may extend to three lakh rupees or with both, and in any case it shall not be less than thirty thousand rupees:
Provided  that  where the  contravention of any of the provisions of the Chapters referred  to  in  sub-section  (1)  or rules made there under has resulted in an accident causing death or serious bodily injury,  the  fine  shall  not be  less than seventy-five thousand rupees.
(2)If the contravention is continued after conviction  under  sub-section  (1),  then the occupier and manager of the factory shall each be guilty of an offence and punishable  with  a  further  fine  which shall not be less than two thousand rupees for each day on which the contravention is so continued.
(3) In respect of any contravention of any of the provisions of this Act or of any rules made there under or any order in writing given there under,  other than those mentioned under sub-section (1), for which no penalty has been provided the occupier and manager of the factory shall each be guilty of an offence and punishable with fine which may extend to one lakh fifty thousand rupees and if the contravention is continued after conviction, with a further fine which shall not be less than one thousand rupees for each day on which the contravention is so continued.
A Working Group  was set  up by the 42nd   Conference. of CIFs.  The Working Group discussed the criteria  for  classification  of offences       and       corresponding
penalties and it was decided that the offences should be classified into two categories – (1) with fine and (2)  with  fine  and  imprisonment. The Working Group drafted the proposed amendment, which was approved by the 43
rd  Conference of Chief Inspectors of Factories.
In addition to the above, the Ministry of Labour constituted a Committee for review of administrative laws concerning Ministry of Labour. The Committee submitted its report regarding amendments  to  the  Factories  Act and recommended that Section 92 and 93 of the Factories Act may be amended suitably regarding classification/ compounding of offences.
It is proposed to consolidate the provisions relating to penalties for violation  of  various  provisions  of the Act by a person other than an occupier  in  Chapter  X  (Penalties and Procedures).
Similarly, penalty provision for contravention of Section 7B is also provided.
The provision of compounding has been introduced for minor offences.

any   bone,   but   shall   not
include the fracture of bone or joint (not being fracture of more than one bone or joint) of any phalanges of the hand or foot.
Explanation.- For the purposes of this
section “serious bodily injury” means an injury which involves, or in all probability will involve, the permanent loss of the use of, or permanent injury to, any limb or the permanent loss of, or injury   to,   sight   or   hearing,   or   the fracture of any bone, but shall not include the fracture of bone or joint (not being fracture of more than one bone or joint) of any phalanges of the hand or foot.
2. After Section 92, the following sections may be inserted:-
92A.   Penalties   for   offences       by persons other than occupier.
If any person, who designs, manufactures, imports or supplies any article or substance for use in a factory and contravenes any of the provisions of section 7B, he shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to three lakh rupees or with both.
92B. Penalties in certain other cases.
(1) If any worker employed in a factory spits in contravention of sub-section (3) of  section  20,  he  shall  be  punishable with fine not exceeding one hundred rupees.
(2) If any medical practitioner fails to comply with the provisions of sub- section  (2)  of section  89,  he  shall  be punishable with fine which may extend to three thousand rupees.
(3) If any worker employed in a factory contravenes the provisions of sub- section (1) of section 97 or section 111 or of any rule or order made thereunder, he shall be punishable with fine which may   extend   to   one   thousand   five
The word ‘and’ has been replaced with the word ‘or’ to correct the mistake.


hundred rupees.
92 C. Compounding of certain offences
(1) The Central   Government and State Government may, by notification in the Official Gazette, prescribe in respect of the offences specified in the Fourth Schedule, which may before the institution of the prosecution, be compounded by such officers or authorities and for such amount as prescribed:
Provided  that  the  Central Government or  the  State  Government,  as  the  case may be, may, by notification in the official Gazette, amend the Fourth Schedule by way of addition, omission or variation of any offence specified in the said Schedule.
(2) Where an offence has been compounded under sub-section (1), no further   proceedings   shall   be   taken against the offender in respect of such offence.

38
93. Liability  of owner of premises in certain circumstances:-
(1)Where in any premises separate  buildings  are leased  to  different occupiers  for  use  as separate  factories,  the owner of the premises shall be responsible for the provisions and maintenance of common facilities and services such as approach roads, drainage, water supply, lighting and sanitation.
(2)   The   Chief   Inspector shall have, subject to the control of the State Government,  power  to issue orders to the owner of the premises in respect of the carrying out of the provisions of sub-section (1).
(3)Wherein any premises, independent or self contained, floors or flats are leased  to  different occupiers  for  use  as separate  factories,  the owner of the premises shall be liable as if he were the occupier or manager of a factory, for any contravention of the provisions of this Act in respect of –
(i)  latrines, urinals and washing   facilities   in so far as the maintenance of the common supply of water for these purposes is concerned;
(ii)  fencing of machinery and plant belonging to the owner and not specifically   entrusted to the custody or use of an occupier;
(iii)  safe  means  of  access to the floors of flats and maintenance and cleanliness               of
The   existing   Section   93   may   be
substituted by the following :
93. Liability of owner of premises in certain circumstances – (1) Where in any premises separate buildings are leased to different occupiers for use as separate factories, the owner of the premises shall be responsible for provision and maintenance of –
(i) common facilities and services such as approach roads, drainage, water supply, lighting and sanitation;
(ii) adequate staircases;
(iii) precaution in case of fire; (iv) ensuring structural stability; (v) hoists and lifts; and
(vi) any other common facilities.
(2) Where in any premises, independent or self-contained floors or flats, compartments, rooms, galas, sheds are used as separate factories, the owner of the premises shall be responsible for the provision and maintenance of –
(i) latrines, urinals and washing facilities; (ii)   safety   of   machinery   and   plant
installed   in   the   common   place   or location of an occupier;
(iii) safe means of access to floors or flats, compartments, rooms, galas, sheds and maintenance and cleanliness of staircases and common passages;
(iv) precautions in case of fire; (v) hoists and lifts;
(vi)  prohibition  of  the  common passages, balconies, verandas, access space,  staircases  and  such  other common spaces for use of any activity not intended in such spaces;
The  issue  relating  to  inclusion  of
rented or otherwise let out or given buildings to different occupiers for use as ‘factory’ was discussed and a Working  Group  drafted  the proposed  amendment,  to  fix liability  of  owner  of  premises  in
certain circumstances.
.

staircases               and
common passages;
(iv)  precautions in case of fire;
(v)   maintenance of hoists and lifts; and
(vi) maintenance of any other  common facilities provided in the premises.
(4)   The   Chief   Inspector shall have, subject to the control of the State Government,    power to issue orders to the owner of the premises in respect of the carrying out the provisions of sub-section (3).
(5) The provisions of sub- section (3) relating to the liability of the owner shall apply  where  in  any premises  independent rooms with common latrines,  urinals  and washing facilities are leased to  different  occupiers  for use as separate factories:
Provided that the owner shall be responsible also for complying with the requirements relating to the provisions and maintenance of latrines, urinals and washing facilities.
(6)   The   Chief   Inspector shall have, subject to the control of the State Government, the power to issue order to the owner of the premises referred to in sub-section (5) in respect of the carrying out of the provisions of section 46 or section 48.
(7) Where in any premises portions  of  a  room  or  a shed are leased to different occupiers  for  use  as separate      factories,      the
(vii) ensuring structural stability; and
(viii) any other common facilities provided in the premises.
(3) The owner of premises shall be responsible for provision, maintenance or arrangement for any other facility which   may   be   required   but   not specified in sub- sections (1) and (2) above.
(4) The Chief Inspector shall have, subject to the control of the State Government, the power to issue orders to the owner of the premises referred to in sub-sections (1) and (2) in respect of the carrying out of the provisions of section 46 or section 47 or section 48.
(5) In respect of sub-section (3) while computing for the purposes of any of the provisions of this Act, the total number of workers employed in the whole of the premises shall be deemed to be in a single factory.
(6) The owner of the premises shall be liable for any contravention of any of the provisions of this section, as if he were the occupier or manager of a factory, and shall be punishable in accordance with the provisions of section 92.
Explanation.—For the purposes of this section, “owner” shall include promoter, co-operative society, trust, receiver, special officer, as the case may be.”.


owner of the premises shall
be liable for any contravention of the provisions of –
(i)          Chapter III, except sections    14   and
15;
(ii)         Chapter IV, except sections
22,23,27,34,35 and 36;
Provided that in respect of the  provisions  of  sections
21, 24 and 32 the owner’s liability shall be only in so far as such provisions relate to things under his control;
Provided further that the occupier  shall be responsible for complying with the provisions of Chapter IV in respect of plant and machinery belonging to or supplied by him.
(iii) section 42
(8)   The   Chief   Inspector shall have, subject to the control of the State Government,  power  to issue order to the owner of the premises in respect of the     carrying out the provision  of  sub-section (7).
(9) In respect of sub-section (5)  and  (7)  while computing for the purposes of any of the provisions of this Act the total number of workers employed, the whole of the premises shall be deemed to be a single factory.



section 92 is again guilty of
an offence involving a contravention of the same provisions, he shall be punishable on a subsequent conviction  with imprisonment   for   a   term
which  may  extend  to  three
years or with fine which shall not be less than ten thousand rupees but which may extend to two lakhs rupees or with both:
Provided   that   the   court
may, for any adequate and special reasons to be mentioned  in  the judgement, impose a fine of less than ten thousand rupees:
Provided further that where contravention of any of the provision of Chapter IV or any  rule  made  thereunder or under section 87 has resulted in an accident causing death or serious bodily injury, the fine shall not be less than thirty-five thousand   rupees   in   the case of an accident causing death and ten thousand rupees  in  case  of  an accident causing serious bodily injury.
(2) For the purposes of sub- section (1),  no  cognizance shall be taken of any conviction made more than two years before the commission of the offence for which the person is subsequently being convicted.
rupees  which  may  extend  to  six  lakh
rupees” shall be substituted;
(ii) in the first proviso, for the words “ten thousand rupees”, the words “forty thousand rupees” shall be substituted;
(iii)  for  the  second  proviso,  the following proviso shall be substituted, namely: -
“Provided further that where contravention of any of the provisions of   the   Chapters   mentioned   in   sub- section (1) of section 92 or of any rules made there under has resulted in an accident causing death or serious bodily injury, the fine shall not be less than one lakh rupees.”
(b) after sub-section (1), as so amended, the following sub-section shall be inserted, namely—
“(1A) If any person who has been convicted of any offence punishable under section 92A is again guilty of an offence involving a contravention of the same provision, he shall be punishable on a subsequent conviction,-
(i) in case of contravention of sub- section (1) of section 92A, with imprisonment for a term which may extend to one year or with fine which shall not be less than forty thousand rupees  but  which  may  extend  to  five lakh rupees or with both; and
(ii) in case of contravention of sub- section (2) of section 92A, with imprisonment for a term which may extend to six months or with fine which may extend to five hundred rupees or with both;”;
(c)    in sub-section (2), after the words, bracket and figure “sub-section (1)”, the words, bracket, figure and letter “and sub-section (1A)” shall be inserted.

40
95. Penalty for obstructing inspector Whoever  wilfully   obstructs an Inspector in the exercise of any power conferred on him by or under this Act, or fails to produce on demand by an Inspector   any   register   or other    documents    in    his custody kept in pursuance of this Act or of any rules made thereunder,  or  conceals  or prevents  any  workers,  in  a factory     from     appearing before,  or  being  examined by,  an  inspector,  shall  be punishable                     with imprisonment   for   a   term which  may  extend  to  six months  or  with  fine  which may extend to ten thousand rupees or with both.
Section 95 may be substituted as follows:-
“Whoever wilfully obstructs an Inspector in the exercise of any power conferred on him by or under this Act or fails to produce on demand by an Inspector any registers or other  documents in  his custody kept in pursuance of this Act or of any rules made thereunder or conceals or prevents any worker in a factory from appearing before, or being examined by an Inspector, or does not provide reasonable and necessary assistance or co-operation to an Inspector in reaching the concern spot, branch, section, department in a factory, or conceals any fact or figures required for effective implementation of the provisions of the Act, shall be punishable with imprisonment  for  a  term  which  may extend to six months or with fine which may extend to thirty thousand rupees or with both”.
It is necessary for the occupier to provide necessary assistance in carrying out the duties by the inspector.
It is a consequential amendment, raising the fine amount.
41
96.  Penalty for
wrongfully disclosing results of analysis under section 91
Whoever, except in so far
as it may be necessary for the purposes of a prosecution for any offence punishable under this Act, publishes   or   discloses  to any person the results of an analysis made under section
91, shall be punishable with imprisonment for a term, which may extend to six months or with fine, which may  extend  to  ten thousand rupees or with both.
96. Penalty for wrongfully disclosing
results of analysis under section 91
In the last sentence of the provision, for the words “ten thousand rupees”, the words “thirty thousand rupees” may be substituted.
It  is  a  consequential  amendment,
raising the fine amount.
42
96-A.        Penalty        for
contravention of the provisions of Section 41 B,
41 C and 41 H.
(1) whoever fails to comply with or contravenes any of the  provisions  of  sections
41B,  41C  or  41H  or  the rules  made  thereunder, shall, in respect of such failure or contravention, be punishable                    with
imprisonment   for   a   term
which may extend to seven
years  and  with  fine  with may extend to two lakh rupees, and in   case the failure or contravention continues, with additional fine  which  may  extend  to
five  thousand  rupees  for
every   day   during   which such  failure  or contravention continues after the conviction for the first such failure or contravention.
(2) If the failure or contravention referred to in sub-section (1) continues beyond a period of one year after the date of conviction, the offender shall be punishable with imprisonment for a term which may extend to ten years.
96-A. Penalty for contravention of the
provisions of Section 41 B, 41 C and
41 H.
For the words “two lakh rupees” the words “six lakh rupees” may be substituted.   And for the words “five thousand rupees”,” the words “fifteen thousand rupees” may be substituted.
It  is  a  consequential  amendment,
raising the fine amount.
43
97. Offences by Workers.-
(1)    Subject   to   the provisions  of Section 111, if any worker employed in a factory  contravenes  any provision of this  Act or any  rules  or  orders made thereunder,   imposing  any duty       or     liability     on workers,       he    shall    be punishable  with fine which may extend to five hundred rupees.
In Section 97, the existing sub-section
(1)   shall   be   substituted          by the following, namely -
“(1)     Subject    to    the provisions  of Section 111, no  worker employed  in a factory shall  contravene any  provisions of this Act or  any  rule or order made thereunder,      imposing   any duty   or liability on the workers”.
All   the penalty provisions       are
being brought under one    Section, i.e. Section 92, 92-A & 92-B.
The penalty provisions of       this, Section has also been   incorporated there.       In     view     of   this   it became   necessary to recast this Section.
44
98. Penalty for using false
certificate of fitness Whoever knowingly uses or attempts    to    use,    as    a certificate of fitness granted to himself under section 70, a certificate granted to another person under that section, or who, having procured such a certificate,  knowingly  allow it to be used, at an attempt to use it to be made by, another person,  shall  be  punishable with   imprisonment   for   a term,  which  may extend  to two   months  or   with   fine which  may  extend  to  one
thousand   rupees   or   with
both.
98. Penalty for using false certificate
of fitness
In the last sentence, for the words “one thousand rupees”, the words “three thousand rupees” may be substituted.
It  is  a  consequential  amendment,
raising the fine amount.
45
99. Penalty for permitting
double employment of child
If a child works in a factory
on any day on which he has already been working in another factory, the parent or guardian of the child or
the  person  having  custody of  or  control  over  him  or
obtaining any direct benefit
from his wages, shall be punishable with fine which may  extend  to  one thousand rupees, unless it appears  to  the  Court  that the child so worked without the  consent  or  connivance of such parent, guardian or person
99.   Penalty   for   permitting   double
employment of child
In the last sentence, for the words “one thousand rupees”, the words “three thousand rupees” may be substituted.
It  is  a  consequential  amendment,
raising the fine amount.
46
New proposal
In section 102 the words “one hundred
rupees” may be substituted by the words
“three hundred rupees”.
In Section 102, relating to Power of
Court to make orders, the subsection (2), stipulates that if the occupier or manager do not comply with the conditions specified in the Court Order, within the stipulated period, they shall be punishable with imprisonment for a term which may extend to six months or with a fine which may extend to one hundred rupees per day or both. Inadvertently, the amount of fine specified was not revised as done in other sections. Therefore, it is proposed to revise the amount under Section 102 (2) to rupees three hundred.
47
104.  Onus  as  to age.-(1)
When  any  act  or omission would, if a person were under   a certain age, be an offence  punishable under this  Act,  and such person is   in   the   opinion of the Court  prima facie under such   age, the burden shall be  on the accused to prove that   such   persons   is not under such age.
(2)  A declaration in
writing  by a  certifying
surgeon  relating  to  a worker    that    he   has personally   examined   him and believes   him   to   be under the    age   stated   in such declaration   shall, for
the purposes   of   this   Act
and the     rules made thereunder,  be    admissible as  evidence  of the  age  of that worker.
Sub-section  (2) of Section 104  may  be
substituted by the following -
“(2) A declaration in writing by a certifying   surgeon   or   any         other medical authority notified in this behalf by State Government under sub-section (2) of section 16 of Child Labour (Prohibition and Regulation) Act, 1986 relating to a worker stating therein that he has personally examined such worker to be under or over the age stated as
such  in  the  declaration  shall,  for  the
purposes  of  this  Act  and  rules  made there under, be conclusive evidence as to the age of that worker.”.
This         amendment   was      also
discussed   during  the Working Group meeting and a draft amendment      was    examined  by a   core group       and   discussed during  the    42
nd     Conference.     It was    further  vetted by DGFASLI. This      amendment      is   of   very urgent   nature   as    this relates  to the  employment         of           child labour   and     certificate    of  age, as       courts    in    some   instances did    not    accept    the   certificate of  age issued    by  the  Certifying
Surgeon  as  a  final and conclusive
proof as to the age of a child.
A  draft  amendment   was framed by the Working Group constituted by   the   41st Conference   of  Chief Inspectors of Factories and the amendment     has     been approved by   the    42nd  Conference of Chief Inspectors of Factories.
48
111.     Obligation    of
workers.-
(1)   ...   ...   ...
(2)              If   any   worker employed   in  a   factory contravenes     any  of  the provisions   of this section or   of   any   rule   or order made  thereunder,  he shall be         punishable       with imprisonment   for  a  term which  may  extend to three months,  or with fine which may       extend       to   one hundred   rupees,   or   with both.
In Section 111, sub-section (2)      shall
be  omitted.
This       is       consequential       to
introduction of new Section   92-B.
49
Nil - New Section 112A
After    Section    112,    a  new  Section
112A to empower the Central Government to make rules   may   be inserted as follows:
112A.   Power to make rules by the
Central Government.-
“112A. (1) The Central Government may, by notification, and subject to the condition  of  previous  publication, make rules   to carry out the provisions of this  Act.
(2) Every rule made by the Central Government shall be laid, as soon as, may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately  following  the  session  or the successive sessions aforesaid, both Houses   agree   in           making   any
modification in the rule or both Houses
agree that the rule should not be made, the  rule    shall  thereafter  have    effect only  in such modified  form  or be of no effect, as the case may be; so, however, that any  such modification  or annulment shall  be without prejudice to the validity of anything previously done under that rule.”
The         Conference      of      State
Labour  Ministers  held  in November  7, 1988 felt that    there should  be  uniform    rules     under the   Act    throughout  the  country on important          aspects        of occupational   safety   and    health. The   Central   Government should, therefore,     have   the   power   to frame     rules  under  the Act apart from the State Governments
which          have     power     under Section   112   of   the   Act.     The Central Government        should, however,  finalise     the         Rules after      consultation with the State Government.  The Conference  also recommended  that  provisions should  be made to  avoid  conflict between       the   Central   and the State    Rules  (in  the same manner as         legislation         in         the concurrent field).
50
First Schedule
First Schedule may be omitted.
In light of the proposed amendment
to the definition of hazardous process under Section 2(cb), the First Schedule is omitted.
51
New proposal
In Sections 13, 17,21, 22, 23,28, 29,31,
34,35,  37,  38,  40B,  41  A,41  B,41
C,45,87,88,88 A,89 and 90 the words “State Government” may be substituted by the words “ Central Government or State Government”
The  detailed  explanation  in  this
regard has already been provided at against 112A.
52
New proposal
The         Fourth         Schedule         on
“Compoundable   Offences”    may   be
added.
This is consequential to amendment
proposed in Section 92C.



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