Employees’ State Insurance Act, 1948

Registration of Factories and Establishments

All the factories and establishments, need to be registered with the government as per the regulations of Factories Act 1948. Also, such establishments need to insure their employees as per the regulations of the Employee State Insurance Act 1948. Let us discuss in detail about the requirement, provisions, process, and regulations for registration of factories and establishments.

Registration of Factories and Establishments

The Factories Act 1948 (63 of 1948) is an act to consolidate and amend the law regulating labor in factories. It came into force on 1st April 1949. There are 120 sections in Factories Act. Later, in Factories Amendment Act 1947, two new schedules were inserted describing about the provisions regarding hazardous processes.

Section 6 of the Factories Act governs the registration of factories and establishments. The details are as follows:

  1. Rules for Submission

The state government may make rules for the submission of plans or description of factories. The organization requires previous permission from the state government or Chief inspector for the construction or extension of any factory. But the addition or replacement of existing machinery does not come into extension if does not reduce the safe working space and is also not hazardous to the safety and health of the employees.

  1. Nature of Plans and Fees Payable

The plans and specifications need to be submitted for acquiring these permissions (Permit applications). It prescribes the nature and specifications of such plans, and from whom it shall be certified. It also prescribes the fees payable for registration/ licensing/ renewal of licenses.

  1. Renewal of Licenses

The Act requires the notice period to be given before granting or renewal of licenses. Section 7 of Factories act 1948 explains the provisions relating to this. As per this section, the occupier of the factory premises needs to serve a written notice to the related authorities 15 days prior to occupying the premises.

  1. Contents of Notice

It shall contain:

  • Name and address of factory, Occupier, and Owner.
  • Address for communication.
  • Nature of manufacturing process.
  • Total horsepower installed in the factory
  • Name of Factory manager
  • The number of employed employees.
  1. Appointment of a new Manager

In the case of appointment of a new manager, the management shall duly and timely inform this to the chief inspector i.e. within 7 working days of the joining. However, in the absence of a designated manager, we consider the occupier of the factory as the manager of the factory.

factories act 1948

Source: freepik.com

If the permission request (duly completed) is sent to the state government or chief Inspector via registered post, and if no communication has been sent in return within 3 months of the sent date, then the said application is deemed to be approved. It is called as automatic approval.

The rules require the licensing authority to issue a license on the satisfaction of all legal requirements. The authority cannot refuse a license only on a direction from Government. (S. Kunju v. Kerala, (1985) 2 LLJ 106).

If the Chief inspector refuses to grant permission to the construction/ extension of the factory then the applicant can re-appeal to the state government about the same. Or if the state government refuses to grant the permission then the applicant can re-appeal to the central government. The time limit for re-appealing is 30 days from the date of refusal.

Section 6 of Factories act actually empowers the government to make the rules for registrations/ licensing/ construction/ extension for the factories.

Solved Example on Factories Act 1948

Q. What was the necessity and importance of framing regulations for the registration of factories?

Answer:

The regulations for registration of factories act shows that any factory which employees workers shall be governed as per the necessary regulations and monitored by the State government. Act shall not allow any occupier or owner who fails to comply these to establish or commence the manufacturing process in the factory premises. Thus, the chief inspector plays a very important role here. Heor She represents the government and facilitates the necessary rules and regulations of factories act 1948. It also enhances the safety, security, and health of the employees in the factory.

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