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Labour Laws
Notes Introduction
In the previous unit, we dealt with the concept, origin, objectives and classification of labour law.
The Factories Act is the principal legislation, which governs the health, safety, and welfare of
workers in factories. The Act extends to the whole of India. Mines and Railways workers are not
included as they are covered by separate Acts. The new Act addressed the issues of safety, health,
and welfare. Many amendments were aimed to keep the Act in tune with the developments in
the field of health and safety. However, it was not until 1987 that the elements of occupational
health and safety, and prevention and protection of workers employed in hazardous process, got
truly incorporated in the Act. The purpose of this Unit is to enable the students to comprehend
basic expressions. At the end of this unit you should be able to understand various concepts
regarding the basic concept of Factories Act.
4.1 Historical Development of Factory Legislation
With the establishment of a Cotton Mills in 1851, and a Jute Mill in Bengal in 1855, modern factory
system was founded in India. Women and children were employed. There were excessive and
long hours of work with little recreation. The employers used to have their way. In 1881, Indian
Factories Act was passed which gave protection to the employees, especially to the children.
The Factory Commission was appointed in 1890 by the Government of India. On the basis of
the recommendations of the Commission an Act was passed in 1891, whereby the definition
of Factory was amended to include premises in which fifty persons or more were employed.
The Local Governments were empowered to extend it to premises in which twenty persons or
more were employed. There were provisions about women employees and hours of work for
them were limited with a provision for thirty minute’s interval for rest. The Act was amended
from time to time. It was amended twice in 1923 and 1926. The Act was thoroughly revised and
redrafted in 1934 on the lines of recommendations made by the Royal Commission on Labour,
which was appointed in 1929.
The Factories Act, 1934, was several times, amended and then the new Act of 1948 was passed.
Under the 1934 Act, Provincial Government had power to apply the Act to the establishments
where power was used and where more than ten person were employed. It reduced the hours
of work and aimed to improve the working condition in factories; provisions were also made for
adequate inspection and enforcement of the Act.
In the year 1948, the Factories Act, 1934 was revised and its scope extended to include welfare,
health, cleanliness, overtime payments and similar measures. The Factories Act was to ensure
proper, safe and healthy working conditions in the factories, so that the workers may feel interest
and while in factories, devote their time and labour in the working process of the factory without
being afraid of bodily strain and without fear and danger of accidents. The Act was amended
periodically upto 1976.
By this time a very large number of chemical factories had been set up involving the manufacture
and handling of hazardous and toxic chemicals. This brought in more problems of safety and
health. By the time the Government could assess the possible impact of the problem and foresee
the possibilities of major disasters, the world’s worst tragedy shocked Bhopal wiping out in hours
thousands of innocent, ignorant, lives and rendering many more incapacitated. In 1987, Factories
(Amendment) Act, 1987 was passed, a memorial to the victims of Bhopal.
It provides better safeguards in the use and handling of hazardous substance in factories. It calls
upon the management to provide for greater safety measures (including precautions regarding
the use of portable electric light in the factories), appointment of safety officers in factories where
1000 or more workers are employed, or where in any manufacturing process or operation is
carried on, which involves any risk of bodily injury, poisoning or disease, or any other hazard to
health to the persons employed in the factory. The amended Act also provided for investigations
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