Page 51 - DCOM207_LABOUR_LAWS

Labour Laws

Notes 4.1.1 Object of the Act

The object of the Act is to protect human beings from being subject to unduly long hours of
bodily strain or manual labour. It also seeks to provide that employees should work in healthy
and sanitary conditions so far as the manufacturing process will allow and that precautions
should be taken for their safety and for the prevention of accidents.

4.1.2 Scope and Applicability of the Act

The Act extends to whole of India. It applies to all factories including factories belonging to
Central or any State Government unless otherwise excluded. The benefits of this Act are available
to persons who are employed in the factory and be covered within the meaning of the term
“worker” as defined in the Act. It would, therefore, be desirable to discuss the meaning and
definition of the term “factory” and “worker”. Since the term “factory” refers to manufacturing
process, it would be helpful to know the meaning of the term “manufacturing process” as defined
by the Act.



Caselet Indian Oil Corporation vs. Chief Inspector of Factories

n Indian Oil Corporation vs. Chief Inspector of Factories [1998(4) SCALE 116], it was
observed that it is the Government which looks after the successful implementation
Iof the Factories Act and, therefore, it is not likely to evade its implementation. That
appears to be the reason why the legislature thought it fit to make a separate provision
for the Government and local authorities, and so on. The legislature has provided that
in the case of a factory owned or controlled by any of these authorities the person or
persons appointed to manage the affairs of the factory shall be deemed to be the occupier.
Therefore, if it is a case of a factory, in fact and in reality, owned or controlled by the Central
Government or other authority, the person or persons appointed to manage the affairs of
the factory shall have to be deemed to be the occupier even though for better management
of such a factory, a corporate form is adopted by the Government.

It was held in the case that the relevant provisions regarding the establishment of the
appellant corporation and its working leave no doubt that the ``ultimate control’’ over all
the affairs of the corporation, including opening and running of the factories, is with the
Central Government. Acting through the corporation is only a method employed by the
Central Government for running its petroleum industry. In the context of Sec. 2(n), it will
have to be held that all the activities of the corporation a re really carried on by the Central
Government with a corporate mask.

Source: http://www.thehindubusinessline.in/2000/01/10/stories/211001ak.htm

Self Assessment

State whether the following statements are true or false:
1. In 1981, Indian Factories Act was passed which gave protection to the employees, especially
to the children.

2. The Factories Act, 1934, was several times, amended and then the new Act of 1948 was
passed.
3. The amended Act also provided for investigations of all fatal accidents within a month of
their occurrence.

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