Page 33 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes 1.7 Summary

 The Factories Act, is a social legislation which has been enacted for occupational safety,
health and welfare of workers at work places.

 This legislation is being enforced by technical officers i.e. Inspectors of Factories, Dy.
Chief Inspectors of Factories who work under the control of the Chief Inspector of Factories
and overall control of the Labour Commissioner, Government of National Capital Territory
of Delhi.
 It applies to factories covered under the Factories Act, 1943.
 The industries in which ten (10) or more than ten workers are employed on any day of the
preceding twelve months and are engaged in manufacturing process being carried out
with the aid of power or twenty or more than twenty workers are employed in
manufacturing process being carried out without the aid of power, are covered under the
provisions of this Act.

 The enforcement of this legislation is being carried out on district basis by the district
Inspectors of Factories.
 After inspection, Improvement Notices are issued to the defaulting managements and
ultimately legal Action is taken against the defaulting managements.

 The Inspectors of Factories file Challans against the defaulters, in the Courts of Metropolitan
Magistrates.
 The work of Inspectors of Factories is supervised by the Dy. Chief Inspector of Factories
on district basis.
 This Act provides for a maximum punishment up to two years and or a fine up to one
lakh or both.

 Section 2 (cb) of the Factories (Amendment) Act, 1987 defines the term “hazardous process”
as 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.

1.8 Keywords

Adolescent: A person who has competed his fifteenth year of age has not completed his eighteenth
year.
Adult: Adult means a person who has completed his 18th year of age.
Approval: The Action of officially agreeing to something or accepting something as satisfactory.
Constitution: A body of fundamental principles or established precedents according to which a
state or other organization is acknowledged to be governed.
Creches: Crèches are short sessional care or temporary childcare arrangements to cover things
such as shopping trips, conferences, or training events.
Factory: Whereon ten or more workers are working on any day of the preceding twelve months
and in any part of which manufacturing process is being carried on.
Licensing: Licensing is the process of leasing a legally protected (that is, trademarked or
copyrighted) entity - a name, likeness, logo, trademark, graphic design, slogan, signature,
character, or a combination of several of these elements. The entity, known as the property or
intellectual property, is then used in conjunction with a product.

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