Page 7 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes Introduction

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.
The Factories Act has been enacted primarily with the object of protecting workers employed in
factories against industrial and occupational hazards. For that purpose, it seeks to impose upon
the owner or the occupier certain obligations to protect the workers and to secure for them
employment in conditions conductive to their health and safety.
The main object of the Factories Act, 1948 is to ensure adequate safety measures and to promote
the health and welfare of the workers employed in factories. The Act also makes provisions
regarding employment of women and young persons (including children and adolescents),
annual leave with wages etc.

The Act extends to whole of India including Jammu & Kashmir and covers all manufacturing
processes and establishments falling within the definition of factory as defined under Section
2(m) of the Act. Unless otherwise provided it is also applicable to factories belonging to Central/
State Governments (Section 116).

1.1 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 people 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 up to 1976.

2 LOVELY PROFESSIONAL UNIVERSITY