THE FACTORIES ACT 1948 AND THE MAHARASHTRA FACTORIES RULES 1963, BY BHAVIK CHHEDA ppt

THE FACTORIES ACT 1948 AND THE MAHARASHTRA FACTORIES RULES 1963 ppt

1. The Factories Act, 1948 & The Maharashtra Factories Rules , 1963 By Bhavik Chheda 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 1

2. Introduction Object Definitions DISH / Factory Inspectorate Licensing and registration of factory Health & Safety Provisions Welfare measures Working hours, Annual Leave with wages Accident, Occupational diseases, Dangerous operations Special Coverage, Exemptions Testing Of Equipments, Compressors, Pressure Vessels, Etc – MFR 1963 Maharashtra Factories (Occupational Safety And Health Audit) Rules 2012 Abstracts, Notices, Registers Obligations of Workers & of Employer Offences and penalties Practical aspects Summary Question & Answers 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 2

3. INTRODUCTION In India the first Factories Act was passed in 1881. This Act was basically designed to protect children and to provide few measures for health and safety of the workers. This law was applicable to only those factories, which employed 100 or more workers. In 1891 another factories Act was passed which extended to the factories employing 50 or more workers. A comprehensive Law was passed in 1911. It was further amended in 1923, 1926, 1931 & 1934. The recommendation of Rege Committee was accepted by GOI in 1948 and present act i.e. The Factories Act 1948 was enacted. Came into effect on 1 st April 1949. 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 3

4. OBJECT To ensure adequate safety measures and to promote the health and welfare of the workers employed in factories. To prevent haphazard growth of factories through the provisions related to the approval of plans before the creation of a factory . To regulate the working condition in factories, regulate the working hours, leave, holidays, overtime, employment of children, women and young persons ext. 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 4

5. Definitions Sec 2 (k ) “Manufacturing process" means any process for - making , altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adopting any article or substance with a view to its use, sale, transport, delivery or disposal; or pumping oil, water, sewage, or any other substance; or generating , transforming or transmitting power; or composing types for printing, printing by letter press, lithography, photogravure or other similar process or book-binding or constructing , reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or preserving or storing any article in cold storage ; 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 5

6. Ex. Manufacturing process of cement plant 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 6

7. Definitions (2) (m) "factory" means any premises including the precincts thereof- (i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or (ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power , or is ordinarily so carried on (2)(l) "worker" means a person employed, directly or by or through any agency (including a contractor) with or without the knowledge of the principal employer, whether for remuneration or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process. 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 7

8. Whether factory or not? Laundry division in Hotel- Not a factory ( welcome group Windsor Manor v/s State of Karnataka and others) Workshop is a factory (CCI v/s Lt. Gov. of Delhi) Petrol pump service station is a factory (Ravi Shankar Sharma v/s State of Raj) Transporting goods - not a manufacturing process, hence not a factory. ( RD. ESIC v/s Jai hind Roadways) Brick field – not a factory ( GR Chaudhary v/s State of WB) Stone crushing unit – is a factory (L & T v/s State of Orissa) Person doing clerical work in factory – whether worker or not? He is a worker – as clerical work is indispensable for the actual manufacturing process. (Factory Inspector v/s A.K Ganguly 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 8

9. Definitions (2)(n) "occupier" of a factory means the person who has ultimate control over the affairs of the factory Provided that- (i) in the case of a firm or other association of individuals, any one of the individual partners or members thereof shall be deemed to be the occupier; (ii) in the case of a company, any one of the directors shall be deemed to be the occupier; (iii) in the case of a factory owned or controlled by the Central Government or any State Government, or any local authority, the person or persons appointed to manage the affairs of the factory by the Central Government, the State Government or the local authority, as the case may be, shall be deemed to be the occupier (2) (cb) "hazardous process" means 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 thereof would— (i) cause material impairment to the health of the persons engaged in or connected therewith, or (ii) result in the pollution of the general Environment: 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 9

10. DISH / Factory Inspectorate DIRECTORATE OF INDUSTRIAL HEALTH AND SAFETY Implementing agency for the Factories Act, 1948 and the Maharashtra Factories Rules 1963 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 10

11. Licensing and registration of factory Application for plan approval 1 Form 1 with Questionnaire - Affix Court Fee Stamp of: र 10 2 Plans (Site, Building layout, machinery layout and cross sectional elevation of building)(two copies each) a) Site Plan drawn to scale 1:500 showing the site of factory and immediate surroundings including adjacent buildings and structure, roads, drains etc. b) Building Plan , elevation, cross sectional elevation to scale 1:100 including all relevant details like natural lighting, ventilation, means of escape in case of fire etc. c) Machinery layout to scale 1:100 shall clearly indicate position of machines/equipments, passages. 3 List of Raw Material (including solvents/fuels/chemicals used if any) with maximum storage capacity and mode of storage, handling 4 List of Finished products , Intermediate products including emission of toxic gases and by-products along with maximum quantities, method of handling, loading & transport. 5 Process flow chart 6 Description of Manufacturing Process 7 Details of likely hazards involved and methods to control them. 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 11

12. 8 Material Safety Data Sheets in respect of hazardous chemicals. 9 Process & Instrumentation Diagram. 10 Details of Chemical reactions carried out if any. 11 Details of fire fighting arrangements proposed to made. 12 Allotment letter from MIDC/ NOC from Local authority IF CHIEF INSPECTOR IS SATISFIED THAT PLANS ARE IN ACCORDANCE WITH ACT, HE WILL APPROVE THEM AND STATE VARIOUS CONDITIONS TO BE FULFILLED ex. CERTIFICATE OF STABILITY, FIRE FIGHTING EQUIPMENTS, ETC. 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 12

13. Application for Registration & grant of factory license Form 2 - Affix Court Fee Stamp of: र 10 Application in triplicate in Form 2 for registration of the Factory and Grant of License for a period not exceeding 10 years Declaration Form , about date of commencement of manufacturing process in prescribed format Challan/Fee receipt, Original copy of Challan of license fees paid + one self certified photocopy copy of challan Electricity Bill as a proof for installed H.P. Proof for Ownership of Premises(Owned/Rented/Leased etc.) (In case of owned-7/12 extract, tax receipt, In case of factory located in M.I.D.C.- a allotment letter from M.I.D.C., In case of Rented/Leased-a lease deed) Proof of Residence of Occupiers A certified copy of MOA, A copy of List of Directors with residential address certified by company secretary. A copy of Board Resolution nominating one of the Director as an Occupier certified by the Company Secretary. Letter of acceptance by the Director as occupier of the Factory certified by company secretary. AN Authority Letter / copy of Board Resolution nominating any person as a Manager of the factory certified by the Company Secretary, if any. A Copy of Letter of Approval of Plan by DISH. Reply towards fulfillment of conditions as set out during plan approval 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 13

14. Application for Renewal License can be granted for a period of maximum 10 years Renewal on or before 31 st October. Maximum Renewal for 10 years. Form 2 - Affix Court Fee Stamp of: र 10 Application in triplicate in Form 2 for renewal of License for a period not exceeding 10 years Challan/Fee receipt, Original copy of Challan of license fees paid + one self attested Photo copy of challan 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 14

15. ADDITIONS / ALTERATION CHANGE OF OCCUPIER – WHAT TO DO? Submit Form 2 along with relevant documents as above CHANGE OF MANAGER – WHAT TO DO? Submit Form 5 along with relevant documents as above EXTENSION OF FACTORY / CHANGE IN MFG PROCESS – WHAT TO DO? Submit new plans and process details as above Pay the difference fees Fulfill various conditions as provided by the factory Inspector Apply and obtain Revised license 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 15

16. Health Provisions To keep factory clean and free from effluvia To dispose waste and effluents To maintain adequate ventilation and reasonable temperature To prevent inhalation of dust and fumes and their accumulations in any work room To ensure proper standards of humidification where humidity is artificially increased To avoid over-crowding To provide sufficient and suitable natural or artificial lighting To provide sufficient supply of wholesome drinking water. Factories with 250+ workers must provide cool drinking water during hot weather. To provide separately for male and female worker sufficient latrine and urinal accommodation of prescribed types. To provide for sufficient no of spittoons and maintain them in clean and hygienic condition. 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 16

17. Health Provisions – mfr 1963 Annual medical checkup by a certifying surgeon – rule 18A Record of whitewashing in form 8 – rule 20 Factory & surrounding compound shall be maintained in clean condition – rule 21 Make arrangement & Obtain permission for treatment & disposal of all types of trade waste and effluents from MPCB – rule 22 At least 5 liters per day per worker. Testing of drinking water – from govt approved lab once in every six months 1 latrine for every 10 female worker, 1 latrine for 25 male workers, Sign Boards to be applied, Privacy of latrines to be maintained 1 urinal for 50 male workers Sweepers to be employed as follows Up to 50 workers per shift – 1 part time per shift 50 to 200 – 1 full time per shift 201 to 500 – 2 full time per shift 501 to 1000 – 3 full time per shift Above 1000 – 3 full time per shift + 1 for every 500 additional 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 17

18. SAFETY PROVISIONS To fence dangerous parts of machine MFR under rule 57 has 9 different schedules for different industries in this regards. States that all machines driven by power, all couplings with bolt heads and similar projections shall be completely encased or effectively guarded to prevent danger To Prohibit employment of young person on dangerous machines To protect worker from repairing machinery in motion To prohibit employment of women and children near cotton openers To maintain hoists and lifts of good mechanical construction, of sound materials and adequate strength To maintain lifting machines, chains, ropes and lifting tackles of good mechanical construction, of sound materials and adequate strength Pressure plants to be tested and examined regularly To keep all floors, steps, stairs, passages and gangways in good condition 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 18

19. safety provisions To prohibit any person from carrying or moving any load so heavy as to likely to cause him injury MFR 1963 , rule 63 To protect workers from injury to eyes from particles or fragments thrown off in course of the manufacturing process To protect workers from dangerous fumes, explosive or inflammable dust, gas and such other materials To protect workers from fire and provide precautionary measures Safety and maintenance of building 1000 or more workers – employ safety officers 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 19

20. MAJOR AMENDMENTS WERE CAUSED DURING 1987 Reasons : Bhopal Gas tragedy occurred in 1984 (Early hours of 3.12.1984 ) Revealed the weakness in the existing law and demanded the need to amend the law by incorporating special provisions to deal with chemical industries and for management of chemical accidents. Act was overhauled – 1987 (1.12.1987) Many provisions were introduced; Penal provisions were revamped 5/25/2013 20 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com

21. List of Industries involving Hazardous Processes Ferrous Metallurgical Industries Integrated Iron and Steel Ferro-alloys Special Steels Non-ferrous metallurgical Industries - Primary Metallurgical Industries, namely, zinc, lead, copper, manganese and aluminum Foundries (ferrous and non-ferrous) Castings and forging including cleaning or smoothening/roughening by sand and shot blasting Coal (including coke) industries Coal , Lignite, Coke, etc. Fuel Gases (including Coal Gas, Producer Gas, Water Gas) Power Generating Industries Pulp and paper (including paper products) industries Fertiliser Industries Nitrogenous Phosphatic Mixed Cement Industries Portland Cement (including slag cement, puzzolona cement and their products) Petroleum Industries Oil Refining Lubricating Oils and Greases 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 21

22. Petro-chemical Industries Drugs and Pharmaceutical Industries - Narcotics, Drugs and Pharmaceuticals Fermentation Industries (Distilleries and Breweries) Rubber (Synthetic) Industries Paints and Pigment Industries Leather Tanning Industries Electro-plating Industries Chemical Industries Coke Oven by-products and Coaltar Distillation products Industrial Gases (nitrogen, oxygen, acetylene, argon, carbon dioxide, hydrogen, sulphur dioxide, nitrous oxide, halogenated hydrocarbon, ozone, etc.) Industrial Carbon , Alkalies and Acids Chromates and dichromates , Leads and its compounds Electrochemicals (metallic sodium, potassium and magnesium, chlorates, perchlorates and peroxides) Electrothermal produces (artificial abrasive, calcium carbide) Nitrogenous compounds (cyanides, cyanamides and other nitrogenous compounds) Phosphorous and its compounds ,Halogens and Halogenated compounds (Chlorine, Flourine, Bromine and Iodine Explosives (including industrial explosives and detonators and fuses) 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 22

23. Insecticides, Fungicides, Herbicides and other Pesticides Industries Synthetic Resin and plastics Man-made Fibre (Cellulosic and non-cellulosic) Industry Manufacture and repair of electrical accumulators Glass and Ceramics Grinding or glazing of metals Manufacture, handling and processing of asbestos and its products Extraction of oils and fats from vegetable and animal sources Manufacture, handling and use of benzene and substances containing benzene Manufacturing processes and operations involving carbon disulphide Dyes and Dyestuff including their intermediates Highly flammable liquids and gases 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 23

24. Provisions relating to hazardous processes Compulsory disclosure of information by occupier Maintain Health and safety policy and inform to factory inspector Maintain accurate health records of employees MFR- disclosure of information to workers, general public, local authority, district emergency authority, chief inspector MFR - occupational health centers. Less than 50 workers – Medical officer on retainer basis – 5 persons trained in first aid – fully equipped first aid box 51 to 200 workers – OHC of min 15sq.m. – 1 part time factory medical officer – 1 qualified dresser cum compounder – fully equipped first aid box in all department >200 workers – OHC having min 2 rooms of min 15sq.m. – 1 full time factory medical officer – 1 qualified dresser cum compounder & 1 sweeper cum ward boy MFR – 1 Ambulance Van 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 24

25. Welfare Separate and adequate washing facilities for male and female workers Facilities for storing of clothes not worn during working hours and drying of wet clothes Facilities for sitting of workers obliged to work normally in standing position First aid boxes or cup boards ; atleast 1 box for every 150 workers to be kept under the charge of separate responsible person; notice to be displayed Ambulance rooms in factories ordinarily employing 500 or more workers Canteens of prescribed standards, in factories ordinarily employing 250 workers, to be run on non profit basis by a duly constituted canteen managing committee Suitable rest rooms and lunch rooms to be provided in factories employing 150 or more workers A crèche is to be provided wherein 30 or more women workers are employed; 300 ml of milk per child to be provided every day; exemptions 500 or more workers employed – employ welfare officer 10 or more women employees- Anti sexual Harassment committee must. 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 25

26. Contents of first aid box 76(C) For factories employing more than fifty persons - Each first-aid box or cupboard shall contain the following equipment:- (i) Twenty-four small sterilised dressings (ii) Twelve medium size sterilised dressings. (iii) Twelve large size sterilised dressings. (iv) Twelve large size sterilised burn dressings. (v) Twelve (15 gm.) packets of sterilised cotton wool (vi) One (200 ml.) bottle of cetrimide solution (1 per cent) or suitable antiseptic solution (vii) One (200 ml.) bottle of mercurochrome solution (2 per cent) in water (viii) One (120 ml.) bottle of salvolatile having the dose and mode of administration indicated on label. (ix) One pair of scissors (x) One roll of adhesive plaster (6 cms . x 1 metre) (xi) Two rolls of adhesive plaster (2 cms . x 1 metre) (xii) Twelve pieces of sterilised eye-pads in separate sealed packets 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 26 (xiii) A bottle containing 100 tablets (each 5 grains) of aspirin or any other analgesic (xiv) One polythene wash bottle (500 c.c.) for washing eyes. (xv) Twelve roller bandages 10 cms . wide. (xvi) Twelve roller bandages 5 cms . wide. (xvii) Six triangular bandages. (xviii) One tourniquet (xix) A supply of suitable splints (xx) Two packets of safety pins (xxi) Kidney tray (xxii) A snake-bite lancet (xxiii) One (30 ml) bottle containing potassium permanganate crystals (xxiv) Ointment for burns (xxv) First-aid leaflet issued by the Directorate General of Factory Advice Service and Labour Institutes, Bombay:

27. Working hours A worker cannot be employed for more than 48 hours in a week Worker must be given a holiday for a whole day in every week If worker is deprived of any of weekly holiday he shall be given compensatory holiday A worker cannot be employed for more than 9 hours in a day A worker must be given rest interval of at least half hour after 5 hours of work Total period of work including rest interval must not spread over more than 10 and ½ hours Prohibition of overlapping shifts If a worker works for more than 9 hours in a day or more than 48 hours in a week he shall be paid for overtime work at rate of twice the ordinary rate of wages No double employment Notice of period of work to be displayed Women worker cannot be employed before 6 am and after 7 pm 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 27

28. Working hours – young person Employment of child below 14 years of age is prohibited A child can work only 4 & ½ hours in any day A child cannot be employed at night time ie in between 10 pm and 6 am Register of children workers to be maintained 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 28

29. Annual Leave with wages A worker shall be allowed in every calendar year annual leave with wages at the rate of 1 day for every 20 days of work performed by him during the previous calendar year In case of child worker he is to be allowed in every calendar year annual leave with wages at the rate of 1 day for every 15 days of work performed by him during the previous calendar year Leave can be accumulated up to 30 days in case of adult and 40 days in case of child Leave admissible will be exclusive of all paid holidays whether occuring during or at either end of the leave period In case of a worker who is discharged or dismissed or who quits employment or is superannuated or dies while in service, the annual leave is to be calculated at the same rate as above but irrespective of whether the worker has worked for 240 days or not 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 29

30. Special Coverage, Exemptions Section 85. Special coverage The state government may by notification in official gazette declare any place where manufacturing is carried on with or with out power notwithstanding no. of persons working is less than 10 or 20 as case may be OR Person working therein are not employed by the owner thereof but are working with permission of owner . Section 86 Exemption to public institution State government in case of grave emergency may exempt any factory from all or any provisions of the act for period not exceeding 3 months subject to conditions as it thinks fit. 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 30

31. INDUSTRIES, ENERGY AND LABOUR DEPARTMENT 1st July 1985 FACTORY ACT, 1948 No. FAC/1082/8583/Lab-4. - In exercise of the power conferred by sub-section (1) of section 80 of the factory Act., 1948 (LXIII of 1948), the Government of Maharashtra hereby declares that all the provisions of the said Act shall apply to every premises or placed including the percents thereof, wherein any of the manufacturer processes mentioned in the Schedule appends hereto is carried on with or without the aid of power or is so ordinarily carried on notwithstanding that- ( i ) The number of persons employed therein is less than ten, if working with the aid of power; or (ii) the persons working therein are not employed by the owner thereof but are working with the permission of, or under agreement with, such owner: Provided that the manufacturing process is not being carried on by the owner only with the aid of his family. Explanation for the purposes of this notification "flammable solvent" means any liquid having a flash point below 65°F (18.33°C) or which can from explosive mixture due to process conditions. SCHEDULE Any of the following manufacturing processes when carried out using flammable solvents namely:-   Paints, Varnishes, Lacquers or Thinners, Nail Polish or Cosmetic Sprays. Rubber beading or rubber goods Artificial Leather Adhesive Tapes Pinoleum , resins or water proof fabrics Wall Papers Setallizing Plastic or other goods. Cleaning of fabrics or any other material Manufacture of textile auxiliaries by process of emulsification of silicon oil. Manufacture of nitro cellulose paint. Process involving use of ethylene oxide. Manufacturing processes involving any chemical reaction such as nitration, amination , sulphoation , halogenation , polymerisation, isomerisation, or aromatication Manufacture of chlorates or perchloratesm , or peroxide or salts of any of these Any process involving use of pressure vessels, except air recevers tanks having air under pressure Rotegurature , Printing Process Manufacture of Metallic powder of aluminium, nickel or zinc. Pulverisation of sulphur, carbon, starch, chlotates or perclorates . Distilisation of organic solvents and chemoicals . 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 31

32. TESTING OF EQUIPMENTS, COMPRESSORS, PRESSURE VESSELS, ETC – MFR 1963 Register for examination of hoists to be maintained in form 11 No lifting machine, no chain , rope of lifting tackle shall be used for the first time unless it has been tested & certified by competent person All chains and lifting tackle to be effectively annealed under supervision of competent person once in every twelve months Every Pressure plant in service shall be thoroughly examined by competent person (a) externally every six months (b) internally every twelve months ( c) hydraulic test once every four years Thermic fluid heaters to be tested every 12 months Fire extinguishers must be test regularly for their validity 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 32

33. MAHARASHTRA FACTORIES (OCCUPATIONAL SAFETY AND HEALTH AUDIT) RULES 2012 Applies to following categories of factories Category I – includes the factories which involve the use, storage, handling or processing of hazardous chemicals or wherein such hazardous chemicals are likely to be generated or given out. Category II - factories carrying out manufacturing process with aid of power excluding Category I Factories. Category III – factories carrying out manufacturing process excluding Category I Factories, category II Factories. Occupational Health and Safety Audit- means a systematic, objective assessment and documental evaluation of the occupational safety and health systems , practices, operations and in and pertaining to a factory. Occupational Health and Safety audit to be conducted as follows : Internally, at intervals not exceeding twelve months by factory staff Externally , at intervals not exceeding twenty four months by an occupational safety and health auditor. Occupier has the right to choose from eligible recognized OSH Auditor OSH audit to be carried out as per IS 14489: 1998 code for Cat I & Cat II, Cat III as per Sch 1 Grade I auditor can audit any category, Grade II can audit Cat II & Cat III, Grade III can audit Cat III OSH audit report to be submitted by Occupier to dept within 30 days. Factories having OHSAS(18001:2007) are exempted 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 33

34. Abstracts & Notices Following have to be displayed on notice board The Factory License Abstracts of the Act and rules in English and in language understood by majority of workers At conspicuous place at or near main entrance. MFR – Form 26 A notice containing the name and address of inspector and certifying surgeon shall be displayed in same manner. Following are to be submitted to appropriate authorities Notice of accidents – accident causing death or serious bodily injury to be submitted within 24 hours - MFR form 24 Notice of dangerous occurrences – whether causing bodily injury or disability or not – MFR form 24A Notice of certain disease as specified in 3 rd Schedule – if contracted by worker 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 34

35. Registers - MFR Health Register – Form 7, rule 18(7) Register of Lime wash – Form 8, rule 20 and 51 Form 9 – Humidity Register rule 27 Register of adult worker & Muster Roll – rule 17 & 29 combined Leave Register – Form 20, rule 105 & 106 Form 24 – Report of accident , rule 115 Form 26 – Abstract of Act Form 27 – Annual Return Form 27A – Monthly return Form 30 – Accident Register Form 31 – Inspection Book 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 35

36. Obligations of Employer Obtain approval from DISH regarding location, Plan and Construction of Factory Obtain License for Operating Factory Implement provisions concerning health, safety and welfare Send Notices as explained previously to DISH Comply with statutory requirements pertaining to hours of work, leave with wages, weekly holidays, overtime wages Display notices & Abstracts, Maintain registers and records, submit returns Report accidents and occupational diseases to DISH in manner specified Attend inspections 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 36

37. Obligations of Workers Not to interfere with or misuse any appliance, convenience or other things provided for purpose of securing health, safety or welfare of workers Shall not willfully or without reasonable cause do anything likely to endanger himself or others Shall not willfully neglect to make use of any appliance or other thing provided for the purpose of securing the health or safety of the workers 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 37

38. Offences and penalties Of any contravention of provisions of the Act or rules , the occupier and manager may be each be punished with imprisonment for a term which may extend to 2 years or with a fine of one Lakh Rupees or both Section 92 Repeat Offence - with imprisonment for a term which may extend to 3 years or with a fine of one Lakh Rupees or both Section 94 Obstructs Inspector or fails to produce documents demanded - with imprisonment for a term which may extend to 6 months or with a fine of Ten Thousand Rupees or both Section 95 Wrong Disclosure - with imprisonment for a term which may extend to 6 months or with a fine of Ten Thousand Rupees or both Section 96 Contravention of Provisions of Section 41B (compulsory disclosure) , 41C (responsibility of occupier in relation to hazardous processes) and 41H( rights of workers to be warned of imminent danger) - with imprisonment for a term which may extend to 7 years AND with a fine of upto two lakh Rupees 96A Offences by Worker - fine of Rs 500/- 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 38

39. Limitations OF PROSECUTIONS – SEC 106 No Court shall take cognizance of any offence punishable under this Act unless complaint thereof made within three months of the date on which the alleged commission of the offence came to the knowledge of an Inspector Provided that where the offence consists of disobeying a written order made by an Inspector, complaint thereof may be made within six months of the date on which the offence is alleged to have been Committed Continuing offence, the period of limitation shall be computed with reference to every point of time during which the offence continues; Time granted or extended for performance of any act – period of limitation shall be computed from the date on which the time so granted or extended expired 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 39

40. Practical aspects to the factories act 1948 & the Maharashtra factories rule 1963 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 40

41. Inspection – what to do? Please keep ready and handy all the time following documents Muster roll rule 17 & 29 Leave Register Form 20 Inspection Register – Form 31 Renewed License Copy Approved Plans Notices and Abstracts to be displayed Ensure that Factory premises is neat and clean & clutter free Total No of workers on floor must be as per No in the license only and there name must appear on muster roll 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 41

42. Inspection – what to do? On personal front please remember following Be patient Behave with courtesy and greet inspecting authority with smile Ensure all records and registers are in place Ensure cleanliness of factory Understand what the inspecting authority wants to check/ inspect and then resolve his queries. 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 42

43. ACCIDENT - WHAT TO DO? Immediately administer First-Aid to the injured employee Incase of serious / fatal accident immediately take the injured employee to nearest ESIC / tie-up hospital. Inform relative of the injured employee. Immediately inform by telephone , telegram or messenger about accident to factory inspector and ESIC branch office / WC commissioner . Incase of Death due to or subsequent to such accident inform office in charge of nearest police station. Take at least 2 witness statements Take photographs of accident site Submit accident report in Form 24 to factory inspector and Form 16 to ESIC Branch Manager within 24 hours. Update the Accident Register 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 43

44. CASE STUDY – M/S DARSHAN CHEMICALS !!! SAFETY MATTERS MOST !!! MATERIALS NOT MAINTAINED PROPERLY WORKERS NOT TRAINED TO HANDLE CHEMICALS PROPERLY PROPER ENVIRONMENT SUITABLE TO CHEMICALS NOT MAINTAINED CONSEQUENCES BLAST IN DYES AND CHEMICAL FACTORY 2 DIED ON THE SPOT 7 SEVERLY BURNT ALL THE ADJACENT FACTORIES EFFECTED INCLUDING PAPER MILL, GODOWN, ETC. COST OF MEDICAL EXPENSES DUE TO ACCIDENT AND BURN INJURIES – RS 50 LACS !!!! COST OF REDEVELOPING THE ENTIRE PLANT – RS.15 CRORES 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 44

45. 2 killed, nine injured in blaze at Turbhe Vijay Singh & Joshua A P, TNN May 23, 2009, 01.52am IST NAVI MUMBAI: A raging chemical fire at the MIDC industrial zone in Pawane near Turbhe killed two workers and severely burnt nine others early on Friday. The fire, reported to have started at the Darshan Chemicals unit 40 minutes after midnight, was said to have spread after drums filled with highly volatile chemicals caught fire. Some of the drums exploded, making it difficult for firemen to quell the inferno. Firemen from Navi Mumbai, Thane and Mumbai managed to control the blaze after 10 hours. Two neighbouring industrial units, Pace Printers and Lotus Company, and a godown were also gutted. One of the deceased was identified as Abhijeet Pitale (37), while the other, a Panvel resident could not be identified. About 25 fire engines and water tenders were deployed at the spot. The area has witnessed major fires and ammonia gas leaks earlier. Navi Mumbai police commissioner Ramrao Wagh said: "We are waiting for the inquiry report to file an appropriate case.‘’The nine injured were rushed to the Navi Mumbai Municipal Corporation Hospital at Vashi at 1.30 am and were given basic treatment. "Five of the patients have more than 50% burns. The factory's management has decided to shift all the injured to a burns centre in Airoli for specialist care,'' NMC Hospital medical superintendent Meena Deo said. Darshan Chemicals is a distillation plant which produces volatile and combustible chemicals like isopropyl alcohol, methanol, ethyl acetate, xylene and other solvents. There was a re-ignition after more chemical drums caught fire and exploded when firemen had spent nearly seven hours battling the blaze. Fire officials said the narrow lanes and single entry-exit points made the operation difficult. Director of neighboring Pace Printers, Harshad Chitale , said: "We, too, have been badly affected and our estimated loss is Rs 5 crore .''   5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 45

46. Other applicable laws to factory Employee State Insurance Act ,1948 Employees Provident Fund Act ,1952 Minimum Wages Act,1948 Maharashtra labour Welfare Fund ,1953 Payment of Wages Act,1936 Maternity Benefit Act, 1961 Payment of Gratuity Act, 1972 Employee ‘s Compensation Act, 1923 Payment of Bonus Act, 1965 Professional Tax, 1975 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 46

47. BANCKRUPTCY CASES ( sica rULES ) (c) The criteria to determine sickness in an industrial company are the accumulated losses of the company to be equal to or more than its net worth i.e. its paid up capital plus its free reserves the company should have completed five years after incorporation under the Companies Act, 1956 it should have 50 or more workers on any day of the 12 months preceding the end of the financial year with reference to which sickness is claimed. it should have a valid factory license 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 47

48. SUMMARY The Factories Act ,1948 applies to all establishments employing 10 or more workers where power is used, and to establishments employing 20 or more workers where power is not used. The Factories Act is a comprehensive legislation and contains many important provisions regarding health , safety, welfare, employment of young persons and women, hours of work for adults, children, holidays, and leave with wages. The responsibility for administration of the Act rests with the State Governments who administer it through their own factory inspectorates. 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 48

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50. NEXT WORKSHOP Various aspects of employing Contract Labour Date – TBA Venue – TBA 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 50

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52. THANK YOU 5/25/2013 A B.H.Consulting Presentation. (C) www.chhedaconsultancyservices.com 52 a B. H. Consulting Presentation. (C) www.chhedaconsultancyservices.com