FACTORY

The term factory is defined under section 2(m) of the Factories Act, 1948. Factory includes the precincts thereof:

  • Wherein 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
  • Wherein twenty or more workers are working or were working on any day of the preceding 12 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.

TWO IMPORTANT CONSIDERATIONS

Number of workers: To constitute a factory, the temporary, part time or piece rate workers are counted in number of workers employed. Suppose in a manufacturing organization, there are 7 permanent workers in a factory, 2 temporary workers and 1 is part time worker, the total number of workers will be 10 to constitute a factory.

Premises:  Premises includes not only the building of factory but also includes the open place enclosed by the walls or fences. For example: The open sea space used for processing salt from the sea water will be considered as premises of the factory.

CONDITIONS TO BE FULFILLED

A premise to be called as factory must fulfill the following conditions:

It is a place where manufacturing process is carried on or in any part of it.

It employs ten or more workers where power is used and twenty or more persons where power is not used.

It is sufficient if the prescribed number of workers is employed on any day of the preceding twelve months.

EXAMPLES OF FACTORIES:

  • Salt works which consist merely of open stretches of large areas of land with some temporary shelter.
  • Railway workshops.
  • Electricity department of a municipality.
  • Saw mill.
  • Computing for the purpose of printing by press.

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