In today’s scenario employers areroped to comply with theprovisions framed for the welfareof the workers and forfunctioning of factory through alegislation which was framedimmediately postindependence. The legislation framed earlier hasbecome too archaic to meet the necessity of thecurrent times and had lead to unnecessaryburden on the employer,and had adversely effectsthe well being of a worker,resulting thereby toworse industrial conflicts between employer andthe workman.
The Central Act being too aged does createsextra burden to factories of small nature due tolaid in provisions of overtime and prohibition ofwomen employment at night. These restrictionson time duration and related compliancescompels them to adhere with unnecessary ruleswhich at times overshoots the budgeted cost ofthe small industries. Similarly, larger industrieswhich runs on 24/7 hourly basis also faces thesimilar problem with manpower and the relatedcompliances.
The Factories (Amendment) Bill, 2014, has beentabled in the Parliament proposing reforms tomeet the necessary changes of the currentscenario and the provisions proposed there arekept in mind to meet the welfare of both theworkman and the employer with the rules ratifiedby India in the ILO Convention No. 174 relatingto industrial accident and protocol andConvention No. 89 relating to night work bywomen.
Factories Act, 1948: defines factory as anypremises where manufacturing process isundertaken with the aid of power employing atleast 10 persons or 20 or more persons withoutthe aid of power.
Amendment Bill 2014: empowers the StateGovernment to raise the minimum number ofworkers to 20 with the aid of power and 40without the aid of power. Hence, the forthcomingamendment would be helpful for the employers ofindustries from saving time and cost to complywith the years old legislation.Further, the Central Legislation empowers theState Government under Section 85 to notify theindustries employing less than 10 employees toobtain the license to work as a factory.
Factories Act, 1948: necessitates all theregistered industries to file returns and maintainregisters and records.
Amendment Bill 2014: has proposed changesto the numbers of persons employed in thefactory and the related compliance requirementas to furnishing of returns and the maintenanceof necessary records. This will change theapplicability of the Act to a great extent andwould result in saving time of the employersemploying lesser persons than the prescribedlimit mentioned under the factories act. The samecould be related to Labour Laws (Exemption fromFurnishing Returns and Maintaining Registers Bycertain Establishment), where the applicabilitywas increased to 40 persons employed instead of19 in December 2014. Likewise, it would help theindustries to have hassle free work and no extraburden of maintaining registers and returns.
Factories Act, 1948: The Occupier is requiredto take prior permission from the Chief Inspectorof Factories for expanding the factory area.
Amendment Bill 2014: In future,suchpermissions for extension of a factory within acertain prescribed limit would not be requiredunless such extension involves any hazards to thesafety of workers or to the people in the vicinity.
Factories Act, 1948: Makes obligatory for theemployers to prepare an onsite emergency planwhere the hazardous process is involved alongwith disclosing the information to its workersand general public.
Amendment Bill 2014: has lessened theburden on small industries which (is involved inmanufacture, storage or handling of hazardoussubstance) in lesser quantity as they shall not berequired to prepare an on-site emergency plan anddetailed disaster management plan and disclose theinformation to its workers and the public near thevicinity, if such hazardous substance stored is belowthe prescribed limit.
However, this is subject to certain exceptions, thatirrespective of the quantity of hazardous substancestored, Central Government or State Governmentcan give notice to the factories to prepare an onsiteemergency plan and detailed disaster management plan.
Factories Act, 1948: The Occupier of a factoryemploying 250 or more workers is required to havea canteen in the premises.
Amendment Bill 2014: The National Commissionon Labour in its report to the Government of Indiaraised the necessity of canteen and had reduced thenumber from 250 to 200 and had further put theliability on the employer in relation to themaintenance and upkeep of the canteen premises.
Factories Act, 1948: allows spread over for tenand a half hour.
Amendment Bill 2014: proposes to increase thespread over to twelve hour to protect the interest ofdifferent classes of workers.
Factories Act, 1948: imposes restrictions onemployment of women beyond 7.00 P.M.in a factory.It also empowers the State Governments to makerules in furtherance of providing exemptions fromabove restrictions for factories where women arerequired to work beyond the specified hours.
Amendment Bill 2014: The Expert Committeeconsidering the issue observed that many womenorganizations have filed many writ petitions inState High Courts challenging the provision andterming it prejudiced.
The Committee observed that ILO has adopted aprotocol relating to Night Work (Women)Convention (Revised), 1948, which allows thenational authorities to modify the duration of thenight shifts. The Committee recommended theflexibility with respect to time in the matter ofemployment of women doing shift duty, providingadequate security to be taken for the womenworkers such as transportation from the factorypremises to their residence (at night).
Factories Act, 1948: The overtime limit providedin the Act is 50 hours in a quarter.
Amendment Bill 2014: The overtime willincrease to 100 hours in a quarter and will providerelief to employers regarding manpower issues.
India is a developing Country, with topindustrialized states like Maharashtra, West Bengal,and Tamil Nadu. With industrialization the need ofcompliance requirement has also increasedEnormous numbers of cases are pending in thecourts of India with respect to labour mattersbecause of the old provisions which are tough forthe employers to comply with.The changes proposed in the Amendment Billwould be a boom for employers and workers at parwhereit shall shield the welfare of workers as wellprovide relaxation to employers keeping the bestinterest of both.
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