Business Law – Factories Act

The Factories act was incorporated in 1948. The main objective of the Factories Act is to regulate the conditions of work in manufacturing establishments coming within a factory. This act contains detailed provisions regarding safety, health and welfare of the employees of a factory. It also contains provisions regarding the parameters such as the working hours, the minimum and maximum age limit, etc.

Factories Act

The following terms are defined under the Factories Act, 1948 −


A factory is defined as any premises where,

●      Ten or more workers are working or have worked for at least twelve months.

●      Twenty or more workers are working or have worked for at least twelve months.

A factory can also be defined as a place where the process of manufacturing is incorporated by a prescribed minimum number of workers.

Manufacturing process

Section 2 of the Factories Act defines the manufacturing process as a place that includes

●      Making, altering, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or treating and adopting any article or substance to use, sale, transport, delivery or dispose.

●      Pumping of oil, water, sewage or any other substance or generation, transformation or transmission of power.

●      Composing types for printing, printing by letter press, lithography, photogravure or other similar processes like book binding.

●      Preservation and storage of any articles in cold storage.


Electrical energy or any form of energy used for the functioning of the manufacturing process in the factory is termed as power.

Prime mover

A machine, motor or engine which provides power is called prime mover.

Transmission machinery

Any appliance or device by which the motion of the prime mover is transmitted to or received by machinery is called transmission machinery.


The prime movers, transmission machinery and all other appliances, whereby power is generated, transformed, transmitted or applied, are collectively called machinery.


A person who has completed eighteen years of his life is called an adult.


A person who hasn’t completed fifteen years of age is considered a child.

Young person

A person, who is either a child or an adolescent, is called a young person.

Calendar year

The period of twelve months beginning from the first of January till the thirty first of December is termed as a calendar year.


The period of twenty-four hours beginning from the midnight is termed as a day.


The period of seven days beginning from the midnight of Saturday is termed as a week.

Shift and Relay

If two or more sets of workers are carrying out the same task in different periods of time, then the sets of workers are termed as relays and the durations of time for which each set works is termed as shifts of the relays.


The person having the ultimate control over the affairs of the factory is termed as an occupier.

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