Government revives Factories Act

The government is reviving talks on revamping the Factories Act of 1948 and has called a meeting of all state governments, central ministries, trade unions and industry representatives to discuss a new legislation.

What’s there in the new proposed factories act?

•  Apart from speeding up registration and compliance processes to help new entrepreneurs and start-ups, the proposed new Factories Act seeks to do away with the ‘inspector raj.’
• To increase the level of competency of the inspectors, the labour ministry has proposed that only those with a minimum B.Tech degree can become inspectors and they can enter factory premises after specific written directions of the Chief Inspector.
• However, the inspection could take place without prior consent if there is a complaint from any worker or for carrying out investigation into a reported accident. This has been proposed to remove the arbitrariness in inspection.
• However, existing inspectors with five years of experience or more, and a degree or diploma on industrial safety will continue to be eligible to inspect a factory.
•  All factories that manufactures or deals with “hazardous substance and processes and dangerous operations will be covered under this Act even if they employ a single worker.” The sectors that manufacture hazardous processes include coal, gas, iron and steel, petroleum, cement and leather.
• For setting up factories with hazardous activities, the site appraisal committee — a body with representatives from environment, meteorological, town planning departments — will have to convene a meeting within 15 days of receiving an application.
• The committee will have to compulsorily send its recommendations within the next 30 days to the state government, from 90 days at present.

• The proposed law will apply to all factories that employ at least 40 workers.

Background:

• The Factories Act is a legislation that deals with safety, health and welfare of workers. The present Factories Act is applicable on factories (with electricity connection) with 20 workers and factories, without electricity, with 10 workers.
• The government had introduced Factories (Amendment) Bill 2014 in Lok Sabha in August 2014. However, it did not come up for discussion as it was referred to a standing committee which presented its report in December 2014.