The Factories Act, 1948 came into force on 1st April 1949. It contains law relating to the rules and regulation of labour employed in factories in India that were embodied in the Factories Act, 1934. It has been amended from time to time but the main framework remained the same. The Working of The Factories Act, 1934 revealed that there were many weaknesses and defects in the enforcement mechanism, therefore the many amendments were made and on 23rd September 1948 the Factories Act Bill was passed by the Legislature and was enforced on 1st April, 1949 known as The Factories Act, 1948 (63 of 1948).

Further in this assignment we are going to discuss the Concept of Factories, Worker, Occupier and Manufacturing Process.


The Definition of Factories which is given under Section 2(m) of the Factories Act, 1948.

The term Factory has been characterized in Section 2 (m) as: – A Factory implies any premises or any region in the four dividers, for example, building, land, and so forth.

  1. With the Aid of Power-Wherein, at least 10 specialists are working, or were dealing with any day of the past 1 working year or 12 months and in any piece of factory’s assembling procedure is being continued; or
  2. Without the Aid of Power-Wherein at least 20 specialists are working or were taking a shot at any day of the past a year

A factory as demonstrated by Factories Act to prohibit a mine under the Mines Act, 1952 or any military of the Government, a railroad running shed or hotel, café or eating places.

According to this act the owner of the factory having proper manufacturing process shall be deemed to be an occupier and any person working in it shall be considered as worker.

According to Black’s Law Dictionary, the term factory includes all the buildings or premises or the area confined within the walls where steam, water or any mechanical power is used to move or work on any machinery employed in preparing anything, manufacturing, finishing any kind of product.

The Definition given in the Factories Act is only confined to the manufacturing process and it does not include all the other part regarding the process that helps in constituting the manufacturing process enclosed within the walls.

In the case of K.V. V. Sharma[1] it was held that precincts are a space covered with bricks. On the off chance that a spot utilized for some reason other than assembling process doesn’t comprise a factory.

In State of Bombay vs. Ali Saheb Kashim Tamboli[2] it was held that Bidi making is the manufacturing process as any raw material getting converted into finished good that could be sold in the market for the use of consumers and is being created in the precinct. Manufacturing process whether uses help of forces or can be held without help of forces.


S.2(I) in the Factories Act, 1948 characterizes Worker-Worker implies an individual [employed, clearly or by or through any office ( incorporating a temporary worker ) with or without the information on the chief business regardless of whether for remuneration or not], in any gathering technique, or in cleaning any bit of the device or premises used for an amassing method, or in some other kind of work coincidental to or related with the collecting methodology, or the subject of the amassing strategy [but excludes any person from the military of the Union][3]

According to the above definition a worker is a person who is employed in any kind of manufacturing process within the walls of building or any area enclosed by walls with or without the knowledge of the Occupier/ Owner of the company, working whether as the permanent employee, daily wage worker, badli worker, etc. The worker must be occupied with the producing process or in cleaning any piece of the hardware or the area of processing area utilized by the workers or some other individual identified with manufacturing process.

The worker must be getting paid for his/her role in the manufacturing process and should have name in the books of employment of the factory. The worker must be bound by the standing orders of the factory or company. The definition of worker also includes all the workers appointed by the agency on the contract basis.

In Prag Narain v. T Crown[4], It was held that the person engaged in selling the manufactured products in the market are not covered under the definition of worker in the Factories Act. Person is not using any area of manufacturing process in the factory. The person will not be employed by the factory.


Occupier of a production line implies the individual who has full authority over the administration of the processing plant or can be said the proprietor of the plant, In scenario of –

  • A firm or relationship of Individuals- one of the accomplices will be considered as occupier, or
  • A company- Director shall be considered as occupier
  • A factory controlled by the Central or State Government- The authorized person appointed by the government shall be considered as occupier

The act provides further for the Shipping dock owner shall also be considered as occupier, if the following purpose is fulfilled by the owner given in the following sections :-

  1. 6, S.7, S.7A, S.7B, S.11 or S.12.
  2. 17-It is identified with the giving and support of adequate and reasonable lighting in or around the dock.
  3. 18, 19, 42, 46, 47, 49- These sections deals with the workers employed by the owner for the dock.

The Act binds the occupier with duties, obligations and responsibilities and supports and safeguards the interests of workers and helps to solve their daily problems and the stops exploitation of workers. Therefore, the government motive is fulfilled by the act and it is one of the beneficial legislation- Juggilal Kamlapat Industries Ltd. v. Chief Inspector of Fisheries and Boilers[5].


The Define of “Manufacturing Process” is provided in S.2(k) in the Factories Act, 1948.

The act basically provides for the basic list of the operations and functions and all the kind of the businesses that can be considered as manufacturing process under section 2(k).

It basically means the process of getting raw material together, making, repairing, finishing, packaging, oiling, washing, demolishing etc.

The define contained in the act is wide in its scope. Earlier clause (ii) reads “was only pumping oil, water or sewage or” and after the amendment it reads as “pumping oil, water or sewage or any other substances or”, this amendment was done in 1976.

We get a proof that definition is wide enough as it also includes the bidi making as a manufacturing process (as in the case State of Bombay vs. Ali Saheb Kashim Tamboli). It basically says conversion of a raw material into finished products for sale, distribution, etc. is a manufacturing process. Even the making of films since the starting of the shooting till it is rendered to be fit for screening in a theatre.

[1] AIR 1953, Mad 269

[2] 1995 II LLJ 182

[3] The Factories Act, 1948 (Act 63 of 1948), s. 2(i)

[4] AIR 1928 Lah. 78

[5] 1996 (9) TMI SC 503

Author: Kashish Goel,
Delhi Metropolitan Education, GGSIPU 4th Year

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