Factory act 1948

There is an important update for anyone looking up the Factory Act 1948 today.

The Factories Act, 1948 is no longer the current central law governing factory working conditions in India. The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) came into force on November 21, 2025, replacing the Factories Act along with 12 other central labour laws.

That means the Factories Act remains important for understanding India's labour-law framework and older compliance requirements, but employers should refer to the OSH Code and applicable rules for current compliance.

What is the Factory Act 1948?

The official name of the law was The Factories Act, 1948, although it is commonly referred to as the "Factory Act 1948" or "Indian Factory Act 1948." It was enacted as a central law to regulate labour in factories and establish minimum standards for the health, safety and welfare of workers.

The Act covered several aspects of factory employment, including:

• Health and cleanliness at the workplace
• Workplace safety and machinery
• Hazardous processes
• Drinking water and sanitation
• First-aid facilities
• Canteens and rest rooms
• Working hours and rest intervals
• Overtime
• Annual leave with wages
• Employment of young persons
• Factory registration and licensing
• Duties of occupiers and managers
• Inspection and enforcement
• Penalties for violations

The Act was divided into chapters dealing with health, safety, hazardous processes, welfare, working hours, young workers, annual leave and penalties, among other matters.

What was the purpose of the Factories Act 1948?

The main purpose of the Factories Act was to provide a legal framework for safer and healthier working conditions in factories. Factory work can involve machinery, chemicals, heat, dust, fumes, heavy equipment and other occupational risks. The Act therefore went beyond simply regulating employment terms. It also prescribed requirements for the physical working environment and the facilities that employers had to provide.

The Act aimed to:

1. Protect workers from health and safety hazards.
2. Regulate working hours and rest periods.
3. Provide basic welfare facilities at factories.
4. Establish safeguards for workers involved in hazardous processes.
5. Protect young workers from unsafe or excessive work.
6. Provide annual leave with wages.
7. Define the responsibilities of factory occupiers and managers.
8. Establish inspection and enforcement mechanisms.

Applicability of the Factories Act 1948

Under the Act, a factory generally meant premises where a manufacturing process was carried out and where the prescribed number of workers were employed.

The central definition covered:

• A premises where 10 or more workers were working, or had worked on any day in the preceding 12 months, and a manufacturing process was carried out with the aid of power; or
• A premises where 20 or more workers were working, or had worked on any day in the preceding 12 months, and a manufacturing process was carried out without the aid of power.

Key provisions of the Factories Act 1948

The Factories Act covered a wide range of workplace requirements. Some of the most important areas were health, safety, welfare, working hours and leave.

Health provisions under the Factories Act

The Act required factories to maintain conditions that supported worker health. These included:

• Cleanliness
• Safe disposal of waste and effluents
• Adequate ventilation
• Reasonable working temperatures
• Protection from harmful dust and fumes
• Adequate lighting
• Drinking water
• Proper sanitation
• Prevention of overcrowding

Safety provisions under the Factories Act

Workplace safety was another major focus of the Act. It included provisions covering:

• Fencing of machinery
• Machinery in motion
• Dangerous machines
• Hoists and lifts
• Lifting equipment
• Pressure plants
• Floors, stairs and access
• Dangerous fumes and gases
• Fire precautions
• Eye protection
• Hazardous processes

Hazardous processes

Factories involved in hazardous processes had additional requirements relating to hazard information, medical examinations, emergency planning, exposure limits and safety measures.

Welfare provisions under the Factories Act

The Act included several welfare requirements, depending on the applicable conditions and worker thresholds. These included:

• Washing facilities
• Facilities for storing and drying clothes
• Sitting arrangements
• First-aid facilities
• Canteens
• Rest rooms and lunch rooms
• Crèche facilities
• Welfare officers

Working hours and overtime

The Factories Act regulated working hours through provisions covering daily and weekly working limits, rest intervals, weekly holidays, shifts and overtime. These are historical provisions, since the Factories Act has now been replaced. Under the current OSH Code framework, the standard is 8 hours per day and 48 hours per week, subject to the conditions and flexibility permitted under the Code and applicable rules. Overtime is payable at twice the rate of wages where applicable.

Annual leave with wages

The Factories Act included provisions for annual leave with wages. These covered eligibility, calculation of leave, wages during leave and carry-forward provisions. Since the Act is no longer the current framework, employers should refer to the applicable labour codes and rules for present-day leave requirements.

Registration and licensing

The Act also provided for the approval, registration and licensing of factories. Requirements included approval of factory plans, registration, licensing, notices by the occupier and compliance with applicable state rules. The exact process could vary between states, as state governments framed rules under the Act.

Penalties under the Factories Act 1948

The Act provided penalties for violations relating to areas such as:

• Health and safety
• Working hours
• Welfare facilities
• Young workers
• Hazardous processes
• Factory registration and licensing
• Statutory records and notices

The applicable penalty depended on the nature of the violation. Since the Factories Act has been replaced, employers should refer to the OSH Code for current penalties and compliance requirements.