The Factories Act, 1948: Welfare Provisions

JAMIA MILLIA ISLAMIA

Faculty of law

Project

The Factories Act, 1948: Welfare Provisions

Labour Law

Submitted to: Dr. Mohd. Khalid

Submitted by: Mohd Altmash

BA.LLB (Regular) 6th Semester

Batch: 2017 - 2022

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 The Factories Act, 1948: Welfare Provisions

ACKNOWLEDGEMENT

The project titled “The Factories Act, 1948: Welfare Provisions" is submitted to the Faculty of
Law, Jamia Millia Islamia for Labour Law as part of Internal Assessment is based on my original
work carried out under the supervision of Dr. Mohd. Khalid from 10 April - 30 April. The
Research work has not been submitted elsewhere for award of any degree.

The material borrowed from other sources and incorporated in the research paper has been duly
acknowledged.

I understand that I myself would be held responsible and accountable for plagiarism, if any,
detected later on.

I thank everyone who helped me to complete this research paper.

Mohd Altmash

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 The Factories Act, 1948: Welfare Provisions

ABSTRACT

Welfare measures means such services, facilities and amenities as may be established in or in the
vicinity of undertakings to enable the persons employed in them to perform their work in
healthy, congenial surroundings and to provide them with amenities conducive to good health
and high morale. After the independence, the Government of India makes strict rules and
regulations to safeguard the interest of the workers in the factories. The present project pertains
to the welfare measures provided to the workers as per the provisions laid down in Chapter 5
(Section 42 to 50) of The Factories Act, 1948 for the benefit of employees of the factories. This
project also tries to analyze the effectiveness of these welfare provisions. It is analytical and
descriptive in nature and doctrinal in approach.

KEY WORDS: Factories Act, Welfare Measures, Health, Security, Workers.

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 The Factories Act, 1948: Welfare Provisions

INDEX

1. Introduction

2. Historical Background

3. Objective of Factories Act ,1948

4. Importance of Factories Act, 1948

5. Labour Welfare

6. Welfare Measures

7. Meaning and Definition of Labour Welfare

8. Welfare measures in factories 

9. Workers’ Participation in Management

10. Welfare Provisions Under the Factories Act, 1948

I. Washing facilities

II. Facilities for storing and drying clothes

III. Facilities for sitting

IV. First-aid appliances

V. Canteens

VI. Shelters, restrooms and lunch rooms

VII. Creches

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 The Factories Act, 1948: Welfare Provisions

VIII. Welfare Officer

IX. Welfare facilities outside factory premises:

11. Critical Appraisal

12. Workers Responsibilities

13. Suggestions and Recommendations

14. Conclusion

15. References

Referred Case Laws

1. Elangovan M. and Others v. Madras Refineries Ltd. (2005) II L.L.J. 653

(Mad.).

2. Balkrishan v. K.J. Mishra, AIR 1979 Bom 198.

3. Haldia Refinery Canteen Employees Union and Another v. Indian Oil

Corporation Ltd. and Others (2005) II L.L.J. 684 (SC).

4. Employees’ Association of Northern India v. Secretary of Labour AIR 1952

All. 109.

5. A.C. Companies v. P.N. Sharma, AIR 1965 SC 1595.

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 The Factories Act, 1948: Welfare Provisions

6. Arun Kumar Bali v. Government of N.C.T. of Delhi and Others (2002) II

L.L.J. 474 (Del.).

1. Introduction

We live in society where the production of goods is an inevitable part of a country or economy.
Undoubtedly, if production is important then everything related to production is important.
Hence, Factory forms an important part of the economy. It is such a wide term that it requires
special provisions to carry on all activities smoothly.  In this article, we will look at various
definitions under the Factories Act, 1948.

In the early stages of industrialization, welfare activities for factory workers did not receive
adequate attention. Employers were not inclined to accept the financial burden of welfare
activities. Wherever employers provided for such amenities, it was more with a paternalistic
approach to labour rather than recognition of workers’ needs. Hence the state had to intervene, in
discharge of its welfare responsibility, by using its persuasive powers and/or by enforcing
legislation, where persuasion failed.

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 The Factories Act, 1948: Welfare Provisions

Compulsory provisions are thus incorporated in the Factories Act, 1948 with respect to the
health, safety and welfare of workers engaged in the manufacturing process.

2. Historical Background

There has been rise of large-scale factory/ industry in India in the later half of nineteenth century.
Major Moore, Inspector-in- Chief of the Bombay Cotton Department, in his Report in 1872-73
first of all raised the question for the provision of legislation to regulate the working condition in
factories; the first Factories act was enacted in 1881.1

Since then the act has been amended on many occasions. The Factories Act 1934 was passed
replacing all the previous legislation in regard to factories. This act was drafted in the light of the
recommendations of the Royal Commission on Labour. This Act has also been amended suitably
from time to time.

The experience of working of the Factories Act, 1934 had revealed a number of defects and
weakness which have hampered effective administration of the Act, and the need for wholesale
revision of the act to extend its protective provisions to the large number of smaller industrial
establishments was felt.

Therefore, the Factories Act, 1948 consolidating and amending the law relating to labour in
factories, was passed by the Constituent Assembly on August 28, 1948. The Act received the
assent of Governor General of India on 23 September 1948 and came into force on April 1, 1949 .

3. Objective of Factories Act ,1948

The main objectives of the Indian Factories Act, 1948 are:

 To regulate the working conditions in factories,
 To regulate health, safety welfare, and annual leave, and

1
Appraisal Apoorva, Welfare measures under the factories act: A Critical Appraisal, Hidayatullah National Law
University, Raipur(C.G), 29 Feb, 2018, available at: http://rjhssonline.com/HTMLPaper.aspx?
Journal=Research+Journal+of+Humanities+and+Social+Sciences%3BPID%3D2013-4-1-7 ( last visited
30/04/2020).

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 The Factories Act, 1948: Welfare Provisions

 To enact special provision in respect of young persons, women and children who work in
the factories.

4. Importance of Factories Act, 1948

The Factories Act, 1948 is a beneficial legislation. The aim and object of the Act is essentially to
safeguard the interests of workers, stop their exploitation and take care of their safety, hygiene
and welfare at their places of work. It casts various obligations, duties and responsibilities on the
occupier of a factory and also on the factory manager. Amendments to the Act and court
decisions have further extended the nature and scope of the concept of occupier, especially vis-a-
vis hazardous processes in factories.

5. Labour Welfare

The term ‘Labour Welfare’ refers to the facilities provided to workers in and outside the factory
premises such as canteens, rest and recreation facilities, housing and all other services that
contribute to the well-being of workers. Welfare measures are concerned with general well-being
and efficiency of workers.2

 Working conditions of factory workers in India has been historically very pathetic. Due to
poverty and exploitation by factory owners, workers had practically no option. Due to an
increase in industrial activity in the latter half of the 19th century, attempts were made to
improve the condition of the workers many times by the reports of the Royal Commission
through various acts. The act of 1948 builds upon the act of 1934 after understanding the defects
and weaknesses of the earlier act.

6. Welfare Measures

The welfare measures involve three major aspects which are –

2
Smriti Chand, Labour Welfare: Meaning and Definition of Labour Welfare, 24 Jan 2016, available at:
http://www.yourarticlelibrary.com/management/labour-welfare-meaning-and-definition-of-labour-welfare/26101
(last visited 28/04/2020)

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 The Factories Act, 1948: Welfare Provisions

 Occupational health care,

 Suitable working time and

 Appropriate salary.

It refers to the physical, mental, moral, and emotional well-being of an individual. The safe work
environment provides the basis for the person to enjoy working. The work should not pose a
health hazard for the person. The welfare measures aim at integrating the socio-psychological
needs of employees, the unique requirements of a particular technology, the structure and
processes of the organization and the existing socio-cultural environment. It creates a culture of
work commitment in organizations and society which ensure higher productivity and greater job
satisfaction to the employees.

The welfare measures are defined in the same way as defined by the I.L.O. at its Asian Regional
Conference, "A term which is understood to include such services, facilities and amenities as
may be established in or in the vicinity of undertakings to enable the persons employed in them
to perform their work in healthy, congenial surroundings and to provide them with amenities
conducive to good health and high morale."

Due to the welfare measures, the employees feel that the management is interested in taking care
of the employees that result in the sincerity, commitment and loyalty of the employees towards
the organization. The employees work with full enthusiasm and energetic behavior which results
in the increase in production and ultimately the increased profit.

7. Meaning and Definition of Labour Welfare

Labour welfare is a flexible and elastic concept. Its meaning and implications differ widely with
times, regions, industries, countries, social values and customs, the general economic
development of the people and the political ideologies prevailing at particular moments. As such,
a precise definition is rather difficult.

However, attempts have been made by expert bodies to define the concept in their own way. Let
us study some of the definitions:3
3
Id.

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1) According to Prof. H.S. Kirkaldy. “The whole field of welfare is one in which much can
be done to combat the sense of frustration of the industrial workers, to relieve them of the
personal and family worries, to improve their health, to offer them some sphere in which
they can excel others and to help them to a wider conception of life.”

2) According to Balfour committee, “Labour welfare refers to the efforts made by the
employers to improve the working and living conditions over and above the wages paid
to them. In its widest sense it comprises all matters affecting the health, safety, comfort
and general welfare of the workmen, and includes provision for education, recreation,
thrift schemes, convalescent homes”. It covers almost fields of activities of workers e.g.,
social, economic, industrial and educational.

3) According to Labour Investigation Committee. “Anything done for the intellectual,

physical, moral and economic betterment of the workers, whether by the employers, by
the government or by other agencies over and above what is laid down by law or what is
normally expected on the part of the contractual benefits for which worker may have
bargained.”

This is really an exhaustive definition. It covers and highlights all the important aspects of the
concept of labour welfare.

8. Welfare measures in factories

After the independence, the Government of India makes strict rules and regulations to safeguard
the interest of the workers in the factories. The welfare facilities are provided to the workers as
per the provisions laid down in Chapter 5 (Section 42 to 50) of 'The Factories Act, 1948' for the
benefit of employees of the factories.

Analyzing the benefits of the welfare provisions, the management bears the huge cost spend on
the welfare activities. The experts have a firm opinion that by providing the welfare facilities to
the employees the productivity of the employees increases and ultimately profit increases.

According to Section 49 of 'The Factories Act, 1948' – "In every factory wherein five hundred or
more workers are ordinarily employed the occupier shall employ in the factory such number of

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welfare officers as may be prescribed". The major role of welfare officer is to facilitate and
observe the welfare measures for the employees in the organization.

9. Workers’ Participation in Management

Workers’ Participation in Management is the tool of employee welfare and this encourages the
employees to work hard for more productivity which ultimately increases the turnover of the
organization. Under this method, the management takes the decision with the consultancy and
consensus of the workers. The workers are given the proper role and participation in the
decision-making process. It has been found that the workers, the executives and the management
people are all responsible for the proper implementation of the welfare measures in the
organization.4

10.Welfare Provisions Under the Factories Act, 1948

The Factories Act, 1948 is one of the major central legislation designed to regulate the working
conditions in the factories. It lays down all essential provisions relating to cleanliness,
ventilation, lighting, sanitary arrangements, health, safety & welfare of the workers in the
factories. 

This Act is applicable to the factories where in ten or more workers are working, or were
working on any day of the preceding twelve months and in which a manufacturing process is
being carried on with the aid of power or twenty or more workers without the aid of power.5

Welfare Provisions in the Factories Act are6:

Section 42 Washing Facilities

Section 43 Facilities for Storing and Drying Clothing

4
Supra note 1.
5
Section 2(m), ‘The Factories Act’, (1948).
6
The Factories Act, 1948 (Act No. 63 of 1948), available at:
https://www.ilo.org/dyn/natlex/docs/WEBTEXT/32063/64873/E87IND01.htm (last visited 28/04/2020).

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Section 44 Facilities for Sitting

Section 45 First-Aid-Appliances

Section 46 Canteens

Section 47 Shelters, Rest-rooms and Lunch-rooms

Section 48 Creches
Section 49 Welfare Officers

1) Washing facilities:

The Factories Act provides for -

a) Adequate and suitable facilities for washing for the use of workers in the factories. The
workers who live in crowded areas have inadequate facilities for washing at their homes,
and bathing facilities add to their comfort, health and efficiency.

b) Separate and adequately screened washing facilities for the use of male and female
workers.
c) Such facilities being conveniently accessible, and being kept clean.7

2) Facilities for storing and drying clothes:

A suitable place for keeping clothes not worn during working hours shall be provided in every
factory. Facilities shall also be provided for the drying of wet clothes.8

3) Facilities for sitting:

7
Section 42, ‘The Factories Act’, (1948).
8
Section 43, ‘The Factories Act’, (1948).

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For workers who are to work in a standing position, suitable arrangement for sitting shall be
provided in the factories. This is to enable workers to take advantage of any opportunity for rest
which may occur in the course of their work.9

4) First-aid appliances:

First-aid boxes or cupboards equipped with the required contents should be provided for workers
in every factory. This should be readily accessible to them during all working hours. The number
of such first aid boxes shall not be less than one for every 150 workers employed in the factory.
Such first-aid box shall be kept in the charge of a responsible person who is trained in first-aid
treatment and who shall be available during the working hours of the factory.

In factories employing more than 500 workers, there shall be an ambulance room. It should
contain the prescribed equipment, and be in the charge of such medical and nursing staff as may
be prescribed.10

5) Canteens:

In factories employing more than 250 workers, there shall be a canteen for the use of workers.
The government may prescribe the rules in respect of the —

 Food stuff to be served in the canteen;

 Charges to be made;

 Constitution of a managing committee for the canteen; and

 Representation of the workers in the management of the canteen.11

It is true that so far as employer is concerned where the staff canteen has to be provided in
pursuance of this section it must be run on a no profit basis as prescribed by sub-rule (2) of Rule
85. But a contractor who conducts the canteen not out of any philanthropic considerations but for

9
Section 44, ‘The Factories Act’, (1948).
10
Section 45, ‘The Factories Act’, (1948).
11
Section 46, ‘The Factories Act’, (1948).

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profit carries on a trade of keeping a catering establishment, for which he must obtain a licence,
if provided under the relevant statute.12

It was held by the Madras High Court in Elangovan M. and Others v. Madras Refineries Ltd.13,
that the employees of a canteen run in compliance to statutory duty are workmen of the
establishment running the canteen for the purposes of Factories Act, 1948 only and not for all
purposes.

In Haldia Refinery Canteen Employees Union and Another v. Indian Oil Corporation Ltd.
and Others14, the respondent corporation was running a statutory canteen through a contractor.
The workmen employed by the contractor in the canteen claimed regularization in service of the
corporation. The Supreme Court held their claim as not sustainable because the control that the
respondent corporation exercised over the contractor was only to ensure that the canteen was run
in efficient manner. Further the corporation was not reimbursing to the contractor the wages of
the workmen. Secondly two settlements had been made between the contractor and the canteen
workmen and the respondent was not a party to either of them. Therefore, it was held that the
workmen in canteen became workers of the respondent corporation only for the purposes of the
Factories Act, 1948 and not for any other purpose.

6) Shelters, restrooms and lunch rooms:

Adequate and suitable shelters, rest rooms, and lunch rooms with drinking water facility shall be
made in factories employing 150 workers or more. Workers can eat meals brought by them in
such rooms. Rest and lunch rooms shall be sufficiently lighted and ventilated. It shall be
maintained in cool and clean conditions.15

7) Creches:

12
Balkrishan v. K.J. Mishra, AIR 1979 Bom 198.
13
(2005) II L.L.J. 653 (Mad.).
14
(2005) II L.L.J. 684 (SC).
15
Section 47, ‘The Factories Act’, (1948).

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In every factory, where more than 50 women workers are employed, provision shall be made for
suitable and adequate room for the use of children under the age of six years of such women.
Such a room shall be adequately lighted and ventilated.

It shall be maintained in clean and sanitary conditions under the charge of a woman trained in the
care of children and infants.16

8) Welfare Officer:

The factories Act also provides for employment of welfare officers with prescribed qualification
to look into the implementation of various facilities provided for. Such a provision exists in
every factory employing more than 500 workers.17

It was held in Employees’ Association of Northern India v. Secretary of Labour18, that the
provision of this section shall apply to those sugar factories also wherein five hundred or more
workers are employed for a few months in a year.

Under what circumstances and subject to what conditions, an employee’s services can be
terminated can well be the subject matter of a contract of employment, because conditions of
service would take in the termination of service and incidentally, the conditions subject to which
such termination could be brought about. That being so a rule imposing on the management
obligation to secure the concurrence of the Labour Commissioner before inflicting the
punishment, cannot be said to fall outside Section 49(2) of the Factories Act.19

 In Arun Kumar Bali v. Government of N.C.T. of Delhi and Others 20, the petitioner was
employed as a Welfare Officer. As per his letter of appointment his services could be terminated
by the employer either by giving two months’ prior notice or by paying two months’ salary in
lieu of notice. The service of petitioner was terminated in terms of his letter of appointment.
Feeling aggrieved by his termination he moved a writ petition. Dismissing the petition, the High
Court held that the termination of Welfare Officer’s service in terms of contract of employment

16
Section 48, ‘The Factories Act’, (1948).
17
Section 49, ‘The Factories Act’, (1948).
18
AIR 1952 All. 109.
19
A.C. Companies v. P.N. Sharma, AIR 1965 SC 1595.
20
(2002) II L.L.J. 474 (Del.).

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could not be challenged as it was a termination simpliciter in terms of stipulation contained in his
letter of appointment. 

9) Welfare facilities outside factory premises:

In addition to providing welfare facilities in the factory premises, workers are also provided
certain benefits and facilities outside the factory. These include:21

 Maternity benefits;

 Gratuity, pension and provident fund benefits;

 Medical benefits;

 Educational facilities;

 Housing facilities;

 Recreational facilities including sports and cultural activities;

 Library and reading rooms;

 Holiday home and leave travel facilities;

 Consumers’ cooperative stores and fair price shops;

 Vocational training; and

 Transportation facility to and from the place of work.

21
Smriti Tiwari ,The Factories Act,1948, 27 July 2017, available at: http://www.legalserviceindia.com/legal/article-
149-the-factories-act-1948.html (last visited 27/04/2020).

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11.Critical Appraisal

Indian workers are generally considered to be less efficient as compared to workers in other
countries. Such a statement does not reflect any inherent deficiency on the part of workers. It is
stated to be due to longer hours of work, low wages, and poor living conditions. Health and
safety measures provided in factories are also of poor standard.

This may be stated as the basic reason for the inefficiency of workers in India. Climatic factors,
illiteracy, low standard of living may also affect the efficiency adversely, but the poor working
conditions happen to be the main reasons. Working environment in the factory is not conducive
to increased efficiency of worker. Under unhealthy surroundings, we cannot expect workers to
put in hard and sustained work. Health, Safety and Welfare measures which are provided in the
Factories Act, 1948, are considered to be minimum in terms of adequacy. Such measures are
required to be effectively implemented.

12.Workers Responsibilities

The workers should have certain responsibilities for the proper implementation of these
provisions. The most important responsibilities as an employee are -

 To take reasonable care of their own health and safety.

 To co-operate with the employer, making sure that the workers get proper training and
understand and follow the company's health and safety policies.

 Not to interfere with or misuse anything that's been provided for the health, safety or
welfare of the workers.

 To report any injuries, strains or illnesses that a worker suffers as a result of doing his/her
job (the employer may need to change the way he/she works).

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 If a worker drives or operates machinery, to tell the employer if the worker has taken
medication that makes him/her drowsy - they should temporarily be moved to another job
if they have one for him/her to do.

13.Suggestions and Recommendations

Nowadays, welfare has been generally accepted by employers as a social right. But the degree of
importance given by them varies. Therefore, the Government also intervenes and introduces
legislation from time to time to bring about uniformity in providing such amenities. The
intervention of the state, however, is only to widen the area of its applicability.

The measures of welfare give result after a long period of time. It is a long process, so the
management has to keep patience while providing the welfare facilities for the employees. While
deciding the welfare facility for the employees, the management has to do discussions with the
persons who are now going to avail the facilities. The communication increases the cohesiveness
between the management and the employees and thus industrial relations improve.

14.Conclusion

The present Factories Act in operation for the last 72 years has provided ample benefits to the
factory workers. It has considerably improved their working and employment conditions. The
Government is actively considering the introduction of some vital amendments to the Act to keep
it in tune with time and make it more effective While dealing with the duties of the Occupier and
Factory Manager under Factories Act 1948, altogether we can conclude that the Occupier and
Factory Manager has a vital role to play in assuring the health, safety and welfare of the workers
as they are the backbone of the industrial sector.
It is, however necessary that the workers and their representatives make themselves aware of the
various provisions of the Act and safeguard their interests on their own and force the defaulting
employer to be conscious of his legal obligations. Labour Welfare is confined to those activities
which lead to improvement in health, efficiency and happiness of industrial workers and their
families e.g. recreational, medical, educational, washing, bathing, transport facilities canteens
and creches, etc. Thus, the term labour welfare covers not only the workers but also their
families.

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15.References

Books:
1. Dr. S. R. Myneni, Labour Laws, Asia Law House, Hyderabad, 3rd edi., 1998.
2. E. A. Ramaswamy, The Worker and The Trsde Unino, Allied Publicaion, New Delhi, 4th
edi., 2015.

Bare Act:
1. The Factories Act, 1948 (Act No. 63 of 1948).

Web Resources:
1. www.scconline.com
2. www.lexisnexis.com
3. www.leaglserviceindia.com

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4. www.yourarticlelibrary.com
5. www.ilo.org

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