Manufacturing Compliance
Manufacturing compliance involves adhering to regulations in the manufacturing sector, including environmental protection, health, safety, product quality, and performance standards. Complying is vital for business continuity and customer service. Global companies must be aware of and follow diverse regulatory agencies in different countries, as health and safety practices may vary across regions.
Main steps to ensure compliance in the manufacturing sector
Regulations in the manufacturing sector are constantly evolving, and it is a well-known fact that compliance with these regulations can be challenging and complex for many companies. To address this issue, we have created a guideline with key compliance steps for manufacturing companies to follow and effectively meet their obligations.
Compliance In India
The Factories Act, 1948: The Major Objectives
Regulating working conditions, safety, health conditions, and leave eligibility of workers are the major focus of this Act. Moreover, this Act covers several special provisions associated with women, young persons, and factory employees. The following are the major objectives that warrant employee safety and welfare through statutory compliance:
Provisions in the Act, to ensure employees’ safety require appropriate fencing of machinery. Yong persons are not allowed to work near dangerous machines or in confined places. Maintenance holes with adequate sizes that provide sufficient space for workers to escape an emergency are mandatory.
Adult employees are not supposed to work more than 48 hours per week. The provisions are different for younger workers. Weekly holiday is mandatory. Shop and establishment compliance requirements are expected to be met by employers.
With a view to ascertaining employee convenience, the Act requires factories to provide suitable and proper facilities for washing, drying, and storing clothes and regular maintenance of such provisions. Moreover, first-aid kits, restrooms, space for resting, lunch rooms, and crèches are mandatory too.
Cleanliness and resting spaces are required to ensure the wellness of workers. Proper ventilation, adequate lighting, and hygienic drainage are a few of the provisions required by this Act. Drinking water must be provided, and urinals and latrines at easily accessible spots must be arranged for workers. All these must be maintained in a clean and hygienic condition, ensuring workers’ physical and emotional wellness.
- Failure to meet any of the prescribed provisions under the Factories Act, 1948 will be treated as a violation of the Act. It draws legal penalties such as the ones mentioned below:
- Monetary fine up to INR one lakh
- Imprisonment for a term of up to one year
- A combination of both
Factories and Business Establishments that Fall Under the Domain of the Act
Factories that perform manufacturing processes with electric power and employ more than 10 workers who work any day of the preceding 12 months are covered by this Act. Factories that perform processes without power but employ more than 20 workers are also covered under the provisions of this Act. This Act does not cover eating places, hotels, mines, or mobile units that belong to the nation’s armed forces.
Quick View of Indian Factories Act, 1948
- Approval, Licensing and Registration on Factories
- Notice by Occupier
- General Duties of Occupier
- General Duties of Manufacturers as per the articles
- Inspector and Power of Inspectors
- Certifying Surgeons
- Cleanliness
- Disposal of wastes and effluents
- Ventilation and Temperature
- Dust and Fume
- Artificial Humidification
- Overcrowding
- Lighting
- Drinking-Water
- Latrines and Urinals
- Fencing of Machinery
- Working near machinery in motion
- Employment of young persons on dangerous machines
- Striking gear/devices for cutting off power
- Self-acting machines
- The casing of new types of machinery
- Prohibition of employment of women and children near cotton openers
- Hoist and lifts
- Lifting machines, ropes, chains or lifting tackles
- Revolving types of machinery
- Pressure Plant
- Floors, Stairs and a mean of access
- Pits, Sumps, opening in floors
- Excessive Weights
- Protection of Eyes
- Precaution against dangerous gas, fumes, etc
- Precaution for the usage of the portable electric lights
- Explosives or Inflammable dust, gas, etc
- Precautions for fire accidents
- Power to required specifications of defective parts
- Safety of buildings or pieces of machinery
- Maintenance of buildings
- Safety officers
- Power to make rules to supplement this fourth chapter
- Constitution of Site appraisal committees
- Compulsory disclosure of information by the occupier
- Specific responsibility of occupier during hazardous moments
- Power of Central Government to appoint the Inquiry Committee
- Emergency Standards
- Permissible limits of exposure of chemical and toxic substances
- Worker’s participation in safety management
- Rights of workers to warn about an imminent danger
- Facility for washing
- Facilities for storing/drying clothes
- Sitting Facility
- First-aid tools or appliances
- Canteens
- Shelters, lunch or restrooms
- Creches
- Welfare officers
- Weekly hours
- Weekly holidays
- Compensatory holidays
- Daily hours
- Interval timings
- Spread over
- Night Shifts
- Prohibition of overlapping work shifts
- Overtime Extra Wages
- Restriction of Double payment
- Notice Periods
- Registers of workers
- Hours of work corresponding with notices/registers
- Power to make exempting rule/orders
- Further restriction on employment of women
- Prohibition of employment of Children
- Non-adult workers to carry tokens
- Certificate of Fitness
- Effect of fitness certificate granted to adolescent
- Working hours for children
- The notice period for children
- Child-Workers Registers
- Power to require medical examine
- Power to make rules by State Government
- Wages during leave periods
- Payment in advance in some cases
- Mode of recovery of unpaid wages
- Power to exempt factories
- Power to apply the acts
- Power to an exempt public institution
- Dangerous operations
- Power to prohibit employment on account of serious hazards
- Notice of certain accidents/danger
- Notice of certain diseases
- Power to direct inquiry into cases of accidents or diseases
- Power to take samples
- Safety and Occupational Health Surveys
- General penalty for offences
- Liability of owner of premises
- Enhanced penalty after previous convictions
- Penalty for obstructing the inspector
- Penalty for wrongfully disclosed analysis reports
- Offences by Workers
- Penalty for false fitness certificate
- Penalty for permitting double employment of child
- Exemption of Occupier from liability
- Power of court to make orders
- Presumption as to employment
- Onus as to age
- The onus of proving limits
- Cognizance of Offences
- Limitation of Prosecution
- Jurisdiction of court for proceedings for an offence
- Appeals
- Display of notices
- Service notice
- Returns
- Obligation of Workers
- Right of workers
- General power to make rules
- Power of Centre to give directions
- No charge for facilities/conveniences
- Publication of rules
- Application of act to government factories
- Restriction on disclosure of information
- Do Registration under applicable laws
- Get Licenses – Fresh/Renewals/Amendments
- Do Display of Statutory Notices
- Do Preparation of statutory records and registers
- Do Backup facility in centralized locations
- Do Preparation and the submission of periodical statutory returns
- Do On-time remittance of applicable statutory payments like ESI, EPF and EPT
- Do Audit of Contractors statutory documents
- Do Facilitation during the inspection