Factory License
Factory license falls under the Factory Act 1948 and is mandatory for production facilities to ensure workers’ safety and welfare. Factory license holders must ensure ideal working conditions, workplace hygiene, and timely salary disbursement. Factory registration was enforced to promote workers’ welfare. The labor department of the respective state grants factory registration against the prescribed application and fee. This write-up unveils legalities around the factory license alongside other key details.
Underlining the Factory License Applicability
As per the Act, factory registration is mandatory for:
- Factories having less than or equal to 10 workers and using power to uphold the production
- Factories having 20 or more workers and relying on zero power to pursue production
Checklist for factory license: Things required for registration
The involvement of following things is mandatory to apply for a factory registration in any state:
- Factory building/premises
- Fire NOC issued by the respective fire department
- Pollution NOC issued by the respective State Pollution Control Board i.e. SPCB
- Factory layout plan
- Notice to chief inspector
Notably, before applying for the factory license, you must secure site approval from the concerned state labor department. Upon receiving the request, the authority shall inspect the factory plan and location for compliance. This approval shall lay the foundation to apply for the factory registration.
Also, there is another condition that must be met. This condition requires the applicant to share the legal notice with the chief inspector 15 days before initiating the production at the facility. The notice must entail the following details:
- Factory name and address
- Description of the manufacturing process to be undertaken
- Factory manager’s name
- Anticipated number of employees
- Total rated horsepower currently installed or planned for installation
- The occupier’s name and address
- Additional required details
How to secure the Factory License: The 4 Steps Guide
Section 6 of the Factory Act provides the state government with the right to oversee and issue factory registration within the purview of the Factories Act 1948. Here’s what the generalized process of securing the factory registration looks like.
Step 1: Securing factory plan approval
The first step in this process is about getting the factory plan approved by the labor department. This is a mandatory step for authenticating the expansion or the construction of the factory. Once the approval comes alive, you can proceed to apply for a factory registration.
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Step 2: Filing application online
Follow the given steps to apply for a factory license:
- Visit the portal of the concerned labor department
- Locate the option viz. ‘Factory Registration’ under Services.
- Create an account with valid credentials and login, if required.
- The e-form will appear on your screen. Fill out the same with accurate details.
- Upload paperwork and submit the fee to submit the form.
Step 3: Inspection performed by the authority
The respective arm of the labor department shall inspect the application and dossiers against various grounds to ensure compliance. Any error or loophole in the paperwork shall be intimated to the applicant for reconciliation.
Step 4: Grant of factory license
If the applicant’s response comes out to be satisfactory during vetting, the department shall grant the license to the applicant.
A Checklist of Compliances for the factory license holders
- The working premises should be free from pollutants or any waste endangering workers’ lives. Employers should take care of cleanliness and hygiene without fail.
- The facility should entail an apt ventilation system, maintaining proper lighting and air circulation within the premises.
- Workers should have access to potable drinking water. The periodic inspection of the water should be conducted by certified agencies and the outcome of the same should be documented.
- Employers must ensure the proper sanitation system within the workplace, providing workers with clean restrooms, washrooms, and bathing facilities.
- All workers must undergo adequate training concerning PPEs and safety gear. Vulnerable machines must be equipped with safety guards.
- The working premises should have a medical room to address emergencies.
- The availability of first-aid kits is mandatory.
- The premises should embrace proper lighting to ensure a safe working environment.
- Overcrowding can lead to chaotic situations; thus it must be avoided at all costs.
- Convene regular fire drills to avoid chaotic events endangering workers’ lives
- Every worker must wear PPE (personal protective equipment) during work.
- The presence of emergency sign boards is essential to ensure everyone’s safety at the workplace.
- Employers must keep an accurate record of wages paid and work timing served by the workers.
- Child labor is strictly prohibited.
- Mishaps like accidents should be documented with details and preventive measures.
- The handling of hazardous materials should be performed as per the governing legislation.
- The catastrophic incidents should be communicated to the relevant authority for compliance.
Conclusion
Securing a factory license involves a long-term commitment to ensuring utmost workplace hygiene and workers’ welfare regardless of gender or caste. Manpower should have access to all the amenities that keep them safe and healthy. Employers have the onus of ensuring the well-being of their workers within the purview of the Factories Act 1948.
Coming to the legalities, if you find it perplexing to deal with license regulations- a trusted partner like Adviso can help stay ahead of the curve. All you need is to connect with one of our seasoned professionals and provide them with the required information. Securing licenses and meeting compliance are our forte and we are committed to making entities compliant no matter the legal complication.
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