Factories Act 1948 — Compliance for Manufacturing Units in Kerala

The Factories Act 1948 is the central legislation governing working conditions, safety and welfare of workers in factories across India. In Kerala, the Department of Factories and Boilers administers the Act. Every manufacturing unit that meets the definition of a "factory" must register and maintain compliance with the Act's extensive provisions. Here is the complete guide for Kerala manufacturers.

Definition of "Factory"

Under Section 2(m) of the Factories Act, a "factory" means any premises where:

• Manufacturing process is carried on with the aid of power: 10 or more workers on any day in the preceding 12 months
• Manufacturing process without power: 20 or more workers on any day in the preceding 12 months

This includes not just large plants but also small workshops, food processing units, garment factories, printing presses and similar establishments that meet the worker threshold.

Registration and Licensing

• Before starting: Submit plans to the Inspector of Factories for approval (Section 6)
• Register the factory with the Chief Inspector of Factories (online through the Department of Factories and Boilers portal, Kerala)
• Obtain Factory Licence — valid for a calendar year
• Renew the licence before October 31 each year (for the next calendar year)
• Licence fee is based on the number of workers and horsepower of machinery

Working Hours and Leave

• Adult workers: Maximum 9 hours per day, 48 hours per week
• Overtime: Limited to 50 hours per quarter; paid at twice the ordinary rate
• Weekly rest: At least one day off per week
• Annual leave: 1 day for every 20 days worked (after completing 240 days of work in the previous year)
• Child workers (14-18 years): Maximum 4.5 hours per day; no night work

Mandatory Safety and Welfare Provisions

• Canteen: Mandatory if 250+ workers employed
• Crèche: For factories with 30+ women workers
• Safety Officer: Required if 1,000+ workers
• Welfare Officer: Required if 500+ workers
• Proper ventilation, lighting, drinking water, washing facilities and first aid
• Safety equipment for hazardous processes

Annual Filing Requirements

• Annual Return to the Inspector of Factories (Form 21) by January 31
• Register of adult workers (Form 12)
• Register of leave with wages (Form 15)
• Accident reporting to Inspector within prescribed timelines

Conclusion

The Factories Act imposes extensive registration, safety and welfare obligations on manufacturing units — non-compliance carries serious penalties including imprisonment. SPOTON provides Factories Act compliance services for Kerala manufacturers including registration, licence renewal and annual return filing. Contact us for expert industrial compliance advisory.