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D.Kumar (MANAGER - HR)     19 April 2011

Role of Occupier under Factories Act

For any fatal accident happening inside the premises of the factory, the occupier is legally bound to answer personally before Criminal courts and plead guilty and pay penalty under Factories Act. In a recent fatal case happened in Chennai facory of a mobile company the Occupier sitting in Japan called for physical presence before the court and accept negligence of duty. (After this incident, the Japanese occupier was reluctant to open other factories in India for fear of harassment before courts and other forum) Under such case, Is it right to call the occuier of a factory for any negligence of the worker resulted in fatal accident inside the factory ?

D.Kumar

HR Manager

Chennai

kumaracme.d@gmail.com

 



Learning

 5 Replies

akash kapoor (*************)     19 April 2011

You are misinterpreating the statute.

Venkatraghavan.M (Assistant Manger Personnel)     13 May 2011

It is suggested that any resident Director in India, shall be made Occupier.

 

M.Venkatraghavan

V. VASUDEVAN (LEGAL COUNSEL)     14 May 2011

Corporate prudence has to be applied rather than blaming the judicial system. Occupier is nominated for name sake. The Occupier has to be a resident Director and also should exercise due diligence and control over the affairs of the factory for which he is an oppupier. As for the accident,  being an unexpecited event, in literay terms, all that the oppupier has to prove is that the organization has all safety systems, the factory workmen and team were given adequate training and despite due care and deligence the accident occurred. There is no necessity of pleading guilty and he is entitled to addue his defence.

Vasudevan

V. VASUDEVAN (LEGAL COUNSEL)     14 May 2011

Pls read the 2nd sentence as "Occupier is NOT nominated for name sake".... thanks

vasudevan

D.Kumar (MANAGER - HR)     16 May 2011

Dear Vasudevan

Thanks for your message. Nicely explained. The occupier has to ensure that safe work environment is provided and employees are trained in safe working practices.


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