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Praveen (Audit Assistants)     29 June 2008

Factories Act covers factory under construction?

I  am into audit firm,
1. my query is whether factory(a new plant) which under construction covered under the definition of factories under Factories Act.

2. Where contract labor employeed for carrying construction work and such activities includes working @ height and carrying hot works, is the contract labor require a permit for doing the work and the responsiblity of Principal Employer and documents to be maintained by him


 7 Replies

UJAS DHARAMSHI (Corporate Lawyer)     30 June 2008

Yes the factory which is a new plant comes under the factories act.

The contract labour does not require a permit for doing work but the Principal Employer has to keep a record of them in the aprropraite documents.

Praveen (Audit Assistants)     30 June 2008

Thxs for ur reply, but the definition of factories act doesnt cover factory under construction. My query is whether a plant which is under construction falls under Factories Act.

And regard to Contract Labor Act, wht is the responsibility of Principal Employer regarding safety of the contract labor and the procedure for wage disbursal.

Is the principal Employer bound to collect the PF returns from the contractor or from sub-contractor. Plz reply with the sectiona and the act which governs.


With Regards



ssujeet-Advocate (n/a)     03 July 2008

new factories are also covered undr the factories act

The safety of the worker is responsibility contractor and principal employer

the wages to contract labour have to paid in the presence of the principal employer

sujeet salkar


bhagwat patil (Property due diligence 9422773303)     13 April 2010

agree to sujit

radha krishna (vp-hr)     13 April 2010

As per the provisions of Factories Act, Occupier has to obtain prior approval of drawings for construction of Factory. The Factory building should be as per the approved drawings. Therefore a Factory building under construction falls under the definition of Factory. In such case Occupier when he engages contractor for executing the work of construction of factory has to get himself registered as Principal Employer and the Contractor to obtain Licence. In such circumstances, the Principal employer is repsonisble for the safety and health of the contract laboour engaged. Principal employer to ensure that the contractor complies with the statutory provisions. Otherwise Principal employer is accountable for any lapses.In the interest of the life of humanbeings (whether a contract labour or anyone else) it is better to follow safety precautions while working at hieghts and hazardeous areas.

Some times, we may construct a shed and later convert the shed or building into factory by taking approval of drawings later. In such cases the construiction activity doesn't fall under the factory definition.

Gopalji Singh (DGM(Projects))     25 July 2012

As stated above, a factory under construction is coverd under The Factory Act.

The Building and Other Construction Act is not applicable to establisment covered under Factory Act.

Thus, can it be concluded that provisions of Building and Other Construction Act does not apply to a factory under construction for which plans have  already been submitted to the Competent Authority as defined in The Factory Act?

rajjukumar (dy director)     04 February 2013

sorry friend .if u r thinking that factories under construction comes uner perview of factories act than i ma sorry that u hv not gone deeply in respect of defination of factories act bcoz factories act  is concern with manufacturing process which is not carried out during construction of factories . once factories is completed and complied of sec 6 and 7 and allied rules than factories act will be apply . As per drawing approval is concern it permit only to construct the plant  as per drawing in which consent of CIF has been given . which does mean that factories act will be govern .In case of any accident as per factories act only occupier( any of director) and factory manager is responsible. there is no principal employer in case of factories act.  it is BOCW ACT is appropiate act during construction of factiries.


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