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anand das (service)     11 February 2011

factory act query--

1. Is restaurent a factory as per Factory act?

2. A manufacturing unit (factory as per Factory Act) is situated outside city in industial area and a corporate office of the factory is situated in city. Can this corporate office be termed as factory as per factory act?



 6 Replies

V. VASUDEVAN (LEGAL COUNSEL)     11 February 2011

Restaurant is not a factory under the Factories Act. It is a commercial establishment under the Shops & Establishment Act. The corporate office situate outside the factory is also a commercial establishment and not a factory.


1 Like

Kirti Kar Tripathi (lawyer)     11 February 2011

I disagree, the factory as defined in facorty Act as under:-


) "factory" means any premises including the precincts thereof -

(i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power,or is ordinarily so carried on, or

(ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on, -

but does not include a mine subject to the operation of 11[the Mines Act, 1952 (XXXV of 1952)] or 12[a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel restaurant or eating place];

13 14[Explanation I. - For computing the number of workers for the purposes of this clause all the workers in different relays] in a day shall be taken into account;]

[Explanation II].- For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof, shall not be construed to make it a factory if no manufacturing process is being carried on in such premises or part thereof ;]

and the manufacturing process is defined as below


(k) "manufacturing process" means any process for -

(i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adopting any article or substance with a view to its use, sale, transport, delivery or disposal; or 
5[(ii) pumping oil, water, sewage, or any other substance; or ]
(iii) generating, transforming or transmitting power; or
6(iv) composing types for printing, printing by letter press, lithography,
 photogravure or other similar process or book-binding ;7[or] (v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels ; [or] 
8(vi) preserving or storing any article in cold storage;

Thus preparing of food and distributing the same falls within the abmit of manufacturing process under. The foor is prepared eith by electrical process or LPG gase, both terms come within the ambit of "Power", thus if it employs more then 10 employee, it is a factory under the Act.

I am attaching a judment to this effect.

Attached File : 34 34 restaurant as facory.doc downloaded: 371 times
2 Like

radha krishna (vp-hr)     11 February 2011

Kitchen of the restaurent falls under the definition of Factory.

Office situated outside the premises of factory is not a factory.

1 Like

anand das (service)     12 February 2011

1. So leaves etc of a corporate office employee should not be calculated as per Factory Act ? Then on what basis leave etc policy is to be decided for corporate office employees? 

2. Pls consider another case- In one factory premises there are two buildings- one is actual manufacturing process where workers work and in the same campus there is another building wherein administrative work is carried out.
Which rules/act shall be applicable for employees working in this administartive building?

Pls guide.

rajendra banwat (tax consultant)     27 July 2012

My client has opened a bpo office in MIDC area .

the main work is scanning of documents through scanner and catch the data in a software, upload the scan document etc.

computer is used for the same.for which elelctricty is used.

after the work is completed send the documents back to owner.

more than 20 workers are on pay roll

whether it is a manufacturing process ? and whether it can be called as Factoy under the meaning of Factory Act Section 2(k) of the Fcatory Act

Factory inspector visited the office and issued a notice to all directors for prosecution ?

please gude and give decisions if any

Phanindra Kumar (Adovcate)     02 February 2015

HI i have a query in regard to factories act

1. can a person be appointed as manager for more than one factory? if so under which section/rule

2. can a corporate office personnel be appointed as factory manager?

3. is it mandatory that manager must be present in person in the factory or can be on paper?


please help me in regard to these queries



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