[Home](/)/[Resources](/resources)/Factories Act Manufacturing IndiaManufacturingLabour Law # Factories Act 1948 Compliance for Electronics Manufacturing in India Every electronics manufacturing facility in India with 10 or more workers using powered equipment is a regulated 'factory' under the Factories Act 1948. The Act touches everything from the licence you must hold before opening your doors, to the safety systems required in your production area, to the canteen you must run once you cross 250 workers. State governments enforce it, and the rules differ by state. This guide covers the framework that applies before the OSH Code 2020 comes into force. Copy Link[Share on WhatsApp](https://wa.me/?text=https%3A%2F%2Fkrono-labs.com%2Fguides%2Findia-factory-act-manufacturing) At a glance Worker threshold (with power) 10+ workers Enforcement authority State Chief Inspector of Factories Annual renewal deadline December 31 each year OSH Code 2020 status Enacted; not yet in force (2025) ## Key provisions: registration, safety, welfare, and OSH Code ### Factory Definition — When the Act Applies to Your Facility Under Section 2(m) of the Factories Act 1948, a 'factory' is any premises where a manufacturing process is carried on with the aid of power and 10 or more workers are employed, OR where 20 or more workers are employed without power. For electronics manufacturing — which almost universally involves power-operated equipment — the 10-worker threshold is the operative trigger. Contract workers count toward the threshold if they work on the premises regularly. A small electronics assembly unit with 10 workers and powered soldering stations, conveyors, or SMT machines is a 'factory' under the Act and must be registered and licensed. ### State Government Enforcement — Not Central The Factories Act is a concurrent list subject, but enforcement is entirely through State governments via the Chief Inspector of Factories (CIF) and district-level inspectors. Each State has its own Factories Rules made under the Act, which specify local fee schedules, form numbers, and procedural requirements. The inspecting authority for your factory is the CIF of the state where the facility is located — not a central ministry. This means compliance requirements can differ materially between a factory in Tamil Nadu, Maharashtra, Karnataka, and Telangana. ### Factory Licence and Registration — Form 2 Before You Start Section 6 of the Act requires the occupier to submit a written notice (Form 2 in most states) to the CIF before commencing manufacturing operations. The notice includes details of the premises, the manufacturing process, the number of workers, the horsepower of installed machinery, and the name of the manager. The state then issues a licence (Form 4) which must be renewed annually before December 31. Licence fees are based on the number of workers and the power installed in horsepower. Operating without a licence or after licence expiry is an offence under s92 — punishable by imprisonment up to 2 years or fine up to ₹1 lakh. ### Safety Requirements Under Chapter IV — Electronics-Relevant Provisions Chapter IV imposes specific safety obligations. Sections 21–27 require fencing of all dangerous machinery, examination of hoists and lifts every 6 months (Form 8 record), and safe floors, stairs, and passageways. For electronics manufacturing specifically: s36 (pressure plant — relevant for wave soldering equipment), s41C (hazardous process provisions applicable to facilities using organic solvents, acids, or other Schedule chemicals), and s38 (fire prevention and fire escape). ESD protection zones, chemical storage (IPA, acetone, fluxes), and confined spaces for nitrogen or CO2 inerting systems all fall under Chapter IV obligations. ### Welfare and Working Hours — Key Thresholds Chapter V mandates welfare provisions that scale with workforce size: washing facilities (s42), first aid boxes with trained personnel (s45 — one per 150 workers), canteen for facilities with 250+ workers (s46), creche for facilities employing 30+ women workers (s48), and restrooms and lunchrooms. Chapter VI caps working hours at 9 hours per day and 48 hours per week (s51). Overtime is permitted up to 50 hours per quarter with premium payment at twice the ordinary rate. Compulsory weekly rest on one designated day is mandatory under s52. Night shift for women workers was historically prohibited in most states but has been liberalised in many industrial states subject to safety conditions. ### OSH Code 2020 — Enacted But Partially Notified; Track Your State The Occupational Safety, Health and Working Conditions Code 2020 (OSH Code) consolidates the Factories Act 1948 with 12 other labour laws into a single Code. Parliament passed it in September 2020. However, the Central Government has not yet issued the full set of rules needed to bring the OSH Code into force, and state governments must separately notify their state rules. As of 2025, most states continue to operate under the Factories Act 1948. Manufacturers must track their operating state's OSH Code notification status — once a state notifies, the Factories Act thresholds, forms, and procedures will change significantly. ## Factories Act compliance steps for electronics manufacturers 01 Determine whether your facility meets the factory definition under the Factories Act 1948 — 10+ workers with power assistance in the manufacturing process triggers registration. Count all workers engaged in the manufacturing process on the premises, including contract workers engaged regularly. 02 Before commencing operations, submit the written notice in the prescribed Form to the Chief Inspector of Factories of the state where the facility is located. Include complete details of the premises, installed machinery horsepower, manufacturing process description, maximum daily worker count, and proposed manager's name. 03 Obtain building plan approval from the state authority for any new factory construction or major structural changes — Section 6 requires this before construction begins. Plans must comply with the state Factories Rules on minimum floor space, aisle widths, ventilation, and emergency exits. 04 Appoint a qualified Safety Officer if your facility employs 1,000 or more workers, or if the factory carries on a hazardous process listed in Schedule 1 (which includes operations using certain chemicals common in electronics manufacturing). The Safety Officer qualification is prescribed by the state rules — typically a diploma or degree in industrial safety. 05 Set up and maintain all prescribed statutory registers and records: Form 7 (muster roll / attendance register), Form 11 (accidents and dangerous occurrences register), Form 14 (overtime register), and the annual return (Form 21 in most states). These must be produced on demand during inspector visits. 06 Conduct an annual safety audit of all machinery, pressure equipment, chemical storage, and fire safety systems. Record the audit findings and close out any non-conformances before the next inspector visit. Inspector notices must be responded to within the time limit specified in the notice — typically 15 to 30 days. 07 Renew the factory licence before December 31 each year by submitting the renewal application with the prescribed fee to the state Inspector of Factories. Late renewal attracts surcharge and continued operation after licence expiry is a prosecutable offence. Track your operating state for OSH Code 2020 notification status annually. ## Frequently asked questions ### Does the Factories Act apply to electronics assembly with fewer than 10 workers? If the manufacturing process uses power (electric motors, pneumatic tools, powered conveyor, SMT machines, wave soldering — any powered equipment in the process), the threshold is 10 workers. With fewer than 10 workers using power, or fewer than 20 workers without power, the Factories Act does not apply. However, other state labour laws — such as state Shops and Establishments Acts — may still apply to the workforce. Additionally, if the facility grows past the threshold, the obligation to register arises immediately and a grace period is not provided in the statute. ### Who enforces the Factories Act — central or state government? Enforcement is entirely at the state level through the Chief Inspector of Factories (CIF) and their subordinate inspectors. The Central Government sets the framework through the parent Act, but each state government makes its own Factories Rules specifying forms, fees, and procedures. A factory in Maharashtra is inspected under the Maharashtra Factories Rules 1963 by Maharashtra's CIF; a factory in Karnataka falls under the Karnataka Factories Rules 1969. There is no central inspectorate for factory safety under the Factories Act — only state inspectors have jurisdiction. ### What is the difference between the Factories Act 1948 and the new OSH Code 2020? The OSH Code 2020 consolidates the Factories Act 1948 with 12 other labour laws (Mines Act, Dock Workers Act, Contract Labour Act, Inter-State Migrant Workers Act, etc.) into a single statute. Key changes in the OSH Code include: the threshold for applicability is raised to 20 workers with power and 40 without (vs 10 and 20 under the Factories Act), the definition of 'worker' is expanded, and there are new provisions on free annual health check-ups. However, as of 2025 the OSH Code has not been brought into force — the Factories Act 1948 remains the applicable law. Manufacturers should prepare for the OSH Code by tracking state-level rule-making. ### What safety officer is required for electronics manufacturing? Under Section 40-B of the Factories Act 1948, a Safety Officer is mandatory for factories with 1,000 or more workers, or for factories carrying on any hazardous process listed in the First Schedule to the Act. Electronics manufacturing facilities that use chemicals listed in the Schedule — such as certain cleaning solvents, acids used in PCB fabrication, or lead compounds in non-RoHS processes — must appoint a Safety Officer regardless of workforce size. The qualification for Safety Officer is specified in state rules — typically a recognised degree or diploma in industrial safety from an institution approved by the state government. **Disclaimer:** Educational resource only. Indian regulatory requirements change frequently. Consult a qualified Indian advocate or compliance specialist before making decisions. [ Map your product, free Every standard, document, and test that applies — free, no account required. Start mapping](/platform/start) Learn this properly In-depth course that teaches the full process, not just this one answer. [Start the course — $149](/courses/04-bis-certification-for-electronics)[Prefer to read? Get the book — $24.99](/books/04-bis-certification-for-electronics) Related guides * [India PLI Scheme for ElectronicsEligibility, incentive structure, and strategic considerations for India's Production Linked Incentive scheme covering mobile p…](/guides/india-pli-electronics) * [India Hazardous Waste Management Rules 2016How the Hazardous and Other Wastes (Management and Transboundary Movement) Rules 2016 apply to electronics manufacturing: SPCB authorisation, the manifest system, TSDF contracts, annual returns, and Environment Protection Act penalties.](/guides/india-hazardous-waste-management-rules) * [India MeitY Electronics PolicyMeitY electronics policy: SPECS capital expenditure incentive, National Policy on Electronics 2019, Preferential Market Access for government procurement, and PLI scheme interaction.](/guides/india-meity-electronics-policy) * [OSH Workplace SafetyComplete guide to OSHA workplace safety requirements.](/guides/osh-workplace-safety) * [India Market Compliance OverviewComprehensive overview of India's regulatory landscape: BIS, CDSCO, WPC, TEC, FSSAI, customs, and DGFT requirements for market …](/guides/india-compliance-overview)