Factories Act Compliance: HR and Admin Responsibilities

The Factories Act, 1948 remains one of the most operationally intensive labour laws in India. Unlike many “paper-heavy” statutes, this law directly governs how a factory runs every single day — working hours, safety, health, welfare, registers, notices, inspections, and worker facilities.

While senior management may see compliance as an “admin issue”, in practice it is HR and Admin teams who carry the day-to-day burden of Factories Act compliance. Any gap — missing registers, delayed returns, unsafe practices, or non-display of notices — can immediately attract inspections, show-cause notices, or prosecution.

This article explains what HR and Admin are actually responsible for under the Factories Act, and how to manage compliance practically in Indian factory environments.

1. Who Is Covered Under the Factories Act?

A premise is covered if:

• 10 or more workers are employed with power, or

• 20 or more workers are employed without power

Once covered, compliance applies irrespective of job role — permanent, temporary, trainee, or contract workers working inside the factory premises.

HR must remember: Coverage is based on actual headcount, not payroll classification.

2. Core Areas of HR & Admin Responsibility

Factories Act compliance can be grouped into six operational buckets:

a) Working Hours and Shifts

HR is responsible for ensuring that:

• Weekly working hours do not exceed 48 hours

• Daily working hours do not exceed 9 hours

• Spread-over limits (including breaks) are followed

• Overtime is calculated and paid correctly

• Weekly offs and compensatory offs are tracked

Shift rosters, attendance records, and overtime approvals must align strictly with the Act.

b) Health, Safety, and Welfare Provisions

While safety officers and EHS teams handle execution, HR/Admin remains legally accountable for ensuring:

• Cleanliness and sanitation

• Drinking water arrangements

• Washing, seating, canteen, and rest room facilities

• First-aid boxes and medical facilities

• Appointment of Safety Officer / Welfare Officer where applicable

Inspectors often question HR on availability, not just policy.

c) Registers, Records, and Forms

Factories Act compliance is documentation-heavy. HR/Admin must maintain:

• Attendance and wage registers

• Overtime registers

• Leave with wages registers

• Accident registers

• Muster rolls and worker details

• Annual returns and periodic filings

Incomplete or back-dated registers are one of the most common inspection observations.

d) Display Notices and Abstracts

HR/Admin must ensure that:

• Statutory abstracts of the Factories Act are displayed

• Working hours, shift timings, and holidays are notified

• Inspector contact details are displayed

• Safety instructions and emergency procedures are visible

These must be displayed at conspicuous locations, not kept in files.

e) Handling Inspections and Notices

During inspections, HR/Admin is expected to:

• Coordinate with Factory Inspector

• Produce registers and records immediately

• Facilitate site walkthroughs

• Receive inspection notes or notices

• Coordinate timely replies and corrective actions

Poor inspection handling often escalates minor issues into formal violations.

f) Coordination with Contractors

Even when contract labour is deployed:

• Principal employer obligations under the Factories Act continue

• Working hours, safety, welfare, and medical facilities apply equally

• HR must ensure contractors follow factory rules

“Contractor default” is not accepted as a defence by inspectors.

3. Practical Challenges Faced by HR Teams

Common real-world issues include:

• Multiple shifts running beyond permitted hours

• Inconsistent attendance and overtime records

• Safety compliance treated as “production issue”

• Old factories operating with outdated layouts

• Poor coordination between HR, Admin, and EHS teams

HR’s role is often that of a compliance integrator, aligning operations with legal limits.

4. HR Risk Areas Under the Factories Act

HR must be particularly careful about:

• Excessive overtime without approvals

• Non-appointment of mandatory officers

• Missing or outdated registers

• Non-submission of annual returns

• Repeat inspection observations

Penalties under the Act can include fines, prosecution of occupier and manager, and factory closure directions in extreme cases.

🗹 HR & Admin Self-Check: Factories Act Readiness

🗹 Is the factory coverage threshold correctly assessed and documented?
🗹 Are shift timings, overtime, and weekly offs legally compliant?
🗹 Are all statutory registers updated in real time?
🗹 Are health, safety, and welfare facilities actually available on the shop floor?
🗹 Are statutory notices and abstracts clearly displayed?
🗹 Is there a clear inspection-handling protocol for HR/Admin?

Conclusion

Factories Act compliance is not a once-a-year filing exercise — it is daily operational discipline. HR and Admin teams sit at the centre of this discipline, balancing production pressures with legal boundaries.

Factories that stay inspection-ready are usually not the ones with the thickest manuals, but the ones where HR processes match shop-floor reality.

For Indian HR professionals, mastering the Factories Act is less about legal theory and more about consistent execution.

Reference Table: Key HR & Admin Responsibilities Under the Factories Act

Conclusion--

Effective labour law compliance depends on how well HR operations, payroll, and business processes work together. When compliance is embedded into everyday workflows, organisations reduce risk, improve accuracy, and build sustainable governance systems. HR teams that prioritise integration over isolation are better positioned to manage compliance confidently and consistently.