If your factory employs 10 or more workers and uses power, or 20 or more workers without power, the Factories Act 1948 applies to you and you must hold a valid factory licence. This is Indian law. Operating without a licence or violating Act provisions carries penalties including imprisonment for the occupier.
10+
Workers using power = Factories Act applies
State licence
From State Inspector of Factories
Occupier
Named responsible person with legal liability
Your workplace is governed by the Factories Act and you have specific rights under it. Maximum working hours, mandatory rest intervals, overtime limits, health and safety provisions, and leave entitlements are all defined by law. Your employer must maintain registers recording your working hours and wages.
Max 9 hrs/day
48 hrs/week without overtime
Overtime
Double wage rate. Advance approval required.
Leave
Earned leave entitlement after 240 days
Quick reference. Factories Act 1948 — central legislation. State Factories Rules add state-specific provisions. Key sections: Section 6 (licence), Section 51-56 (working hours), Section 59 (overtime at double rate), Section 88 (accident notice to Inspector). Forms: Form 1 (licence application), Form 2 (licence), Form 25 (register of workers), Form 12 (attendance and wages). State rules may vary.
Central Act
1948, amended multiple times
State Rules
State-specific additions mandatory
Occupier
Legal liability for Act compliance
The Factories Act 1948 is India's central legislation governing the conditions of work in factories. It defines what constitutes a factory, requires registration and licensing, and specifies health, safety, and welfare provisions. Each state has enacted its own Factories Rules under the central Act, adding state-specific provisions.
1948
Factories Act enacted
State Rules
Each state has own rules
DGFASLI
Central technical authority
Mandatory for all factories with 10+ workers using powerFactory licence from State Inspector of FactoriesState-specific rules add to the central Act — check your state rules
What’s on this page
01 —What it isUnderstanding Factories Act 1948
Every factory with 10 or more workers must be licensed. Working hours, safety, and records are all governed by law.
The Factories Act 1948 is India's central legislation governing factory conditions. It applies to any premises where manufacturing processes are carried out with the involvement of workers and power. The Act defines the legal obligations of the "occupier" — the person in ultimate control of the factory — who is personally liable for Act compliance.
A factory licence from the State Inspector of Factories is required before operations begin. Annual renewal is mandatory. The licence specifies the maximum number of workers, the maximum HP of plant, and the manufacturing processes permitted.
Beyond the licence, the Act defines working hours, overtime rates, leave entitlements, health and safety provisions, and accident reporting obligations. Each state has enacted its own Factories Rules under the central Act, which can add state-specific provisions.
The occupier and manager are both personally liable. Under the Factories Act, both the occupier (person in ultimate control) and the manager (person responsible for day-to-day management) can be prosecuted for Act violations. This is not corporate liability — it is personal criminal liability.
👥 Illustrative case — details changed for confidentiality
A State Factory Inspector conducted a surprise inspection. They asked to see: the factory licence, working hours records for the last 3 months, overtime approvals, and accident/injury register.
The challenge
The factory licence was current. Working hours were being tracked on a paper muster roll — but overtime approvals were informal (WhatsApp messages) and the accident register had gaps for 6 weeks.
Where Clicarity came in
They had been using Clicarity to track production shifts. Shift handover records captured total workers, incidents reported, and supervisor sign-off. Overtime was logged as a custom field at shift close with the name of the approving manager. The inspector was shown 3 months of shift records with supervisor attribution and overtime approvals. The accident register gap was noted as a nonconformance — corrected within the 30-day period.
The result
No prosecution. 30-day corrective action completed. Factory licence renewed without issue.
The shift records in Clicarity gave us most of what the inspector asked for. The accident register was the one gap we couldn't explain away.
02 —Who needs itIs it right for you?
Do you actually need it? Honest answer.
✓ Applies to you
Any factory using power with 10 or more workers (including contract workers)
Any factory not using power with 20 or more workers
Seasonal factories as defined under the Act
∼ Check with State Inspector
Factories using power with fewer than 10 workers — some states have lower thresholds
Construction sites — separate BOCW Act provisions apply alongside Factories Act in some situations
— Factories Act does not apply
Mines (Mines Act 1952 applies)
Pure office and service establishments without manufacturing processes
Contract workers count. Workers employed through labour contractors are included in the worker count for Factories Act applicability. The Act also imposes specific obligations regarding contract workers under Section 21A.
03 —What it requiresWhat is checked
What a Factory Inspector checks — and what records must be maintained.
1
Valid factory licence, displayed at the premises
Factory licence obtained from the State Inspector of Factories, renewed annually, and displayed at a prominent location in the factory.
E.g. Licence showing maximum workers authorised, HP of plant, and permitted manufacturing processes. Displayed near the entrance.Most common violation: Licence expired. Annual renewal missed. Operating with a lapsed licence carries the same penalties as operating without one.
2
Registers of workers and attendance
Form 25 (Register of Workers) must be maintained. Attendance records showing daily working hours for every worker.
E.g. Daily attendance register with clock-in and clock-out times for every worker, including contract workers.
3
Working hours compliance
No adult worker may work more than 9 hours in a day or 48 hours in a week without overtime provisions. Spread-over must not exceed 10.5 hours.
E.g. If production requires extended hours, formal overtime approval with double-rate payment must be in place.Most common violation: Workers routinely working beyond limits with no overtime register or payment.
4
Overtime register with approvals
Overtime must be approved in advance, at double the ordinary rate. An overtime register must be maintained.
E.g. Overtime Register (Form prescribed by state rules) showing each worker, dates, hours, and payment at double rate.
5
Health registers — annual medical examination
Workers in processes involving hazardous substances must undergo annual medical examination. Health Register maintained.
E.g. Annual medical examination records for workers in chemical handling, welding, or other specified processes.
6
Accident and dangerous occurrence register
Every accident causing injury must be reported to the Inspector and recorded. Dangerous occurrences (as defined) must also be reported.
E.g. Accident Register with: date, nature of injury, worker details, root cause, and corrective action. Sent to Inspector within the prescribed time for serious accidents.Most common gap: Minor injuries not recorded, or report to Inspector not sent within the prescribed period.
7
Safety provisions in place
Guards on machinery, safety equipment, fire fighting apparatus, and first aid facilities as prescribed by the Act and state rules.
E.g. Machine guards on all moving parts. First aid box accessible in each section. Fire extinguisher serviced within last 12 months.
What inspectors really check
Factory Inspector visits — announced or unannounced — to inspect premises, review registers, and interview workers. First request: "Show me your factory licence and register of workers." They will also walk the floor checking safety provisions and interview workers about their working hours.
Gap analysis checklist — tick what you already have
Factory licence current and displayed at premises
Annual renewal not missed.
Register of Workers (Form 25) maintained — all workers including contract
Updated when workers join or leave.
Daily attendance register maintained for every worker
Clock-in and clock-out times recorded.
Working hours within legal limits — max 9 hrs/day, 48 hrs/week
Or overtime register maintained with approvals and double-rate payment.
Overtime register maintained with written approvals
Payment at double rate for all overtime.
Accident register maintained — all injuries recorded
Serious accidents reported to Inspector within prescribed period.
Machine guards on all moving parts
Inspected and confirmed.
First aid facilities accessible in each section
First aid box stocked and accessible.
0 of 8 complete
04 —Official bodyWho certifies in India
Who issues this in India — and how to verify it.
Factory licences are issued by the State Inspector of Factories in your state. The Factories Act 1948 is central legislation, but administration and inspection is a state subject. Each state has its own Factories Rules and its own State Inspector of Factories under the Labour Department.
Find your State Inspector of Factories through your State Labour Department. The DGFASLI (Directorate General Factory Advice Service and Labour Institutes) provides central technical guidance, but the State Inspector is your licensing authority.
DGFASLI — Factory safety guidance
Central technical authority. Guidelines on safety provisions and inspection standards.
Verify whether Factories Act applies: workers, power usage.
Step 2
Apply for factory licence
Apply to State Inspector of Factories before commencing operations. Forms vary by state.
Step 3
Implement registers
Register of workers, attendance, overtime, accident, and health registers.
Step 4
Safety provisions
Machine guards, first aid, fire fighting apparatus as per state rules.
Step 5
Annual renewal
Factory licence renewed annually before expiry.
Ongoing
Inspector visits
Maintain records continuously. Inspector can visit at any time.
▶Where to begin: Use the checklist in Section 3 to assess your readiness before contacting any CB.
Factory licence
Annual renewal
Obtained from State Inspector of Factories. Renewed every year.
Max working hours
9 hrs/day, 48 hrs/week
Overtime at double rate. Inspector checks attendance registers.
Accident reporting
Within prescribed period
Serious accidents must be reported to Inspector within the period set by state rules.
Personal liability
Occupier and manager
Both personally liable for Act violations. Criminal prosecution possible.
State rules vary significantly. The central Factories Act sets the floor. Your state's Factories Rules can add requirements. Always verify with your State Inspector or a qualified labour law advisor for your specific state and industry.
06 —Find certified companiesHow to verify
How to find and verify certified organisations.
Factory licences in India are state-specific. To verify whether a specific factory holds a valid licence, contact the State Inspector of Factories in the relevant state. No central national registry exists for all factory licences.
How to verify: To confirm whether any organisation holds a current Factories Act 1948 certification, use the official register. Verify the issuing CB's accreditation at nabcb.qci.org.in.
Verify whether Factories Act applies to your premises
Workers + power usage determines applicability. If yes: apply for licence before operations begin. Operating without a valid licence is a criminal offence.
Set up the four mandatory registers and start filling them today
Register of Workers, Attendance Register, Overtime Register, Accident Register. These are the first four documents an Inspector asks for. If they don't exist or are incomplete, the inspection result is poor.
3
Check your state's Factories Rules for additions to the central Act
Download your state's current Factories Rules. State-specific provisions on health, safety, and welfare may add to what the central Act requires.
08 —How Clicarity fitsProcess tracking
Good records are the foundation. A process tracker builds them automatically.
Clicarity — Live Job Process Tracker & Bottleneck Identifier
Clicarity doesn't manage your Factories Act compliance. It tracks your production shifts — and that tracking creates the shift records, overtime logs, and handover notes that Factory Inspectors ask for.
The Factories Act 1948 requires factories to maintain records of working hours, overtime approvals, safety inspections, and accident investigations. In Clicarity, every shift is a job. Shift start, machinery check, production run, and shift handover are stages with custom fields capturing safety checks, supervisor names, and incident reports. When a shift runs two production lines simultaneously, each line is tracked as a sub-job. When the shift closes, the complete record of both lines — including any incidents or near-misses — is preserved in one shift record.
Shift supervisor name captured at shift start via dropdown — every shift attributed to a named responsible person, the attribution Factory Inspectors ask for.
Machinery pre-use check at the start of every job: safety guards confirmed, emergency stop tested, operator named. The daily safety check record your factory requires.
Overtime captured at shift close with name of approving manager — the written overtime approval record the Factories Act requires.
Shift handover stage captures: incidents and near-misses reported that shift — building the accident register record as part of normal shift operations.
📄 Job tracked in Clicarity
#WO-9920 — Production work order — Shift A
Shift started
▼Shift supervisor
📅Date
▼Shift
✎Total workers on shift
▼Safety briefing done
→
Machinery pre-use check
▼Operator
▼Machine no.
▼Safety guards in place
▼Emergency stop tested
▼Check done by
→
Raw material issue
✎Material type
#Qty issued
▼Issued by
▼PPE confirmed by operator
▼Hazardous material
→
Production in progress
#Qty produced
▼Operator
▼Machine no.
#Downtime (min)
✎Downtime reason
▼ Job splits — each component tracked independently
#WO-9920-A
Line 1 — Product A
▼Supervisor
#Qty
▼Safety clear
#WO-9920-B
Line 2 — Product B
▼Supervisor
#Qty
▼Safety clear
▲
Components rejoin as #WO-9920 — complete record of every branch, every data point, every sign-off preserved.
In-process inspection
▼Inspector
#Sample size
▼Pass / Fail
✎Defects noted
📷Photo
→
Shift handover
▼Outgoing supervisor
▼Incoming supervisor
#Total qty produced
✎Incidents or near-misses
📅Handover time
→
Shift close
#Overtime hours
▼Overtime approved by
✎Machinery issues noted
▼Area cleaned and cleared
Wastage tracked:▰ Machinery pre-use check: safety guard and emergency stop verified at stage▰ Shift handover: incident and near-miss record captured at handover▰ Overtime: approved by name — Factories Act working hours compliance
ⓘ Fields and stage names are fully customisable. This illustrates a typical factory / Factories Act 1948 compliance setup.
👥 Illustrative case — details changed for confidentiality
A State Factory Inspector conducted a surprise inspection. They asked to see: the factory licence, working hours records for the last 3 months, overtime approvals, and accident/injury register.
The challenge
The factory licence was current. Working hours were being tracked on a paper muster roll — but overtime approvals were informal (WhatsApp messages) and the accident register had gaps for 6 weeks.
Where Clicarity came in
They had been using Clicarity to track production shifts. Shift handover records captured total workers, incidents reported, and supervisor sign-off. Overtime was logged as a custom field at shift close with the name of the approving manager. The inspector was shown 3 months of shift records with supervisor attribution and overtime approvals. The accident register gap was noted as a nonconformance — corrected within the 30-day period.
The result
No prosecution. 30-day corrective action completed. Factory licence renewed without issue.
The shift records in Clicarity gave us most of what the inspector asked for. The accident register was the one gap we couldn't explain away.
Clicarity is a process tracking tool. It does not provide certification, consulting, or audit services.