Factories Act 1948: Key Provisions, Rules & Employer Responsibilities

The Factories Act, 1948 was the Indian law that regulated health, safety, welfare, working hours and leave for factory workers. Its main rules covered a 48-hour week, a nine-hour day, double-rate overtime, cleanliness, machinery safeguards, canteens and creches above set headcounts, and annual leave. Important update: the Act was repealed on 21 November 2025, when its subject matter moved into the Occupational Safety, Health and Working Conditions (OSH) Code, 2020. Employers must now comply with the OSH Code and its rules, though the Act's principles remain the foundation of factory compliance. Check your state rules, as details are still settling.

Where the Factories Act, 1948 Stands Today

Many guides still describe the Factories Act as if it applies unchanged. It does not. India brought four labour codes into force on 21 November 2025, and the OSH Code absorbed thirteen central laws, including this one. Existing factory licences generally remain valid until they expire, with renewal handled under the new code and state rules.

So why does the Factories Act, 1948 still matter? Because the OSH Code carries forward its core ideas, state rules are still being aligned, and most factory HR practices were built around it. Understanding the old framework is the quickest way to understand the new one. Always confirm the current threshold and rule with your state labour department.

Key Provisions Under the Factories Act, 1948

Health

Factories had to be kept clean, with proper ventilation, temperature control, drinking water, lighting, toilets and arrangements for waste and dust.

Safety

Employers had to fence dangerous machinery, maintain hoists and lifts, protect eyes and lungs where needed, provide fire exits and keep safety equipment in working condition.

Welfare

Larger factories had to provide washing facilities, first-aid boxes and rest areas. Canteens applied above 250 workers, creches above 30 women workers, and a welfare officer above 500 workers.

Working hours

Adult workers could work up to 48 hours a week and nine hours a day, with rest intervals and a limit on spread-over time. Overtime was paid at twice the ordinary rate.

Annual leave with wages

Adult workers earned one day of leave for every twenty days worked, subject to the qualifying rules.

Registers and records

Factories kept registers for attendance, overtime, leave and accidents, and had to make them available to inspectors.

What Changed Under the OSH Code

The OSH Code simplifies registration and licensing into a single framework and covers safety, health and working conditions more broadly. It also removes the blanket restriction on women working night shifts, replacing it with conditions around consent and safety arrangements. Contract labour thresholds were raised as well. Because several details are left to rules, which can vary by state and are still settling, treat any summary, including this one, as a starting point and check the latest notifications.

Employer Responsibilities in Practice

Regardless of the statute name, factory employers still need to:

• Keep accurate daily attendance and hours worked
• Pay overtime correctly and track it by worker
• Maintain leave balances and honour entitlements
• Record accidents and near misses
• Provide the required welfare facilities
• Keep registers ready for inspection
• Train workers on safety procedures

The biggest practical risk is not ignorance of the law. It is poor records. When an inspector asks for last quarter's overtime register and the answer lives in five spreadsheets, a technical gap becomes a compliance finding.

Handling Factory Compliance With OfficePortal

For manufacturing teams, the daily record trail is the compliance trail. OfficePortal's attendance tracking software captures check-ins through biometric, QR, GPS or web methods and tracks work hours and overtime. Employee shift scheduling software helps plan rotating shifts and avoid excess hours, and employee timesheet software supports time tracking with approvals.

Leave entitlements and balances are managed in the leave management system, so annual leave records match what payroll pays. Plants can see how this fits together on our page for manufacturing HR software.

For a wider view of the obligations around it, read our guide to statutory compliance meaning and the HR checklist, and our explainer on shift rosters and scheduling for planning rotas that respect hour limits.

A Practical Compliance Checklist

1. Confirm which code and state rules apply to your site.
2. Check that your licence and registrations are valid and note renewal dates.
3. Audit attendance, overtime and leave records monthly.
4. Review safety training and accident logs each quarter.
5. Keep documents in one searchable place, not in cupboards.

Conclusion

The Factories Act, 1948 shaped factory working conditions for more than seventy years, and its principles continue inside the OSH Code. The safest approach for employers is to keep clean, auditable records of hours, overtime and leave. OfficePortal brings those records together in one platform. See how OfficePortal tracks attendance and overtime with a free account for up to five users.