Factories Act, 1948 - Chapter I

Section 4 Factories Act 1948 - Power to Treat Departments as Separate Factories or Factories as One

Section 4 gives the State Government a special power to alter how factory units are treated for the purposes of the Factories Act, 1948. It may separate departments or branches of one factory, or treat two or more factories of the same occupier as a single factory, subject to a written order and appropriate conditions.

Act: Factories Act, 1948 Act No.: 63 of 1948 Section: 4 Position covered: Before 1 July 2024

Section 4 of the Factories Act, 1948

Power to declare different departments to be separate factories or two or more factories to be a single factory

The State Government may, on its own or on application made in this behalf by an occupier, direct, by an order in writing and subject to such conditions as it may deem fit, that for all or any of the purposes of the Act different departments or branches of a factory of the occupier specified in the application shall be treated as separate factories, or that two or more factories of the occupier specified in the application shall be treated as a single factory.

Proviso: No order under Section 4 may be made by the State Government on its own motion unless an opportunity of being heard is given to the occupier.

Section 4 is an enabling provision. It allows the legal treatment of a factory or group of factories to be adjusted where the ordinary unit-by-unit approach does not appropriately reflect the organisation of the manufacturing establishment.

Meaning and scope of Section 4

The section creates two distinct powers. First, different departments or branches of one factory may be treated as separate factories. Second, two or more factories belonging to the same occupier may be treated as a single factory.

The direction must be made by the State Government through an order in writing. The Government may make the direction applicable for all purposes of the Act or only for specified purposes, and it may impose conditions considered appropriate.

Key point: Section 4 does not automatically split or combine factories merely because their operations are separate or connected. The statutory treatment follows from a State Government order made under the section.

Important legal terms connected with Section 4

Factory - Section 2(m) A "factory" broadly means premises, including the precincts thereof, where the statutory worker threshold is met and a manufacturing process is carried on with the aid of power, or where the higher statutory worker threshold is met and a manufacturing process is carried on without the aid of power, subject to the exclusions and explanations in Section 2(m).
Occupier - Section 2(n) The "occupier" is the person who has ultimate control over the affairs of the factory, subject to the statutory deeming provisions applicable to firms, companies and factories owned or controlled by Government or a local authority.
Manufacturing process - Section 2(k) The expression covers the activities specifically listed in Section 2(k), including making, altering, repairing, finishing, packing, washing, cleaning or otherwise treating an article or substance with a view to its use, sale, transport, delivery or disposal, together with the other processes specified by that clause.
State Government Section 4 places the decision-making power in the State Government. The order must therefore be a governmental order under the statutory power, rather than a unilateral classification by the occupier.

Requirements for an order under Section 4

An order under Section 4 may originate in either of two ways: an application by the occupier, or action by the State Government on its own motion. In either case, the resulting direction must be in writing.

1. Application by the occupier

An occupier may request that specified departments or branches be treated separately, or that two or more factories of that occupier be treated as one. The application should identify the units concerned and the treatment sought so that the Government can consider the request under Section 4.

2. Action on the State Government's own motion

The State Government may initiate action without an occupier's application. However, the proviso expressly protects the occupier by requiring an opportunity of being heard before an own-motion order is made.

3. Written order and conditions

The power is exercised by an order in writing. The State Government may attach conditions and may confine the order to all or only some purposes of the Factories Act.

Effect of treating departments separately or factories as one

The practical consequence depends on the terms of the Government's order. A department or branch treated as a separate factory may be dealt with as a distinct factory for the purposes identified in the order. Conversely, factories treated as a single factory may be considered together for the purposes specified in the order.

Because Section 4 expressly permits an order to operate for "all or any" purposes of the Act, the exact legal effect should be determined from the wording of the particular order and any conditions attached to it. Section 4 should therefore be read together with the relevant provisions governing approval, licensing, registration, notice by occupier, health, safety, welfare and other obligations under the Act.

Amendment history relevant to Section 4

The provision was substituted by Act 25 of 1954. The Factories (Amendment) Act, 1987 further changed Section 4 with effect from 1 December 1987 by introducing the State Government's own-motion power, expressly allowing conditions to be imposed, and adding the proviso requiring an opportunity of hearing before an own-motion order.

AmendmentRelevant effect on Section 4Effective date
Act 25 of 1954Substituted Section 4.7 May 1954
Act 20 of 1987Added own-motion power, power to impose conditions and hearing proviso.1 December 1987

Frequently asked questions

What does Section 4 of the Factories Act, 1948 permit?

It permits the State Government to treat different departments or branches of a factory as separate factories, or two or more factories of the same occupier as a single factory, for all or any purposes of the Act.

Can the State Government exercise Section 4 without an occupier's application?

Yes. It may act on its own motion, but it must give the occupier an opportunity of being heard before making such an order.

Must an order under Section 4 be in writing?

Yes. The section expressly requires an order in writing.

Can the State Government impose conditions?

Yes. Section 4 permits the State Government to make its order subject to such conditions as it deems fit.

Does a Section 4 order have to apply to the entire Factories Act?

No. The statutory words "for all or any of the purposes of this Act" allow the order to operate for all purposes or only specified purposes.

Legal note: This article explains Section 4 of the Factories Act, 1948 on the legal position applicable before 1 July 2024. It is intended for general legal information and should be read with the applicable State rules, notifications and any specific order issued under Section 4.