Section 7 of the Factories Act 1948: Notice by Occupier
Section 7 requires the occupier of a factory to give prescribed advance information to the factory inspectorate. It covers the initial notice before premises are occupied or used as a factory, special notice for certain seasonal factories, notice when a new manager takes charge, and the person deemed to be manager when no designated manager is actually managing the factory.
Key requirements under Section 7
| Primary duty | The occupier must send a written notice to the Chief Inspector before beginning to occupy or use premises as a factory. |
|---|---|
| Normal time limit | At least 15 days before occupation or use as a factory. |
| Seasonal factory | Where the manufacturing process is ordinarily carried on for less than 180 working days in a year, notice is required at least 30 days before work resumes. |
| New manager | Written notice to the Inspector, with a copy to the Chief Inspector, within 7 days after the new manager takes charge. |
| No effective manager | A person found acting as manager is deemed to be manager; if no such person is found, the occupier is deemed to be manager. |
Important definitions connected with Section 7
Occupier - Section 2(n)
For the purposes of the Factories Act, an occupier is the person who has ultimate control over the affairs of the factory. Section 2(n) also contains deeming provisions for a firm or association of individuals, a company, and a factory owned or controlled by the Central Government, a State Government or a local authority.
Factory - Section 2(m)
A factory generally means premises, including the precincts, where the statutory worker threshold is met and a manufacturing process is carried on with the aid of power or is ordinarily so carried on, or where the higher statutory worker threshold is met and a manufacturing process is carried on without the aid of power or is ordinarily so carried on. The definition also contains statutory exclusions.
Manufacturing process - Section 2(k)
The expression manufacturing process is defined broadly and includes the processes specifically listed in Section 2(k), such as making, altering, repairing, finishing, packing, oiling, washing, cleaning, breaking up or otherwise treating or adapting an article or substance for its use, sale, transport, delivery or disposal, together with the other processes expressly covered by that provision.
Section 7 - Notice by occupier
(1) At least fifteen days before beginning to occupy or use any premises as a factory, the occupier must send the Chief Inspector a written notice containing:
- the name and situation of the factory;
- the name and address of the occupier;
- the name and address of the owner of the premises or building, including its precincts, referred to in Section 93;
- the address to which communications relating to the factory may be sent;
- the nature of the manufacturing process:
- carried on during the preceding twelve months, for a factory existing when the Act commenced; and
- to be carried on during the next twelve months, in the case of all factories;
- the total rated horse power installed or proposed to be installed, excluding the rated horse power of a separate stand-by plant;
- the name of the manager of the factory for the purposes of the Act;
- the number of workers likely to be employed;
- for a factory existing when the Act commenced, the average number of workers employed per day during the preceding twelve months; and
- any other particulars prescribed by the applicable rules.
(2) Establishments which came within the scope of the Act for the first time were required to send the notice containing the particulars specified in sub-section (1) within thirty days from commencement of the Act.
(3) Before a factory whose manufacturing process is ordinarily carried on for less than one hundred and eighty working days in a year resumes work, the occupier must send the Chief Inspector a written notice containing the particulars specified in sub-section (1) at least thirty days before commencement of work.
(4) Whenever a new manager is appointed, the occupier must send the Inspector a written notice, and a copy to the Chief Inspector, within seven days from the date the new manager takes charge.
(5) If no person has been designated as manager, or the designated person does not manage the factory, a person found acting as manager is deemed to be the manager. If no such person is found, the occupier is deemed to be the manager for the purposes of the Act.
What should an occupier check before filing the notice?
The occupier should identify the competent factory inspectorate under the applicable State law and rules, use the prescribed form where one exists, and ensure that the particulars relating to ownership, manufacturing process, installed power, manager and expected workforce are accurate. Section 7 expressly allows prescribed particulars to be required in addition to the items stated in the central Act.
Relationship with Section 6
Section 7 should be read with Section 6 of the Factories Act - Approval, licensing and registration of factories. Section 6 empowers the State Government to make rules concerning approval of sites and plans, licensing and registration. Compliance with the notice requirement under Section 7 does not by itself replace separate approval, registration or licensing obligations applicable under Section 6 and the relevant State rules.
Amendment notes reflected in Section 7
The statutory text records that clause (bb) was inserted by Act 25 of 1954; clause (e) was substituted by Act 94 of 1976; the thirty-day wording in sub-section (3) was substituted by Act 40 of 1949; and the notice wording concerning a new manager in sub-section (4) was substituted by Act 25 of 1954.
Official reference: India Code - The Factories Act, 1948. Readers should also check the applicable State Factories Rules and State amendments for forms, filing procedure and local requirements.