Section 85 of Factories Act 1948 - Power to Apply the Act to Certain Premises

Section 85 empowered a State Government, by notification in the Official Gazette, to extend all or specified provisions of the Factories Act, 1948 to certain premises where a manufacturing process was carried on even though the ordinary worker-number threshold for a factory was not met or the persons working there were not employed by the owner.

Current legal position: The Occupational Safety, Health and Working Conditions Code, 2020 came into force on 21 November 2025. Section 143 of that Code repeals the Factories Act, 1948, subject to its saving provisions. Accordingly, Section 85 is reproduced and explained here principally for historical reference and for matters, notifications, actions, rights, liabilities or proceedings that may continue to be relevant under the applicable saving provisions. For a current matter, the OSHWC Code, applicable rules, State rules and notifications should also be checked.

Section 85 at a glance

It enabled the State Government to extend the Factories Act to specified premises by Gazette notification.
It could cover premises below the ordinary numerical threshold stated in the former Act.
It could also cover persons working with the owner's permission or under an agreement even if they were not employed by the owner.
The power did not extend to a manufacturing process carried on by the owner only with the aid of the owner's family.
Once notified, the premises were deemed a factory, the owner an occupier and persons working there workers for purposes of the Act.

Meaning and purpose of Section 85

The provision was an extension mechanism. It allowed the State Government to bring a place carrying on a manufacturing process within the regulatory framework of the Factories Act even where that place did not satisfy the ordinary employment threshold, or where the working arrangement did not take the form of direct employment by the owner.

The expression manufacturing process was defined in Section 2(k) of the Factories Act, 1948. The terms factory, worker and occupier were also defined in Section 2 of that Act. Section 85 operated by deeming the notified premises and persons to have the specified statutory status.

Text of Section 85 of the Factories Act, 1948

85. Power to apply the Act to certain premises.

(1) The State Government may, by notification in the Official Gazette, declare that all or any of the provisions of this Act shall apply to any place wherein a manufacturing process is carried on with or without the aid of power or is so ordinarily carried on, notwithstanding that -

(i) the number of persons employed therein is less than ten, if working with the aid of power and less than twenty if working without the aid of power, or

(ii) the persons working therein are not employed by the owner thereof but are working with the permission of, or under agreement with, such owner:

Provided that the manufacturing process is not being carried on by the owner only with the aid of his family.

(2) After a place is so declared, it shall be deemed to be a factory for the purposes of this Act, and the owner shall be deemed to be the occupier, and any person working therein, a worker.

Explanation. For the purposes of this section, owner shall include a lessee or mortgagee with possession of the premises.

How Section 85 operated

1. Gazette notification was required

The provision did not automatically convert every small manufacturing premises into a factory. The State Government had to exercise the statutory power through a notification in the Official Gazette identifying the application of all or specified provisions of the Act.

2. Premises below the former numerical threshold could be covered

Under the central text of Section 85(1)(i), the power could be used where fewer than ten persons were employed when power was used, or fewer than twenty persons where power was not used. State amendments could alter these figures.

3. Direct employment by the owner was not essential

Section 85(1)(ii) addressed arrangements in which persons working at the premises were not employed by the owner but worked with the owner's permission or under an agreement with the owner.

4. Family-only manufacturing was excluded

The proviso excluded a manufacturing process carried on by the owner only with the aid of the owner's family.

5. Legal effect of a notification

After a valid declaration, the place was deemed to be a factory for purposes of the Act. The owner was deemed to be the occupier and each person working there was treated as a worker. The Explanation enlarged the meaning of owner to include a lessee or a mortgagee in possession.

State amendments reproduced in the central compilation

Maharashtra

The Maharashtra amendment linked the figures in Section 85(1)(i) to any number of workers specified by the State Government under the corresponding clauses of the former Section 2(m). The central compilation cites Maharashtra Act 40 of 2015, Section 6.

Arunachal Pradesh

The Arunachal Pradesh amendment substituted twenty and forty for ten and twenty respectively in Section 85(1)(i). The central compilation cites Arunachal Pradesh Act 6 of 2020, Section 4.

Rajasthan

The Rajasthan amendment substituted twenty and forty for ten and twenty respectively in Section 85(1)(i). The central compilation cites Rajasthan Act 20 of 2014, Section 3.

Present law after commencement of the OSHWC Code

The Central Government appointed 21 November 2025 as the date on which the provisions of the Occupational Safety, Health and Working Conditions Code, 2020 came into force. The Code consolidates occupational safety and working-condition legislation and its repeal-and-savings provision is contained in Section 143.

For a present-day compliance question, readers should therefore examine the OSHWC Code, the rules and notifications applicable to the establishment, and relevant State provisions. Section 85 of the repealed Factories Act may nevertheless remain important when considering older notifications, past events, accrued rights or liabilities, proceedings, or other matters preserved by the saving provisions.

Official legal resources

For authoritative and updated material, refer to the India Code portal and the Ministry of Labour and Employment. The Ministry also publishes material relating to the Occupational Safety, Health and Working Conditions Code, 2020.

Note: This page is an informational legal reference. State amendments, rules, notifications and saving provisions can affect the position in a particular establishment or proceeding.