Bihar Government promulgates Factories (Bihar Amendment) Ordinance, 2020 to increase the threshold of workers w.r.t applicability of Factories Act, 1948 in the State; effective since 2nd July, 2020

The Government of Bihar has promulgated the Factories (Bihar Amendment) Ordinance, 2020 (“Ordinance”) with a view to provide impetus to industrial and economic activities and offer new opportunities for Industrial investment in the State.

With the promulgation of the Ordinance, the following amendment has been brought about to the Factories Act, 1948 (“Act”) in the State with immediate effect since 2nd July, 2020.

 

Act Ordinance Implication
Section 2- Interpretation

(…)

(m) “factory” means any premises including the precincts thereof—

 

(i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or

 

(ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on,— but does not include a mine subject to the operation of the Mines Act, 1952 or a mobile unit belonging to the armed forces of the Union, railway running shed or a hotel), restaurant or eating place

 

(…)

 

Section 2- Interpretation

(…)

(m) “factory” means any premises including the precincts thereof—

 

(i) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or

 

(ii) whereon forty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on,— but does not include a mine subject to the operation of the Mines Act, 1952 or a mobile unit belonging to the armed forces of the Union, railway running shed or a hotel), restaurant or eating place

 

(…)

 

The Government has increased threshold limit for applicability of the Factories Act, 1948 in the following manner-

 

i. for premises wherein manufacturing process is being carried on with the help of power, the threshold has been increased to twenty workers. The earlier threshold was 10 workers.

 

ii. for premises wherein manufacturing process is being carried on without the help of power, the threshold has been increased to forty workers. The earlier threshold was 20 workers.

 

 

Background:

In light of the present situation wherein the COVID-19 pandemic has deteriorated the Industrial and economic activities in the State of Bihar, this move has been aimed at providing impetus to the Industrial and economic activities in the State and to provide new opportunities for Industrial investment in the State.

 

Source: Government of Bihar

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