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IMC Group · Member Firm of Andersen Global
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LABOUR LAW COMPLIANCE

Factory compliance

Factories carry the heaviest compliance load and the highest penalties. We manage licences, approvals, safety obligations, registers and returns under the Factories Act and the OSH Code.

Factory Compliance
Professional sign-offon every deliverable
Governing lawOSH Code, 2020 + state rules
Factory threshold20+ workers with power, 40+ without
Key licenceFactory licence with periodic renewal
ReturnsAnnual and half-yearly (as per state)
QUICK ANSWER

What is factory compliance?

Factory compliance means meeting the obligations of the OSH Code, 2020 (which replaced the Factories Act, 1948) and the state factory rules: obtaining and renewing the factory licence, plan approval and stability certificates, ensuring health, safety and welfare facilities, managing working hours and leave, maintaining statutory registers, reporting accidents and filing annual and half-yearly returns.

OVERVIEW

How Paalan handles Factory Compliance

Manufacturing units must comply with the Factories Act, 1948 and state factory rules, now being subsumed under the Occupational Safety, Health and Working Conditions Code, 2020. Obligations span licensing, building plan approval, stability certification, health and safety, welfare facilities, working hours and detailed statutory records.

Paalan works alongside your plant HR and EHS teams to keep every factory licensed, documented and inspection-ready, whether you run one plant or many across states.

SCOPE OF SERVICES

What's included

Everything we take ownership of under Factory Compliance.

01

Licence & plan approval

Factory licence, renewal and amendment; building plan approval and stability certificates.

02

Safety & health

Safety committee, safety officer and welfare officer requirements; hazardous-process obligations.

03

Registers & records

Registers of adult workers, wages, leave with wages, overtime and accidents.

04

Returns

Annual and half-yearly returns under the state factory rules, filed on time.

05

Accident reporting

Timely notice of accidents and dangerous occurrences to the authorities.

06

Inspection support

Preparation for factory inspections and replies to inspection reports.

WHO NEEDS IT

Who needs Factory Compliance?

  • Manufacturing plants of every size
  • Pharma, chemical and hazardous-process units
  • Electronics, automotive and component manufacturers
  • Food processing and textile units
  • Companies setting up a new plant
Check what applies to you
KEY FEATURES

Why clients choose Paalan for Factory Compliance

Licence renewals tracked well ahead of expiry
Headcount and power triggers monitored for amendments
Welfare facilities checklist (canteen, crèche, first aid)
Women's night-shift safeguards reviewed
Works alongside your EHS and plant HR teams
Transition support to the OSH Code
KEY DUE DATES

Factory Compliance compliance calendar

Typical statutory timelines. Exact dates vary by state and notification, we maintain the calendar for each of your locations.

ActivityFrequencyDue date
Factory licence renewalAs per licence termBefore expiry
Annual returnAnnualCommonly by 31 January (varies by state)
Half-yearly returnHalf-yearly (where required)Commonly by 31 July
Accident noticeEvent-basedImmediately / within prescribed hours
RISK OF NON-COMPLIANCE

What happens if Factory Compliance is not managed well?

Operating without a licence

Running a factory without a valid licence is a serious offence that can lead to prosecution and closure.

Accident liability

Safety failures resulting in injury or death attract heavy penalties and personal liability for the occupier.

Record-keeping lapses

Incomplete registers and returns attract penalties even where working conditions are good.

HOW IT WORKS

Our process

Step 1

Assess

We study your entities, locations, headcount and existing records to map every obligation that applies.

Step 2

Plan

A location-wise compliance calendar and responsibility matrix, agreed with your team.

Step 3

Execute

Registrations, registers, returns and filings handled on time, every time, reviewed by a professional.

Step 4

Report

Regular status reports and an evidence file ready for auditors, inspectors and management.

FAQS

Factory Compliance: frequently asked questions

Can't find your answer? Our specialists are a message away.

Pricing on request

Fees depend on your entities, locations and headcount. Share your requirement for a tailored proposal.

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What counts as a "factory" under the law?

Under the OSH Code, 2020, a factory is premises where a manufacturing process is carried on with 20 or more workers using power, or 40 or more without power, up from 10 and 20 under the Factories Act, 1948. State rules govern the forms and procedures.

Do you cover hazardous-process units?

Yes. We handle the additional obligations for hazardous processes, working with your EHS team and technical experts where required.

Can you manage factories in multiple states?

Yes. We manage factories across states and consolidate their compliance status into one view for management.

Who is the "occupier" of a factory?

The occupier is the person with ultimate control over the factory's affairs, for a company, usually a director. The occupier carries personal responsibility for compliance.

Do hazardous-process factories have extra obligations?

Yes, including stricter approvals, safety officers, emergency plans, medical examinations and disclosures. We work with your EHS team on these.

Has the factory definition changed under the Labour Codes?

Yes. The threshold moved from 10 workers (with power) and 20 (without power) to 20 and 40 respectively.

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Need help with Factory Compliance?

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