Premise Liability under the Factories Act, 1948

The Factories Act, 1948 regulates the conditions of work, i.e., safety, health & welfare of the workers in factories. It safeguards the interest of the workers.  Worker, in the context of a factory, means any person who is employed in any manufacturing process or in premises used for manufacturing process or in any other kind of work incidental to or connected with the manufacturing process. It is immaterial whether the person is employed directly or by or through any agency including a contractor with or without knowledge of the employer, whether for remuneration or not. The law provides for presumption of employment in favour of any person who is found in a factory at any time, except during intervals for meals or rest, when work is going on or machine is in motion. Such person is deemed to be to have been, at that time, employed in the factory. This generates premise liability of occupier or manager in respect of the factory and the Occupier or Manager is responsible for any mishap that takes place inside the premises in respect of any person found inside the factory premises. Compliance concerns in this regard become crucial and it is imperative for the factory to conduct periodic audit to mitigate exposure to legal and financial risks.