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Gujarat issues Ordinance to increase the threshold for applicability of the Factories Act from 10 to 20 and from 20 to 40 - permits compounding of offences   Jul 20, 2020

The provisions of the Factories Act 1948 apply to a manufacturing unit employing 10 or more workers where manufacturing activity is carried on with the aid of power and units having 20 or more employees where manufacturing is carried on without the aid of power


The Government of Gujarat, has issued an ordinance increasing the threshold of 10 to 20 and 20 to 40 citing  increase in manufacturing activities by small units in the State, so that establishing of small manufacturing units be promoted resulting in creation of more employment opportunities for workers. 


The Factories Act, 1948 does not provide for compounding of offences and it results in higher number of prosecution cases. For speedy disposal of offences and to minimise the number of litigation, a new provision, i.e. section 106B is inserted in the said Central Act of 1948 for compounding of offences  


Copy fo the Ordinance is attached    

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