payment of bonus act


This query is : Resolved 

(Querist)
16 October 2010 please tell me difference between factory and establishment

Ajay Mishra (Expert)
16 October 2010 Hi


Section 2(15), 2(16) and 2(17) of Payment of Bonus Act, 1965 deal with the definitions of establishment and factory. These Act not provide detail of factory and any majoy difference of factory and establishment.

Factory means


1. A building or group of buildings in which goods are manufactured; a plant.
2. A vessel in which newly caught seafood is prepared for shipment and sale: a floating fish factory.
2. A business establishment for commercial agents or factors in a foreign country.
3. The source of prolific production: a rock group that was a hit-tune factory; a motel that served as an illegal drug factory.

A place of production characterized by wage labor, the use of machinery, and the division of labor. The large-scale use of machinery differentiates factory production from simple manufacture, and the division of labor sets it apart from even the most elaborate handicraft establishments. Standardized goods are produced and sometimes sold more cheaply by the factory system, and occasionally the goods are better than those made by artisans. The factory system makes possible huge increases in output per man-hour though at the same time division of labor deprives individual workers of much of their sense of creativity.

factories are defined as those establishments where 10 or more workers are employed using energy and also where 20 or more workers are employed without any use of energy to any manuacturing activity which incleds alteration of raw material etc into a new produsts and relevat conditions under the factories act. a compnay has to be registered as a factory if it is engaged in any manufacturing activity. so if registered as a factory it shall be sued under the relevant labour laws.but if not registered as a factory it may still be sued under relevant applicable labour laws.


Establishment Means

Establishment is an economic unit that produces or sells goods or services and operates from a single physical location. If a firm has several such locations , each is termed as establishment.


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