Industry · Manufacturing & factories
Compliance for manufacturers and factories
A factory answers to several duties at once: the licence, the registers behind it, the contractors at the gate and the consents for the site. We keep each of them current, plant by plant, under the OSH Code.
- Factory licences and renewals
- Contractors checked at the gate
- PF and ESI for the plant
- EHS consents and returns
The licence-to-contractor map
From the factory licence to the contractor at the gate
Under the OSH Code, one common licence can cover the factory and the contract workers it engages. Below the licence sit three sets of duties: your own workforce, your contractors and the site itself.
At the top
The factory licence
A unit is a factory when 10 or more workers work with the aid of power, or 20 or more without. A licence issued under the Factories Act stays valid for its period, then has to be obtained afresh under the Code.
Licences & registrationsBranch 01
Your workforce
On your rolls, in your plant.
- Registers of work, hours, wages, leave, overtime and attendance
- A correct notice of periods of work on display
- An appointment letter for every employee
- PF and ESI by the 15th, PT and LWF by state
- A canteen at 100 workers, contract labour included
Branch 02
Your contractors
On their rolls, on your premises.
- A licence for every contractor engaging 20 or more
- Entry and exit of each contract worker recorded
- Wages paid by the 7th, by bank transfer
- EPF and ESI challans checked every month
- Principal employer certificate amended as contractors change
Branch 03
Your site
The plant, its machines and its waste.
- Pollution Control Board consents under the Air and Water Acts
- Fire NOC, DG set approval and lift licence
- Hazardous waste authorisation and its annual return
- Accidents and dangerous occurrences notified
- Safety officers at 500 workers, or 250 in a hazardous process
What applies
The obligations a factory carries
Which of these apply depends on your headcount, your processes and the state's rules. Each one names the law it comes from and the service that handles it.
- 01
Factory licence
OSH Code, 2020Needed once a unit crosses the factory threshold. Plan approvals and stability certificates come first, and renewals have to be filed before the licence runs out.
Licences & registrations - 02
Registers, returns and notices
OSH Code, 2020Registers of work, hours, weekly rest, wages, leave, overtime and attendance, returns on the state's calendar, and statutory abstracts on display.
Factory compliance - 03
Accidents and dangerous occurrences
OSH Code, 2020A death, or an injury that keeps a worker away for 48 hours or more, must be notified to the authorities. Dangerous occurrences are notified even when nobody is hurt.
Factory compliance - 04
Welfare facilities
OSH Code, 2020A canteen where 100 or more workers are ordinarily employed, contract labourers counted, and a crèche where more than 50 are. These facilities must serve contract workers too.
Factory compliance - 05
Contract labour
OSH Code (formerly CLRA)The contract labour provisions apply from 20 contract workers, and a contractor engaging 20 or more needs a licence. Contract labour in core activities is prohibited, except where the Code allows it.
Contractor & vendor compliance - 06
PF, ESI, PT and LWF
Code on Social Security, 2020 and state lawsContributions are due by the 15th of the following month, on wages as the Labour Codes define them. Professional Tax and Labour Welfare Fund follow each state's calendar.
PF & ESI compliance - 07
Environment and safety approvals
Air, Water and EP Acts; OSH CodePollution Control Board consents, a hazardous waste authorisation with its annual return, a Fire NOC, and DG set approval where there is a generator.
EHS compliance - 08
Standing orders
Industrial Relations Code, 2020Required from 300 workers, up from 100 under the Industrial Employment (Standing Orders) Act, 1946, which the Code replaced.
Labour Codes advisory
Common risks
Where factories usually slip
Most factory problems start small: a renewal left late, a contractor nobody checked, a notice that describes a repealed law.
Mistake 01 of 05
Running on a lapsed licence
Renewal needs plan approvals and stability certificates, and gathering them takes time. Start late and the factory can end up working on a lapsed licence.
How we prevent it
We watch renewal dates, organise the documents early and follow the application until it is approved.
Licences & registrations
On the plant
Checked at the gate, kept in the office
Our work happens where the records are made: at the gate where contract workers sign in, and in the office where the registers are kept.
- Establishments and factories covered
- 250+
- Audits done
- 5,000+
- Employees under our compliance management
- 3,500+
- Challans and returns filed every month
- 300+
Our ISO 9001:2015 certificate (QMS/2834/1026) names Labour Law Compliance, PF & ESI and Business Licensing in its certified scope.
Services that apply
The services that cover a factory
Each card opens the service page with the full scope, the forms and the questions employers ask.
Factory compliance
Licence, registers, returns, inspections and accidents, for each plant.
Contractor & vendor compliance
Each contractor's licence, wages, PF and ESI, checked from the gate.
EHS compliance
Pollution Control Board consents, Fire NOC and hazardous waste returns.
PF & ESI compliance
Monthly ECR and ESI challans for your own workforce, paid by the 15th.
Licences & registrations
The factory licence obtained, amended, renewed and, when needed, closed.
Compliance risk audits
A plant-wide audit, with each gap rated for financial and prosecution risk.
FAQ
Questions about factory compliance
Can't find your answer? Ask us on WhatsApp and we'll reply within 2 working hours.
Is the Factories Act still in force?
No. The Factories Act, 1948 was replaced by the OSH Code on 21 November 2025. Central rules were notified on 8 May 2026 and states are still notifying theirs. Rules made under the old Act continue where they do not conflict with the Code, until they are replaced.
When does a manufacturing unit count as a factory?
When 10 or more workers work there with the aid of power, or 20 or more without it, on any day in the preceding 12 months. Workers in every shift that day are counted. If a state's earlier law set a different number, that number continues in the state until it is amended.
Can one licence cover the factory and our contractors?
Yes. Under the OSH Code, a common licence can cover the factory and the engagement of contract workers. If the authority does not act within 45 days, the licence is deemed issued. A licence issued under the Factories Act stays valid for its period and is then obtained afresh under the Code.
Are we responsible for our contractors' workers?
As principal employer, yes. If a contractor pays wages late or short, you pay the balance and recover it from the contractor. You remain liable for EPF and ESIC if the contractor defaults, and the canteen, washrooms, drinking water and first aid must serve contract workers too.
What do we owe workers recruited from another state?
An inter-state migrant worker, earning up to ₹18,000 a month or a higher notified amount, is owed the same benefits as other workers, including ESI and PF. The employer pays a yearly lump sum for the journey home and back. A fatal accident or serious injury is reported to the authorities of both states and to the worker's next of kin.
Which environment and safety approvals does a factory need?
Typically Pollution Control Board consents under the Air and Water Acts, a Fire NOC, DG set approval and a lift licence where there are lifts. A site that generates hazardous waste needs an authorisation and files an annual return. Electronics manufacturers also need e-waste registration.
How often should a factory be audited, and what does it cost?
Once a year or once a quarter, depending on the factory's size and risk. The audit checks labour law, safety and statutory requirements, lists the gaps and recommends corrective action. For our fee, send us an enquiry with the number of plants, their states, your headcount and your contractors.
Enquiry
Talk to a compliance expert
Share your states and headcount, and we will get back to you within 2 working hours.
- Call+91 98457 40938
- WhatsApp+91 98457 40938
- Emailinfo@nkonehrsolutions.com
- Head office, Bengaluru1163, 9th Main, 11th A Cross, Nagapura, Mahalakshmipuram, near Rajajinagar Metro Station, Rajajinagar 1st Block, Bengaluru, Karnataka 560086
