Date : 25-10-2017

CIRCULAR No.113/2017ToAll Members of the Association

Sub: AMENDMENT TO KARNATAKA FACTORIES RULES, 1969

The Govt. of Karnataka in exercise of powers conferred on it under Section 112of the Factories Act, 1948 have made amendment to the Factories Rules byNotification No. LD/5/ KABESE/ 2016 dated 11.10.2017. The copy of thenotification is enclosed for the information of members.

1. Details of the amendment are as under :

1.1 Amendment to Rule-3 � Approval of Site, construction or extension ofFactory:

Sub-rule 3(2) stands amended and the amended sub-rule reads as under:

�Application for permission under Sub-Rule (1) shall be made in FormNo.1, in triplicate, or through Department on line portal e-Surakshatealong with a fee of Rupees two hundred and fifty only for factoriesemploying up to 500 workers and Rupees five hundred for factoriesemploying above 500 workers and shall be accompanied by the followingdocuments, namely, (a) ,�� (b) ���.. (c) ����. [words shown inbold letters have been inserted by way of amendment].

1.2 New Sub-rule (9) has been inserted to Rule 3 and the same reads asunder:

�(9) - No manufacturing process shall be carried out in any premises ofa factory unless a fresh certificate to stability in Form 1A is obtained froma competent person possessing a degree in Structural or Civil engineering,once in every five years�.

1.3 Amendment to Rule 3A � Recognizing a Competent Person:

Sub-Rule (1) of the Rule 3A has been amended and the amended sub rulereads as under :

KARNATAKAEMPLOYERS' ASSOCIATIONNO.74, 2nd FLOOR, SHANKARA ARCADE, VANIVILAS ROAD, BASAVANAGUDI

BENGALURU - 560 004Reg. No. TU 507 / 20-3-1962

� Off : 26613091 / 2660716742103360 / 26761877

Email : kea@kea.co.inWeb : www.kea.co.in

(1) Every person or institution who is desirous of getting recognized as acompetent personal shall make an application in Form No.1-B or 1-C asmay be appropriate to the Chief Inspector who shall register suchapplication and shall, within a period of 60 days from the date of receiptof such application, either recognize the applicant as a competent personand issue certificate in Form No.1-D (for a period of 12 months).

�Provided that no person or institution is eligible to be certified ascompetent person, unless he or persons employed in such institutionis within the age of 62 years and possess the qualification of Degreein Mechanical or Electrical or Metallurgical or prescribed by theCentral Government and experience specified by the Chief Inspectoror Central Government in this regard�. [ inserted by amendment].

1.4 Sub-Rule (2) of Rule 3A stands amended and the amended sub rule readsas under :

�Every application for recognition or renewal as competent person inForm No.1-B or 1-C as the case may shall be accompanied by a treasurychallan or online credit to the head of account of the department forhaving credited fees as specified in the table below: [words shown inbold letters are the amendments].

Table-C attached to Rule 3-A (2) stands amended and the amended tableis given in page-2 of the notification dated 11.10.2017.

1.5 A new Sub rule (5) has been added to Rule 3-A and the amendedprovision reads as under :

�The Occupier of every factory shall submit to the Chief Inspector orjurisdiction officer an application in Form 2 (in triplicate) or throughdepartmental portal e-surakshate for registration of factory and grant oflicense along with the list of Partners or Directors.

1.6 Amendment to Rule 5 � Grant of Licence:

Sub-Rule (1) of Rule 5 which contains the provisions for payment oflicense fees stands amended and the amended table A and B are givenin page-3 and 4 of the notification dated 11.10.2017.

1.7 Sub-Rule (2) of Rule 5 has been amended to read as under :

�A license may be granted or renewed under this chapter for such periodnot exceeding ten years at a time, as may be specified at the time ofsuch grant or renewal. [words shown in bold letters are the amendments].

1.8 Amendment to Rule 6 � Amendment of Licence:

Sub-Rule (3) of Rule 6 stands amended and the amended Rule reads asunder:

�Sub-Rule (3) : The fee for amendment of license shall be Rupees fivehundred per change plus the amount, if any, by which the fee that wouldhave been payable if the license had originally been issued in the amendedform exceeds the fee originally paid for the license.

1.9 Amendment to Rule 7 � Renewal of Licence:

Sub Rule (2) of Rule 7 is amended to read as under :

�Every application for renewal shall be made in Form 2(in triplicate) orthrough department online portal �e-surakshate�. Such application shallbe made not less than two months before the date on which the licenseexpires.

1.10 Sub Rule (5) of Rule 7 stands amended and the amended rule reads asunder:

�(5) Licensee may surrender his license temporarily due to closure duringthe ensuing year not less than two months on which the license expires,for claiming exemption from renewal of license by post or throughdepartment online on the department website �e-surakshate�.

1.11 Amendment to Rule 8 � Transfer of Licence:

Sub-Rule (1) of Rule 8 stands amended to read as under :

�The holder of the license shall, within thirty days from the date of changein the Proprietor, Partners or Directors apply for permission to transferhis license to another person and also an addition or deletion of anyperson or persons on the license, make an application in Form No.2 (intriplicate) or through department online portal �e-surakshate� with all therequired documents.

1.12 Sub-Rule (3) of Rule 8 stands amended to read as under :

�The fee on each application for transfer shall be Rupees five hundred�.

1.13 Amendment to Rule 11 � Payment of Fees:

Sub Rule (1) of Rule 11 stands amended to read as under:

�(1) every application under these Rules shall be accompanied by atreasury receipt showing that appropriate fees has been paid into the localTreasury under the head of account 0230 Labour and Employment, 104fees realised under the Factories act, 1948 or through online payment tothe head of account of the department.

1.14 Amendment to Rule 12 � Notice of Occupation and Change ofManager:

Amendment to Rule 12 : The Rule 12(1) has been amended to read asunder :

�(1) The notice of Occupation shall be in Form No.2 submitted in duplicateby post or through department online portal �e-surakshate�.

1.15 Sub rule (3) of Rule 12 stands amended to read as under :

�(3) The Notice of Change of Manager shall be in Form 3A submitted inDuplicate by post or through department online portal �e-surakshate�.

1.15 Amendment to Rule 14 � Powers of Inspector:

Sub-Rule (4) of Rule 14 is amended as under :

�(4) Every order passed under the Act and these rules shall be served onthe occupier or manager of the factory, as the case may be -

a) by delivering a copy of it to him personally or at his office; or byregistered post with acknowledgement due or through e-mail id ofthe persons or through online service of the department online portal�e-surakshate�.

1.16 Amendment to Rule 39 � Source of Supply of Water :

Rule 39 Item-b stands amended to read as under :

�b any other source approved, in writing, by the Health Officer or anyagency Authorized by State Government or Central Government or certifiedby Bureau of Indian Standards shall be inserted.

1.17 Amendment to Rule 42 -Report from the Health Officer:

Rule 42 has been amended and the amended rule reads as under:

The Inspector may, by order in writing direct the Manager to obtain, atsuch times or at such intervals as he may be direct, a report from theHealth Officer as to the fitness for human consumption of the watersupplied to the workers, and in every case, to submit to the Inspector acopy of such report as soon as it is received from the Health Officer, orby any agency Authorized by State Government or CentralGovernment or certified by Bureau of Indian Standards. [the wordshown in bold letters are inserted by way of amendments]

1.18 Amendment to Rule 88 A � Appointment of Safety Officer:

The following Sub Rules (6) and (7) have been inserted:

�(6) Appointment of Safety Officer � Every occupier, when required bythe State Government by notification in the Official Gazette issued undersub-section (1) of section 40-B of the Factories Act, 1948 (Central ActLXIII of 1948), shall within a period of six months from the date ofpublication of the notification, appoint the requisite number of SafetyOfficers, as specified in that notification:

Provided that, the Chief Inspector of Factories may, on an application inwriting by an occupier, extend the period further by a maximum of sixmonths for making such appointment.

�(7) Recruitment of Safety Officer:

(1) The occupier of the factory concerned shall notify the vacancies ofthe post of safety officer and shall invite applications at least in twoleading newspapers having wide circulation in the State, out of whichone newspaper shall be in Kannada language and other in Englishlanguage:

Provided that, the vacancies in the post of Safety officers in theGovernment establishments, Quasi-Government establishments andpublic undertakings shall be filled up through the GovernmentEmployment Exchange. Vacancies in the said establishments shallalso be advertised in the newspaper inviting applications and shallbe filled considering them together.

Provided further, that the post of safety officers in private factoriesmay be filled up from the Department of Inspectorate of Factories ondeputation basis.

(2) Selection for appointment to the post of Safety Officer shall be madeamong the candidates applying for the post, by a committee appointedby the occupier of the factory concerned.

(3) The Appointment of the Safety Officer, when made, shall be notifiedby the occupier of the factory to the Chief Inspector of Factories,giving full details about the qualifications, age, pay and allowances,previous experience and other relevant particulars of the-officerappointed and the terms and conditions of the service applicable tohim.

1.19 Amendment to Rule 88M � Occupational Health Centre:

Amendment Rule 88M which contains the rules for providing occupationalhealth centres and appointment of the Factory medical officer. The followingadditional clause has been added to Rule 88M as sub paragraph (v).

�(v) Where in more than one factory medical officer are appointed orrequired, they shall be posted in each shift.

1.20 Amendment to Rule 92 � Ambulance Room

The following has been inserted as Sub-rule (7)

(7) To ensure the minimum help need of workers:-

i. There shall be one more doctor for every additional two thousandworkers employed;

ii. Factory medical officer required to be appointed shall havequalification included in schedule to the Medical Degrees Act 1916 orin the schedules to the Medical Council Act 1956;

iii. Nurse means nurses registered in Karnataka Nursing Council;

iv. Ambulance room shall be separate from the rest of the factorypremises, and within the compound wall of the factory premises andmedical officers shall maintain records of all the patients oremployees examined by him;

1.21 Amendment to Rule 93 � Canteens:

The amended rule reads as under :

�The occupier of every factory wherein more than two hundred fiftyworkers are ordinarily employed shall provide in or nearby the factory anadequate canteen according to the standard prescribed in these rules.

Note: The words notified by the State Government and have beenomitted by the amendment consequently, once 250 or more workersare employed in the factory, it is obligatory to maintain canteen.

1.23 A new rule 107-A has been inserted by way of amendment and therule reads as under :

�107A. Application for Exemption � The manager of Factory shallsubmit the application for exemption under Section 65(1) of the FactoriesAct 1948.�

1.24 Amendment to Rule 108 � Cash Equivalent how determined:

Rule 108 which contains the provision with regard to how to determinecash equivalent of the advantage accruing through concessional sale toa worker of food grains, etc., has been omitted.

1.25 Amendment to Rule 130 � Notification of Accidents and DangerousOccurrences: The amended rule reads as under :

�When an accident which results in the death of any person or whichresults in such bodily injury to any person as likely to cause his death orwhen any dangerous occurrence specified in the Schedule takes place ina factory, the manager of the factory shall forthwith send a notice thereofby telephone, special messenger or through department online portal�e-surakshate� to the Inspector and the Chief Inspector.

1.26 Amendment to Rule 131- Notice of Poisoning or disease:

Rule 134 - Returns

The amended rules provide for sending the report through departmentonline portal �e-surakshate�.

2. Members are requested to note the amendments to the Rules and ensurecompliance thereof.

for KARNATAKA EMPLOYERS' ASSOCIATION

sd/-(B.C. PRABHAKAR)

PRESIDENT