❖Labour NOC

In line with “Make in India,” the Maharashtra government has initiated an important program called ‘Make in Maharashtra’ for the growth of industrialization in the state. In order to ease the redevelopment, sale, and transfer of industrial land from closed establishments, factories, companies, and mills in the State of Maharashtra, the state government has taken the following decision for relaxation of the Labour NOC in Maharashtra.

If the establishments outside MIDC have been closed for more than 7 years and the legal dues of the workers on these old establishments are pending in any of the court, labor court, high court, supreme court, or government authority to restart the industrial activity on such land parcels, the new and old owners, industrialists or entrepreneurs (if available), shall give a joint undertaking or bond on Rs. 300 stamp paper duly notarized that they will settle the dues of their workers within 3 years. Transfer of such establishments for industrial use need not have to apply through an independent application for NOC from the Labour Commissioner. Government Resolutions (GR) dated October 30, 2007 and January 12, 2009 will not be applicable in such cases.

However, if an establishment is closed for less than 7 years and/or transfer is required other than industrial use, the Relaxation on Labour NOC in Maharashtra is not applicable, and then the Government Resolution (GR) dated October 30, 2007 and January 12, 2009 will be applicable.

❖Labour License

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• Ensuring Precision in Labour Contract Licensing
• Ensuring Precision in Establishment Registration under CLRA
• Ensuring Precision in State & Central Labour License Acquisition
• Ensuring Precision in Provident Fund (PF) and ESIC Registration
• Ensuring Precision in Building and Other Construction Workers (BOCW) Registration

❖Contract License

The Contract Labour (Regulation and Abolition) Act has been enacted by the Indian Legislature since 1970. The act intends to prohibit the employment of contract labour in certain circumstances and to regulate the working conditions of contract labour during employment. In this article, we look at the Contract Labour Act applicable in India in detail.

❏The Contract Labour (Regulation and Abolition) Act applies to the following entities:

• It applies to any establishment in which twenty or more workers are employed on any day of the accounting year as contract labour.
• It applies to any contractor who employs or has employed twenty or more workers on any day of the accounting year.
• Also, it does not apply to the establishments if any work is performed in an intermittent nature.
• It does not apply to the establishments if any work is not performed for more than twenty days in a year.
• It does not apply to the establishments if any work is not performed for more than twenty days in a year.
• It does not apply to the establishments if any work performed in the seasonal nature for more than sixty days in a year.

❖Gumasta ( Shop & Establishment ) License.

A gumasta license is a mandatory registration required for doing any kind of business in the state of Maharashtra. Gumasta license is the license obtained under the Shops and Establishment Act of Maharashtra. Every person who establishes a business needs to obtain a license under the Shops and Establishment Act of that respective state.

Each state has its own Shop and Establishment Act. Thus, the shop and establishment license varies from state to state. The general provisions of this Shop and Establishment Act across all states remain the same. However, the business owner needs to obtain the license under the Shops and Establishment Act of the state in which he carries on business.

❏ Gumasta License

A gumasta license is a registration required for doing any kind of business in the state of Maharashtra. It is governed by the Municipal Corporation of Mumbai under the Maharashtra Shops and Establishment Act. This is a certificate that gives you the authority to do your business at a particular place. This license is a basic requirement for any business to be recognized by the government or bank for all business, irrespective of whether it is done by a single person or a large organization.

Obtaining Gumasta ensures your business can be developed without many complications, and it is very important for opening a current account or obtaining any loan from the bank. Without this license in Maharashtra State, obtaining GST registration is not possible.

❏The Directorate of Industrial Safety and Health (DISH) (formerly known as the Factory Inspectorate) is administrative machinery set up by the Govt. of Maharashtra with the objective of enforcing the Factories Act, 1948, and the Maharashtra Factories Rules, 1963, made thereunder, so as to ensure the safety, health, and welfare of the workers employed in the factories. With the growing industrialization, amendments were made to the Factories Act, 1948, and the Maharashtra Factories Rules, 1963, which were made from time to time.

The department was given the responsibility of enforcing certain provisions of the Manufacture, Storage, and Import of Hazardous Chemicals Rules, 1989; the Chemical Accidents (Emergency Planning, Preparedness, and Response) Rules, 1996; and the Maharashtra Factories (Control of Industrial Major Accident Hazards) Rules, 2003. Considering the new role of the department as a friend, philosopher, and guide, the Factory Inspectorate was renamed the Directorate of Industrial Safety and Health, and the designation of the inspectors has been changed to Directors since June 1991.

❖Approval of Factory Building and Machinery Layout Plan

• Plans shall be prepared and sent by a qualified engineer or draftsman, duly signed by him and also by the applicant.
• The site plan is drawn to a metric scale of 1400, 800, or 1200, showing the details of the neighborhood, the location of all buildings and sheds, plants and machinery, storages, etc., and the and the access road indicating its width. The site plans should clearly indicate front, rear, and side setbacks, along with the extent of the site purchased for establishing the industry.
• The north direction shall be indicated in the site plan.
• Detailed building plan, elevation, and sectional views of the proposed factory sheds or buildings, plant and machinery, storages, etc., drawn to scale 1100, showing the layout and type of machinery proposed to be installed in the particular shed with the proposed horse power.
• All dimensions shall be in the metric system only.

❖Permission of Factory Licence and Their Renewal

❏ Factory license applicability

Factory owners had to compulsorily register their premises with local authorities before the Factories Act, 1948, came into force. The local authorities gave them a license to run their factories and carry out manufacturing activities. The Factories Act, 1948 (‘Act’) provides that certain factories that fulfill the conditions given in the Act must register and obtain a factory license under the Act to ensure the safety of the workers. The factory owners can renew the factory license upon its expiration by applying to the respective state labor department or department of factories.

❏ As per the Act, the below factories must obtain the factory license:

• When the factory has ten or more workers involved in manufacturing activity with the aid of power
• When the factory has 20 or more workers involved in manufacturing activity without the aid of power

❏ Checklist for the factory license

❏ The following are required before applying for a factory license:

• Factory building/premises
• NOC (No Objection Certificate) from the fire, water and pollution board
• Factory layout plan
• Notice to chief inspector

The factory owner must get the factory plan approved by the respective state labour department authorities before applying for a factory license. The factory owners must take permission from the respective state government regarding the factory location. After the state government approves the factory plan and location, factory owners can apply for the factory license.

❏ They should also send a legal notice to the chief inspector 15 days before carrying out any activity or using the factory premises, containing the following information:

• Name and address of the occupier
• Name and location of the factory
• Name of the manager of the factory
• Number of workers that will be hired
• Type of manufacturing process that will be carried out at the factory
• The total rated horsepower installed or to be installed in the factory
• Any other particulars as required

❖All Correspondence with the said department