Elimination of Regulations for Declaring Smaller Establishments as Factories (section 5 of Factories Act)
Reform ID P152
Reform Description Before: Section 05 of Factories Act authorized government to apply the provisions of Factories Act to smaller establishments with five or more employees.

After: Through an amendment, section 05 of Factories Act has been amended, thus smaller establishments can no more be regulated under the Factories Act.

Sector All Sectors
Beneficiaries Small industries and Establishments
Jurisdiction/ Location Punjab
Department Labour Department Punjab
Date of Implementation 31-10-2022
Details Difficulty Under section 5 of the Factories Act, the government can apply provisions of Factories Act whenever 10 or more workers are working therein or have worked therein on any one day of the twelve months immediately preceding.

This provision was not suitable for small manufacturing units as it would become burdensome for them to comply with the requirements of Factories Act once regulated under same.

Analysis It was realized that the section 05 of Factories Act may be amended as it is burdensome for smaller businesses.
Solution Accordingly, to reduce regulatory compliance burden on smooth running of business in line with the international best practices, section 05 of the Punjab Factories Act, 1934 has been amended.

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