Elimination of Regulations for Declaring Smaller Establishments as Factories (section 5 of Factories Act) 

Reform ID  K094 
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 has been deleted, thus smaller establishments can no more be regulated under the Factories Act.  

Sector  All Sectors 
Beneficiaries  Small Industries & Establishments  
Jurisdiction/ Location  Khyber Pakhtunkhwa  
Department  Labour Department, KP 
Date of Implementation  10-08-2021 
Timeline  Last 03 Months  
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 omitted as it is a case of overregulation.  
Solution  Accordingly, to reduce regulatory compliance burden on smooth running of business in line with the international best practices, section 05 of the Khyber Pakhtunkhwa Factories Act, 2013 has been omitted.  
Evidence  Amendment in KP Factories Act to Eliminate Section 05 

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