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