On January 4, 2025, the Government of Karnataka issued the Karnataka State Factories Self Certification Scheme-2024, which aims to streamline enforcement procedures under various labor laws. This initiative seeks to foster voluntary compliance among factory owners, improve worker welfare, and create a harmonious relationship between workers, management, and the government.
Key Features of the Scheme:
Definitions:
- Self Certification: A declaration by the factory owner (Occupier) confirming full compliance with statutory requirements under the Factories Act, 1948, Payment of Wages Act, 1936, and Maternity Benefit Act, 1961.
- Worker: Defined as per Section 2(1) of the Factories Act, 1948.
- Applicable Laws: Includes the Factories Act, 1948, Payment of Wages Act, 1936, and Maternity Benefit Act, 1961, among others.
Objectives:
- To encourage voluntary compliance by factory owners with the relevant laws.
- To reduce multiple inspections by authorities, while ensuring that worker welfare and safety are not compromised.
Applicability:
- The scheme applies to factories registered under the Factories Act, 1948, excluding factories with hazardous processes, those employing over 250 workers, or those involved in dangerous manufacturing processes.
Procedure for Entry:
- Voluntary Participation: Factory owners may voluntarily opt into the scheme by submitting a self-declaration to the Chief Inspector.
Registration and Approval:
- Factory owners must submit a self-declaration in Form-1, pay the registration fee of ₹10,000 along with a ₹50,000 security deposit.
- The Chief Inspector will review the application and issue a certificate in Form-II within 30 days.
Validity and Renewal:
- The self-certification is valid for 5 years, provided annual returns (Form-III) are submitted every January.
- After 5 years, factory owners may either continue under the scheme or opt out. If the scheme is continued, the security deposit will be refunded, provided there are no violations during the inspection.
Inspection Procedure:
- Factories under this scheme will generally not be inspected unless selected randomly for check-ins (up to 20% of certified factories annually).
- Inspections can still be conducted for accidents, complaints, or specific issues with prior written approval.
Forfeiture of Security Deposit:
- If a factory owner fails to comply with the scheme or violates the law, the security deposit may be forfeited.
- If the owner withdraws before the 5-year term or if the factory no longer qualifies, the deposit will be forfeited.
Responsibilities of Factory Owners:
- Records Maintenance: Owners must keep up-to-date records and comply with legal requirements, ensuring these are available for inspection in either hard or soft copy format.
- Compliance Display: Factories must display their compliance status and participation in the scheme on notice boards and, if available, on their website.
Removal of Difficulties:
- If issues arise in implementing the scheme, the Director of Factories, Boilers, Industrial Safety and Health will provide final decisions.
Effective Date : January 4th 2025
The following FORMS have been Introduced :
