The Karnataka State Factories Self Certification Scheme-2024
In supersession of the Government Notification No. LD 04 KABANI 2015 dated: 03.04.2017, the Government of Karnataka hereby proposes to make the following scheme, namely The Karnataka State Factories Self Certification Scheme-2024;
It is proposed to streamline the enforcement procedures under different labour laws for the meaningful implementation with a voluntary spirit by the Occupier. The Karnataka State Self-Certification Scheme-2024 aims at making the Occupier conscious, truthful citizen and law abiding person who is willing to take care of the rights and interests of the workers by complying with all the provisions of The Factories Act, 1948 and the Rules made there under, The Payment of Wages Act -1936 and Rules made there under, The Maternity Benefit Act, 1961 and the Rules made there under. This shall enable the Department of Factories, Boilers, Industrial Safety and Health to effectively protect the life, health, rights, interests of the workers and create a peaceful, harmonious and productive environment as well as build a co-operative relationship among the social partners viz, Workers, Management and the Government.
1. Short Title and Commencement of the Scheme:-
The scheme shall be called the Karnataka State Factories Self Certification Scheme-2024. It shall come into force from the date of its notification in the Official Gazette.
2. Definitions:- In this Scheme, unless the context otherwise requires,-
a) “Scheme” means, the Karnataka State Factories Self Certification Scheme 2024
b) “Self Certification” means, self declaration submitted by the Occupier who opts to register his factory under this scheme to the effect that his factory is in full compliance with the statutory requirements under applicable enactments included in this Scheme as prescribed in Form-II to the Chief Inspector.
c) “Worker” means, worker as defined under Section 2(l) of the Factories Act, 1948
d) “Applicable Laws” includes The Factories Act, 1948 and the rules made thereunder, The Payment of Wages Act, 1936 and the rules made thereunder and The Maternity Benefit Act, 1961 and the rules made thereunder, as amended from time to time.
3. Object of the Scheme:-
The object of the Karnataka State Self Certification Scheme 2024 is to bring spirit of voluntary compliance on the part of the Occupier and to reduce multiple visits by the Department Officials for inspection without compromising on safety, health, welfare and working conditions of the workers as well as service conditions.
4. Applicability of the Scheme:-
This scheme is applicable to all the factories registered under the Factories Act, 1948, except the factories;
i.in which hazardous manufacturing processes which involves use, storage and handling of toxic, highly inflammable, explosives, hazardous chemicals where in such toxic or highly inflammable or explosive substances are likely to be generated or given out or carried out, as listed under sub-rule (b), (c) and (e) of rule 2 of The Major Accident Hazards Control (Karnataka) Rules 1994; or
ii. in which the hazardous manufacturing processes as listed in First Schedule appended to clause (cb) of section 2 of the Factories Act, 1948 is carried on; or
iii. in which manufacturing processes as specified in rule 129 of Karnataka Factories Rules, 1969 read with section 87 of the Factories Act, 1948 is carried on; or
iv. licensed to employ more than 250 workers.
And to the following enactments as amended from time to time.
(1) The Factories Act, 1948 and the Rules made there under
(2) The Payment of Wages Act, 1936 and the Rules made there under
(3) The Maternity Benefit Act, 1961 and the Rules made there under
5. Procedure of Entry into the Scheme:-
This Scheme shall be voluntary and any Occupier of the Factory to which this scheme is applicable may opt for the certification under this Scheme by submitting self declaration to the Chief Inspector in Form-I.
6. Mode of Registration and Time-frame for Approval:-
The Occupier of the factory who opts for this scheme will have to apply by submitting a self declaration in Form I, along with payment of registration fee, Security deposit and other requisite information to the Chief Inspector. Any discrepancy in the application or enclosures shall be communicated to the applicant within thirty (30) days from date of receipt of the declaration. If the Chief Inspector is satisfied that the declaration for covering Factory under this Scheme is complete in all aspects, he shall issue a certificate in Form-II within thirty (30) days registering the factory under the scheme.
7. Self-Declaration:-
For enrolment under this Scheme, the concerned Occupier shall submit a “Self Declaration” in Form –I to the chief Inspector.
8. Period of Validity of Scheme:-
Factual information given in the prescribed formats shall be the same as on the date of applying. The Self-Certified declaration to abide by all the applicable laws amended from time to time shall be valid for a period of Five (5) years, subject to submission of Annual Self Certification Return in Form-III.
Once option has been exercised for the Scheme, the same shall continue to be valid for five years. Provided year on year, the Occupier shall file annual self certification return in Form-III between 1st and 31st January of every year. After the successful compliance under the Scheme for five years, the Occupier shall have option either to remain covered under the Scheme or to opt out of the scheme. The option must be exercised in writing to the Chief Inspector before the lapse of the validity period. If no option is exercised, the enrollment to the scheme would cease to continue. In case the Occupier successfully completes five years under the Scheme and during any inspection carried out, if no violation of the applicable laws is detected, the amount of security so deposited shall be refunded. No interest shall be payable on the amount of security deposit made by the Occupier.
9. Registration Fee and Amount of Security to be deposited: –
The Occupier of a factory to which the scheme is applicable may opt to enroll for the Scheme for all the applicable laws mentioned in provision 5 of this Scheme, by remitting registration fee of Rs. 10,000/- along with the security deposit of Rs. 50,000/-
10. Forfeiture of Security Deposit :
(1) Any Occupier who fails to comply with the terms and conditions of the Scheme or fails to abide by the declaration submitted by him or any violation of the applicable law is detected, then the amount of security deposit deposited shall be forfeited and in case of the violation of laws, further necessary action as per the applicable law shall be initiated. In such case, the factory shall cease to continue under this Scheme. However, there is no bar on the occupier of the factory to submit fresh self declaration to the scheme after improving the compliance under the applicable laws in the scheme.
(2) Any Occupier who withdraws prematurely from the Scheme i.e., before the expiry of the prescribed period of 5 years or where the applicability of scheme as mentioned under the provision 5 is no more valid for the factory, then the amount of security deposit so deposited shall be forfeited.
11. Responsibilities of the Chief Inspector: –
The Chief Inspector shall maintain a register in Form IV containing all the information of the factory covered under the scheme, including amendments made from time to time.
12. Procedure of Inspection under the Scheme: –
The factories enrolled under this scheme shall not be inspected; except for check inspection picked up randomly by computerized random selection which shall not exceed 20% of the factories opted for self certification in a year. However, this does not bar inspections for investigation of accidents/dangerous occurrence, occupational disease and conducting training/awareness programmes with the consent of the Occupier or Manager. Inspection against specific written complaints shall be done only with the prior written approval of the Chief Inspector.
13. Continuation of Existing System:–
This Scheme is voluntary and the Occupier who does not desire to opt for the Scheme shall be treated as per the existing system.
14. Transparency and Accountability:
The Occupier, who has opted for registration under this Scheme shall maintain all Records, Registers and other up-to-date information as required under the applicable laws either in soft copy form or hard copy-form in the factory. Whenever Department authorities call for in writing for the records/ registers/ information of the Factory, under the provisions of any applicable laws, then the Occupier is duty-bound to produce the same to the concerned authority, in soft copy form or hard copy-form as desired by the Authorities, as provided under the provisions of the applicable laws.
15. Display of Compliance Information:-
The Occupier/Manager shall display the terms and conditions of this Scheme as well as the status of compliance on a notice board/ in a conspicuous place which is visible to all the workers. The Occupier shall also declare that he has opted for the Karnataka State Self Certification Scheme-2024, on their website, if available.
16.Removal of Difficulties:-
In case, there are any difficulties in implementation of this Scheme, the decision of the Director of Factories, Boilers, Industrial Safety and Health in Karnataka, on the specific issue, shall be final and binding on the concerned parties.
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