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We have two independent manufacturing units in one survey No. Both manufacturing units have separate management, different product lines, balance sheets, factory licenses, etc. There is no integration between the two units. Both units are separately registered under the Companies Act and also under the Factory Act. However, the access to both units is common. Employees and vehicles of both units use the same access gate. Therefore, I would like to know what the provision is under the Factories Rules in this regard. Is there any rule or provision that prohibits common access for two independent units with different factory licenses?

Can anyone shed light on the above situation? Thanks.

From India, Pune
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KK!HR
1656

The basic question is that of functional integrality, meaning whether the two units are closely interlinked but are artificially kept separate or not. As explained by you, both the units are separately registered, managements are distinct, product lines are distinct, etc., so it appears to be two independent units. As per Section 4 of the Factories Act 1948, the State Government has powers to declare two or more factories of the occupier shall be treated as a single factory. So long as the occupier of the two factories is different, they cannot be clubbed together. Since they have been notified to be two factories, it cannot be changed without giving an opportunity to you. Merely because of a common entrance, two factories cannot be clubbed together. There are cases where more than one factory has the same entrance but for certain statutory facilities like those related to health, safety, and welfare, there has to be due compliance by each unit.
From India, Mumbai
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Glidor
725

factory department seek floor plan, of each unit separately, they don’t look in depth of management and other matters, but they are stock to their act and inspect as per plan submitted only

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There is no such bar in the Factories Act 1948 or Rules framed thereunder. Is there any problem ? S.K. Mittal 9319956443
From India, Faridabad
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You need to change gate pass of both the units for distinctive identification of the employee.
From India, Mumbai
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rkn61
699

Besides, Employee gate pass, Material Gate pass, Material Inward Note (MIN), Material Outware Notice (MON) shall also be two types, with different colours, for these two companies.
From India, Aizawl
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rkn61
699

Please read 'Material Outware Notice' in my previous post as material outward Note
From India, Aizawl
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