New Draft Factory Act Update

• Definitions of Certain Terms used in the act amended

‘Factory’ - A factory has a minimum of 7 workers, or machinery equivalent to 5 horsepower.

‘Factory’ - A factory has a minimum of 50 workers, or machinery equivalent to 50 horsepower.

• Factories partially exempt from complying with the factory act

- None –

1. A factory of a governmental authority which is not a factory operated for the safety and security of the country
2. A factory for study and research
3. A factory for training at an educational institute
4. A family-owned factory
5. A factory necessary for or related to a non-factory business and located in the same space.

• Expansion of a factory for which permission in advance must be obtained

A factory must obtain permission in advance from the licence grantor in order to expand for the following reasons:

1. An increase in the number of machines, or the replacement or modification of machinery to increase their total power by 50% or more where the original machinery had a total of not more than 100 horsepower or the equivalent of not more than 100 horsepower, or an increase of 50 horsepower or more where the original machinery had total power of more than 100 horsepower or the equivalent of more than 100 horsepower; and
2. Addition to or remodelling of any part of the factory buildings to allow any of their original foundations to carry an additional 500 kilograms or more.

A factory must obtain permission in advance from the licence grantor in order to expand for the following reasons:

1. An increase in the number of machines, or the replacement or modification of machinery to increase their total power:
   1.   Examples
      • A minimum increase of 50 horsepower where the original machinery had a total power of not more than 100 horsepower
      • A minimum increase of 100 horsepower where the original machinery had a total power of more than 100 horsepower, but not more than 500 horsepower
2. Actions undertaken under point 1 on a new plot of land next to the land on which the factory was originally situated or on previously extended land.

However, it is not necessary to obtain permission in advance for a factory to some things. Instead, the factory must give the licence grantor notice at least 30 days in advance before doing the following:

1. Installing pollution control devices or increasing the efficiency of pollution control devices.
2. Taking anti-disturbance measures or increasing the efficiency of an anti-disturbance measures, such as noise reduction.
3. Increasing the efficiency of original machinery.

• Cessation of factory operations

A factory must give the licence grantor at least 15 days’ advance notice in writing of ceasing to operate.

A factory must give the licence grantor at least 30 days’ advance notice in writing of ceasing to operate.

If the factory to cease operating is in a condition that would cause damage or a nuisance to a person, property, or its surrounding environment, the licence grantor is empowered to postpone the cessation of operations and to set a deadline by which the factory must be restored to a proper condition.