What Is Factory Compliance?

Factory compliance meaning is quite straightforward, and it is a government-moderated act that ensures factories meet legal standards for safety, health, welfare, working hours, documentation, inspections, & labour regulations mandated by law.

Is the Factories Act, 1948, replaced by the OSH Code in 2026?

Yes. From 2026, OSH Code 2020 will become the primary framework, subsuming most Factories Act provisions with modernised compliance rules & penalty structures.

How does the new 50% basic pay rule affect my factory overtime costs?

According to the Factory Act Overtime Compliance, basic equals 50% of CTC, with overtime calculated on a higher wage base that increases payouts, raising labour cost & payroll budgeting impacts.

How often should factory compliance be reviewed?

Compliance for factory HR must have monthly internal reviews, quarterly audits, and annual third-party assessments are recommended to maintain readiness, regulatory accuracy, and inspector-proof operations.

Is the Factory Compliance Checklist different from labour law compliance?

Yes. The factory compliance audit checklist is site-specific operations and safety rules; whereas labour law covers employment, wages, benefits, contracts, & workforce rights.

What is a factory compliance audit checklist?

The Factory Act Compliance Checklist is a structured tool verifying statutory requirements: registrations, safety standards, welfare facilities, documentation, permits, equipment, training, inspections, and legal adherence.