What is Penalty for non-compliance with Factory Act?
Nexa Consultancy | Startup & Finance Glossary
For manufacturing startups, non-compliance with the Factory Act, 1948 (related to worker health, safety, and welfare) can lead to fines and imprisonment for the "occupier" of the factory (often the director).
Startup Example: A manufacturing startup fails to provide adequate safety equipment, leading to an accident. The directors can be held personally liable and face criminal proceedings.
Our advisory for manufacturing startups includes highlighting these critical compliance areas.