AP Dir of factories seeks ind input on Factories Act update

Hyderabad: The Director of Factories, Government of Andhra Pradesh, D Chandrasekhara Varma sought for suggestions from industrial units on the introduction of ‘Compounding of Offences’ under Section 106B of AP Factories Act.

Varma chaired the interactive meeting held with senior Human Resource managers of the industrial units of Sri City, and other industries in the region, on Thursday. V Ramakrishna Reddy, Deputy Chief Inspector of Factories, Chittoor was also present, while around 150 people attended the conference.

Addressing the delegates, Varma highlighted that the introduction of Compounding of Offences, when committed for the first time, under Section 106B of the Andhra Pradesh Factories Act and Rules in 2016, as opposed to prosecution, signifies a major change in how workplace safety regulations are enforced. This change mirrors similar provisions adopted by other Indian states. He invited discussion on the implications of this amendment, focusing on its benefits, drawbacks, and potential impact on worker safety.

Compounding allows offences to be settled by paying a fine instead of undergoing prosecution, which can benefit all stakeholders. This provision gives employers a chance to rectify non-compliance initially without facing lengthy legal process, wherein specified offences can be compounded by an authorised officer.

Penalties and penal provisions apply only for second or subsequent offences. However, the option to compound is available only for certain offences under specified conditions in Code, he said adding that this method aims to lower the number of legal disputes and promote adherence by imposing financial penalties.

Dr Ravindra Sannareddy, Founder Managing Director, Sri City, said: “We are confident that these reforms aim to simplify and streamline labour laws, and will lead to striking a balance between keeping workers safe and helping businesses run smoothly.”