Background
The Supreme Court has ruled that activities such as cleaning, washing, and dry cleaning of clothes fall within the definition of “manufacturing process” under the Factories Act, 1948. The judgment came in response to a case where the classification of laundry and dry-cleaning businesses under the Act was under dispute.
The case revolved around whether laundry and dry-cleaning establishments should be regulated as factories and subject to industrial labor laws. The Factories Act defines a “manufacturing process” to include activities involving alteration, finishing, and adaptation of products for sale, leading to the argument that laundries engage in a process that changes the condition of clothes.
Court’s Rationale
The Supreme Court emphasized the following points in its ruling:
- Transformation of Goods: The Court held that washing and dry cleaning involve a transformation of garments from dirty or soiled to clean and wearable, which constitutes an alteration in their condition, similar to a manufacturing process.
- Definition of ‘Manufacturing Process’: The Factories Act defines manufacturing broadly, and previous judgments have recognized activities like printing and packaging as manufacturing. Similarly, laundries and dry cleaners engage in work that alters the usability of clothing.
- Employment and Safety Regulations: Recognizing such establishments as factories ensures that labor protections, workplace safety, and industrial regulations apply to them, preventing worker exploitation.
Existing Measures
The Factories Act, 1948, mandates safety, welfare, and health provisions for workers engaged in manufacturing. Industries that fall under the Act are required to comply with regulations on working conditions, employee welfare, and workplace safety. Until now, the classification of laundry services under the Act remained a gray area, but this ruling clarifies their status under labor laws.
Conclusion
The Supreme Court’s ruling significantly impacts laundry and dry-cleaning businesses, bringing them under the purview of industrial labor laws. This ensures greater accountability in worker rights and safety standards but may also impose regulatory burdens on small-scale laundries. Moving forward, such businesses will need to comply with industrial laws, including employee welfare provisions, while the judgment sets a precedent for defining “manufacturing” more broadly under the Factories Act.