The Government of Himachal Pradesh on January 08, 2026, issued the Factories (Himachal Pradesh Amendment) Act, 2020, to further amend the Factories Act, 1948.
The following has been amended, namely: -
• In Section 2(m)(i), the minimum number of workers has been raised from 10 to 20.
• In Section 2(m)(ii), the threshold has been increased from 20 to 40, thereby reducing the number of establishments classified as factories.
• In Section 65(3)(iv), the permissible limit of overtime work has been increased from 75 hours to 115 hours, subject to the condition that overtime wages shall be paid at twice the ordinary rate of wages.
• In Section 85(1)(i), the worker limits have been revised by substituting “ten” and “twenty” with “twenty" and “forty”, aligning it with the amended definition of factory.
• A new Section 106-B has been inserted to provide for compounding of offences. First-time offences punishable with a fine only may be compounded by the Chief Inspector, either before or after prosecution, upon payment of a composition fee not exceeding the maximum fine prescribed, with compounding having the effect of discharge or acquittal, as applicable.
• The Factories (Himachal Pradesh Amendment) Ordinance, 2020, has been repealed, while actions taken under the Ordinance are saved and deemed valid under this Act.
[Notification no. - LLRD (6)-12/2020-Leg]
