Factory Canteen Compliance in India: Is Your Kitchen Legal?

Why This Matters

In the manufacturing world, a canteen is often the heart of the factory; a place where the workforce recharges and builds community. But from a legal perspective, that same kitchen is a high-stakes compliance zone.

If you’re managing an industrial unit in India, you’ve likely asked: “At what point does providing tea and snacks become a statutory burden?” Let’s break down the compliance roadmap under the Factories Act, 1948 and the upcoming Occupational Safety, Health and Working Conditions (OSH) Code, 2020.

 

The Magic Number: When is a Canteen Mandatory?

• Factories Act, 1948 – Section 46: Any factory employing 250 or more workers ordinarily must provide and maintain a canteen.
• State Government Powers: Even if your workforce fluctuates, once the “ordinary” employment crosses 250, the State Government can mandate a canteen.
• OSH Code, 2020: Retains the 250-worker threshold but empowers governments to extend canteen requirements to other establishments beyond factories.

 

Standards of Excellence: Physical & Hygiene Requirements

State Factory Rules typically prescribe detailed standards:

• Location: At least 15.2 meters (50 feet) away from latrines, urinals, boiler houses, or sources of dust/fumes.
• Construction: Walls and roofs must be heat-resisting and waterproof; floors smooth and impervious.
• Hygiene: Doors and windows must be fly-proof; adequate lighting and ventilation required.
• Maintenance: Whitewashing annually; woodwork varnished or painted every three years.

Note: These requirements vary by State, so always check your local Factory Rules.

 

The Canteen Managing Committee

Worker participation is a unique feature of Indian labour law:

• Composition: Equal representatives nominated by the occupier and elected by workers.
• Proportions: Commonly one elected worker per 1,000 workers (minimum two, maximum five), as per State Rules.
• Authority: Must be consulted on menu, food quality, and meal timings.

 

FSSAI Licensing: Beyond Labour Law

Every factory canteen is a Food Business under the Food Safety and Standards Act, 2006. Licensing depends on turnover:

Turnover Range	FSSAI Requirement
Up to ₹12 Lakh	Basic Registration (Form A)
₹12 Lakh – ₹20 Crore	State License (Form B)
Above ₹20 Crore	Central License

Key FSSAI Compliance Checklist:

• Potable water certification (chemical & bacteriological report).
• Medical fitness exams for food handlers.
• PPE for staff: aprons, gloves, headgear.

 

Factories Act vs. OSH Code 2020

Feature	Factories Act, 1948	OSH Code, 2020
Threshold	250+ workers	250+ workers (expandable by govt.)
Reporting	State-specific forms	Centralised OSH-2
Safety Committee	250+ workers	500+ workers (hazardous processes)
Penalties	Up to ₹1 lakh or 2 years jail	₹2 lakhs (general), ₹5 lakhs (serious)

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Outsourcing Canteen Operations

• Factories may outsource canteen operations to contractors.
• Supreme Court Ruling: Workers in mandatory canteens are deemed employees of the principal employer (Indian Petrochemicals Corp. Ltd. v. Shramik Sena, 1999).
• Compliance Tip: Ensure contracts are genuine; contractor must handle supervision, attendance, and wage disbursement to avoid “sham contract” risks.

 

Conclusion

Running a factory canteen is about more than serving meals—it’s about hygiene, worker representation, and statutory compliance. Whether under the Factories Act or preparing for the OSH Code, proactive compliance is your best defence against litigation.

Is your Canteen Managing Committee due for an election? Reviewing your minutes today could save you from a non-compliance notice tomorrow.

Disclaimer

This article is for educational purposes only and does not constitute legal advice. Employers should consult qualified labour law advisors for case-specific compliance.