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CMA Intermediate · Business Laws and Ethics · Factories Act, 1948

Before the Occupational Safety, Health and Working Conditions Code, 2020 commenced, a State Government issued a notification under the Factories Act, 1948 exempting new factories to create employment. What is the effect of that notification once the Code commences?

The earlier State notification stays in force for its remaining period. The proviso to section 127(2) treats the Code's provisions as not in force to the extent they would defeat the purpose of that notification, so it does not lapse with the repeal.

  1. AIt is cancelled immediately because the Factories Act is repealed
  2. BIt remains in force for its remaining period, to the extent the Code would otherwise defeat its purposeCorrect
  3. CIt continues only if the Central Government re-issues it
  4. DIt continues for exactly three years from commencement of the Code

Explanation

The proviso to section 127(2) says such a prior notification remains in force for its remaining period, as if the Code provisions that defeat its purpose were not in force. It is not cancelled, does not need re-issue by the Centre and has no fixed three-year term.

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