By Canteen Connect · Updated
Quick answer
Under Section 46 of the Factories Act, 1948, state governments can require factories where more than 250 workers are ordinarily employed to provide and maintain a canteen. State factory rules set the detail on construction, menu, prices and a managing committee. Confirm current rules, including any labour-code changes, for your state.
Key takeaways
- The 250-worker threshold comes from Section 46 of the Factories Act, 1948.
- State rules define canteen standards, committees and pricing.
- Labour-code reforms are changing the legal landscape — verify what applies to you.
- Even below the threshold, a canteen is a retention and safety asset.
What the Factories Act says
Section 46 empowers state governments to make rules requiring the occupier of a factory in which more than 250 workers are ordinarily employed to provide and maintain a canteen. Rules typically cover the building, equipment, the foodstuffs to be served, the prices charged and the role of a managing committee.
This article is general information, not legal advice. Rules change — confirm current requirements with the relevant authority or a qualified consultant.
What state rules usually cover
- Location, size, ventilation and lighting of the canteen.
- Separate areas for cooking, dining and washing.
- Provision of safe drinking water and clean utensils.
- A committee that includes worker representatives.
- Food prices on a no-profit, no-loss basis, with the management often bearing certain costs.
Labour codes and what is changing
India has consolidated several labour laws into labour codes, including the Occupational Safety, Health and Working Conditions Code. Implementation is being phased in and rules are still being operationalised in states. Always check which framework applies on the date of your audit.
Practical advice for plant heads
- 1.Check your headcount against the threshold, including contract workers where relevant.
- 2.Read your state factory rules for canteen specifications.
- 3.Make sure the canteen has FSSAI licensing in the name of the operator or occupier, as applicable.
- 4.Keep records: committee minutes, menu approvals, inspections.
- 5.Work with an operator who understands both compliance and daily service.
Frequently asked questions
Is a canteen compulsory for fewer than 250 workers?
The Section 46 requirement is tied to the 250-worker threshold, but many employers provide canteens below it for welfare and productivity reasons.
Who is responsible for canteen compliance — the company or the contractor?
The factory occupier remains responsible under the Act, even when an operator runs the canteen. Contracts should allocate duties clearly.
Does an outsourced canteen satisfy the requirement?
Generally yes, if the canteen meets the state rules and the occupier retains oversight. Check with your legal or compliance adviser.
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