Complex sentence: There were large gaps in the legislation as it did not apply to children who lived with their parents in the community as it was expected that these parents are responsible for the health and safety of the children; not the factory owners.
Split into simpler sentences: There were large gaps in the legislation as it did not apply to children who lived with their parents in the community. It was expected that the parents would be responsible for the health and safety of these children, not the factory owners.