Inspector-cum-Facilitators, audio-visual workers, offences and the social security fund under the OSH Code

1. Appointment (section 34)

• The appropriate Government appoints Inspector-cum-Facilitators by notification, with territorial jurisdiction (section 34(1)), and a Chief Inspector-cum-Facilitator, who may act for one State, several States or the whole country (section 34(5)). Additional, Joint and Deputy Chief Inspector-cum-Facilitators may also be appointed (section 34(6)).
• Inspection scheme (section 34(3) and (4)): the Government may lay down a scheme for web-based inspection, calling for information electronically, and randomised selection of both the establishment and the inspector. Each establishment, inspector and inspection gets a unique number, and reports are uploaded.
• Disqualification (section 34(8)): no one with a direct or indirect interest in the workplace or business may be appointed or continue.
• They are public servants (section 34(11)), within section 21 of the Indian Penal Code as the Code says, now section 2(28) of the Bharatiya Nyaya Sanhita, 2023.
• For start-ups, section 37 allows a scheme of empanelled experts for third-party audit and certification, assigned at random.

2. Powers (sections 35 and 38)

Section 35(1) [Factories Act, s. 9] empowers an Inspector-cum-Facilitator to:

• enter any place used, or believed to be used, as a workplace, with assistants or experts;
• inspect premises, plant, machinery and articles;
• inquire into any accident or dangerous occurrence and record statements on the spot;
• examine crops and workers in a plantation;
• supply information and sensitise employers and workers about the Code (the facilitator role);
• require production of registers, and search, seize or copy records where he believes an offence has been committed;
• direct that premises be left undisturbed, take measurements, photographs and video, and take samples of substances and of air;
• dismantle or test a dangerous article and detain it;
• issue show cause notices on safety, health and welfare; and
• prosecute, conduct or defend proceedings under the Code.

A person required to produce documents is legally bound to do so (section 35(2), referring to IPC ss. 175 and 176, now BNS ss. 210 and 211), and searches follow the Code of Criminal Procedure provisions on search warrants (section 35(3), referring to CrPC s. 94, now BNSS s. 97).

Section 38 gives special powers to stop work:

• Factory: where conditions may cause serious hazard or imminent danger to workers or the public, the inspector may by written order prohibit employment of anyone beyond the minimum needed, for three days unless the Chief extends it. Appeal lies to the High Court. Workers affected are entitled to wages and benefits, and the occupier must offer alternative employment where possible.
• Mine: notice to remedy a danger, then a prohibition order; prohibition of pillar extraction; immediate prohibition in urgent danger; full wages or alternative work at the same wages for those kept out.
• Dock work and building sites: an order stopping work at a dangerous place until the danger is removed, with appeal within fifteen days.

Disobeying a section 38 order is punishable with up to two years’ imprisonment and fine up to five lakh rupees (section 104). Information gathered on inspection is confidential, and the inspector may not reveal the identity of a complainant or that the visit follows a complaint (section 39). Employers must afford all facilities (section 40). The District Magistrate has prescribed inspector powers for mines (section 36), and medical officers appointed under section 42 examine and certify workers in dangerous occupations and the fitness of adolescents.

3. Special provisions for contract labour (outline)

Chapter XI, Part I applies to establishments and contractors with fifty or more contract labour (section 45). The contractor needs a licence (section 47); the principal employer must provide the health and welfare facilities of sections 23 and 24 to contract labour (section 53); the principal employer pays wages the contractor fails to pay (section 55(3)); and contract labour is prohibited in core activities, with three exceptions (section 57). The detail is in the Unit V note on contract labour.

4. Audio-visual workers (Chapter XI, Part III)

The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 covered only films. The Code extends protection to all audio-visual production: films, television, web serials, talk shows, reality and sports shows, advertisements, animation and digital production (section 2(1)(e)).

• No employment without a written agreement (section 66(1)): between the producer and the worker, or the producer, the contractor and the worker, or the contractor and the worker; and the agreement must be registered by the producer with the competent authority.
• Producer’s liability (section 66(2)(c)): where the worker is engaged through a contractor, the agreement must say that if the contractor fails to pay wages or meet other obligations, the producer is liable and may recover from the contractor.
• Contents (section 66(4)): nature of assignment, wages and benefits (including provident fund where covered), health and working conditions, safety, hours of work, welfare facilities and a dispute resolution mechanism. Wages are paid electronically.
• Disputes: if the agreed mechanism fails, either side may go to the Industrial Tribunal, the dispute being deemed an industrial dispute.
• An order regulating employment of audio-visual workers is enforced by penalty under section 97 (Rs 50,000 to Rs 1 lakh).

5. Offences and penalties (Chapter XII)

• General penalty (section 94) [Factories Act, s. 92]: for any contravention not otherwise provided for, the employer or principal employer is liable to a penalty of Rs 2 lakh to Rs 3 lakh, and Rs 2,000 a day if it continues after conviction.
• Obstructing an inspector, refusing entry or documents (section 95): up to three months or fine up to Rs 1 lakh, or both.
• Registers and returns not maintained or produced (section 96): Rs 50,000 to Rs 1 lakh. False records (section 98): up to three months or Rs 1 lakh.
• Hazardous processes (section 102): up to two years and fine up to Rs 5 lakh, plus Rs 25,000 a day; three years or Rs 20 lakh if continued a year after conviction.
• Contravention causing an accident (section 103): if death results, up to two years or fine not less than Rs 5 lakh, or both; for serious bodily injury, up to one year or fine of Rs 2 lakh to Rs 4 lakh. The court may direct that at least half the fine be paid to the victim or his heirs.
• Employees who breach their duties (section 106): penalty up to Rs 10,000; the employer is then not guilty unless he failed to take reasonable measures.
• Actual offender (section 108) [s. 101]: the occupier or mine manager may bring the real offender before the court and is discharged if he proves due diligence.
• Companies (section 109): persons in charge are liable unless they prove lack of knowledge or due diligence.

Procedure is softened at the front end. Under section 110(1) the inspector must first give the employer thirty days to comply, and if he complies no prosecution follows. This does not apply after an accident or to a repeat violation within three years. Cognizance requires a complaint by the inspector within six months of his knowledge, before a Metropolitan or First Class Magistrate (section 110(2) and (3)). Penalties (as opposed to offences) under sections 12(3), 94, 96, 97, 99 and 106 may be imposed by an adjudicating officer not below Under Secretary rank, with appeal within sixty days (section 111). Most offences may be compounded for 50 per cent of the maximum penalty or 75 per cent of the maximum fine, but not a second time within three years (section 114).

6. The social security fund (section 115)

Chapter XIII requires the appropriate Government to establish a social security fund for the welfare of unorganised workers. Penalties imposed by the adjudicating officer (section 111(6)) and amounts received on compounding (section 114(4)) are credited to it, along with other prescribed sources. It may be transferred to any other fund for unorganised workers. The Explanation borrows the definition of “unorganised worker” from the Unorganised Workers Social Security Act, 2008; that Act has since been repealed by the Code on Social Security, 2020, whose own definition is in section 2(86). The OSH fund is separate from the Social Security Fund under section 141 of the Code on Social Security.

How this is examined

The old papers asked for the “powers and duties of inspectors” under the EPF and Maternity Benefit Acts (January 2026, August 2024); the same question will now be set on the Inspector-cum-Facilitator. Organise the answer as appointment, powers, special stop-work powers, then the improvement notice. Audio-visual workers and the social security fund are good 6-mark notes. For a problem on a fatal accident, cite section 103 and the court’s power to pay half the fine to the heirs.