Bihar Introduces Risk-Based Inspection Scheme under the Labour Codes-IR Code

The Government of Bihar has notified a new inspection scheme designed to regulate inspections under the Labour Codes through a computerised, risk-based and transparent framework.

The scheme was issued by the Labour Resources and Migrant Workers Welfare Department through S.O. 195, under a notification dated 14 August 2026, and was published in the Bihar Gazette (Extraordinary) on 20 August 2026. The authorised English translation was published through S.O. 196.

The framework represents a major change in the manner in which labour inspections will be selected, conducted, documented and reviewed in Bihar. It moves the inspection system towards data-based risk classification, random computerised allocation, joint inspections, electronic reporting and a facilitative approach to compliance.

Notification at a Glance

Statutory Basis of the Scheme

The notification expressly refers to the following enabling provisions:

• Sections 51(2) and 51(3) of the Code on Wages, 2019, relating to inspection schemes and web-based inspections;

• Sections 122(2), 122(3) and 122(4) of the Code on Social Security, 2020, concerning inspection schemes and the exercise of inspection powers; and

• Sections 34(3) and 34(4) of the Occupational Safety, Health and Working Conditions Code, 2020, which provide for inspection schemes, unique identification, web-based reporting and special inspections.

Although the Industrial Relations Code, 2020, is not cited as an enabling provision in the introductory portion of the notification, the scheme specifically states that violations detected during an inspection may be acted upon under the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020.

How Establishments Will Be Selected for Inspection

Establishments will ordinarily be selected through a computerised risk assessment and random selection system. A database will be prepared using establishments registered under the earlier labour enactments, including factories, as well as establishments registered under the Labour Codes.

The risk assessment may consider factors such as:

• whether the industry is hazardous or non-hazardous;

• the number of workers employed;

• past compliance history;

• accident records; and

• the number and nature of complaints received.

Based on these parameters, establishments may be classified as High Risk, Medium Risk or Low Risk.

Risk-Based Compliance Framework

The notification further clarifies that the detailed classification of establishments and the regulation of inspections based on risk will be notified separately by the Department. Accordingly, employers should await the detailed risk parameters and procedural notification before treating any establishment as falling within a particular category.

Major Features of the New Inspection Scheme

1. Computerised and random selection

The establishments to be inspected will be identified through a computerised risk assessment and random selection process. This is intended to reduce discretionary selection and introduce greater objectivity into the inspection system.

2. Joint inspection in a single visit

As far as possible, inspection under the applicable labour laws will be completed through a joint team in one visit.

For factories, the team may include the Factory Inspector, Labour Superintendent and Labour Enforcement Officer. For non-factory establishments, it may include the Labour Superintendent, the concerned Labour Enforcement Officer and an officer from the nearest block. A minimum of two members must be present in the joint inspection team.

Where a boiler plant is installed, the concerned Boiler Inspector must also be included. The Department may additionally coordinate with other departments or authorities when public interest or administrative necessity requires a broader joint inspection.

3. Advance notice - with an exception for High Risk cases

The monthly list of establishments selected for inspection will ordinarily be communicated to the employer and the concerned officers through email or the portal 72 hours before the inspection.

However, a High Risk establishment may be inspected without prior notice where approval has been obtained from the Labour Commissioner, Bihar. Separate inspections arising from serious complaints or specified grievance channels also require prior approval of the Labour Commissioner.

4. No routine individual inspection without approval

An inspecting officer cannot ordinarily conduct an individual inspection of an industry, establishment or factory without the prior permission of the Labour Commissioner, Bihar. This restriction is intended to channel inspections through the approved, computerised and joint-inspection framework.

5. Electronic inspection report within 24 hours

The inspection report must be uploaded within 24 hours of the inspection, together with supporting material such as photographs, readings, serial numbers and calibration evidence, wherever applicable.

The inspection note must also be made electronically available to the employer within 24 hours. Employers will be able to log in to the portal and view or download reports relating to their establishments. Establishment-wise compliance may also be displayed on the departmental or inspection portal for access by employers and workers.

6. Online appeal facility

The scheme permits an employer to file an online appeal before the Labour Commissioner against the inspection. Employers should closely monitor the portal and any supplementary procedure prescribing the format, limitation period and documents for such an appeal.

7. Inspector rotation and conflict-of-interest safeguards

The same inspector cannot inspect the same establishment on two consecutive occasions. Inspectors must also provide a declaration that they have no personal financial interest in the establishment allocated to them. Where such an interest exists, the inspector may seek a change in allocation.

8. Unique identification and digital traceability

Unique numbers will be assigned to establishments, Inspector-cum-Facilitators and inspection assignments. The system will also provide management information reports, enabling inspections and outcomes to be monitored at the departmental level.

9. Limited verification of post-inspection compliance

Verification of the employer's compliance following inspection will be conducted jointly by senior officers and will not exceed 5% of the total establishments inspected. A Labour Enforcement Officer who participated in the original inspection cannot be selected for this verification team.

10. Facilitation to be recorded separately

The inspection form will contain a separate Facilitation Section, in which the inspector will record the information or assistance provided to the establishment. This section will be distinct from the punitive portion of the inspection report.

This feature reinforces the statutory concept of the Inspector-cum-Facilitator, whose role includes guiding establishments towards compliance in addition to detecting contraventions.

Serious Accidents and Occupational Diseases

If a serious accident or occupational disease is reported in an establishment under the OSH and Working Conditions Code, its risk score will automatically be upgraded to High Risk. An inspection will then become mandatory within the following 30 days.

This provision makes timely accident and occupational-disease reporting particularly important. Any failure to report, preserve records or take corrective action may significantly increase the establishment's inspection and enforcement exposure.

Complaint-Based Inspections and Confidentiality

Serious matters received through the Sahyog Portal, Samadhan Portal, public grievances, the Chief Minister's Office or other sources may lead to a separate inspection with the prior approval of the Labour Commissioner.

Where a complainant or worker wishes to keep their identity confidential, the identity must not be disclosed to the employer. Employers should therefore avoid retaliatory conduct and should investigate compliance issues on their merits rather than attempting to identify the complainant.

Greater Transparency and Public Reporting

At the end of every financial year, the Department is required to publish aggregate inspection statistics on its website. These may include:

• district-wise inspection data;

• industry-wise and risk-category-wise inspection data;

• compliance rates;

• the number of repeat inspections; and

• the number of punitive actions taken.

A compliance checklist is also to be published on the Department's website. Once released, this checklist is likely to become an important reference point for internal audits and inspection preparedness.

What Employers in Bihar Should Do Now

Employers should not wait for an inspection notice before reviewing compliance. The following measures are advisable:

1. Verify registration data: Ensure that establishment, factory and other registration particulars are complete, consistent and current across government portals.

2. Create a digital compliance repository: Maintain readily retrievable copies of licences, registrations, wage records, attendance, overtime, leave, social security contributions, returns, contractor records, safety documents and accident reports.

3. Review risk indicators: Hazardous operations, workforce strength, complaints, accidents and past non-compliance are likely to influence the establishment's risk score.

4. Conduct an internal Labour Codes audit: Review compliance under wages, industrial relations, social security, occupational safety and contractor-management requirements.

5. Prepare for a 72-hour response window: Nominate an authorised inspection coordinator and ensure that records can be produced promptly.

6. Maintain continuous compliance: Three consecutive compliant inspections may support movement to the Green Channel and reduce the future frequency of inspection.

7. Close inspection observations with evidence: Submit clear documentary proof of rectification and retain an electronic audit trail.

8. Monitor portal communications: Inspection notices, reports, compliance status and appeal facilities will operate electronically.

9. Strengthen accident-response systems: Serious accidents and occupational diseases can automatically move an establishment into the High Risk category.

10. Review contractor compliance: Principal employers should ensure that contractors maintain wage, social security, attendance and deployment records capable of verification during a joint inspection.

Important Operational Details Still Awaited

The scheme establishes the governing framework, but certain important operational instruments are to be issued or published separately:

• the detailed risk-classification criteria and inspection frequency;

• the prescribed inspection form under the Labour Code Rules; and

• the Department's inspection checklist.

Employers should therefore track further notifications and portal updates. Until the detailed framework is issued, the expressions Low Risk, Medium Risk, High Risk and Green Channel should not be treated as self-declared classifications.

Legal and Compliance Significance

The Bihar scheme seeks to combine enforcement with facilitation. Computerised selection, inspector rotation, joint visits, electronic reporting, employer access to reports, online appeals and publication of aggregate statistics can improve transparency and reduce repetitive inspections.

At the same time, risk-based regulation does not dilute an employer's statutory responsibilities. High Risk establishments may face unannounced inspections, serious accidents can trigger mandatory inspection, written information and records may be demanded, and violations may lead to proceedings under any of the four Labour Codes.

The practical message for employers is clear: inspection preparedness must become a continuous, evidence-based compliance process rather than a last-minute response to an inspector's visit.

Conclusion

Bihar's new inspection scheme is an important step towards technology-enabled and risk-proportionate labour administration. Compliant establishments may benefit from self-certification, third-party certification or reduced inspection frequency, while establishments with accidents, complaints or adverse compliance history will face closer scrutiny.

Every employer operating in Bihar should now align its compliance records, internal audit systems, portal monitoring and inspection-response procedures with this new framework and remain alert for the separately notified risk criteria, inspection form and checklist.