Bihar has notified a new inspection scheme that moves labour administration away from a largely officer-driven model towards a more structured, technology-enabled and risk-based framework.
The scheme has been framed after the Labour Codes came into force with effect from 21 November 2025. Although it operates as a common inspection framework under the Code on Wages, 2019, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020, several of its most significant provisions directly concern occupational safety, factories, accidents, occupational diseases and high-risk establishments.
For employers, this is more than a procedural change. An establishment's inspection exposure will increasingly depend on its safety profile, number of workers, accident record, complaint history and past compliance. A strong compliance record may reduce inspection frequency, while a serious accident or occupational disease can immediately move an establishment into the High Risk category.
Legal foundation under the OSH Code
Section 34 of the Occupational Safety, Health and Working Conditions Code, 2020 provides for the appointment and functioning of Inspector-cum-Facilitators. Section 34(3) authorises the appropriate government to formulate an inspection scheme, including a web-based inspection system. Section 34(4) contemplates, among other matters:
assignment of a unique number to each establishment and Inspector-cum-Facilitator;
timely uploading of inspection reports;
special inspections in cases involving complaints or serious matters; and
a transparent, technology-supported inspection process.
Bihar's scheme gives operational shape to these principles through 34 separate criteria.
The central change: inspection based on risk, not discretion alone
Establishments eligible for inspection will be drawn from a database covering establishments registered under the earlier labour laws, including factories, as well as establishments registered under the Labour Codes. Selection will ordinarily be made randomly through a computerised risk-assessment system.
The scheme identifies the following factors for determining the risk profile of an establishment:
nature of the industry, including whether it is hazardous or non-hazardous;
number of workers employed;
previous compliance history;
record of accidents; and
number of complaints received.
On this basis, establishments may be classified as High Risk, Medium Risk or Low Risk.
Risk category | Proposed compliance route under the scheme |
|---|---|
Low Risk | Self-certification may be permitted |
Medium Risk | Third-party certification may be required |
High Risk | Inspection by Inspector-cum-Facilitators may be undertaken |
The Department will separately notify the detailed criteria governing risk classification and inspection regulation. Employers should therefore not treat self-certification or third-party certification as automatically operational until the supporting classification framework, inspection form and departmental checklist are issued.
Serious accidents and occupational diseases become automatic risk triggers
One of the most consequential OSH-specific provisions is the treatment of a serious accident or occupational disease.
Where information is received regarding a serious accident or an occupational disease in an establishment, its risk score will automatically be converted to High Risk. An inspection must then be conducted within the following 30 days.
This links incident reporting directly with future regulatory scrutiny. Employers must therefore ensure that their accident-response system is supported by:
immediate medical and emergency action;
timely statutory reporting;
preservation of the accident site and relevant evidence, where required;
a documented root-cause investigation;
corrective and preventive action;
review of risk assessments and standard operating procedures; and
proper closure of every corrective action.
A delayed, incomplete or poorly documented response may aggravate both the safety risk and the establishment's regulatory exposure.
Green Channel benefit for sustained compliance
The scheme also recognises consistently compliant establishments. Where an establishment has demonstrated compliance in three consecutive inspections, its risk score will automatically reduce and it will move to a Green Channel, where the frequency of inspection will be lower.
This creates a measurable regulatory advantage for employers that close inspection observations promptly and maintain supporting evidence. Compliance history will no longer remain merely a record of the past; it may directly influence the intensity of future inspections.
Joint inspection in a single visit
The scheme seeks to reduce fragmented inspections by providing for a joint inspection team that can examine compliance under the applicable labour laws and Labour Codes during a single visit.
For factories, the team may include:
the Factory Inspector;
the Labour Superintendent; and
the Labour Enforcement Officer.
For non-factory establishments, the team may include the Labour Superintendent, the concerned Labour Enforcement Officer and the Labour Enforcement Officer of the nearest block. A minimum of two members must be present in a joint inspection team.
In the case of a factory, the Factory Inspector will coordinate and lead the inspection. In other establishments, this responsibility will ordinarily rest with the Labour Superintendent. Where a boiler plant is installed, the concerned Boiler Inspector must also be included in the joint inspection team.
For employers, a single visit does not necessarily mean a narrower inspection. It can mean that records relating to safety, working conditions, wages, social security and other labour-code obligations are reviewed together. Internal ownership of compliance must therefore be coordinated across HR, payroll, EHS, administration, legal and contractor-management teams.
Prior notice, and when an inspection may be unannounced
Under the ordinary selection process, the monthly list of establishments selected for inspection will be communicated to the concerned officers and employers through email or the portal 72 hours in advance.
However, High Risk establishments may be inspected without prior notice, subject to the approval of the Labour Commissioner, Bihar. Separate inspection action in serious cases or on complaints received through the Sahyog Portal, Samadhan Portal, the Chief Minister's Office, other departmental grievance channels or other sources may also be taken with the Labour Commissioner's prior approval.
Accordingly, the 72-hour communication should not be understood as an unconditional right to advance notice in every case.
Digital reporting and online transparency
The new system introduces a defined electronic trail for inspections:
the inspection report must be uploaded within 24 hours of the inspection;
the report is to be supported, where relevant, by photographs, readings, equipment serial numbers and calibration evidence;
the inspection note must be made electronically available to the employer within 24 hours;
employers will be able to view and download reports relating to their establishments through the portal;
establishment-wise compliance status may be displayed online for access by both employers and workers; and
the employer may file an online appeal before the Labour Commissioner against the inspection.
The scheme does not itself set out the detailed appeal form, limitation period or disposal procedure. Employers should monitor the portal and subsequent departmental instructions and, in the meantime, preserve the inspection report, supporting records and proof of corrective action without delay.
Inspector rotation, conflict safeguards and limited compliance verification
To improve objectivity and reduce repeated officer-establishment familiarity, the scheme provides that:
the same inspector cannot inspect the same establishment twice consecutively;
no individual inspection may ordinarily be conducted without the Labour Commissioner's prior permission;
inspection allocation will be computerised;
an inspector must declare that there is no personal financial interest in the allotted establishment; and
the Labour Commissioner may authorise an Inspector-cum-Facilitator to inspect outside the officer's normal jurisdiction.
The employer's post-inspection compliance may be verified by a separate joint team led by senior officers. Such verification is capped at five per cent of the total establishments inspected, and the Labour Enforcement Officer selected for verification must not have participated in the original inspection.
Facilitation is to be recorded separately from punitive action
Consistent with the statutory role of an Inspector-cum-Facilitator, the notified inspection form will include a dedicated Facilitation Section. The inspector will record the information or assistance provided to the establishment, and this part will remain separate from the punitive section.
This is an important design feature. It recognises that inspection should support better compliance, not merely identify violations. It does not, however, prevent enforcement action where contraventions are found. The scheme expressly permits the concerned authority to proceed under the applicable provisions of the four Labour Codes.
Protection of complainant identity
Where an inspection originates from a worker's or another complainant's grievance and the person seeks confidentiality, the employer must not be informed of the complainant's identity in any circumstances.
Employers should ensure that grievance investigations focus on the substance of the allegation and avoid conduct that may be perceived as retaliation, victimisation or an attempt to identify a confidential complainant.
What establishments should do now
Employers in Bihar should use the period before the detailed risk-classification criteria and departmental checklist are issued to create an inspection-ready compliance system.
1. Validate registration and establishment data
Confirm that registration particulars, worker strength, nature of activity, factory status, occupier or manager details, contractor information and contact details are current. Portal-linked email addresses and mobile numbers should be actively monitored.
2. Create a single digital inspection repository
Maintain current, searchable records relating to:
registration, licence and statutory approvals;
health, safety and working-condition policies;
risk assessments, safety audits and safe operating procedures;
accident, dangerous occurrence and occupational disease records;
training, toolbox talks and emergency drills;
personal protective equipment issuance and inspection;
medical examinations and health surveillance;
plant and machinery examination, testing and maintenance;
instrument calibration certificates and equipment serial numbers;
working hours, overtime, weekly rest and leave;
welfare facilities and statutory committees;
contractor deployment and contractor-compliance documents;
statutory notices, returns and registers; and
earlier inspection reports, replies and closure evidence.
3. Review the establishment's likely risk profile
Hazardous processes, large worker strength, repeated complaints, adverse inspection history and accident records may increase the risk score. Management should identify these factors internally and assign time-bound mitigation measures.
4. Strengthen incident governance
Every serious incident should trigger a documented cross-functional response involving EHS, HR, operations and legal teams. Reporting, evidence preservation, investigation and corrective action should be controlled through a written protocol.
5. Conduct a joint-code mock inspection
Because the notified model contemplates joint inspection, establishments should avoid conducting isolated audits of safety, payroll and social-security compliance. A coordinated mock inspection should test whether information across departments and contractor records is complete and consistent.
6. Close previous observations with evidence
The Green Channel benefit depends on demonstrated compliance across consecutive inspections. Replies alone are insufficient; closure should be supported by photographs, invoices, training records, revised procedures, test reports or other verifiable evidence.
Practical impact for employers
Bihar's scheme marks a shift from periodic document checking to a continuing, data-led assessment of regulatory risk. Three practical consequences follow:
Safety performance will influence inspection frequency. Accidents, occupational diseases and complaints may directly affect risk classification.
Digital records will become central to enforcement. Reports, evidence, compliance status and appeals will increasingly move through the portal.
Good compliance can produce a regulatory benefit. Three consecutive compliant inspections may reduce the risk score and move an establishment to the Green Channel.
The most effective response is therefore not to prepare only after receiving a 72-hour notice. Establishments should maintain continuous inspection readiness, particularly where the nature of operations, workforce size or incident history may place them in a higher-risk category.
Conclusion
The Bihar Risk-Based Inspection Scheme is a significant step towards transparent, technology-enabled and accountable labour administration. It introduces safeguards against arbitrary selection and repeated inspection, while preserving the State's ability to act swiftly in serious or high-risk cases.
For establishments governed by the OSH Code, the message is clear: safety records, accident response, digital documentation and closure of earlier non-compliances will now have a direct bearing on future inspection exposure. Employers that integrate these requirements into day-to-day governance will be better placed to benefit from the scheme's facilitative features and Green Channel mechanism.