The Government of Bihar has introduced a comprehensive, risk-based inspection framework under the Labour Codes through S.O. 195, published in the Bihar Gazette (Extraordinary) on 20 August 2026. The notification is dated 14 August 2026.
The scheme replaces a largely officer-driven approach with a more transparent system based on computerised risk assessment, random selection, joint inspection and digital reporting. It also strengthens the role of the Inspector-cum-Facilitator by combining enforcement with compliance guidance.
Legal Basis
The scheme has been framed with reference to:
Sections 51(2) and 51(3) of the Code on Wages, 2019;
Sections 122(2), 122(3) and 122(4) of the Code on Social Security, 2020; and
Sections 34(3) and 34(4) of the Occupational Safety, Health and Working Conditions Code, 2020.
Where an inspection reveals violations, the concerned authority may take action under the applicable provisions of all four Labour Codes, including the Industrial Relations Code, 2020.
Key Features of the Scheme
Area | Requirement |
|---|---|
Selection | Establishments will ordinarily be selected randomly through computerized risk assessment |
Prior notice | Employer and officers will normally receive 72 hours' notice through email or the portal |
Joint inspection | Applicable labour-law compliances are intended to be examined in a single visit |
Team strength | A minimum of two officers must be present |
Inspection report | To be uploaded within 24 hours with relevant evidence |
Employer access | Inspection note to be made electronically available within 24 hours |
Appeal | Employer may appeal online before the Labour Commissioner, Bihar |
Green Channel | Available after compliance in three consecutive inspections |
Computerized Risk Classification
The Department will create a database of establishments registered under the earlier labour laws and the Labour Codes. Selection for inspection will ordinarily be made from this database through a computerised system.
The risk assessment may consider:
hazardous or non-hazardous nature of the industry;
number of workers employed;
previous compliance history;
accident record; and
number of complaints received.
Based on these parameters, establishments may be classified as Low, Medium or High Risk.
The scheme contemplates self-certification for Low-Risk establishments, third-party certification for Medium-Risk establishments, and departmental inspection by Inspector-cum-Facilitators for High-Risk establishments.
However, the detailed method of risk classification, frequency of inspection and related conditions will be notified separately by the Labour Resources and Migrant Workers Welfare Department.
Green Channel for Compliant Establishments
An establishment that has complied in three consecutive inspections will have its risk score automatically reduced and will enter the Green Channel, where the frequency of inspection will be lower.
Conversely, where a serious accident or occupational disease is reported under the OSH & WC Code, the establishment's risk score will automatically change to High Risk and an inspection must be conducted within the next 30 days.
A High-Risk establishment may also be inspected without prior notice, subject to the approval of the Labour Commissioner, Bihar.
Joint Inspection Mechanism
The scheme aims to avoid repeated visits by different labour authorities by providing for a single joint inspection.
For factories, the team may include the Factory Inspector, Labour Superintendent and Labour Enforcement Officer, with the Factory Inspector leading the inspection. For non-factory establishments, the Labour Superintendent will coordinate the team, which may include the concerned Labour Enforcement Officers.
At least two members must be present during a joint inspection. Where a boiler plant is installed, the concerned Boiler Inspector must also be included.
No inspecting officer may independently inspect an establishment without prior permission from the Labour Commissioner. The same inspector is also prohibited from inspecting the same establishment twice consecutively.
Digital Reporting and Employer's Right to Appeal
The inspection report must be uploaded within 24 hours and may include photographs, instrument readings, serial numbers and calibration evidence. Employers will be able to access and download the inspection report through the portal.
The inspection note must also be made electronically available to the employer within 24 hours. If the employer disputes the findings, an online appeal may be filed before the Labour Commissioner, Bihar. As the notification does not prescribe the appeal period or detailed procedure, employers should monitor the portal and subsequent departmental instructions.
Compliance with inspection observations may be verified jointly by senior officers. Such verification cannot exceed 5% of the total establishments inspected, and the Labour Enforcement Officer involved in verification must not have participated in the original inspection.
Transparency and Administrative Safeguards
The scheme contains several safeguards against arbitrary or repetitive inspections:
inspectors must declare that they have no personal financial interest in the allotted establishment;
a conflicted inspector may seek a change in allocation;
the identity of a complainant or worker requesting confidentiality must not be disclosed to the employer;
inspection and verification records will be accessible to senior officers; and
annual district-wise, industry-wise and risk-category-wise inspection statistics will be published on the Department's website.
The inspection form will also contain a separate Facilitation Section, recording the guidance or assistance provided to the establishment. This section will remain distinct from the portion dealing with violations and punitive action.
What Employers Should Do
Employers in Bihar should prepare for a digitally monitored and evidence-based inspection system by taking the following steps:
Verify registration particulars, employee strength and contact details on all statutory portals.
Keep wage, attendance, leave, social-security and industrial-relations records updated.
Reconcile payroll data with PF, ESI, professional tax and contractor records.
Maintain employee-wise compliance documents for every contractor.
Review safety records, incident reports, medical examinations and calibration certificates.
Monitor registered email accounts and inspection portals regularly.
Close previous inspection observations and preserve proof of compliance.
Nominate responsible representatives to coordinate any inspection.
Conclusion
Bihar's new scheme represents a major move towards risk-based regulation, random allocation, coordinated inspections and digital accountability.
Consistently compliant establishments may benefit from a lower risk score and reduced inspection frequency. Establishments with serious accidents, repeated complaints or an adverse compliance history may face closer scrutiny and, in High-Risk cases, inspection without prior notice.
Employers should therefore treat labour compliance as a continuous process supported by accurate records, timely corrective action and readily available digital evidence.
Notification Reference: Government of Bihar, Labour Resources and Migrant Workers Welfare Department, S.O. 195; notification dated 14 August 2026 and published in the Bihar Gazette (Extraordinary) on 20 August 2026; File No. 01/Code on Wages-10-02/2026-194/L.R.
Disclaimer: This article is intended for general information and professional awareness. Employers should review the detailed risk-classification framework, inspection checklist and portal procedure when separately notified.