Meta description: Factories Act 1948 compliance checklist for 2026: understand the OSH Code, state rules, factory licences, safety duties, records and penalties.
Using a pre-2025 Factories Act checklist can now leave an Indian plant exposed to a penalty of ₹2 lakh to ₹3 lakh for a general contravention under Section 94 of the Occupational Safety, Health and Working Conditions Code, 2020. If a safety failure causes death, Section 103 permits imprisonment for up to two years, a fine of at least ₹5 lakh, or both. The old checklist is not harmless paperwork; it can point the team at the wrong law, threshold and authority.
This Factories Act 1948 compliance checklist explains what applies in 2026, after the Factories Act was repealed. It gives factory owners, plant heads and compliance teams a practical migration audit without pretending that one central list can replace state-specific rules.
Is the Factories Act, 1948 Still in Force in 2026?
No. The Central Government brought the Occupational Safety, Health and Working Conditions Code, 2020, commonly called the OSH Code, into force on 21 November 2025 through S.O. 5321(E). Section 143(1) of the OSH Code repealed 13 central laws, including the Factories Act, 1948.
Use the OSH Code on India Code, the Ministry's commencement notification, and the 21 November 2025 Ministry announcement as the primary sources. A checklist that still describes the Factories Act as the current parent law is out of date.
That does not mean every old factory rule, licence or approval vanished overnight. Section 143(3) saves actions, rules, regulations, notifications, appointments, orders and directions made under the repealed laws. They continue under the corresponding OSH Code provisions, to the extent they do not conflict with the Code, until replaced.
This creates a two-layer compliance system:
- The OSH Code is the current central parent law. Cite its sections for employer duties, safety, welfare, working conditions, records and penalties.
- Saved rules and state requirements may still supply operational detail. Forms, licence conditions, testing frequencies, registers and welfare standards can continue unless they conflict with or have been replaced under the Code.
The Central Government notified the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 on 8 May 2026. Those rules matter where the Central Government is the appropriate government. For an ordinary factory, Section 2 of the OSH Code generally makes the State Government the appropriate government. The 2026 Central Rules are therefore not a universal substitute for the applicable state rules.
Does Your Unit Meet the 2026 Factory Threshold?
Section 2(w) of the OSH Code defines a factory, at the central baseline, as premises where a manufacturing process is carried on:
- with power and 20 or more workers are or were working on any day in the preceding 12 months; or
- without power and 40 or more workers are or were working on any day in the preceding 12 months.
Do not apply those numbers mechanically. The same definition says that where a state law used a higher or lower threshold immediately before the Code commenced, that state threshold continues until the competent state legislature amends it. A unit with 12 powered workers may still be a factory in a state that retains the earlier 10-worker threshold.
Also separate “factory” status from establishment registration. Section 3 requires registration of covered establishments, and the Code can treat an establishment with 10 or more employees as covered for Chapter II registration even when it does not cross the 20-or-40 factory threshold. Hazardous activities can trigger additional duties regardless of a comfortable-looking headcount.
Record these facts for every plant:
- maximum workers on any day in the previous 12 months, including the categories counted under the applicable rule;
- whether any manufacturing process uses power;
- the current state threshold and the legal source for it;
- whether the process appears in the First Schedule of hazardous processes;
- contract labour and inter-state migrant worker numbers;
- the appropriate government and responsible inspectorate; and
- the date on which applicability was last reviewed.
Headcount is not a once-a-year declaration. Hiring, seasonal labour, a new powered line or a process change can alter applicability during the year.
Replace the Old Checklist With This 2026 Legal Map
Do not merely change the title on an old spreadsheet. Map each former Factories Act obligation to the current OSH Code, then attach the applicable state rule or saved requirement.
Old checklist area | Current legal anchor | What to verify in 2026
Factory approval, registration and licence | OSH Code Sections 3, 5 and 79 | Portal registration, construction or extension approval, factory licence, commencement notice and state forms
General occupier duties | Sections 6 and 23 | Hazard control, safe plant and systems, training, supervision, workplace conditions and welfare
Accident and dangerous-occurrence notices | Sections 10 and 11 | State reporting form, recipient, event trigger and immediate escalation route
Occupational disease notice | Section 12 | Reportable disease list, medical escalation and authority notification
Safety committee and safety officers | Section 22 | Whether the appropriate government requires them for the process, risk or worker strength
Welfare facilities | Section 24 | Washing, lockers, seating, canteen, first aid, ambulance room, rest room and crèche triggers under applicable rules
Hours and overtime | Sections 25 to 31 | Daily and weekly limits, rest intervals, weekly holiday, shift notice and overtime at twice the wage rate
Annual leave with wages | Section 32 | Eligibility, accrual, carry-forward, refusal record and payment on separation
Registers and returns | Section 33 | Unified or state register, attendance, wages, overtime, leave, accidents and filing acknowledgement
Women working at night | Sections 43 and 44 | Consent plus state-prescribed safety, transport, supervision and dangerous-operation controls
Hazardous processes | Sections 82 to 89 | Disclosure, emergency plan, health records, exposure monitoring, medical surveillance and imminent-danger reporting
The map is a control index, not proof of compliance. Each row in the working register should also contain the exact rule, licence condition, owner, due date and evidence link.
Which Employer Duties Must Be Tested at the Plant?
Section 6 of the OSH Code requires every employer to keep the workplace free from hazards likely to cause injury or occupational disease. It also requires compliance with notified safety standards, prescribed health examinations at no cost, safe disposal of hazardous and toxic waste, and an appointment letter for every employee. Workers who lacked appointment letters when the Code commenced had to receive them within three months.
Convert those broad duties into physical tests. A monthly “safety compliant” tick box proves almost nothing. Your inspection should test:
- fixed and interlocked guards on machines;
- emergency stops and isolation or lockout procedures;
- electrical panels, earthing and temporary connections;
- lifting equipment, pressure systems and competent-person certificates;
- fire detection, extinguishers, hydrants, exits and drill records;
- chemical labels, safety data sheets, storage compatibility and spill response;
- ventilation, dust or fume extraction and exposure-monitoring reports;
- task-specific personal protective equipment and issue records;
- drinking water, toilets, washing facilities, seating, first aid and rest areas;
- contractor induction, permit-to-work records and toolbox talks; and
- medical surveillance for workers exposed to hazardous processes.
Section 23 covers cleanliness, ventilation, temperature, humidity, dust, fumes, potable water, lighting, sanitation, waste treatment and an environment free from hazards. Section 24 enables detailed welfare requirements. Thresholds such as canteen, crèche, welfare officer or ambulance-room requirements must be taken from the rules applicable to that plant, not copied from a factory in another state.
For hazardous processes, make Sections 82 to 89 a separate critical-risk register. The occupier may need to disclose hazards, maintain health and exposure records, prepare an on-site emergency plan, conduct medical examinations and respond when workers report imminent danger. A generic safety checklist buried inside an annual audit is not adequate control.
What Records and Deadlines Should the Checklist Track?
Section 33 requires prescribed registers and records, display of notices and filing of returns. Section 96 sets a penalty of ₹50,000 to ₹1 lakh for failing to maintain or produce required records or file returns. A later conviction under the same provision can reach ₹2 lakh.
Maintain one row for each obligation with these fields:
- plant, legal entity and state;
- OSH Code section plus applicable state or saved rule;
- applicability trigger;
- action and due-date formula;
- named owner and reviewer;
- authority or filing portal;
- evidence required and controlled document link;
- last completion date and next due date;
- licence or approval validity; and
- last legal-change review date.
At minimum, track employee and attendance records, shift notices, overtime, leave, training, medical examinations, machine and equipment tests, incidents, dangerous occurrences, occupational diseases, safety committee actions and annual or periodic returns. Keep acknowledgements, not just screenshots showing that somebody opened a portal.
Event-based duties need a separate trigger list. Review the register before construction or extension, installation of new machinery, change in manufacturing process, change of occupier or manager, use of a new hazardous chemical, worker-threshold crossing, serious incident, or licence-condition change. Calendar reminders alone will miss these events.
How to Complete the Migration Audit in 30 Days
Use a short, controlled migration instead of a six-month policy project.
Days 1 to 5: establish jurisdiction. List every site, process, power status, maximum worker count and contract-labour count. Identify the appropriate government and state inspectorate. Save the legal source for the threshold.
Days 6 to 10: freeze the old register. Keep it as evidence, but mark every Factories Act citation as requiring review. Do not delete licences, test reports, approvals or saved-rule obligations.
Days 11 to 15: map the law. Replace parent-law references with the corresponding OSH Code sections. Add the current Central Rules only where the Central Government has jurisdiction; otherwise add the applicable state or saved rules.
Days 16 to 20: test the floor. Walk the plant with EHS, HR, engineering and operations. Check high-consequence controls first: guarding, energy isolation, fire protection, hazardous chemicals, pressure equipment, medical surveillance and emergency response.
Days 21 to 25: repair evidence. Reconcile registers against payroll, gate attendance, contractor records, overtime, leave, training and equipment certificates. Close gaps or record a dated corrective action with an accountable owner.
Days 26 to 30: install monitoring. Assign each obligation, set event triggers, store source links and schedule a monthly legal-change review. A state notification that nobody owns is how a compliant plant becomes non-compliant silently.
The Ministry's Compliance Handbook for Employers is a useful starting explanation. Its own disclaimer says the legislation prevails if there is a discrepancy, so treat the handbook as guidance, not the legal register.
What Are the Main Penalties Under the OSH Code?
Penalties are no longer the small numbers many teams remember from old posters.
- General contravention: Section 94 provides a penalty of ₹2 lakh to ₹3 lakh, plus up to ₹2,000 for each day a contravention continues after conviction.
- Missing registers or returns: Section 96 provides ₹50,000 to ₹1 lakh; a later conviction under the same provision can reach ₹2 lakh.
- Safety failure causing death: Section 103 provides up to two years' imprisonment, a fine of at least ₹5 lakh, or both.
- Safety failure causing serious bodily injury: Section 103 provides up to one year's imprisonment, a fine from ₹2 lakh to ₹4 lakh, or both.
For an accident penalty under Section 103, the court may direct at least 50% of the fine to the victim or legal heirs. These are statutory consequences, separate from production loss, compensation, civil claims, insurance disputes and reputational damage.
Frequently Asked Questions
Is a Factories Act licence issued before November 2025 automatically invalid?
Not merely because the Act was repealed. Section 143(3) saves actions and instruments under repealed laws to the extent they are consistent with the OSH Code until replaced. Verify the licence, its conditions, state transition directions and any renewal or migration requirement with the relevant inspectorate.
Is every factory now covered only at 20 workers with power or 40 without power?
No. Section 2(w) states the central baseline but preserves a pre-existing higher or lower state threshold until the state legislature changes it. Check the law for the plant's state before changing applicability.
Do the 2026 Central Rules apply to every private factory?
No. They apply where the Central Government is the appropriate government. For an ordinary factory, the State Government is generally the appropriate government under Section 2. State rules and saved requirements therefore remain essential.
Can a factory below the threshold ignore the OSH Code?
No such assumption is safe. Chapter II registration can apply at 10 or more employees, state thresholds can differ, and hazardous or other covered activities can create obligations. Test the establishment and process provisions separately.
Are appointment letters mandatory for factory workers?
Yes. Section 6(1)(f) requires an appointment letter for every employee. An employee who lacked one when the Code commenced had to receive it within three months of commencement.
Is overtime still paid at double the ordinary rate?
Yes. Section 27 requires overtime wages at twice the rate of wages. The applicable rules and notifications determine working-hour and consent details for the establishment.
How often should the checklist be reviewed?
Review due dates monthly and legal sources at least monthly. Reassess immediately after a worker-threshold change, new process or machine, expansion, hazardous chemical introduction, serious incident, licence amendment or regulatory notification.
Make the 2026 Factories Act Checklist Operational
The correct Factories Act 1948 compliance checklist in 2026 is not a nostalgic list of repealed sections. It is a live control register built on the OSH Code, layered with the correct state or saved rules, connected to named owners and supported by inspection-ready evidence.
If your register still says only “Factories Act compliant,” it is not specific enough to protect the plant. Map the law, test the controls and monitor changes before the inspector or an accident does it for you.