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Rule 108 of the Occupational Safety, Health and Working Conditions (Central) Rules, 2026: Code not to apply in certain mines

Rule 108(1): the Code, except sections 35, 38, 40, 41 and 44, does not apply to (i) a prospecting excavation with not more than 20 persons on any day, depth not over 6 metres (15...

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Last updated: October 2026Verified against: Government sources

Rule 108 sets the conditions on which two kinds of mines stay outside most of the Occupational Safety, Health and Working Conditions Code, 2020: prospecting excavations, and mines extracting listed ordinary minerals such as sand, clay, building stone and limestone. It also requires an electronic notice within seven days when an establishment becomes a mine, and lets the Central Government bring such mines fully under the Code.

The Code provision behind the rule

Section 68(1) of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) says the provisions of the Code, except those in sections 35, 38, 40, 41 and 44, do not apply to (a) a mine or part of it in which excavation is made for prospecting only and not to obtain minerals for use or sale, subject to conditions on number of employees, depth of excavation and other matters prescribed by the Central Government; and (b) a mine engaged in extracting the listed minerals, subject to conditions on workings, opencast workings and explosives prescribed by the Central Government. Section 68(2) lets the Central Government declare that the Code applies to such a mine. Section 68(3) says that if any condition ceases to be fulfilled, the rest of the Code applies immediately and the employer must inform the authority, in the manner and within the time prescribed. See our sections 67 and 68 explainer.

Rule 108 fills in the "conditions prescribed". The Central Rules apply where the Central Government is the appropriate Government; where the State is, its own rules apply. For help on where a small excavation or quarry stands, our legal consultation service can review the facts against the rule.

Rule 108(1): what is exempt and on what conditions

Sections 35, 38, 40, 41 and 44 of the Code continue to apply to these mines. The rest of the Code does not. Section 35 deals with the powers of the Inspector-cum-Facilitator; section 41 with the powers of special officers to enter and measure a mine; and section 44 with adequate safety of women's employment in dangerous operations. This article does not describe sections 38 and 40 beyond their numbers; read them in the Code.

(i) Prospecting excavations

The excavation must be for prospecting purposes only and not for obtaining minerals for use and sale, and all three conditions must be met:

ConditionLimit
(a) Persons employed on any one day in connection with the excavationNot more than twenty
(b) Depth of excavation, from its highest to its lowest pointNowhere exceeds six metres, or in the case of an excavation in coal, fifteen metres
(c) ExtentNo part of the excavation extends below superjacent ground

(ii) Mines extracting listed minerals

The listed minerals are: kankar, murram, laterite, boulder, gravel, shingle, ordinary sand (excluding moulding sand, glass and other mineral sands), ordinary clay (excluding kaolin, china clay, white clay or fire clay), building stone, slate, road metal, earth, fullers earth, marl, chalk and limestone.

The exemption applies if either:

RouteCondition
(a)The workings do not extend below superjacent ground; or
(b)Where it is an opencast working: (i) depth of excavation from its highest to its lowest point not anywhere more than six metres; (ii) number of persons employed on any one day not more than fifty; and (iii) explosives are not used in connection with the excavation

As printed, proviso (a) and proviso (b) are joined by "or". That means a mine whose workings do not go below superjacent ground meets proviso (a) without needing the depth, headcount and explosives limits of (b). The text does not define "superjacent ground"; read the term as used in mining practice or take advice for borderline cases.

Rule 108(2): notice on becoming a mine

"As soon as an establishment becomes a mine, the employer of the mine shall give notice electronically, to the Inspector-cum-Facilitator within seven days from the date it becomes a mine."

PointReading
Who gives noticeThe employer of the mine
To whomThe Inspector-cum-Facilitator
HowElectronically
By whenWithin seven days of the date it becomes a mine
What the notice must containThe text does not say

The sub-rule applies on its words to any establishment that becomes a mine, not only to exempt mines. The Code's section 68(3) separately requires the employer of an exempt mine to inform the authority, in the prescribed manner and time, if any exemption condition stops being fulfilled. Rule 108 as printed does not set a time for that second notice. The text is silent on it; do not treat the seven-day notice as covering it without taking advice. In practice, an employer who loses the exemption should inform the Inspector-cum-Facilitator promptly.

Rule 108(3): Central Government can apply the whole Code

"Notwithstanding anything contained in sub-rule (1)", the Central Government may, by order in writing, require that all provisions of the Code apply in such mine or part of it, subject to conditions in the order. This matches section 68(2) of the Code. Watch for orders if you rely on the exemption.

What happens if a limit is crossed

Under section 68(3) of the Code, if any condition is not fulfilled, the provisions of the Code not set out in section 68(1) become immediately applicable. That means a prospecting excavation that reaches 21 persons on a day, or an opencast sand quarry that uses explosives or goes deeper than six metres, is no longer outside the Code. Daily headcount and depth records matter.

Practical examples

Example 1. A company digs trial pits for prospecting on a site, with 15 workers a day and a maximum depth of 5 metres, none below superjacent ground. It meets rule 108(1)(i). Sections 35, 38, 40, 41 and 44 still apply.

Example 2. A building stone quarry works in an opencast pit 5 metres deep, with 40 people a day and no explosives. It meets proviso (b) and stays outside most of the Code. If the operator starts blasting with explosives, the condition fails and the rest of the Code applies.

Example 3. A prospecting excavation in coal goes to a depth of 12 metres with 18 workers. For coal the limit is 15 metres, so depth is within the rule. It stays within the exemption if no part is below superjacent ground.

Example 4. A new establishment starts operating as a mine on 1 June. The employer gives notice electronically to the Inspector-cum-Facilitator by 8 June.

Compliance checklist

  • Confirm the mineral is on the list in rule 108(1)(ii) and is not an excluded variety.
  • Record daily headcount, depth and use of explosives.
  • Check whether any part of the working extends below superjacent ground.
  • File the electronic notice within seven days of becoming a mine.
  • Track Central Government orders under rule 108(3).
  • Keep complying with sections 35, 38, 40, 41 and 44.

Need help with mine exemption and notices?

Whether a small excavation sits inside or outside the Code turns on measured facts and records. Our team can review your workings against rule 108 and help with the notice to the Inspector-cum-Facilitator. Start with our legal consultation service.

Key takeaways

  • Rule 108(1) keeps prospecting excavations and listed minor-mineral mines outside the Code, except sections 35, 38, 40, 41 and 44.
  • Prospecting limits: not more than 20 persons a day, depth up to 6 metres (15 metres in coal), nothing below superjacent ground.
  • Listed-mineral mines: no workings below superjacent ground, or opencast with depth up to 6 metres, up to 50 persons a day and no explosives.
  • The employer gives electronic notice to the Inspector-cum-Facilitator within seven days of the establishment becoming a mine.
  • The Central Government can order that all provisions of the Code apply.
  • If a condition is not met, the rest of the Code applies immediately under section 68(3).

Read next

Disclaimer: Based on the Occupational Safety, Health and Working Conditions Code, 2020 (as enacted) and, where noted, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.

Quick recapKey facts & short answers

Key Facts About Rule 108

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Which parts of the Code still apply to exempt mines?

Sections 35, 38, 40, 41 and 44.

What are the limits for a prospecting excavation?

Not more than twenty persons a day; depth not over six metres (fifteen in coal); no part below superjacent ground.

Treat overtime, leave and bonus as calculations, not as favours.

— TaxClue Labour Law Desk

Rule 108: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Short, direct answers to the 6 questions readers ask most on this topic.

Sections 35, 38, 40, 41 and 44.

Not more than twenty persons a day; depth not over six metres (fifteen in coal); no part below superjacent ground.

Kankar, murram, laterite, boulder, gravel, shingle, ordinary sand, ordinary clay, building stone, slate, road metal, earth, fullers earth, marl, chalk and limestone, with the exclusions listed in the rule.

Under rule 108(1)(ii), a listed-mineral mine qualifies either because its workings do not go below superjacent ground, or, if it is opencast, because depth is not over six metres, not more than fifty persons work on any day and no explosives are used.

Within seven days from the date it becomes a mine, electronically to the Inspector-cum-Facilitator.

Yes. Under rule 108(3) it may order that all provisions of the Code apply.