Rule 78 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 78 says what an Inspector-cum-Facilitator must do after inspecting an establishment: issue an improvement notice in Form XXV pointing out non-compliance, and at each inspection check whether earlier shortcomings were fixed and record the findings. It is the rule that gives the word "facilitator" practical content.
Rule 78(1): after every inspection, as may be deemed necessary, the Inspector-cum-Facilitator issues an improvement notice in Form XXV pointing out non-compliance with the safety, health and working conditions provisions of the Code, rules, regulations or standards. It goes to the employer, occupier, manager, owner, master or officer-in-charge of the ship, or their agent. Rule 78(2): at each inspection the Inspector ascertains to what extent earlier shortcomings were rectified and records the findings and any orders.
The Code behind rule 78
Section 35(1)(xii) of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) lets an Inspector-cum-Facilitator "issue show cause notice relating to safety, health and welfare provisions arising under this Code, rules, regulations and bye-laws". Section 35(1)(v) also says the Inspector may supply information and sensitise employers and workers about the Code and compliance. Rule 78 sets the notice that follows an inspection. Our section 35 explainer covers the full list of powers.
The Central Rules apply where the Central Government is the appropriate Government. Where the State Government is the appropriate Government, the State's own OSH rules apply. If you have received an improvement notice and need help with the response, our legal dispute resolution team can assist.
Rule 78(1): the improvement notice
| Element | Rule 78(1) |
|---|---|
| Who issues | Inspector-cum-Facilitator |
| When | After every inspection, as may be deemed necessary |
| Form | Form XXV, named in the List of Forms as "Improvement notice" |
| Content | Pointing out non-compliance of provisions of safety, health and working conditions under the Code or rules or regulations or standards |
| To whom | The employer, occupier, manager, owner, master or officer-in-charge of the ship, or their agent |
The phrase "as may be deemed necessary" leaves the decision to the Inspector. Not every inspection ends in a notice, but where there is a shortcoming, the notice is the vehicle.
Wide set of addressees. The notice can go to the employer, occupier, manager, owner, master or officer-in-charge of a ship, or an agent. That covers factories (occupier), mines (owner, agent, manager), ships in dock work (master) and ordinary establishments (employer). Make sure the person who actually receives the notice at each site knows to escalate it at once.
Scope of non-compliance. The notice addresses provisions "under the Code or rules or regulations or standards". It is about safety, health and working conditions, which includes the welfare and hours provisions covered in the preceding rules of this series.
What the rule does not say. The text of rule 78 does not state a time limit for compliance, does not set out an appeal route for the notice, and does not prescribe a consequence of non-compliance. The notice form may carry the period. Read Form XXV in the Forms part of the Rules for what it asks the Inspector to state. Do not assume a fixed period from another law. For consequences, the Code's offence and penalty provisions apply to contravention; see our section 94 explainer.
Rule 78(2): follow-up at each inspection
Sub-rule (2) gives the Inspector a record-keeping duty. At each inspection the Inspector-cum-Facilitator must:
- ascertain to what extent any shortcomings notified at a previous inspection have been rectified;
- ascertain whether notices previously issued have been complied with; and
- record and maintain the findings, any new shortcomings that come to light, and any order passed under the Code, rules, regulations or standards.
For the employer this means an earlier notice is a live item. The next inspection begins with "what happened to the last notice?" A file of corrective actions, photographs and dates, organised against the notice's points, is the strongest answer.
How an improvement notice differs from a section 38 order
Section 38 of the Code gives special powers in respect of factories, mines, dock work and building or other construction work. For example, for a factory where conditions may cause serious hazard or imminent danger, the Inspector-cum-Facilitator may by written order prohibit employing more than the minimum number of persons necessary until the danger is removed. The order has effect for three days until extended by the Chief Inspector-cum-Facilitator, and an aggrieved person has a right of appeal to the High Court. For mines, section 38(B) provides a notice regime with time to remedy, a right of appeal to the Chief Inspector-cum-Facilitator within ten days and an objection to the Central Government within twenty days, among other steps. Our section 38 explainer covers these.
An improvement notice under rule 78 is the general, routine tool that points out non-compliance. It is not a section 38 prohibition order, and the appeal provisions in section 38 belong to those orders, not automatically to a rule 78 notice. If you want to challenge a notice, get advice on the route before the compliance date passes.
Responding to an improvement notice
- Log the date of receipt and the person who received it.
- Read each point and assign an owner, a corrective action and a date.
- Fix what can be fixed at once and photograph the result with a date.
- Write to the Inspector if a point needs more time or a technical clarification, and keep the reply on file.
- Keep evidence in a folder indexed to the notice, for the follow-up inspection under sub-rule (2).
- Escalate to the board or the owner if the notice concerns a hazard that could lead to a prohibition order or prosecution.
Practical examples
Example 1. An inspection of a construction site finds unguarded openings and missing first-aid stock. The Inspector-cum-Facilitator issues a Form XXV notice listing both. The site manager closes the openings the same day, restocks the first-aid box and sends photographs with a reply.
Example 2. At the next visit the Inspector asks about the earlier notice. The employer's file shows dated action on each point. The Inspector records the extent of rectification and a new minor point.
Example 3. An establishment disagrees with a point in the notice. It writes within the period stated in the form, explains its position, and takes advice on the available remedy rather than ignoring it.
Compliance checklist
- Tell site managers to escalate any notice on the day it arrives.
- Keep a register of notices, due dates, owners and closure evidence.
- Reply in writing to the Inspector within the period in the form.
- Keep the file ready for the next inspection.
- Seek advice before contesting a notice.
Need help with an improvement notice?
An improvement notice is easier to handle when the response is organised from the first day. Our team can help you prepare a point-by-point response and a record of corrective action. Start with our legal dispute resolution service.
Key takeaways
- After an inspection, as deemed necessary, the Inspector-cum-Facilitator issues an improvement notice in Form XXV.
- The notice goes to the employer, occupier, manager, owner, master or officer-in-charge of a ship, or their agent.
- At each inspection the Inspector checks whether earlier shortcomings were fixed and records the findings and orders.
- Rule 78 does not state a compliance period, an appeal route or a penalty; read Form XXV and the Code.
- Section 38 prohibition orders and their appeals are separate.
Read next
- Section 35 of the OSH Code: powers of Inspector-cum-Facilitator
- Section 38 of the OSH Code: special powers of Inspector-cum-Facilitator
- Rule 77: power to take samples
- Section 94 of the OSH Code: general penalty for offences
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.