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Sections 102-103 of the Occupational Safety, Health and Working Conditions Code, 2020: Penalty for Hazardous Process Duty Breaches and for Accidents Causing Death or Serious Injury

Section 102: breach of duties under section 6(1)(a) to (h) or 6(2), section 13(d) so far as it relates to hazardous processes, or section 80 carries imprisonment up to two years...

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Labour Laws
Published
October 1, 2026
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Oct 7, 2026
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Last updated: October 2026Verified against: Government sources

Sections 102 and 103 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) are the most serious penalty provisions for safety failures. Section 102 punishes breach of certain employer duties, including duties linked to hazardous processes, and the leased-premises duty in section 80. Section 103 punishes a failure to comply with duties that results in an accident or dangerous occurrence causing death or serious bodily injury.

Sections 102 and 103 at a glance

ProvisionTriggerPunishment
102(1)Failure to comply with duties under section 6(1)(a)-(h) or 6(2), section 13(d) (hazardous processes), or section 80Imprisonment up to 2 years and fine up to Rs 5 lakh; additional fine up to Rs 25,000 for each day it continues after first conviction
102(2)Failure continues beyond one year after convictionImprisonment up to 3 years, or fine of Rs 20 lakh, or both
103(1)(a)Non-compliance results in accident or dangerous occurrence causing deathImprisonment up to 2 years, or fine not less than Rs 5 lakh, or both
103(1)(b)Causes serious bodily injury to any person within the establishmentImprisonment up to 1 year, or fine of Rs 2 lakh to Rs 4 lakh, or both
ProvisoCourt imposing fine under section 103May direct at least 50% of the fine as compensation to victim or legal heirs
103(2)Convicted again under section 103(1)Double the punishment for first conviction

If a notice or complaint already cites either section, our legal dispute resolution team can help you assess it early.

Section 102: which duties are covered

Section 102(1) names:

  • Section 6(1)(a) to (h), the general employer duties: a workplace kept clear of hazards, compliance with standards, annual health examinations as prescribed, a safe working environment as far as reasonably practicable, disposal of hazardous and toxic waste including e-waste, appointment letters, no charge to employees for safety and health measures, and responsibility for safety and health on the premises in factories, mines, docks, building or construction work and plantations;
  • Section 6(2), the particular duties in those sectors: safe plant and systems of work, safe handling, storage and transport, information, instruction, training and supervision, safe places of work and access, and welfare arrangements;
  • Section 13(d), the employee's duty to report an unsafe or unhealthy situation, in so far as it relates to hazardous processes; and
  • Section 80, the joint and several responsibility of the owner of leased premises and the occupiers for common facilities.

See our article on section 6, section 13 and sections 80 and 81.

Notice that the duty in section 13(d) is an employee's duty. So an employee who fails to report an unsafe hazardous-process situation can fall within section 102(1)(i), while section 106 deals with other employee breaches and expressly excepts clause (d) of section 13; see sections 106 to 108.

Punishment. Imprisonment up to two years and fine up to Rs 5 lakh. The text says "and", so both can be imposed. If the failure or contravention continues after the first conviction, an additional fine up to Rs 25,000 for every day of continuance. Under 102(2), if it continues beyond one year after conviction, imprisonment up to three years, or a fine of Rs 20 lakh, or both.

Because the standard is high, businesses that run hazardous processes should keep evidence that each listed duty was assessed, for instance risk assessments, training attendance, waste manifests and lease-area safety agreements. Our legal dispute resolution team can help when a notice or complaint cites section 102.

Section 103: accidents causing death or serious injury

Section 103(1) applies when a person "fails to comply with or contravenes any duties under this Code or the regulations, rules, bye-laws or orders made thereunder" and the failure has resulted in an accident or dangerous occurrence causing death or serious bodily injury. The causal link is part of the offence. "Serious bodily injury" is defined in section 2(1); see our definitions article.

  • Death: imprisonment up to two years, or a fine not less than Rs 5 lakh, or both. The text sets no upper limit on the fine.
  • Serious bodily injury to any person within the establishment: imprisonment up to one year, or fine not less than Rs 2 lakh but not exceeding Rs 4 lakh, or both.

Compensation proviso. When imposing the fine, the court may direct that a portion, not less than fifty per cent, be given as compensation to the victim or, in a death, to the legal heirs. See our guide to the old Factories Act fatal accident penalty for the comparison.

Repeat offence (103(2)). A person convicted under 103(1) and convicted again is punishable with double the punishment provided for the first conviction.

Reporting and proof

An accident must be notified under sections 10 and 11, and the facts then feed any inquiry under section 121; see sections 10 and 11. In any prosecution for failure to comply with a duty, section 118 puts the burden on the accused to prove that it was not reasonably practicable to comply or that all practicable measures were taken; see sections 117 and 118. That makes documents of the measures taken central to a defence.

Company liability and composition

If the offender is a company, persons in charge are deemed guilty under section 109, unless they prove lack of knowledge or due diligence; see sections 109 and 110. The Inspector-cum-Facilitator's 30-day opportunity to comply before prosecution does not apply where there is an accident (section 110(1) proviso). Of these sections, only section 103(1)(b) (serious bodily injury) appears in the compounding list in section 114(1); a death under 103(1)(a) and an offence under section 102 do not; see sections 113 and 114.

Example. A press line lacks a guard, a breach of the duty to provide safe plant. A worker loses two fingers, which the Code treats as a serious bodily injury if it meets the definition. The employer faces section 103(1)(b). If an earlier conviction exists for the same section, the punishment is doubled. The court may direct that at least half of any fine go to the worker.

Need help after a serious accident?

A serious accident brings notices, an inquiry and possibly a prosecution at once. Our legal dispute resolution team can help you organise records, reply to notices and plan the defence under sections 102, 103 and 118.

Key takeaways

  • Section 102 covers breaches of core employer duties, hazardous-process reporting and leased-premises duties: up to 2 years and Rs 5 lakh, with daily additional fine and a higher tier after a year.
  • Section 103 punishes failures that result in death (up to 2 years or fine of at least Rs 5 lakh) or serious bodily injury (up to 1 year or Rs 2 lakh to Rs 4 lakh).
  • The court may order at least half the fine to the victim or heirs.
  • A repeat conviction under section 103 doubles the punishment.
  • Section 118 makes evidence of practicable measures central to defence.

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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 Sections 102-103

  • 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.

What is the penalty if a safety lapse causes a death?

Imprisonment up to two years, or fine of not less than Rs 5 lakh, or both (section 103(1)(a)).

And for serious bodily injury?

Up to one year, or fine of Rs 2 lakh to Rs 4 lakh, or both (103(1)(b)), for injury to a person within the establishment.

A contractor's default can become the principal employer's liability; check their compliance too.

— TaxClue Labour Law Desk

Sections 102-103: 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.

Imprisonment up to two years, or fine of not less than Rs 5 lakh, or both (section 103(1)(a)).

Up to one year, or fine of Rs 2 lakh to Rs 4 lakh, or both (103(1)(b)), for injury to a person within the establishment.

The court may direct at least fifty per cent of the fine to be given to the victim or legal heirs.

Additional fine up to Rs 25,000 a day after conviction, and up to three years or Rs 20 lakh if it continues beyond one year.

No. The proviso to section 110(1) excludes accident cases.

Only clause (b) of 103(1) is in the compounding list in section 114(1).