Section 122 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.
Section 122 replaces the old "Inspector" with an Inspector-cum-Facilitator, who both advises employers and employees and inspects establishments. It provides for a web-based, randomised inspection scheme and lists the officer's powers to examine people, demand documents and search and seize records.
The Central Government appoints Inspector-cum-Facilitators for Chapters III and IV (EPF and ESI) and the appropriate Government for the rest (s.122(1)). They work under a notified inspection scheme that may be web-based, with randomised selection and special inspections (s.122(2)-(4)). They may advise employers and employees and inspect (s.122(5)), examine persons, require documents, and search, seize or copy registers and wage records where an offence is suspected (s.122(6)). Anyone asked for documents is legally bound to produce them (s.122(7)).
Why it matters
Every employer covered by the Code can be inspected, and the officer has real powers. The Code also expects the officer to guide rather than only penalise. Keeping registers and wage records ready and current is the main preparation. Our labour law compliance team can run a mock inspection and close gaps before an officer arrives. Records are covered in sections 123 and 124, and prior notice before prosecution in sections 136 to 138.
Who appoints the Inspector-cum-Facilitator
| Subject | Appointing Government |
|---|---|
| Chapter III (provident fund) and Chapter IV (ESI), and provisions relating to them | Central Government |
| Other provisions of the Code | Appropriate Government |
Appointment is by notification. The officers discharge their duties and exercise their powers in accordance with the inspection scheme (s.122(1)).
The inspection scheme (s.122(2)-(4))
- The scheme may provide for a web-based inspection and electronic calling of information, and must cater to special circumstances for assigning inspections and calling for information.
- The Government may confer jurisdiction of randomised selection of inspection on the officers by notification (s.122(3)).
- The scheme may take into account, among other factors: a unique number for each establishment (same as its registration number), each officer and each inspection; timely uploading of inspection reports; special inspections on notified parameters; and the characteristics of employment relationships, nature of work and workplaces (s.122(4)).
The Central Government notifies these matters for Chapters III and IV, and the appropriate Government for the rest. Where the State Government is the appropriate Government, the State's scheme applies. Check the notified scheme for details; the Code does not itself set the frequency or selection method.
Functions and powers
Facilitator role (s.122(5))
The officer may (a) advise employers and employees on compliance with the Code, and (b) inspect the establishments assigned to him, subject to the appropriate Government's instructions or guidelines.
Inspection powers (s.122(6))
Subject to the scheme, the officer may:
| Clause | Power |
|---|---|
| (a) | Examine any person found in the establishment's premises whom he has reasonable cause to believe is an employee |
| (b) | Require a person he has reasonable cause to believe is the employer to produce any document or give any information relevant to the inspection |
| (c) | Search, seize or take copies of relevant registers, records of wages or notices, in respect of an offence he has reason to believe the employer has committed |
| (d) | Bring to the notice of the appropriate Government defects or abuses not covered by any law |
| (e) | Exercise other powers prescribed by the appropriate Government |
Legal effect (s.122(7), (8))
- A person required to produce documents or information is deemed legally bound to do so within the meaning of sections 175 and 176 of the Indian Penal Code.
- The Code of Criminal Procedure, 1973 applies, so far as may be, to search or seizure, as to a search under a warrant issued under section 94 of that Code.
(From 1 July 2024 the Indian Penal Code and the Code of Criminal Procedure were replaced by the Bharatiya Nyaya Sanhita and the Bharatiya Nagarik Suraksha Sanhita; the Code text is quoted as enacted.)
Central Rules on records to be produced
Rule 53(1)(d) of the Code on Social Security (Central) Rules, 2026 says every employer must produce records and registers on demand before the Inspector-cum-Facilitator or a person the Central Government authorises. Obstructing the officer or failing to produce a register is an offence under section 133; see section 133.
A worked example
A manufacturing unit is selected for inspection through the web-based scheme. The officer visits, asks the HR manager for the register of employees, muster roll and wage register, and speaks to two workers on the floor. He advises the unit that its wage slips need an employee identification number. The unit's registers are complete, so the visit ends with advice. Had the officer suspected an offence and found records missing, he could have copied or seized the relevant registers. (Illustrative.)
Need help preparing for an inspection?
A calm, documented response is easier when registers, wage slips and filings are up to date and one person knows where everything is. Our labour law compliance team can help you prepare your records, assign responsibility and respond to an inspection notice.
Key takeaways
- Section 122 creates the Inspector-cum-Facilitator: adviser and inspector in one.
- Central Government appoints for Chapters III and IV; the appropriate Government for the rest.
- Inspection scheme may be web-based, with randomised selection and special inspections.
- Powers: examine, require documents, search, seize or copy records on suspicion of an offence.
- Producing documents is legally binding; failure can attract penalty under section 133.
Read next
- Sections 123 and 124: Maintenance of records and employer's duties
- Sections 71 and 72: Duties of employer and power of Inspector-cum-Facilitator
- Sections 136 to 138: Cognizance, prior notice and compounding
- Common EPF violations by employers and how to avoid
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(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.