Sections 123-124 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 123 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) lets the Central Government give directions to a State Government for implementing the Code. Section 124 stops any person from disclosing business or process information that came to his knowledge in the course of official duties, subject to listed exceptions. If you handle inspections or confidential process data, our legal consultation team can help you plan for both.
Section 123: the Central Government may give directions to a State Government for implementation of the Code. Section 124(1): no person shall, in respect of the establishment, disclose information about any manufacturing or commercial business or working process that came to his knowledge in the course of his official duties. Section 124(2): the bar does not apply to disclosure with the previous written consent of the owner, or for legal, arbitration or criminal proceedings under the Code, or reports of those proceedings.
Sections 123 and 124 at a glance
| Section | Who it binds | What it says |
|---|---|---|
| 123 | Central and State Governments | Central Government may direct a State Government to implement the Code |
| 124(1) | Any person with information from official duties | No disclosure of information on manufacturing or commercial business or working process |
| 124(2) | Exceptions | Written consent of owner; legal proceedings including adjudication or arbitration; criminal proceedings under the Code; reports of such proceedings |
Section 123: directions to States
Section 123 has one sentence: "The Central Government may give directions to a State Government for the implementation of the provisions of this Code." It does not list subjects or a procedure and does not say what follows if a State does not comply. Read it with the Code's scheme, in which the appropriate Government, Central or State, depends on the establishment (see our article on the definitions of appropriate government). Many establishments fall under the State Government as appropriate Government, so the section gives the Centre a way to push for consistent implementation across States.
This fits other provisions. Section 135(3) allows the Central Government, in consultation with the State Government, to make rules bringing uniformity across the country on occupational safety and health in factories (see sections 135 and 136). For an employer, section 123 has no direct compliance step. Its practical effect is that State practice on inspections, registration and licensing may change where the Centre gives a direction, so check your State's current position.
Section 124(1): the bar on disclosure
Section 124(1): "No person shall in respect of the establishment, disclose any information relating to any manufacturing or commercial business or any working process which may come to his knowledge in the course of his official duties."
Key features:
- "No person". The wording is wide. The information must come to the person's knowledge "in the course of his official duties", so it in practice binds those who acquire it through their functions under the Code: Inspector-cum-Facilitators, officers, members of boards and committees, experts, medical officers and others acting under the Code.
- What is protected. Information about a manufacturing or commercial business, or any working process. A processing method, a formulation, a customer arrangement or a production volume would fall in this description if learnt through official duty.
- Connection with the inspector's secrecy duty. Section 39 separately deals with secrecy for inspectors (see sections 39 to 41). Section 124 is the general bar that applies whatever the office held.
- Penalty. Sections 100 and 101 deal with the penalty for disclosure of information; see our article on sections 100 and 101 for the consequences.
Section 124(2): when disclosure is allowed
Nothing in section 124(1) applies to a disclosure made:
- With the previous consent in writing of the owner of the business or process; or
- For the purposes of any legal proceeding, including adjudication or arbitration, pursuant to any of the relevant statutory provisions; or
- For the purposes of any criminal proceeding under this Code that may be taken, whether under the relevant statutory provisions or otherwise; or
- For the purposes of any report of any such proceedings.
Consent must be previous and in writing, and must come from the owner of the business or process. An oral nod from a manager is not enough. The other exceptions are tied to proceedings: adjudication, arbitration and criminal proceedings under the Code. The Code does not say disclosure is open for any use a person finds convenient.
Practical steps for employers
- Mark confidential material. Tell the inspector which documents, formulae or process descriptions are confidential business information, and record that you did.
- Give written consent only deliberately. If a third party, such as a consultant or a lender, wants information obtained from an inspection, the owner's written consent is the route under section 124(2).
- Expect disclosure in proceedings. If the matter reaches a court, adjudication or arbitration, the information may be used there, and the report of the proceedings may set it out.
- Do not assume a wider secrecy. Section 124 covers information learnt in official duties; it does not make your own documents privileged against production in a legal proceeding.
Example 1. An inspector learns the stage-wise process of a chemical plant during an inspection. A trade journalist asks for details. Without the owner's previous written consent and outside any proceeding, disclosure would breach section 124(1).
Example 2. The owner of a factory asks its insurer to get the inspection findings. The owner gives written consent to the inspector to share the process-related portion. Section 124(2) permits that disclosure.
Note on criminal law: where the Code refers to the Indian Penal Code or the Code of Criminal Procedure, 1973, those have been replaced from 1 July 2024 by the BNS and BNSS.
Need help with confidentiality in inspections?
If you want to structure what you share with inspectors, or need to respond to a request for process information, our legal consultation team can review your documents, draft the consent wording and advise on the next step.
Key takeaways
- Section 123: the Central Government may direct a State Government to implement the Code.
- Section 124(1) bars disclosure of manufacturing, commercial or process information learnt in official duties.
- Disclosure is allowed with the owner's previous written consent or for legal, adjudication, arbitration or criminal proceedings under the Code, and reports of them.
- Penalty for breach is dealt with in sections 100 and 101.
Read next
- Sections 39-41: secrecy, facilities to inspectors and powers of special officers
- Sections 100-101: penalty for disclosure of information
- Sections 135-136: State rules and Central regulations
- Sections 120-122: overriding effect, inquiry and publication of reports
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.