Sections 127-129 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.
Sections 127 to 129 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) give the appropriate Government power to switch off all or part of the Code. Section 127 covers establishments in general and new factories, section 128 covers public emergencies, disasters and pandemics, and section 129 covers workshops attached to public institutions. If your establishment may fall under a notification, our legal consultation team can check the terms.
Section 127(1): the appropriate Government may, by notification, on conditions and for a period, say that all or any provisions of the Code do not apply to an establishment or class. Section 127(2): the State Government may exempt new factories for a period from the start of commercial production, to create economic activity and employment. Section 128: in a public emergency, disaster or pandemic, exemption of any workplace or activity, not exceeding one year at a time. Section 129: workshops attached to public institutions for education, training, research or information, with a scheme needed for hours and holidays.
Sections 127 to 129 at a glance
| Section | Who can exempt | From what | Limit |
|---|---|---|---|
| 127(1) | Appropriate Government, by notification | All or any provisions of the Code, rules or regulations, for any establishment or class | Conditions and period as specified |
| 127(2) | State Government | Any new factory or class of new factories, from all or any provision | Period from start of commercial production, as notified; conditions as thought fit |
| 128 | Appropriate Government, by notification | Any workplace, work activity or class, in a public emergency, disaster or pandemic, in whole of India or a part | Not more than one year at a time |
| 129 | Appropriate Government | Workshop or workplace with a manufacturing process attached to a public institution | Hours-of-work and holidays exemption needs an approved scheme |
Section 127(1): exemption by notification
The appropriate Government may, "by notification and subject to such conditions and restrictions, if any, and for such period or periods as may be specified in the notification", direct that all or any of the provisions of the Code, or rules or regulations under it, do not apply to or in relation to any establishment or class of establishments.
Three things define the power: it needs a notification, it can be conditional, and it is for a period or periods the notification states. The section does not list subjects that cannot be exempted. Who is the appropriate Government for a given establishment is explained in our definitions article. If you rely on an exemption, read the notification itself, since the conditions and period are there, not in the Code.
Section 127(2): new factories
Where the State Government is satisfied in the public interest that it is necessary to create more economic activities and employment opportunities, it may, by notification and subject to such conditions as it thinks fit, exempt any new factory or class or description of new factories from all or any of the provisions of the Code for a period from the date on which commercial production starts, as the notification specifies.
The Explanation defines "new factory or class or description of new factories" as factories "which are established and whose commercial production start within such period as may be specified in the notification". So the notification itself fixes the window within which a factory must be established and start production to qualify.
Saving for earlier State notifications. The proviso says any notification issued by a State Government under the Factories Act, 1948, in force in the State before the commencement of the Code, to achieve the same purpose "shall remain in force after such commencement for its remaining period as if the provisions of this Code, to the extent they defeat any purpose to be achieved by such notification issued by the State Government, were not in force". A new factory exempted under a State's Factories Act notification keeps that exemption for the notification's remaining period.
Example. A State notifies that new factories starting commercial production within a stated window are exempt from specified provisions of the Code for a stated period from the start of production. A manufacturer who meets the window relies on the notification; one who starts production after the window cannot, and must comply from day one.
Section 128: public emergency, disaster or pandemic
"In case of a public emergency or disaster or pandemic in whole of India or part thereof", the appropriate Government may, by notification, exempt any workplace or work activity or class thereof from all or any of the provisions of the Code, for the period and on the conditions it thinks fit.
The proviso sets a cap: no such notification shall be made for a period exceeding one year at a time.
The Explanation defines "public emergency" for this section as "a grave emergency whereby the security of India or any part of the territory thereof is threatened, whether by war or external aggression or internal disturbance". Note that the definition is stated for "public emergency". "Disaster" and "pandemic" are not defined in the section, so the plain meaning applies.
The one-year cap applies to each notification. The text does not say whether a fresh notification may follow, so read any extension carefully.
Section 129: workshops attached to public institutions
The appropriate Government may exempt, on the conditions it considers necessary, "any workshop or workplace where a manufacturing process is carried on and which is attached to a public institution maintained for the purposes of education, training, research or information" from all or any of the provisions of the Code.
Proviso. No exemption shall be granted from the provisions relating to hours of work and holidays unless the persons in control of the institution submit, for the appropriate Government's approval, a scheme regulating hours of employment, intervals for meals and holidays of persons employed in or attending the institution or who are its inmates. The Government must be satisfied that the scheme is not less favourable than the corresponding provisions of the Code.
So a technical college's workshop can be exempted from safety or registration provisions, but it cannot drop the hours and holidays protections without a scheme that matches them.
How to rely on an exemption safely
- Find the notification. The exemption exists only if a notification was issued under section 127, 128 or 129.
- Match the class. Check that your establishment or factory falls in the described class and the date window.
- Follow the conditions. Exemption is "subject to such conditions"; a breach of a condition can take you outside the exemption.
- Watch the end date. Diarise the period and the one-year cap under section 128.
- Keep the paper. Keep a copy of the notification with your registers.
Our legal consultation team can help you read a notification against your facts.
Need help with exemption notifications?
If a State or Central notification may exempt your factory, workplace or institution, our legal consultation team can check its conditions, the period and whether your establishment falls within it, before you rely on it.
Key takeaways
- Section 127(1) lets the appropriate Government exempt any establishment or class from all or any provisions, by notification, on conditions and for a period.
- Section 127(2) lets a State Government exempt new factories from commercial production for a notified period to boost employment; old Factories Act notifications survive for their remaining period.
- Section 128 allows exemption in a public emergency, disaster or pandemic, but not for more than one year at a time.
- Section 129 lets a public institution's workshop be exempted, but hours and holidays exemption needs an approved scheme not less favourable than the Code.
Read next
- Sections 120-122: overriding effect, inquiry and publication of reports
- Sections 58-59: exemption in emergency and applicability to inter-State migrant workers
- Sections 71-73: exemption, rescue and decision on whether a working is a mine
- Factory under new Labour Codes: OSH Code 2020
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.