Section 2 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.
Four definitions in section 2(1) work together in the OSH Code's safety provisions: hazardous (clause (z)), hazardous process (clause (za)), hazardous substance (clause (zb)) and serious bodily injury (clause (zzg)). They set the trigger for the special duties on factories that run hazardous processes and for the penalty provisions that follow an accident.
A hazardous process is a process or activity in an industry or plantation listed in the First Schedule where, unless special care is taken, raw materials, intermediates, finished products, by-products, hazardous substances, wastes, effluents or sprayed pesticides would materially impair the health of people connected with it or pollute the general environment. A hazardous substance is any substance, or quantity of it, prescribed by the appropriate Government that can cause physical or health hazards or harm the environment. Serious bodily injury covers permanent loss of a body part or its use, permanent injury to sight or hearing, permanent physical incapacity, or a fracture of a bone or joint.
The four definitions
| Clause | Term | What the definition says |
|---|---|---|
| 2(1)(z) | Hazardous | Involving danger or potential danger |
| 2(1)(za) | Hazardous process | Any process or activity in relation to an industry or plantation specified in the First Schedule where, unless special care is taken, raw materials used, or the intermediate or finished products, by-products, hazardous substances, wastes or effluents, or spraying of pesticides, insecticides or chemicals, would (i) cause material impairment to the health of persons engaged in or connected with it, or (ii) result in pollution of the general environment |
| 2(1)(zb) | Hazardous substance | Any substance, or such quantity of the substance as may be prescribed by the appropriate Government, or preparation of which, by reason of chemical or physio-chemical properties or handling, is liable to cause physical or health hazards to human beings or harm to other living creatures, plants, micro-organisms, property or the environment |
| 2(1)(zzg) | Serious bodily injury | Any injury which involves, or in all probability will involve, the permanent loss of any part or section of a body or the use of any part or section of a body, or the permanent loss of or injury to sight or hearing, or any permanent physical incapacity, or the fracture of any bone or one or more joints or bones of any phalanges of hand or foot |
If you operate a plant that uses chemicals, solvents or pesticides and are unsure whether it falls in the hazardous category, our labour law compliance team can map your processes against the First Schedule.
The First Schedule link
The definition of hazardous process is tied to the First Schedule, which lists industries (40 items), among them ferrous and non-ferrous metallurgical industries, foundries, coal and coke, power generation, pulp and paper, fertiliser, cement, petroleum, petro-chemical, drugs and pharmaceutical, fermentation (distilleries and breweries), paints and pigments, leather tanning, electro-plating, chemical industries, pesticides, asbestos, benzene, carbon disulphide, dyes, highly flammable liquids and gases, ship breaking, hazardous waste and e-waste processing, semiconductor manufacturing and nano-particle industries. See the First Schedule. A process outside those industries is not a "hazardous process" under this definition, even if it is dangerous in a general sense; the general safety duties of section 6 still apply.
Hazardous substance: prescribed substance or quantity
Clause (zb) leaves the substance list and the quantity to the appropriate Government. For the Central sphere, rule 186 of the Central Rules, 2026 says the substance or the quantity under clause (zb) (and the income sources under the Explanation to clause (x), which is the "family" definition) shall be specified through general or special order issued by the Central Government from time to time. The Rules themselves do not list substances or quantities. Where the State Government is the appropriate Government, the State's rules and orders apply. See rules 185 and 186.
Where these terms are used
Hazardous process. The Code puts specific duties on the occupier of a factory involving a hazardous process. Section 84 requires disclosure of information about dangers, and section 85 lists the occupier's specific responsibilities (for example, health and medical records of workers exposed to chemical, toxic or other harmful substances). See sections 84 and 85. Section 102(1)(i) also picks up the duty in section 13(d) "in so far as such duty relates to hazardous processes". For the old Act position, see our note on hazardous processes under the Factories Act.
Serious bodily injury. The phrase appears in two places in the Code's text:
- Section 60(ii): the contractor or employer of an establishment employing inter-State migrant workers must, in case of fatal accident or serious bodily injury to such a worker, report to the specified authorities of both States and to the next of kin.
- Section 103(1)(b): where a failure to comply with duties results in an accident or dangerous occurrence causing serious bodily injury to any person within the establishment, the punishment is imprisonment up to one year, or a fine of not less than Rs 2 lakh and not more than Rs 4 lakh, or both. If death results (section 103(1)(a)), imprisonment up to two years, or a fine of not less than Rs 5 lakh, or both. The court may direct that at least fifty per cent. of the fine goes as compensation to the victim or legal heirs. A repeat conviction brings double the punishment.
| Situation | Code provision | Consequence |
|---|---|---|
| Duty breached; accident causes death | Section 103(1)(a) | Up to 2 years, or fine not less than Rs 5 lakh, or both |
| Duty breached; accident causes serious bodily injury | Section 103(1)(b) | Up to 1 year, or fine Rs 2 lakh to Rs 4 lakh, or both |
| Fatal accident or serious bodily injury to inter-State migrant worker | Section 60(ii) | Report to authorities of both States and next of kin |
The injury definition includes a fracture of "any bone or one or more joints or bones of any phalanges of hand or foot", so even a single finger-bone fracture can meet the test. The notice requirements for accidents themselves are in sections 10 and 11.
Example. A pharmaceutical unit's solvent-recovery line is in a First Schedule industry. A vapour release, caused by a missed maintenance step, leaves a worker with permanent loss of hearing. That is "serious bodily injury". If the missed step was a breach of a duty under the Code, section 103(1)(b) applies; the penalty is decided by the court.
Need help with hazardous process compliance?
If your plant sits in a First Schedule industry, the hazardous process duties, records and disclosures start from these definitions. Our labour law compliance team can help you check your process list, health records and incident reporting against the Code. Bring your process flow and the list of chemicals you handle.
Key takeaways
- A hazardous process must be in an industry or plantation listed in the First Schedule and must risk material impairment of health or pollution of the environment.
- Hazardous substances and quantities are prescribed by the appropriate Government; for the Central sphere, rule 186 leaves them to Central Government orders.
- Serious bodily injury includes permanent loss of a body part or its use, permanent injury to sight or hearing, permanent incapacity, and certain fractures.
- Section 103 punishes duty breaches 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 fine of Rs 2 lakh to Rs 4 lakh).
- Section 60(ii) requires reporting to both States in case of fatal accident or serious bodily injury to an inter-State migrant worker.
Read next
- First Schedule: list of hazardous industries
- Sections 84 and 85: disclosure and the occupier's responsibility
- Sections 102 and 103: penalty for contravention causing death or serious bodily injury
- Hazardous processes under the Factories Act
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.