Section 38 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 38 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) gives an Inspector-cum-Facilitator special powers to stop work in a factory, mine, dock work and building or other construction work where there is danger. Each sector has its own order, time limits and appeal route.
In a factory, an order on serious hazard or imminent danger can restrict employment to the minimum number needed; it has effect for three days unless the Chief Inspector-cum-Facilitator extends it, with an appeal to the High Court. In mines, notices and orders carry a ten-day appeal to the Chief and a twenty-day objection to the Central Government. In dock work and construction sites, prohibition orders are appealable in fifteen days and appeals are to be disposed of within sixty days. Affected workers are entitled to wages.
Section 38 at a glance
| Sector | Power | Appeal or objection | Wages |
|---|---|---|---|
| Factory 38(1)(A) | Written order to the occupier prohibiting employment, other than the minimum number for minimum tasks, until the hazard is removed | Order effective for 3 days until extended by the Chief; appeal to the High Court | Affected persons entitled to wages and other benefits; occupier to provide alternative employment wherever possible |
| Mine 38(1)(B) | Notice of dangerous or defective matter, prohibition of employment, prohibition on extraction of pillars, urgent danger order | Employer appeals within 10 days to the Chief; objection within 20 days to the Central Government | Full wages, or alternative employment at the same wages |
| Dock work 38(1)(C) | Written order prohibiting dock work in a dangerous place | Appeal within 15 days; disposal within 60 days | Not stated in this clause |
| Building or construction 38(2), (3) | Written order prohibiting work at a dangerous site | Appeal within 15 days; disposal within 60 days | Not stated in this sub-section |
If you have received a prohibition order or notice under section 38, our dispute resolution service can help you decide between compliance, appeal and objection within the time limit.
Factories: serious hazard or imminent danger (38(1)(A))
- (a) Where conditions in a factory or part of it may cause serious hazard or imminent danger by injury or death to persons employed or to the general public in the vicinity, the Inspector-cum-Facilitator may, by order in writing to the occupier, state the particulars and prohibit employing anyone other than the minimum number necessary for the minimum tasks until the hazard is removed.
- (b) The order has effect for three days, until extended by the Chief Inspector-cum-Facilitator by a further order.
- (c) A person aggrieved by the Inspector's order, or the Chief's extension, may appeal to the High Court.
- (d) Any person whose employment is affected is, without prejudice to rights under the Industrial Disputes Act, 1947, entitled to wages and other benefits, and the occupier must provide alternative employment wherever possible, as the appropriate Government prescribes.
Mines: notice, prohibition and appeal (38(1)(B))
The mine provisions are the longest and run in clauses (a) to (q). In short:
- Notice (a). For a matter with no express provision, if a mine or practice is dangerous to human life or safety or defective, the Chief or an Inspector gives written notice stating the particulars and requiring it to be remedied within a specified time.
- Prohibition (b). If the employer does not comply in time, employment is prohibited for persons not reasonably necessary to comply with the notice.
- Pillars (c). Extraction or reduction of pillars or blocks of minerals can be prohibited where it risks collapse or endangers the mine, or where fire or flooding precautions are inadequate.
- Urgent danger (d). Where there is urgent and immediate danger, an authorised officer may prohibit employment of persons not reasonably necessary to remove the danger, with grounds stated.
- Wages (e). Persons whose employment is prohibited under (b) or (d) get full wages for the period, unless the employer gives alternative employment at the same wages.
- Appeal (f). The employer may appeal within ten days of receipt to the Chief, who may confirm, modify or cancel.
- Report (g). The orders are to be reported forthwith to the Central Government.
- Objection (h), (i). The employer may send a written objection within twenty days to the Central Government, which ordinarily decides within one month; the notice or order must still be complied with pending the decision, but the Central Government may suspend a notice under (a) on the employer's application.
- Express safety provisions (k) to (n). Where a safety matter has express provision, the Chief may give notice to comply; on failure, prohibit employment of persons not reasonably necessary; those prohibited get full wages (or alternative employment at the same wages) payable by the owner, agent or manager referred to in section 67.
- Safeguards (o) to (q). The Chief may reverse or modify his own orders for recorded reasons; no order prejudicial to the owner, agent or manager is made without a reasonable opportunity of making representation; the Central Government may reverse or modify the Chief's orders; and section 144 of the Code of Criminal Procedure, 1973 is unaffected.
Dock work (38(1)(C))
- If any place where dock work is carried on is dangerous to life, safety or health, the Inspector-cum-Facilitator may, in writing, serve the employer with an order prohibiting dock work in that place until the cause of danger is removed to his satisfaction.
- A copy is endorsed to the Chief, who may modify or cancel the order without waiting for an appeal.
- Appeal lies within fifteen days of the order being communicated, to the Chief, or to the Central Government where the order is the Chief's. The appeal is to be disposed of within sixty days after hearing the appellant. A late appeal may be entertained on sufficient cause, and the order must be complied with pending the decision.
Building or other construction work (38(2) and (3))
- If a site is in such condition that it is dangerous to life, safety or health of building workers or the general public, the Chief or an Inspector may serve in writing on the employer of building workers, the employer of the establishment in which the site is situated, or the person in charge of the site, an order prohibiting the work until the danger is removed.
- The Inspector endorses a copy to the Chief, and the order must be complied with forthwith.
- Appeal within fifteen days to the Chief or, where the Chief made the order, to the appropriate Government; disposal within sixty days; delay may be condoned for sufficient cause; the order is complied with subject to the appeal decision.
Practical points
- Comply first. Mine orders must be complied with pending objection; dock and construction orders are complied with subject to the appeal decision.
- Diarise the periods. Ten days and twenty days for mines; fifteen days for dock and construction; High Court for a factory order.
- Pay or redeploy. For a factory order, occupiers must provide alternative employment wherever possible; in mines, full wages or alternative employment at the same wages.
- Central Rules. The Central Rules, 2026 (G.S.R. 345(E), 8 May 2026) do not repeat these procedures; Rule 78 covers improvement notices after inspection. Where a State is the appropriate Government, check its rules for the manner of alternative employment.
Example. After a crane failure at a construction site, an Inspector serves a written prohibition order on the person in charge. The employer stops work forthwith, removes the danger, and in parallel files an appeal within fifteen days to the Chief Inspector-cum-Facilitator, since the order must be complied with whatever the outcome.
Need help with a prohibition order or appeal?
Orders under section 38 move fast and the appeal windows are short. Our dispute resolution team can review the order, advise on compliance and prepare an appeal or objection within the time allowed.
Key takeaways
- Section 38 gives stop-work powers in factories, mines, dock work and construction sites.
- Factory order: three days unless extended; appeal to the High Court; wages and alternative employment.
- Mines: notices, prohibitions, ten-day appeal, twenty-day objection; full wages.
- Dock and construction: fifteen-day appeal, sixty-day disposal; comply pending decision.
Read next
- Section 35: powers of Inspector-cum-Facilitator
- Sections 39 to 41: secrecy, facilities to inspectors and powers of special officers
- Rule 78: improvement notice
- Factory inspector powers and duties
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.