Sections 80 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 80 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) makes the owner of leased premises and the occupiers of the factories in them jointly and severally responsible for common facilities such as fire safety, canteens and ventilation. Section 81 lets the appropriate Government declare a place to be a factory for the Code, regardless of the number of workers.
Where premises or separate buildings are leased to different occupiers for use as separate factories, the owner and the occupiers using common facilities are jointly and severally responsible for providing and maintaining them, as prescribed (80). The appropriate Government may notify that all or any provisions of Part VII apply to any place where a manufacturing process is carried on, with or without power, irrespective of the number of workers (81(1)). The place is then deemed a factory, the owner is deemed the occupier and anyone working there a worker (81(2)). "Owner" includes a lessee or mortgagee in possession.
At a glance
| Section | Applies to | Effect |
|---|---|---|
| 80 | Premises or separate buildings leased to different occupiers for separate factories, with common facilities | Owner and occupiers jointly and severally responsible for common facilities and services as prescribed |
| 81(1) | Any place where a manufacturing process is carried on with or without power, or is ordinarily carried on | Government may notify that Part VII provisions apply, irrespective of the number of workers |
| 81(2) | A place so declared | Deemed a factory; owner deemed occupier; person working there deemed a worker |
| 81 Explanation | "Owner" | Includes a lessee or mortgagee with possession of the premises |
Section 80: shared buildings, shared duty
Many industrial estates and multi-tenant buildings have several small factories under one roof or in one compound, with shared services. Section 80 answers who looks after those services. Where premises or separate buildings are leased to different occupiers for use as separate factories, the owner of the premises and the occupiers of the factories utilising such common facilities are jointly and severally responsible.
The common facilities named in the text include:
- safety and fire prevention and protection,
- access,
- hygiene, occupational health,
- ventilation, temperature,
- emergency preparedness and response,
- canteens, shelter, rest rooms and crèches.
The responsibility is for provision and maintenance of such common facilities and services "as may be prescribed by the appropriate Government". The words "jointly and severally" mean the authority can look to the owner or to any one occupier for the whole duty, and they must settle the cost between themselves. A lease that says "the tenant handles all compliance" does not remove the statutory duty.
Landlords and tenants in a multi-tenant factory building can get help drawing up a clear allocation of these services; our labour law compliance team can review the lease terms and site arrangements.
What the text does not say
- It does not list penalties; see the offences chapter and section 94.
- It does not fix how the cost is shared; that is for the parties.
- It applies to common facilities; each occupier's own factory duties, for example as occupier, remain with that occupier. The duties of the employer are in section 6.
Section 81: declaring a place to be a factory
The Code's definition of a factory depends on worker numbers and a manufacturing process; see our definitions article. Section 81 creates a power to go beyond that. The appropriate Government may, by notification, declare that all or any provisions of this Part (Part VII, factories) apply to any place wherein a manufacturing process is carried on with or without the aid of power or is ordinarily carried on, irrespective of the number of workers working in the factory.
After the declaration (81(2)):
- the place is deemed a factory for the Code;
- the owner is deemed the occupier; and
- any person working there is deemed a worker.
The Explanation says "owner" includes a lessee or mortgagee with possession of the premises. So a person who has taken premises on lease and runs a process there is treated as the owner, hence the occupier, once the place is declared.
Note three limits in the text. The power is by notification, so nothing changes until one is issued. It can apply all or any of the Part's provisions, so a declaration may be partial. And it concerns a manufacturing process, defined in the Code; see the same definitions article.
Central Rules, 2026
The Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026) apply where the Central Government is the appropriate Government. Where a State Government is the appropriate Government, the State's rules apply. Section 80 leaves the detail of common facilities to rules of the appropriate Government, and section 81 operates by notification, so this article does not rely on a Central Rule for either. Check the State's rules and notifications for your location.
Practical points
- Landlords: list every common service in the building (fire equipment, exits, canteen, toilets, ventilation) and write down who maintains each.
- Occupiers: ask the owner for fire and emergency plans and check that the common canteen, rest room and crèche, where applicable, exist and work.
- Leases: add cost-sharing and access clauses for common facilities, knowing the statutory duty stays joint and several.
- Small units: check whether your State has notified a place or class of places under section 81, because headcount may no longer protect you.
- Lessees and mortgagees in possession: prepare to be treated as the occupier after a declaration.
Example. A building leased to five small fabrication units shares a fire pump room and a canteen. The pump room fails an inspection. The Inspector-cum-Facilitator can hold the owner and the occupiers using the facility responsible together. Separately, a State notifies that any place where a manufacturing process is carried on is a factory for Part VII, and a four-worker unit that was outside the factory definition is now a factory, with the owner as occupier.
For the old-law background, see definitions under the Factories Act.
Need help with multi-tenant factory compliance?
Shared buildings create shared exposure. Our labour law compliance team can map common facilities, help owners and occupiers document who does what, and check whether a notification under section 81 touches your unit.
Key takeaways
- Owners and occupiers of separately leased factories share joint and several responsibility for common facilities (80).
- The appropriate Government may notify any manufacturing place as a factory, irrespective of workers (81(1)).
- After a declaration, the owner is deemed occupier and workers are workers (81(2)); owner includes a lessee or mortgagee in possession.
Read next
- Section 79: approval and licensing of factories
- Sections 82–83: dangerous operations and site appraisal committee
- Section 24: welfare facilities in the establishment
- Definitions under the Factories Act: factory, occupier, worker
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.