Section 94 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 94 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) is the residuary penalty provision of Chapter XII. If an establishment breaks the Code, or a rule, regulation, bye-law, standard or written order made under it, and no other section of the Code provides a specific penalty, the employer or principal employer faces a penalty of not less than Rs 2 lakh and up to Rs 3 lakh.
Section 94 applies "save as otherwise expressly provided in this Code". The liable person is the employer or the principal employer of the establishment. The penalty is not less than Rs 2,00,000 but may extend to Rs 3,00,000. If the contravention continues after conviction, a further penalty of up to Rs 2,000 for each day it continues may be imposed. The section uses the word penalty, and penalties under it can be compounded under section 114.
Section 94 at a glance
| Element | Text of section 94 |
|---|---|
| Trigger | Any contravention of the Code, regulations, rules, bye-laws, standards, or any written order given under them |
| Where | "In, or in respect of, any establishment" |
| Who | The employer or the principal employer, as the case may be |
| Amount | Not less than Rs 2 lakh; may extend to Rs 3 lakh |
| Continuing contravention | Further penalty up to Rs 2,000 for each day after conviction |
| Exception | Anything for which the Code provides a specific penalty |
What triggers section 94
The trigger is wide. It is any contravention of:
- the provisions of the Code;
- regulations, rules, bye-laws or standards made under the Code; or
- any order in writing given under the Code or those instruments.
Because it is a residuary clause, read it last. First check whether a specific section covers the breach. For example, failing to keep registers has its own penalty in section 96, false records in section 98, contravening duties relating to hazardous processes in section 102, and obstruction of inspectors in section 95. Those specific sections take the case out of section 94. See sections 95 and 96.
Examples of the kind of breach that lands in section 94 because no separate penalty is named are failing to meet a welfare requirement under the rules, or ignoring a written direction of an Inspector-cum-Facilitator. Whether a particular breach is caught depends on the section concerned, so confirm it against the text. Our legal dispute resolution team can help you assess an inspection notice and decide the reply.
Who is liable: employer or principal employer
The text puts the liability on "the employer or the principal employer of the establishment, as the case may be". The Code defines both terms in section 2(1); see our article on employer, employee, worker and occupier and our article on principal employer. Where contract labour is engaged, a principal employer cannot assume that a contractor alone bears the exposure; the section names the principal employer too.
If the offender is a company, section 109 also reaches the persons in charge, subject to its defences; see sections 109 and 110.
The continuing-contravention add-on
If the contravention is continued after conviction, there is a further penalty that may extend to Rs 2,000 for each day until the contravention stops. Two features matter.
- The daily amount starts only after conviction. It is not a daily charge from the date of the breach.
- The text says "may extend to", so it is a maximum.
Worked example. An employer is convicted and penalised under section 94 and the same contravention carries on. If it continues for 30 days after conviction, the further penalty could be as much as Rs 60,000 (30 days at Rs 2,000), in addition to the penalty imposed on conviction. That is a ceiling computed from the text, not a fixed charge.
Who imposes it and how it is challenged
Section 94 sits in the list of provisions for which an officer appointed under section 111 can hold an enquiry and impose the penalty, without a court trial. An appeal lies to the appellate authority within 60 days. See sections 111 and 112.
Before any prosecution is started, section 110(1) requires the Inspector-cum-Facilitator to give an opportunity to comply within 30 days of the notice, except where there has been an accident or the same violation is repeated within three years. That protection is explained in sections 109 and 110.
Compounding
Section 114(1) names section 94 among provisions that may be compounded. For a penalty, the composition sum is fifty per cent of the maximum penalty. For section 94 that would be 50% of Rs 3 lakh, that is Rs 1.5 lakh, where the officer notified by the appropriate Government accepts composition. Composition is not available for a repeat within three years of an earlier composition or conviction. See sections 113 and 114.
Practical steps
- Keep a legal register listing each obligation, the section, and the evidence of compliance.
- Answer written orders in writing and on time; a written order is itself an obligation whose breach falls under section 94.
- If a notice arrives, use the section 110(1) 30-day window to cure the default and keep proof.
Need help with penalty exposure?
Penalty provisions are easy to misread, especially the split between specific penalties and this residuary one. Our legal dispute resolution team can review a notice, check which section applies and advise on cure, composition or appeal.
Key takeaways
- Section 94 is the residuary penalty: Rs 2 lakh to Rs 3 lakh on the employer or principal employer.
- A further penalty of up to Rs 2,000 a day applies if the contravention continues after conviction.
- Specific sections, such as 95 to 99 and 102 to 105, override it for their own offences.
- It can be compounded at 50 per cent of the maximum penalty and is imposed by an officer under section 111.
Read next
- Sections 95 and 96: obstruction of inspectors and non-maintenance of registers
- Sections 109 and 110: offences by companies and limitation of prosecution
- Sections 113 and 114: court orders and composition of offences
- Penalties under the Factories Act: sections 92 to 106
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.