Section 5: Notice of commencement and cessation of operation

The Occupational Safety, Health and Working Conditions Code, 2020 (Act No. 37 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter II: Registration
Competent Labour Forum
Act No. 37 of 2020

Legal Commentary & Landmark Judgments: Section 5

Section 5 of the Occupational Safety, Health and Working Conditions Code, 2020 imposes an absolute affirmative obligation on every employer to transmit prior electronic notice of the commencement and cessation of establishment operations to the registering officer within thirty days, ensuring complete administrative visibility over industrial commissioning and closure.

  • Mandatory Thirty-Day Prior Commencement Notice: Requires every employer to submit electronic intimation at least thirty days prior to commencing operations in an establishment, disclosing factory layout, nature of manufacturing processes, chemical inventories, and projected workforce headcounts.
  • Statutory Notice of Cessation & Closure Demarcation: Mandates that within thirty days of ceasing operations or permanently closing an establishment, the employer must electronically notify the registering officer, certifying the clearance of statutory worker dues and decommissioning of hazardous machinery.
  • Strict Criminal Exposure for Non-Intimation: Failure to tender timely notice of commencement or cessation operates as an independent statutory contravention under Chapter XI, triggering financial penalties and criminal prosecutions against the occupier and manager.
Key Landmark Precedents:
  • Excel Wear v. Union of India (1978) 4 SCC 224: Constitution Bench affirmed that while an employer possesses the constitutional right to close an industrial undertaking under Article 19(1)(g), the State is fully empowered to impose reasonable procedural requirements, notifications, and worker protection mandates.
  • Workmen of the Food Corporation of India v. Food Corporation of India (1985) 2 SCC 136: Supreme Court ruled that statutory notices governing industrial operations and changes in service conditions are mandatory preconditions that cannot be bypassed by managerial expediency.
Courtroom Practice & Strategic Litigation Guidance:

Factory and site managers must align project execution timelines with the statutory 30-day pre-commencement notice. Ensure all underlying environmental consents to operate (CTO), fire safety clearances, and factory inspector approvals are cross-referenced in Form II filings. Upon site decommissioning, obtain a formal digital closure acknowledgment to prevent ongoing statutory compliance demands.