Section 127: Power to exempt in special cases
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 127 — Defines the statutory power concerning exempt in special cases and the conditions attached to its exercise. Key operative text: (1) The appropriate Government may, by notification and subject to such conditions and restrictions, if any, and for such period or periods as may be specified in the notification, direct that all or any of the provisions of…
All provisions were brought into force from 21 November 2025 under S.O. 5321(E), subject to the Central/State appropriate-Government split and provision-specific appointments/notifications.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (1) The appropriate Government may, by notification and subject to such conditions and restrictions, if any, and for such period or periods as may be specified in the notification, direct that all or any of the provisions of this Code or the rules or the regulations made there under shall not apply to or in relation to any establishment or class of establishments.
- (2) Without prejudice to the generality of sub-section (1), where the State Government is satisfied in the public interest that it is necessary to create more economic activities and employment opportunities, it may, by notification, exempt, subject to such conditions as it may think fit, any new factory or class or description of new factories from all or any of the provisions of this Code for such period from…
- Provided that any notification issued by a State Government under the Factories Act, 1948 (63 of 1948) for the time being in force in the State prior to the commencement of this Code to achieve the same purpose as is specified in this sub-section, shall remain in force after such commencement for its remaining period as if the provisions of this Code, to the extent they defeat any purpose to be achieved by such…
- Explanation.—For the purpose of this sub-section, the expression “new factory or class or description of new Factories” means such factory or class or description of Factories which are established and whose commercial production start within such period as may be specified in the notification.
Provisos, explanations & qualifications
- Provided that any notification issued by a State Government under the Factories Act, 1948 (63 of 1948) for the time being in force in the State prior to the commencement of this Code to achieve the same purpose as is specified in this sub-section, shall remain in force after such commencement for its remaining period as if the provisions of this Code, to…
- Explanation.—For the purpose of this sub-section, the expression “new factory or class or description of new Factories” means such factory or class or description of Factories which are established and whose commercial production start within such period as may be specified in the notification.
Thresholds and timelines in the text
- No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.
Actors expressly appearing in the text
Appropriate Government, State Government
Full statutory text — Section 127
127. Power to exempt in special cases.—(1) The appropriate Government may, by notification and subject to such conditions and restrictions, if any, and for such period or periods as may be specified in the notification, direct that all or any of the provisions of this Code or the rules or the regulations made there under shall not apply to or in relation to any establishment or class of establishments. (2) Without prejudice to the generality of sub-section (1), where the State Government is satisfied in the public interest that it is necessary to create more economic activities and employment opportunities, it may, by notification, exempt, subject to such conditions as it may think fit, any new factory or class or description of new factories from all or any of the provisions of this Code for such period from the date on which such commercial production starts, as may be specified in the notification: Provided that any notification issued by a State Government under the Factories Act, 1948 (63 of 1948) for the time being in force in the State prior to the commencement of this Code to achieve the same purpose as is specified in this sub-section, shall remain in force after such commencement for its remaining period as if the provisions of this Code, to the extent they defeat any purpose to be achieved by such notification issued by the State Government, were not in force. Explanation.—For the purpose of this sub-section, the expression “new factory or class or description of new Factories” means such factory or class or description of Factories which are established and whose commercial production start within such period as may be specified in the notification.
How to apply this provision
- Primary statutory test — (1) The appropriate Government may, by notification and subject to such conditions and restrictions, if any, and for such period or periods as may be specified in the notification, direct that all or any of the provisions of this Code or the rules or the regulations made there under shall not apply to or in relation to any establishment or class of establishments.
- Additional operative limb — (2) Without prejudice to the generality of sub-section (1), where the State Government is satisfied in the public interest that it is necessary to create more economic activities and employment opportunities, it may, by notification, exempt, subject to such conditions as it may think fit, any new factory or class or description of new factories from all or any of the provisions of this Code for such period from…
- Qualification / exception to test — Provided that any notification issued by a State Government under the Factories Act, 1948 (63 of 1948) for the time being in force in the State prior to the commencement of this Code to achieve the same purpose as is specified in this sub-section, shall remain in force after such commencement for its remaining period as if the provisions of this Code, to…
- Evidence file — retain facts and records proving the role/status of: Appropriate Government, State Government.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
For an establishment affected by power to exempt in special cases, the compliance owner should identify the applicable sector and authority, document the prescribed control/notice/record and retain inspection or training evidence. A text point to test is: “(1) The appropriate Government may, by notification and subject to such conditions and restrictions, if any, and for such period or periods as may be specified in the notification, direct that all or any of the provisions of this Code or the rules or the regulations made there un” Also test the express qualification/proviso before concluding the result.
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 127
What does Section 127 of the OSHWC Code cover?
Section 127 — Defines the statutory power concerning exempt in special cases and the conditions attached to its exercise. Key operative text: (1) The appropriate Government may, by notification and subject to such conditions and restrictions, if any, and for such period or periods as may be specified in the notification, direct that all or any of the provisions of…
What is the main legal requirement or power in Section 127?
The first operative clause identified from the official text is: “(1) The appropriate Government may, by notification and subject to such conditions and restrictions, if any, and for such period or periods as may be specified in the notification, direct that all or any of the provisions of this Code or the rules or the regulations made there under shall not apply to or in relation to any establishment or class of establishments.” Read it with the remaining subsections and any proviso below.
Does Section 127 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “Provided that any notification issued by a State Government under the Factories Act, 1948 (63 of 1948) for the time being in force in the State prior to the commencement of this Code to achieve the same purpose as is specified in this sub-section, shall remain in force after such commencement for its remaining period as if the provisions of this Code, to…”
What time limit, percentage or amount appears in Section 127?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 127?
No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.
Is Section 127 currently operative?
All provisions were brought into force from 21 November 2025 under S.O. 5321(E), subject to the Central/State appropriate-Government split and provision-specific appointments/notifications.
Source & verification trail
Act: Occupational Safety, Health and Working Conditions Code, 2020 — official India Code PDF ↗
Central Rules: Occupational Safety, Health and Working Conditions (Central) Rules, 2026 — G.S.R. 345(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.