On 15 May 2026, the Ministry of Labour & Employment notified the operationalised inspection calendar under the amended Factory Act, 2023. All manufacturing units — whether micro, small or medium — now face mandatory third-party workplace safety audits on a rolling 24-month cycle, with staggered deadlines beginning 1 July 2026.
Non-compliance attracts penalties up to ₹50,000 and suspension of operating licences. This is a sharp tightening from the previous 3-year audit window.
Market signals
MCA has mandated independent, accredited auditors to conduct workplace inspections. Self-certification is no longer accepted. Manufacturers must engage auditors 60 days before their assigned audit window to avoid delays.
All inspection reports, corrective action plans and evidence must now be uploaded to the MCA's new FactoryLog portal within 30 days of audit completion. Manual filing is not recognised for compliance.
The MCA has released district-wise audit schedules through June 2026 circulars. Metro and Tier-1 industrial zones begin audits 1 July; Tier-2 units follow from 15 August. Check your assigned slot immediately.
This revision tightens the compliance burden significantly for SME manufacturers. Under the Factory Act, 2023 and MCA's June 2026 notification, all units must now maintain audit-ready documentation (safety registers, risk assessments, training records, incident logs) and engage certified third-party auditors. Non-compliance within the staggered deadlines triggers administrative action and potential licence suspension under Section 14 of the Act. Vinayakam Consultants advises manufacturers to map their assigned audit window now, conduct internal pre-audits, and engage MCA-recognised auditors to ensure smooth compliance and avoid operational shutdowns.
Your action checklist
- Identify your unit's audit deadline by checking the MCA FactoryLog portal using your Factory Licence number; note the assigned month and submit pre-audit readiness notification within 15 days.
- Appoint an MCA-accredited third-party audit firm at least 60 days before your deadline; confirm they hold valid NABET or equivalent certification for workplace safety audits.
- Compile and digitise all mandatory documentation: safety registers, machine inspection certificates, training records, incident reports, OSHA-equivalent risk assessments, and worker welfare committee minutes.
- Upload all post-audit corrective action evidence (remedial photos, invoices, training certificates, updated SOPs) to the FactoryLog portal within 30 days of audit sign-off to avoid deemed non-compliance.
Frequently asked questions
The MCA mandated a rolling 24-month inspection cycle effective 1 July 2026, with staggered deadlines by district. Metro and Tier-1 zones start first, followed by Tier-2 units from 15 August 2026.
Non-compliance attracts penalties up to ₹50,000 and suspension of operating licences under Section 14 of the Factory Act, 2023.
Self-certification is no longer accepted. All manufacturing units must engage independent, MCA-accredited third-party auditors, with engagement required 60 days before the assigned audit window.