Rule 38. Specialised qualification and experience, duties and responsibilities of experts to be empanelled under section 37

Third Party Auditor:

(1) The State Government or Chief Inspector-cum-Facilitator will publish in public to obtain applications from experts with required qualification for the purpose of such start-up establishments or class of establishment to be specified separately by the State Government.

(2) The experts empanelled under sub-section (1) of section 37 of the Code, shall,—

(a) be assigned the third party audit and certification in a randomized manner, by the State Government through a web-based scheme;

(b) carry out the audit and certification in the manner and for the purpose specified in the scheme referred to in sub-section (1) of section 37 of the Code;

(c) perform such duties as may be specified in such scheme and submit his report to the concerned employer and to the Inspector-cum-Facilitator.

(3) On the basis of applications received a committee of experts will be formed under the chairmanship of the Labour Commissioner or Chief Inspector-cum-Facilitator.

(4) The experts empanelled will inspect, advise health and safety provisions to minimize the accidents, perform safety audit, may organize safety training programs and provide certificates to the trainees and may also provide the certificates to concerned establishments.

(5) The Departmental committee for empanelment of Third Party Auditors will from time to time fix the total number of such Third Party Auditor or Expert (Safety Auditors) to be recognized depending on the total quantum of work available in the State and also the manner in which applications are to be invited.

(6) The Chief Inspector-cum-Facilitator may, after giving an opportunity of being heard to the person recognized as a ‘Third Party Auditor cum Expert’ revoke the certificate issued to him under rule 33.

a) if he has reason to believe that the Third Party Auditor or Expert :

(i) has violated any of the conditions stipulated in the recognition;

(ii) has carried out an Audit, test, examination and inspection or has otherwise carried in a manner inconsistent with the intent or the purpose of the Code or the rules made there under; or

(iii) has omitted to comply with the Code as required under the Code and the rules made thereunder;

(7) Academic Qualification and Experience:-

a) degree in branch of Chemical, Mechanical, Electrical or Production Engineering from recognized institution and having ten years of experience in manufacturing, maintenance, design, project or safety department in the supervisory or above capacity in factories; or

b) diploma in branch of Chemical, Mechanical, Electrical, Production Engineering and diploma in industrial safety from recognized institution and having fifteen years‘ of experience in manufacturing, maintenance, design, project or safety department in the supervisory or above capacity in factories; or

c) degree of Bachelor of Science with Physics and/or Chemistry and diploma in industrial safety from recognized institution and having fifteen years‘ experience in manufacturing or maintenance or safety Department of any establishment in the supervisory or above capacity in factories, and one year full time Diploma in Industrial Safety recognized by the Board of Technical Education or All India Council of Technical Education or recognized University; or Central or Regional Labour Institutes;or

d) degree or diploma in any branch of Engineering and having fifteen years of experience in Factory Inspectorate or Directorate of Industrial Safety and Health or fifteen years of experience in the Directorate General Factory Advice Service and Labour Institutes or Central Labour Institute or Regional Labour Institutes of Directorate General Factory Advice Service and Labour Institutes.

(8) Duties and Responsibilities of Third Party Auditor or Expert:-

(a) Third Part Auditor or Expert shall maintain a log book of all safety audits undertaken by him indicating the name and address of the audited establishment, name of the person who has carried out safety audit, contact persons, date of the audit and date of submission of the audit report to the Occupier.

(b) It shall be scrutinized and approved by jurisdictional officers of the Chief Inspector-cum-Facilitator office.

(c) Third Part Auditor or Experts and the person authorized to carry out shall not conduct a Safety Audit of any establishment where such auditor or person is employed, or an occupier, partner, director, or manager of that establishment, or of any establishment owned, operated, managed, or conducted by immediate family members, relatives or extended family members or wherein that auditor or such person has any direct or indirect interest whatsoever. An auditor or such person shall not carry out the safety audit of those factories to which that auditor or such person supplies any plant, machinery, raw material, safety equipment or other materials or equipment.

(d) Third Part Auditor or Expert and the person authorized to carry out safety audit shall not disclose, even after ceasing to be a recognized auditor or employee of the institution, any manufacturing or commercial secrets or working processes or other confidential information which may come to his knowledge in the course of their duties as an auditor. Any failure in this regard, the auditor shall be liable to revocation of recognition under the rule and he shall not be eligible for recognition in future.

(9) Standards of Safety Audit.- The Safety Audit shall be carried out as per the standards laid down under IS: 14489: 1998 in the Indian Standard Code of Practice on Occupational Safety and Health Audit or any such standards prevailing at the relevant time whichever is latest by the Safety Auditor or in case of an institution, by the person or employee possessing the qualification, experience and other requirements as set out in sub-rule (7) as Third Part Auditor/Expert.

(10) Periodicity for conducting Safety Audit: The Safety Audit shall be conducted once in every two years in General Category factories and for 2cb and MAH industry (hazardous process), industry Safety audit shall be conducted every year.

(11) Safety Audit Report.- The Third Part Auditor/Expert shall within one month from the date of completion of safety audit shall forward his report with recommendations regarding improvement of the occupational safety and health in an establishment to the occupier and a copy of the same to be submitted to office of the Chief Inspector-cum-Facilitator. Provided that if the auditor notices any hazard, which is likely to pose danger of causing an accident, during the safety audit, he shall immediately communicate the same in writing to the Occupier & the jurisdictional Inspector and Chief Inspector-cum-Facilitator.

(12) Compliance report on Audit Report.- The Occupier shall, within thirty days of the receipt of the Safety Audit report in the format prescribed in Form appended herewith, forward the same to the jurisdictional Inspector along with the action taken report in pursuance to the recommendations made in the Safety Audit Report. The Inspector-cum-facilitator shall send a proposal to the Chief Inspector-cum-Facilitator for approval of Audit Report.