Most compliance gaps don't live in policies or filings. They live on the ground, where work happens. This report draws on 4,694 non-compliances found during physical audits of 52 sites across 17 states and union territories. Not one site was fully compliant. It shows where gaps occur, why they recur even in well-run organisations, and what leadership must do to fix them before an inspector, a worker or an investor finds them.
Key Highlights
52 Sites, 52 With Gaps – An average of 90 non-compliances per site, even among organisations that chose to be audited.
Risk of Imprisonment – 46% of non-compliances carried imprisonment clauses, above the 38% benchmark for Indian business law.
Liability Reaches the Boardroom – 29% of findings named directors, senior officers or the factory occupier personally.
The Law Changed, the Gaps Remain – 37.7% of findings fall under labour laws now consolidated into the Labour Codes.
Where the Gaps Come From –
Labour and EHS laws produce 92% of findings; inclusion laws left gaps in 16 of 17 states and UTs.
Small Gaps, Big Consequences –
Missing notices, registers and appointments make up half of all findings, many with serious legal consequences.
10 Questions for Every Site –
A practical self-check for leadership.