Changes in Occupational Safety, Health and Working Conditions Code (2020)
The Occupational Safety, Health and Working Conditions (OSH) Code, 2020, consolidates 13 pre-existing central labour laws into a single framework to regulate workplace safety, health, and conditions across India. Enacted in 2020 and fully implemented nationwide by November 2025, it reduces compliance burdens from 620 sections and 868 rules to 143 sections and 175 rules, promoting uniformity and ease of doing business.
Key Expansions in Coverage
The Code extends protections beyond the previous seven sectors (factories, mines, plantations, etc.) to all establishments, including hazardous ones regardless of size. It raises factory licensing thresholds to 20 workers (with power) or 40 (without), up from 10/20, and contract labour rules apply from 50 workers instead of 20. Inter-state migrant workers now include self-employed individuals earning up to Rs 18,000/month, with mandatory data tracking via a national portal.
Worker Welfare Provisions
Mandatory appointment letters must detail wages, designation, and social security for every employee on joining. Paid annual leave eligibility drops from 240 to 180 working days, with free annual health check-ups required; creches are compulsory for establishments with over 50 workers, open to all genders. Women can work in all roles, including hazardous ones with safeguards, and safety committees form in larger factories/mines/construction sites.
Working Hours and Flexibility
No worker exceeds 8 hours/day or 48/week, but governments can allow overtime up to double wages with consent, removing the old 75-hour quarterly cap. Flexibility includes 12-hour shifts in 4-day weeks or 9.5 in 5-day weeks, boosting earning potential while ensuring rest.
Compliance and Enforcement Reforms
Single electronic registration and 5-year all-India licenses replace multiple processes, with 30-day timelines for approvals and deemed approvals if delayed. Inspector-cum-Facilitators conduct randomized web-based inspections; many offences decriminalized, replaced by fines with 30-day compliance notices and compounding options (50-75% of max fine).
Penalties and Funds
Principal employers ensure contract workers’ welfare and wages if contractors fail; courts direct 50% of fines to injury/death victims. A Social Security Fund for unorganized workers uses penalty/compounding proceeds.
Summary
The Occupational Safety, Health and Working Conditions Code, 2020, eases business operations through single registrations, higher worker thresholds—for example, factories now require licensing at 20 workers with power or 40 without, and contract labour rules apply from 50 workers—randomized inspections, and decriminalized offences that allow compounding options. At the same time, it bolsters protections for inter-state migrant workers, women, and unorganized workers via dedicated portals, safety committees, and victim compensation funds. Overall, the Code strikes a balance between enhancing worker welfare and promoting economic growth by drastically reducing compliance requirements from hundreds of sections and rules to far fewer, thereby fostering safer workplaces and supporting job creation.
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