How does OSH Code,2020 compare with old labor laws
India’s Occupational Safety, Health and Working Conditions (OSH) Code, 2020, consolidates 13 fragmented old labour laws into a single modern framework, streamlining compliance while enhancing worker protections. Enforced on November 21, 2025, it replaces outdated acts like the Factories Act, 1948, with simplified rules, digital processes, and broader coverage.
Consolidation of Laws
The OSH Code merges 13 old laws by slashing number of sections from 620 to 143, rules from 868 to 175, registrations from 6 to 1, licenses from 4 to 1, forms from 55 to 20, and returns from 21 to 1. This unification covers factories, mines, docks, plantations, construction, and more. It eliminates overlap and ease of business operations. New features like compounding offences and improvement notices were absent before.
Coverage Thresholds
Old laws applied factories at 10 workers with power or 20 without. The Code raises this to 20 with power or 40 without. Hazardous establishments are covered regardless of size, and contract labour thresholds rise from 20 to 50 workers. These changes reduce burden on small firms while prioritizing high-risk areas.
| Aspect | Old Laws (e.g., Factories Act 1948) | OSH Code 2020 |
| Factory Threshold (with power) | 10 workers | 20 workers |
| Factory Threshold (without power) | 20 workers | 40 workers |
| Contract Labour Threshold | 20 workers | 50 workers |
| Hazardous Sites | Varied by Act | All sizes covered |
Working Hours and Leave
Both maintain 8-hour daily / 48-hour weekly limits, but the Code allows flexible models like 12-hour/4-day weeks and overtime at double wages with consent. Paid leave eligibility drops from 240 to 180 days, with carry-forward up to 30 days. Women can now work night shifts (7 PM-6 AM) with safety measures, unlike old restrictions.
Safety and Health Provisions
Mandatory annual free health check-ups apply to all employees, a new universal requirement. Safety committees are required for larger factories (500+ workers), mines (100+), and construction (250+). Victim compensation mandates at least 50% of fines imposed on employers for safety violations causing injury or death be paid to the affected worker or their legal heirs.
Migrant and Women Workers
Inter-state migrant definition expands to self-migrated workers earning up to ₹18,000/month, with journey allowances and portable benefits. Creches are mandatory for 50+ employee establishments (gender-neutral), and women access all jobs with safeguards.
Compliance Ease
Single all-India license (5-year validity), digital registers (84 to 8), inspector-facilitators, and third-party audits replace old paperwork. Mandatory appointment letters standardize employment.
Summary
The OSH Code 2020 revolutionizes India’s workplace regulations by consolidating 13 old laws into one streamlined framework with 143 sections, raising factory thresholds to 20/40 workers, mandating free annual health check-ups, flexible 8-hour work models with double overtime pay, night shifts for women with safety, expanded migrant protections, single registrations/licenses/returns, and decriminalized compliance via compounding—balancing business ease with stronger safety and welfare for millions across sectors, enforced since November 2025.
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