THE OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE, 2020

The Occupational Safety, Health and Working Conditions Code, 2020 (OSHWC Code) marks a significant milestone in India’s labour law reforms. Enacted as part of the country’s broader effort to modernize and rationalize labour regulations, the Code consolidates 13 existing laws related to workplace safety, health, and working conditions into a single, comprehensive framework. It is one of the four labour codes introduced by the Government of India to simplify compliance, enhance worker protection, and promote ease of doing business.

Laws Merged into the OSHWC Code, 2020

The Code replaces the following 13 labour laws:

• Factories Act, 1948

• 
  

• Mines Act, 1952

• Dock Workers (Safety, Health and Welfare) Act, 1986

• Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996

• Plantation Labour Act, 1951

• Contract Labour (Regulation and Abolition) Act, 1970

• Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

• Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955

• Working Journalists (Fixation of Rates of Wages) Act, 1958

• Motor Transport Workers Act, 1961

• Sales Promotion Employees (Conditions of Service) Act, 1976

• Beedi and Cigar Workers (Conditions of Employment) Act, 1966

• Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981

  
  

By merging these diverse statutes, the Code eliminates duplication and overlapping provisions while maintaining essential protections for workers.

Main Objectives of the OSHWC Code

The OSHWC Code is designed to achieve the following objectives:

• Ensure safe, healthy, and human working conditions across sectors.

• Simplify and modernize labour regulations.

• Improve welfare and protection for workers, including contract and migrant workers.

• Reduce compliance burden on employers through streamlined procedures.

  
  

Major Reforms Under the OSHWC Code

1. Simplification of Labour Laws

One of the most significant reforms is structural simplification. Instead of navigating 13 separate laws, employers now operate under a single unified Code.

Subject	Earlier Laws	OSHWC Code, 2020
Number of Acts	13	1
Sections	620	143
Rules	868	175
Registrations	6	1
Licences	4	1
Forms	55	20
Returns	21	1

The introduction of a single registration, single licence, and single return system significantly reduces paperwork and administrative complexity.

2. Improved Workplace Safety and Health

The Code strengthens employer responsibilities toward workplace safety:

• Mandatory identification and management of workplace hazards.

• Free annual medical check-ups for workers above 40 years of age in many sectors.

• Compulsory medical examinations and safety training for workers handling hazardous materials.

• Stricter penalties for accidents and violations of safety norms.

These measures aim to create a proactive safety culture rather than a reactive compliance mechanism.

3. Standardization of Working Hours

The Code introduces clearer standards on working hours:

• Maximum working hours fixed at 48 hours per week.

• Overtime allowed only with worker consent and payable at double the normal wage rate.

• Overtime limits generally between 125–150 hours per quarter, with some states permitting up to 144 hours.

• Time calculation norms: 15–30 minutes counted as 30 minutes; over 30 minutes counted as one hour.

• Flexible work models such as four-day or five-day workweeks permitted within weekly hour limits.

This balances flexibility for employers with protection for workers.

4. Better Welfare Facilities

The Code expands welfare obligations and reduces eligibility thresholds in many cases, increasing coverage of workers. Employers must provide:

• Safe drinking water

• Canteen facilities

• Restrooms

• First-aid facilities

• Crèche facilities (in specified establishments)

These provisions strengthen basic workplace dignity and comfort.

5. Protection for Contract and Migrant Workers

A notable reform concerns contract labour regulation.

Under the earlier framework, particularly the Contract Labour (Regulation and Abolition) Act, 1970, establishments employing 20 or more contract workers were required to comply with registration and licensing provisions.

Under the OSHWC Code:

• The threshold has been increased to 50 contract workers.

• Establishments and contractors employing fewer than 50 contract workers are exempt from contract labour-specific compliance requirements.

• Contract labour cannot be engaged in core business activities.

• Inter-state migrant workers are entitled to travel allowance and enhanced welfare protection.

This change reduces compliance burdens for smaller establishments while maintaining safeguards for larger employers.

6. Employment Formalisation

The Code promotes formal employment practices by:

• Mandating appointment letters for all employees, including contract workers.

• Reducing the eligibility threshold for earned leave from 240 days to 180 days of work in a year.

• Allowing workers to take leave at the rate of one day for every 20 days of work.

These reforms make leave benefits more accessible and improve transparency in employment relationships.

7. Gender Equality and Women’s Employment

The Code promotes gender inclusivity by permitting women to work night shifts, subject to:

• Their consent

• Adequate safety and security safeguards

This reform expands employment opportunities while prioritizing safety.

8. New Inspection and Compliance System

The traditional inspector system has been replaced with an Inspector-cum-Facilitator model. This approach emphasizes both guidance and enforcement.

Key features include:

• Digital inspections

• Online record maintenance

• Transparent compliance systems

• Reduced inspector discretion

This modern approach aims to encourage voluntary compliance while ensuring accountability.

Overall Impact of the OSHWC Code

The Occupational Safety, Health and Working Conditions Code, 2020 represents a comprehensive shift in India’s labour regulatory framework. Its impact includes:

• Strengthened worker safety, welfare, and rights.

• Expanded protection for unorganized, migrant, and contract workers.

• Simplified regulatory procedures for industries.

• Encouragement of modernization, transparency, and employment growth.

By consolidating fragmented legislation into a unified framework, the OSHWC Code seeks to strike a balance between worker protection and ease of doing business—laying the foundation for a safer, more organized, and forward-looking labour ecosystem in India.