Occupational Safety, Health and Working Conditions Code 2020: Transforming India’s workplace safety regime

The Occupational Safety, Health and Working Conditions Code, 2020 (the “OSH Code”), enacted as part of the government of India’s consolidation of twenty-nine (29) central labour legislations into four comprehensive labour codes, represents a fundamental restructuring of India’s framework governing workplace safety, health standards and conditions of employment.

The OSH Code subsumes and proposes to repeal thirteen (13) Central enactments, including, inter alia, the Factories Act, 1948, the Contract Labour (Regulation and Abolition) Act, 1970, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, the Mines Act, 1952, and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.

This article examines the structural and conceptual shifts introduced by the OSH Code, its chapter-wise impact on establishments, and the operational and compliance challenges that employers are likely to encounter.

The stated objectives of the OSH Code are to simplify, rationalise and modernise occupational safety and health regulations, while ensuring safe and humane working conditions across sectors. Three overarching shifts merit particular attention.

A unified framework across sectors

Under the pre-existing regime, workplace safety and working conditions were governed by a fragmented set of industry and establishment-specific statutes, each with its own thresholds, definitions and compliance architecture. The OSH Code seeks to replace this fragmented approach with a common umbrella framework applicable, subject to thresholds and sectoral carve-outs, to factories, mines, docks, plantations, construction establishments and other notified establishments.

Although sector-specific chapters are retained (for example, for mines and factories), the OSH Code standardises core compliance concepts such as registration, duties, inspection mechanisms and penalties across sectors. For employers operating across multiple sectors or States, this structural unification is intended to reduce regulatory complexity, even though sectoral compliance will not be eliminated entirely.

Expansion of coverage and applicability

The OSH Code significantly expands the categories of establishments and workers brought within its fold.

In addition to traditional factory and industrial establishments, the OSH Code extends to:

• establishments employing contract labour, subject to a revised threshold;

• inter-State migrant workers, with a broadened definition that includes self-initiated migration; and

• establishments in emerging and service-oriented sectors that may be notified by the appropriate government.

The revised definition of “inter-State migrant worker” is particularly noteworthy. Unlike the earlier regime, which focused on recruitment through contractors, the OSH Code recognises workers who migrate on their own and are employed in another State. This reflects contemporary labour mobility patterns and imposes corresponding obligations on employers in destination States.

Shift towards risk-based and technology-enabled regulation

The OSH Code reflects a shift from purely prescriptive labour regulation to a risk-based safety framework. Instead of relying solely on detailed statutory specifications, the OSH Code imposes enhanced levels of ‘duty of care’ on employers to ensure that workplaces are free from hazards and that safe systems of work are maintained. This requires employers to proactively identify potential workplace risks, assess hazards arising from processes, machinery or substances, and implement appropriate preventive measures. The OSH Code also extends safety obligations to designers, manufacturers and suppliers of machinery and substances, thereby addressing occupational risks at the design and supply stage as well as during workplace operations. In addition, the OSH Code mandates electronic registration, licensing, filing of returns and maintenance of registers, signalling a decisive move toward technology enabled compliance. The inspector regime under the old framework is restructured into an Inspector-cum-Facilitator model, combining advisory functions with enforcement powers marking a departure from purely inspection-driven regulation including inspections conducted on the basis of risk assessment or through a randomised, web-based inspection scheme with electronic allocation, centralised oversight, and digital reporting of inspection outcomes, aimed at enhancing transparency, ensuring objectivity, enabling data-driven enforcement, and minimising discretionary intervention in the inspection process.

Registration, licensing and common compliances

The OSH Code introduces the concept of a common registration for establishments and a common licence for engaging contract labour and undertaking certain specified activities. This replaces multiple registrations and licences under different statutes.

During transition, employers must map existing registrations and licences to the new regime to avoid compliance gaps, particularly where operations span multiple States or involve layered contractor structures.

Duties of employers, employees and designers

The OSH Code codifies and expands the general duties relating to occupational safety and health. Employers are required to:

• provide a workplace free from hazards that may cause injury or occupational disease;

• ensure safe systems of work, including the handling, storage and transport of substances;

• provide necessary information, training and supervision to workers; and

• monitor the health of workers and working conditions, particularly in hazardous processes.

Notably, the OSH Code also imposes duties on designers, manufacturers, importers and suppliers of plant, machinery and substances to ensure that articles are safe for use and accompanied by adequate safety information. Employees, in turn, are required to comply with safety standards and cooperate with employers in maintaining a safe workplace.

Contract labour and inter-State migrant workers

The threshold for applicability of contract labour provisions is revised, and the Code introduces greater flexibility in engaging contract labour, subject to compliance with welfare, health and safety obligations. The Code creates a distinction between core and non-core activities, generally prohibiting engagement of contract labour in core activities of an establishment, while permitting such engagement in non-core activities, subject to specified exceptions such as specialised work, intermittent or seasonal requirements, or work ordinarily carried out through contractors.

For inter-State migrant workers, the OSH Code provides for:

• mandatory registration of eligible workers;

• portability of benefits and access to public distribution systems; and

• payment of journey allowance and other prescribed benefits in specified circumstances.

Employers engaging migrant workers will need to strengthen documentation, onboarding and coordination with contractors to ensure compliance with these requirements.

Working hours, leave and welfare facilities

The OSH Code empowers the appropriate government to prescribe daily and weekly working hour limits, intervals for rest and spread over, and leave entitlements. While the OSH Code itself sets the broad framework, the detailed norms will be specified in the rules. Notably, the draft/central rules stipulate a maximum of forty-eight (48) hours of work in a week, subject to flexibility in daily working hours and spread over, as may be prescribed by the appropriate government.

The OSH Code continues and rationalises welfare requirements such as canteens, rest rooms, drinking water, first-aid facilities and, where applicable, creches which are required to be provided in establishments employing fifty (50) or more workers. Importantly, it allows flexibility in meeting these obligations through common or shared facilities, subject to prescribed standards.

Women’s employment and inclusivity

The OSH Code adopts a more facilitative approach to women’s employment. Subject to conditions relating to safety, consent and prescribed working hours, women may be employed in all establishments and in all types of work, including at night, except in prohibited activities. Notably, the Code expressly requires obtaining the consent of women for employment during night shifts, coupled with compliance with prescribed safeguards relating to safety, working conditions and welfare.

This represents a shift from protective restrictions to a framework based on autonomy, consent and employer responsibility for safety arrangements. Employers will need to put in place robust policies, infrastructure and transportation arrangements where women are engaged during night shifts.

Inspection, penalties and compounding

The inspection regime under the OSH Code is reoriented around inspector-cum-facilitators, with a dual role of advising employers on compliance and enforcing the law. Inspections may be conducted on the basis of risk assessment or randomised electronic allocation.

Penalties for noncompliance are rationalised and, in many cases, enhanced. Certain offences are compoundable and the OSH Code provides for graded penalties based on the nature and severity of contraventions, including enhanced penalties for repeat offences and serious accidents.

The OSH Code is currently in force, and three areas deserve particular attention in this regard:

Harmonisation of policies and SOPs

Employers should review and update existing occupational health and safety policies, standard operating procedures and emergency response plans to align with the OSH Code’s emphasis on risk assessment, preventive controls and documented safety systems. Employers may also be required to constitute Safety Committees, with adequate and balanced worker representation, clearly defined roles in facilitating cooperation on health and safety matters.

Contractor and supply chain management

Given the continued focus on principal employer responsibility, especially in relation to contract labour and migrant workers, organisations will need to strengthen contractor due diligence, contractual safeguards and monitoring mechanisms.

Digitisation and data readiness

The shift towards electronic registration, licensing and record-keeping will require upgrades to HR, compliance and EHS systems. Accurate workforce data, including details of contract and migrant workers, will be critical to smooth compliance.

As labour is a subject in the Concurrent List, both the Central and State governments will frame rules under the OSH Code. While the core framework will remain uniform, procedural requirements, forms, authorities and certain thresholds may vary across States.

The issues relevant to employers would include:

1. Close monitoring of Central and State rule-making;

2. Clarity on the determination of the “appropriate government” for specific establishments; and

3. Careful change management during the transition from the old regime to the new Code.

1.  Map existing safety, health and welfare compliances against the OSH Code;

2. Strengthen internal EHS governance and contractor management frameworks;

3. Invest in digitised compliance and reporting systems; and

4. Proactively engage in training and awareness initiatives for management and workers.

The OSH Code, 2020 represents a decisive move towards a modern, integrated and risk-based regulatory framework for workplace safety and welfare in India. By consolidating multiple sector-specific statutes, expanding coverage, enabling women’s participation, and leveraging technology for compliance and enforcement, the OSH Code seeks to balance worker protection with regulatory efficiency.

About the authors: Anjali Menon is a Partner, Bilal Lateefi is a Principal Associate and Namratha M.N. is an Associate at Poovayya & Co.

Disclaimer: The opinions expressed in this article are those of the author(s). The opinions presented do not necessarily reflect the views of Bar & Bench.

If you would like your Deals, Columns, Press Releases to be published on Bar & Bench, please fill in the form available here.