Occupational Safety, Health & Working Conditions Code 2020

India’s labour law reforms have introduced comprehensive frameworks to ensure employee safety, welfare, and regulatory compliance. One of the most significant legislations in this regard is the Occupational Safety, Health and Working Conditions Code (OSH Code), which consolidates multiple labour laws into a unified structure.

Definition: Occupational Safety, Health and Working Conditions Code, 2020

The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) is a comprehensive labour law enacted by the Government of India to consolidate, simplify, and regulate laws relating to occupational safety, health, and working conditions of workers across various establishments.

It aims to ensure that employees are provided with:

A safe and healthy working environment
Adequate welfare facilities
Humane working conditions

The Occupational Safety, Health and Working Conditions Code, 2020 consolidates and replaces 13 existing labour laws related to safety, health, and working conditions into a single framework.

Acts Included in the OSH Code

The following Acts have been merged into the OSH Code:

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 Act, 1981

1. Mandatory Registration of Establishments

Under the Code, every applicable establishment must be registered before employing workers. Employers are required to:

Obtain registration through prescribed procedures
Intimate any changes in ownership or management within 30 days
Notify authorities about commencement and closure of operations electronically

Failure to register prohibits the employer from engaging any workers.

2. Duties of Employers: Ensuring Workplace Safety

Employers carry primary responsibility for maintaining a safe and healthy work environment. Key obligations include:

Providing a workplace free from hazards and occupational risks
Ensuring compliance with prescribed safety standards
Conducting periodic health examinations for employees
Maintaining welfare facilities and safe working conditions

These measures aim to reduce workplace injuries and promote employee well-being.

3. Contract Labour: Compliance and Restrictions

The Code introduces stricter provisions governing contract labour:

Applicability:

Applies to establishments employing 50 or more contract workers

Key Provisions:

Contractors must obtain valid licenses before engagement
Wages must be paid through bank transfer or electronic mode
Principal employer is liable if contractor fails to pay wages
Welfare facilities must be provided by the principal employer

Restrictions:

Employment of contract labour in core activities is generally prohibited, except under specific conditions such as:
- Intermittent work
- Sudden increase in workload
- Activities traditionally outsourced

4. Inter-State Migrant Workers Protection

The Code extends protection to inter-state migrant workers:

Applicable where 10 or more migrant workers are employed
Employers must ensure:
- Suitable working conditions
- Reporting of accidents to both states
- Welfare measures considering their migrant status

Additionally, a centralized portal is introduced for worker registration and tracking.

5. Health, Safety, and Welfare Measures

Employers must implement comprehensive safety systems, including:

Formation of Safety Committees in larger establishments
Appointment of Safety Officers based on workforce size
Maintenance of safe infrastructure, equipment, and work processes
Protection against hazardous substances and occupational diseases

The Code also lists notifiable diseases and mandates preventive actions.

6. Special Provisions for Factories and Construction Work

Factories:

Prior approval required for site, construction, and expansion
Licensing and renewal governed by prescribed rules
Deemed approval if no response within specified time

Construction Workers:

Employers must ensure workers are medically fit for hazardous tasks
Workers with health risks cannot be assigned dangerous operations

The Occupational Safety, Health and Working Conditions Code, 2020 (OSH&WC)
			Sl.No	Query	Reply
1	Are leave encashment provisions under the OSH & WC Code applicable only to workers, sales promotion employees, and working journalists, or to all employees? Leave-related provisions apply to managerial, supervisory, and corporate office staff?	Leave provisions apply to workers as per the OSH & WC Code, 2020 and only to those supervisors having wage not exceeding Rs 18,000/ per month. The definition of worker includes sales promotion employees and working journalists.
2	What is the maximum number of days of leave that can be carried forward to the succeeding year under the applicable Labour Codes and Rules? If Employer agrees to carry forward 120 days of Leave to next calendar year, whether he is allowed to do so?	A worker can carry forward up to 30 days of leave to the succeeding calendar year. Further, a worker who has applied for leave with wages and has not been granted, can carry forward the leave refused without any limit.
Sl.No	Query	Reply
3	Under the Labour Codes, who is eligible for leave encashment—only workers or employee? Whether the Relationship Manager and Sales person working independently (doesn’t supervises anyone) and drawing wage of more than ₹18,000 are entitled for Leave Encashment?	Worker is entitled for leave encashment. The sales promotion employees are included in the definition of Worker under Section-2(1)(zzl) of OSH&WC Code, 2020.
4	Is the provision of crèche facility dependent on any specific gender composition of the workforce?	The creche facility is available to employees, irrespective of gender.
5	At what stage does overtime become payable under the OSH&WC Code, when it exceeds 8 hrs of daily working hours or 48 hrs of weekly limit? If maximum working hours limit is prescribed as 12 Hours by the appropriate government, whether Overtime is applicable for Hours exceeding 8 Hours on a particular day?	The Code prescribes working hours as 8 hours per day. If, a worker works for more than eight hours in any day as daily wager, or for more than forty-eight hours in any week, as the case may be, a worker shall in respect of such overtime work be entitled to wages at the rate of twice the normal rate of wages and shall be paid at the end of each wage period.
6	Where the OSH&WC Code permits accumulation of leave up to 30 days, but a State law (e.g., Andhra Pradesh) allows 60 days, which provision will prevail?	The provision of the OSH&WC, 2020 Code will prevail over the State Law for provisions which are inconsistent with the Code. However, an employee is entitled to benefits under State Law if more favourable to him than those under the Code.
7	What is the maximum number of leave days that can be encashed under the applicable Labour Code(s)?	There is no prescribed maximum limit for leave encashment under the OSH&WC Code, 2020. Leave exceeding 30 days, if applied but not granted by the employer, can be encashed at the end of the calendar year. At the time of separation from service, the worker is entitled to encash the leave to his/ her credit.
7			8	Where the age threshold for annual health check-ups differ between Central Rules and State Rules, which provision will apply?	Central rules will be applicable on the establishments where Central Government is Appropriate Government and state rules will be applicable on the establishments where State Government is Appropriate Government.