Overview
The Occupational Safety, Health and Working Conditions (OSH) Code, 2020 was enacted to consolidate and simplify the existing complex web of labour laws. It replaces 13 Central Labour laws with a single comprehensive legislation, thereby reducing multiplicity and bringing uniformity across industries and States/UTs. The Code is part of broader labour law reforms to improve transparency, enhance worker welfare, and promote ease of doing business in India.
The Code balances safeguarding worker rights and safe working conditions with creating a business-friendly regulatory environment to spur economic growth and employment, making India’s labour market more efficient, fair, and future-ready.
Key Features and Changes
Streamlining Compliance
The Code streamlines compliance through measures such as single registration, all-India licenses, electronic filings, and time-bound approvals. It also reduces the number of rules and returns to reduce procedural hurdles and encourage investments.
Comparison of Existing Laws and OSH Code 2020
| Number of Acts | 13 | 1 |
| Sections | 620 | 143 |
| Rules | 868 | 175 |
| Registration | 6 | 1 |
| Licenses | 4 | 1 |
| Forms | 55 | 20 |
| Returns | 21 | 1 |
| Compounding of offenses | No provision | New provision |
| Improvement Notice | No provision | New provision |
Worker Welfare & Employment Conditions
Formalisation through Appointment Letters
Every employee will be given appointment letters in the prescribed format specifying the details of the employee, designation, category, details of the wages, details of social security etc.
Pro-Worker Provisions
- Ensures transparency in employment terms, wages, designations, and social security.
- Minimizes disputes related to pay, work hours, and job expectations.
Pro-Employment Provisions
- Appointment letter brings clarity of terms which supports security and benefits access, reduces exploitation and improves job security.
Annual Leave with Wages
Workers employed in an establishment are entitled to paid leave in a calendar year on working 180 days or more in such calendar year. Earlier, workers had to work for 240 days for becoming eligible for paid leave.
Reduction of eligibility from 240 to 180 days along with flexibility in working hours ensures enough rest and recovery, improving productivity and job satisfaction.
Working Hours & Overtime
No employee shall be required to work for more than 8 hours in a day and 48 hours in a week. Further, the power to fix the time of interval and spread over time has been given to the Appropriate Government.
Fixing overtime hours, with consent of the worker: workers can work 12 hours in a day without overtime in 4-day week, 9.5 hours in 5-day week and 8 daily hours in 6-day week. The appropriate Government has full flexibility for fixing the limit of over-time hours. Earlier this limit was 75 hours in a quarter which can now be fixed by appropriate government. The provision gives two benefits to workers, viz, opportunity to earn more by doing overtime and get paid at higher wage (double the normal wage rate).
Inter-State Migrant Workmen (ISMW)
The definition has been widened to include those employed directly or through contractor and also covers workers who migrate on their own. For the purpose of collection of data while seeking registration, license; an establishment would have to necessarily indicate the number of ISMW employed in his establishment.
Pro-Worker Provisions
- ISMW will receive to and fro journey allowance from the employer to visit native place once in 12 months.
- Migrant construction workers will get portability of benefits under Building & Other Construction Workers (BOCW) Cess fund and PDS ration.
- Provides toll free helpline facility for grievance redressal.
National Worker Database
The Ministry of Labour & Employment has also taken steps to develop a national database to enroll unorganized workers including migrants. It will help migrant workers get jobs, map their skills and provide other social security benefits. This will ensure availability of data for ISMW and help in better policy formulation for unorganized sector workers.
Victim Compensation
The Code empowers the courts, upon conviction of an offender for contravention of any duties, to direct that at least 50% of the fine imposed be paid as compensation to the victim in case of serious bodily injury or their legal heirs in case of death.
Redefining Working Journalists and AV Workers
The definition of audio- visual worker has been revised and now it includes digital/audio-visual workers and dubbing artist, stunt persons these persons will also get the benefit of law. Now Code gives dubbing artists and stunt workers formal recognition and access to legal protections, ensuring safer and fairer working conditions.
The definition of working journalist has been expanded and now it includes electronic media or digital media journalists and broadens the coverage from print journalism to electronic media (TV, radio, online, etc.), making it more contemporary. This ensures that journalists are covered for workplace safety, health and welfare measures just like other factories or office workers.
Health, Safety & Well-being
Safety Committees
Every factory employing 500 or more workers, employer employing 250 or more BOCW and employer employing 100 or more mine workers will constitute safety committee which will consist of representatives from employers and workers.
Pro-Worker Provisions
- It strengthens workers’ voice and on-site safety monitoring.
- Empowers workers through representation in safety matters, fostering safer workplaces and shared responsibility.
Universal coverage of establishments for health, safety and welfare of workers
This code has provided health, safety and welfare of workers in all sectors which was previously not available.