Overview
The Occupational Safety, Health and Working Conditions Code, 2020 (often abbreviated as OSHWC Code) is another major piece of the labor reforms, consolidating a wide array of laws dealing with workplace safety, health standards, and working conditions. It replaces 13 existing labor laws, including the Factories Act, 1948; Mines Act, 1952; Dock Workers (Safety, Health & Welfare) Act, 1986; Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996; Contract Labour (Regulation & Abolition) Act, 1970; Inter-State Migrant Workmen Act, 1979; Working Journalists and other News Paper Employees (Conditions of Service) Act, 1955; Motor Transport Workers Act, 1961; Sales Promotion Employees Act, 1976; Beedi and Cigar Workers Act, 1966; Cine Workers and Cinema Theatre Workers Act, etc. By unifying these, the OSHWC Code aims to standardize safety and welfare requirements across different industries and make it easier for employers to comply with one comprehensive law. It was passed in September 2020 and, like the other codes, is pending implementation subject to rulemaking at central and state levels.
Scope and Applicability
The OSHWC Code covers a broad scope of establishments and workers:
• It applies to factories, defined in the Code (the threshold might be different than the old Factories Act; the draft code initially mentioned factories with 20 workers (with power) or 40 without power, which was higher than the old Act’s 10/20, but the final enacted threshold settled at 10 with power/20 without, essentially same as before – however, it gives the government flexibility to change by notification in certain cases). So manufacturing units will still be covered similarly to before for basic safety and working hour regulations.
• It also explicitly covers all establishments employing 10 or more workers in general for certain provisions, even if not manufacturing. This broadens the coverage of health and safety requirements to offices and other workplaces (though small firms <10 workers might be largely exempt from most provisions). Establishments like IT companies, banks, etc., with 10 or more employees will have to adhere to basic provisions of the Code (like a safe working environment, cleanliness, etc.), which earlier were not under the ambit of the Factory Act or such.
• Specific chapters apply to special work arrangements and sectors: for example, there are chapters for mines, docks, building and construction work, and for contract labor, interstate migrant workers, motor transport workers, etc. Each of these categories had a separate law earlier with its own applicability thresholds (e.g., Contract Labour Act applied if 20 or more contract workers are employed by an establishment). The Code generally retains similar thresholds: e.g., the provisions on contract labor apply if you have 50 or more contract workers now (raised from 20 in the old law, easing smaller businesses), or for construction, if the project has 50 or more workers or project cost above a certain amount. The Code also covers gig and platform workers in a limited way regarding their working conditions if rules are made.
• The term “worker” is defined broadly to include any person employed in any industry to do any manual, technical, operational or clerical work (similar to “workman”), and it excludes those employed in a managerial or administrative capacity. However, some provisions of the Code (like working hours and leave) are extended to all employees (not just workers), ensuring basic protections for white-collar employees as well, depending on the chapter.
Key Provisions
The OSHWC Code lays down a multitude of provisions aimed at ensuring safety, health, welfare, and dignified working conditions:
• Registration and License: All establishments covered by the Code (like factories, contract labor principal employers, etc.) must register with the authorities. Also, contractors who supply labor (contract labor) will require licenses (with a provision for single license for multiple states potentially). This is to keep track of who is employing workers in what numbers and ensure accountability. A notable simplification is the idea of a single registration for an establishment, rather than separate registrations under different laws previously.
• Duties of Employers: The Code explicitly outlines the duties of the employer (or “occupier” in case of factories). These include ensuring a workplace that is free from hazards that may cause injury or diseases, providing arrangements for safe working environment, training employees on safety, providing annual health examinations for employees in certain hazardous occupations or above a certain age, and informing authorities in case of any serious accidents. Employers must also provide necessary personal protective equipment (PPE) to workers at no cost wherever required (like helmets, safety harness, gloves, etc., depending on the nature of work).
• Work Hours and Leave: It standardizes the maximum working hours (likely around 8 hours per day and 48 hours a week, as before). It confirms the provision of a weekly day off and paid annual leave. Under the Code, workers are entitled to one day off for every 20 days of work (carry-forward of leave is permitted up to 30 days). Work beyond 8 hours a day is overtime and must be paid at least twice the normal rate. These provisions mirror the Factories Act for factory workers but the Code can extend similar hour and leave rules to other categories of workers for consistency. It also covers overtime for working beyond spread-over limits (total span of work day). Women are now allowed to work at night (between 7 PM to 6 AM) in all establishments, provided the employer ensures safety, consent, and transportation from workplace, which is a progressive step consistent across sectors.
• Health and Hygiene: Borrowing from Factories Act and other laws, the Code mandates: cleanliness of workplaces, proper lighting and ventilation, control of dust and fumes, prevention of overcrowding, clean drinking water, sufficient latrines and urinals separated for male/female and maintained hygienically, spittoons, etc. For sectors like mines or construction, there are additional health measures (like safe drinking water on sites, resting shelters, etc.).
• Safety Measures: This includes safe operation of machinery (fencing of dangerous machinery, maintenance, training operators), protocols for handling hazardous substances, fire safety, emergency preparedness (like drills, emergency exits), and investigation of accidents. The Code also calls for Safety Committees in establishments engaged in hazardous work or having above a certain number of workers (which provides a channel for workers to participate in safety management). In high-risk sectors like mines, there are more elaborate safety regulations (on mine shafts, explosives, etc.), now all under this single code.
• Welfare Facilities: These are amenities to improve workers’ well-being. The Code requires facilities such as: canteens (in establishments like factories, mines, construction sites above a certain size, usually if 100 or more workers employed), first aid boxes (and an ambulance room if certain large workforce thresholds), crèches (for establishments with 50 or more female employees or as applicable – the Code unified threshold for creche across industries, likely 50 employees, male or female, where women are employed, meaning if an establishment has 50 employees with some women, they need a crèche), rest rooms/lunch rooms (for workplaces with workers who have to stand or which have a certain number of employees). Also, welfare officers must be appointed in factories or establishments above a specified size (likely 250 or 500 workers).
• Special Provisions for Contract Labor and Inter-State Migrants: The Code ensures that contract workers (those hired through a contractor) get certain basic facilities like rest rooms, drinking water, and that they are paid on time (principal employer is obligated to pay wages if contractor fails). It also has provisions to prohibit the deployment of contract labor in certain core activities except under specific conditions, continuing a concept from the Contract Labour Act. For inter-state migrant workers, the Code provides that they should enjoy the same benefits as local workers in that job, and journey allowance for to-and-fro travel from home state, among other protections. They need to be registered as inter-state migrants either by themselves or by employers for tracking and providing special support if needed.
• Penalties and Enforcement: The Code introduces the role of Inspector-cum-Facilitators who will inspect workplaces for compliance but also guide employers on best practices (this suggests a less adversarial approach). Penalties under the Code are prescribed for various offences, generally involving fines which can range from a few lakh rupees for serious contraventions (and imprisonment in cases of very serious or repeat violations, such as fatal accidents due to negligence). The Code also has provisions for compounding of certain offences (paying a fine to avoid prosecution for minor issues).
Compliance and Employer Actions
In anticipation of the OSHWC Code’s implementation, employers should take a proactive approach:
• Audit of Current Practices: Companies should review their current health and safety measures against the anticipated Code requirements. For a manufacturing unit, this means checking all safety protocols, machine guards, training records, availability of welfare facilities like washrooms, first aid, etc. For an IT or office setup (which might not have been under strict scrutiny of labor laws before if under 10 employees threshold – but many have more), it’s time to ensure basic things: cleanliness, emergency evacuation plans, fire extinguishers, adequate restroom facilities, working hours tracking (though IT has flexibility, if any overtime is forced, compensation might be needed accordingly), and a safe ergonomic working environment.
• Centralized Registration and Licensing: The Code might require re-registering or updating registrations of establishments. Companies operating in multiple states or employing contract labor should prepare for a unified registration process. For contractors, the threshold increase to 50 for licensing means small contractors might get relief, but those above 50 will need a single or multiple license as applicable. Principal employers should maintain updated records of all contractors and ensure those with 50+ workers have licenses.
• Health Checks: New to the Code is the emphasis on annual health examinations for workers in certain categories (like those above 45 years in hazardous industries, etc.). Employers may need to tie up with medical practitioners to conduct yearly check-ups and maintain medical records. This is for early detection of occupational diseases or general health issues.
• Compliance Officers and Training: It may be prudent for organizations to designate a safety officer (if not already required due to size) to oversee compliance with the OSH Code. Regular training sessions for employees on safety (e.g., fire drills, safe machine operation, use of PPE, first aid training) should be instituted or strengthened. The Code explicitly mentions that workers have a duty to comply with safety instructions and properly use safety gear – training ensures they know these duties.
• Working Hours and Leave Records: With a unified approach, even shops/establishments might have more formal working hour rules akin to factories. Firms should ensure they are recording working hours and overtime correctly. If any employees (like IT staff) have been working very long hours, note that the law may entitle them to overtime if they are under the “worker” definition or if the company chooses to extend it. However, managerial staff remain exempt from these work-hour rules typically. Each employer might have to categorize which employees are “workers” for the purpose of these provisions. Additionally, ensuring all employees get at least one day off a week and proper leave is both a legal and a morale consideration.
• Adapt for Women Employees: Since women can now be employed in all operations (including night shifts in factories or mining etc.) with safeguards, companies that previously disallowed women in night shifts might consider policies to enable it, because the legal barrier is removed. But they must also implement the required safety measures – like adequate lighting, security, transport for women at night, and prevention of harassment – which ties into obligations under the Sexual Harassment of Women at Workplace Act as well.
Non-compliance with the OSHWC Code could result in accidents, legal penalties, and loss of reputation. From a broader perspective, providing a safe and healthy workplace is not just about legal compliance but also about productivity – healthier and safer workers perform better, and companies have fewer disruptions. HR and safety managers should therefore integrate the OSHWC Code’s mandates into their workplace policies and culture. As with the other codes, monitoring when it comes into force and understanding the specific state rules (some details may vary or be elaborated at the state level) will be crucial. Employers may need to update their internal regulations (like replacing references to old Acts in their compliance checklists with the new Code) once effective.
