Lakshmikumaran & Sridharan Attorneys

Occupational Safety, Health and Working Conditions Code, 2020

Act 37 of 2020Effective: 21st November 2025

The Occupational Safety, Health and Working Conditions Code, 2020 consolidates 13 labour laws relating to safety, health and working conditions. It establishes a comprehensive framework for occupational safety standards, welfare facilities, and working conditions across factories, mines, plantations, construction sites, and other establishments.

CONSOLIDATES

Factories Act, 1948Mines Act, 1952Dock Workers (Safety, Health and Welfare) Act, 1986Building and Other Construction Workers Act, 1996Plantations Labour Act, 1951Contract Labour (Regulation and Abolition) Act, 1970Inter-State Migrant Workmen Act, 1979Working Journalists and Other Newspaper Employees Act, 1955Working Journalists (Fixation of Rates of Wages) Act, 1958Motor Transport Workers Act, 1961Sales Promotion Employees Act, 1976Beedi and Cigar Workers Act, 1966Cine-Workers and Cinema Theatre Workers Act, 1981

Historical Context

India's occupational safety laws developed sector-by-sector over decades, starting with the Factories Act, 1948. The fragmented approach led to different standards for different industries. The Second National Commission on Labour (2002) recommended consolidation. The OSH Code represents the most ambitious consolidation, merging 13 different laws into a unified framework applicable across all sectors.

Key Provisions

Applicability Criteria

NEW

Different applicability thresholds based on establishment type.

  • Any industry, trade, business, manufacturing - in which ten or more workers are employed
  • Motor transport undertaking, newspaper establishment, audio-video production, building and other construction work or plantation - ten or more workers employed
  • Factory - 10 or more workers employed
  • Mines, ports - no threshold
  • No thresholds for hazardous and life threatening activities

Single Registration

NEW

One registration for establishment under this Code within 60 days.

  • Single window registration for establishments
  • Registration for establishments with 10 or more workers
  • Common license for factory, contract labour and beedi establishments
  • Validity period as prescribed by appropriate Government
  • Registration within 60 days of applicability date

Appointment Letters

NEW

Mandatory issuance of appointment letters to all employees.

  • Every employee to be issued an appointment letter
  • Letter to contain terms and conditions of employment
  • Applicable to all establishments covered under the Code
  • No exemptions based on worker category

Employer's Duties

Comprehensive duties of employers for workplace safety.

  • Provide and maintain safe workplace free from hazards
  • Provide information, instruction and training on safety
  • Provide personal protective equipment
  • Ensure welfare facilities for employees
  • Notify accidents and dangerous occurrences
  • Maintain health and safety records

Employee's Duties

NEW

Employees also have statutory duties for workplace safety.

  • Take reasonable care for health and safety of self and others
  • Report to employer any unsafe situation
  • Cooperate with employer in meeting statutory obligations
  • Not misuse any safety equipment provided
  • Comply with safety instructions

Working Hours - 8-Hour Limit

CHANGED

Maximum working hours reduced with overtime provisions.

  • Maximum 8 hours work per day (reduced from 9 hours under Factories Act)
  • Weekly and compensatory holidays mandatory
  • Annual leave with wages
  • Overtime at twice normal wages
  • Night shift provisions with safeguards

Women in All Establishments

CHANGED

Women permitted to work in all establishments for all types of work.

  • Women can work in ALL establishments for ALL types of work
  • Night work (7 PM - 6 AM) permitted with safeguards
  • Employer must ensure safety, security, and dignity
  • Adequate transportation must be provided for night work
  • Consent of woman required for night shifts
  • No discrimination in recruitment or conditions

Contract Labour Provisions

CHANGED

Revised framework for contract labour engagement.

  • Applicability threshold: 50 workers (increased from 20)
  • Work-specific license for contractors (project-based)
  • Contract labour prohibited in core activities with 3 exceptions
  • Exceptions: Sudden increase in work, work not done by regular workers, intermittent work
  • Principal employer responsible for wage payment on contractor default
  • Duties matrix clearly defined between principal employer and contractor

Health and Welfare Facilities

Mandatory welfare provisions for employees.

  • Cleanliness and disposal of wastes
  • Adequate ventilation and temperature control
  • Sufficient lighting (natural and artificial)
  • Potable drinking water
  • Sufficient latrines and urinals (separate for men and women)
  • Washing facilities and locker rooms
  • Canteen where 100+ workers employed
  • First-aid facilities and medical examination
  • Crèche where 50+ women employed
  • Annual health checkup for hazardous processes

Inter-State Migrant Workers

CHANGED

Special provisions for migrant workers with portable benefits.

  • Self-declaration based registration via Aadhaar
  • Portability of benefits across states
  • Annual journey allowance (corrected from one-time)
  • Equal treatment with local workers
  • Toll-free helpline for grievances
  • Applicable to establishments with 10+ inter-state migrants

Deemed Factory Power

NEW

Government can declare any premises a factory.

  • Appropriate Government can declare any premises as a factory
  • Applicable regardless of number of workers employed
  • Used to extend safety protections to high-risk premises
  • Notification-based power

National OSH Advisory Board

Central advisory body on occupational safety.

  • National Occupational Safety and Health Advisory Board at Central level
  • State Boards at state level
  • Advisory role on policy and standards
  • Representation of employers, workers and experts

Definitions

Worker (OSH Code)

Any person employed to do manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward.

Excludes: Persons employed in managerial or administrative capacity; Persons in supervisory capacity drawing wages exceeding ₹18,000 per month

Definition aligned with Industrial Relations Code

Establishment (OSH Code)

A place where any industry, trade, business, manufacture or occupation is carried on.

Thresholds: Type 1: Industry/trade/business with 10+ workers (with aid of power) or 20+ workers (without power); Type 2: Factory/plantation/construction with 10+ workers; Type 3: Mine/port/dock work - any number of workers

Applicability varies by type of establishment and workforce size

Contract Labour

Workers employed by a contractor to work in or in connection with the work of an establishment.

Thresholds: Applicability threshold: 50 workers (new - previously 20)

Higher threshold provides relief to smaller contractors

Inter-State Migrant Worker

A person who is recruited or has migrated from one state for employment in an establishment in another state.

Thresholds: Applicability: Establishments employing 10+ inter-state migrants

Self-declaration based registration via Aadhaar-linked portal

Core Activity

Any activity for which the establishment is set up and includes any activity which is essential or necessary to such activity.

Contract labour prohibited in core activities with specific exceptions

Factory

Premises where manufacturing process is carried on with 20 or more workers (with power) or 40 or more workers (without power). Excludes: hotel, restaurant or eating place.

Government has 'Deemed Factory Power' - can declare any premises a factory regardless of worker count

What Changed

AspectBeforeAfter
Working HoursUp to 9 hours per day under Factories ActMaximum 8 hours per day
Contract Labour Threshold20 workers triggered applicability50 workers trigger applicability
Contract Labour in Core ActivitiesProhibition on core activities often litigatedExplicit prohibition with 3 defined exceptions
Work-Specific LicenseAnnual license for contractorWork-specific license (can be for specific duration/project)
Women Night ShiftProhibited in factoriesPermitted with safety safeguards and consent
Inter-State Migrant RegistrationEmployer-registered systemSelf-declaration via Aadhaar, portable benefits
Journey Allowance for MigrantsNot standardizedAnnual journey allowance (not one-time)
Single RegistrationMultiple registrations under different lawsOne registration for establishment under OSH Code

Practical Impact

Registration and Licensing

  • Single registration within 60 days of applicability
  • Common license for factory, contract labour, beedi establishments
  • Work-specific licenses for contractors (project-based)
  • Online registration through single-window portal

Contract Labour Management

  • 50-worker threshold for registration requirement
  • Cannot engage contract labour in core activities (with 3 exceptions)
  • Principal employer responsible for wage payment if contractor defaults
  • Maintain separate registers for contract workers
  • Equal welfare facilities for contract workers

Working Hours and Welfare

  • 8-hour workday maximum (reduced from 10.5 hours)
  • Overtime at 2x wages with worker consent
  • Canteen mandatory for 100+ workers
  • Crèche mandatory where 50+ women employed
  • Annual health checkup for hazardous processes

Women Employment

  • Women permitted in all establishments for all types of work
  • Night shift (7 PM - 6 AM) permitted with safeguards
  • Must ensure safety, security, and transportation
  • Woman's consent required for night work
  • No discrimination in recruitment or wages

Migrant Worker Compliance

  • Annual journey allowance (not one-time)
  • Portal registration for inter-state migrants
  • Toll-free helpline access
  • Portable benefits across states
  • Equal treatment with local workers

Compliance Checklist

  • Complete single registration within 60 days of applicability
  • Issue appointment letters to ALL employees
  • Audit contract labour engagement against 50-worker threshold
  • Review core activity contract labour engagement for compliance
  • Obtain work-specific licenses for contractor engagements
  • Implement 8-hour workday with overtime consent mechanism
  • Set up canteen facility if employing 100+ workers
  • Establish crèche if 50+ women employed
  • Create women night shift safety protocol
  • Register inter-state migrant workers on portal
  • Set up annual journey allowance payment system
  • Schedule annual health checkups for hazardous process workers
  • Install adequate safety equipment and PPE
  • Display safety instructions in local language
  • Maintain accident register and report dangerous occurrences
  • Establish Safety Committee for prescribed establishments

Penalties

Failure to register establishment

Fine up to ₹2 lakh; up to ₹5 lakh for continuing contravention

Registration mandatory within 60 days

Non-compliance causing death

Imprisonment up to 2 years and/or fine up to ₹5 lakh

Serious penalty for fatal safety violations

Non-compliance with safety provisions

Fine up to ₹2 lakh (1st offence); up to ₹5 lakh (repeat)

Graduated penalties

Employing contract labour in core activity illegally

Fine up to ₹1 lakh

Unless exception applies

Frequently Asked Questions

What is the 'one registration' concept?

The Code introduces a single registration system for establishments, replacing multiple registrations under various laws. Establishments with 10 or more workers must register under a unified framework within 60 days of applicability. This simplifies compliance significantly.

Are appointment letters mandatory?

Yes, every employer must issue an appointment letter to every employee containing terms and conditions of employment. This is mandatory for all establishments covered under the Code, with no exemptions based on worker category.

Can women work night shifts?

Yes, women are permitted to work in ALL establishments for ALL types of work, including night shifts (between 7 PM and 6 AM). Conditions include their consent, employer ensuring safety, security and dignity, and provision of adequate transportation.

What are the working hour limits?

The Code prescribes a maximum of 8 hours of work per day (reduced from 10.5 hours under the Factories Act). Workers are entitled to weekly holidays and compensatory holidays. Overtime is payable at twice the normal wage rate and requires worker consent.

What benefits do inter-state migrant workers get?

Inter-state migrant workers are entitled to self-declaration based registration, portability of benefits across states, annual journey allowance (not just one-time), equal treatment with local workers, and access to a toll-free helpline for grievances.

When is contract labour applicability triggered?

The OSH Code raises the contract labour applicability threshold to 50 workers (from 20 earlier). Additionally, work-specific licenses are now available for project-based contractor engagements.

Can contract labour be engaged in core activities?

Generally no - contract labour is prohibited in core activities. However, there are 3 exceptions: (1) Sudden increase in volume of work, (2) Work not ordinarily done by regular workers, and (3) Intermittent work.

What are employee's duties under OSH Code?

For the first time, employees have statutory duties: take reasonable care for health/safety of self and others, report unsafe situations, cooperate with employer on statutory obligations, not misuse safety equipment, and comply with safety instructions.

What changed recently
All updates
  • OSH
    State: Andhra Pradesh
    06/08/2026

    Andhra Pradesh notifies Occupational Safety, Health and Working Conditions Rules, 2026 (Final Notification)

    Final notification of the Occupational Safety, Health and Working Conditions (Andhra Pradesh) Rules, 2026 under G.O.Rt.No.146, superseding eight prior state labour enactments; published in Andhra Pradesh Gazette No.432 dated 7 August 2026.

  • OSH
    State: Bihar
    01/07/2026

    Bihar notifies Occupational Safety, Health and Working Conditions Rules, 2026

    Occupational Safety, Health and Working Conditions (Bihar) Rules, 2026, made under sections 133 and 135 of the OSH Code, 2020, in supersession of six prior Bihar labour enactments including the Factory Rules 1950 and Contract Labour Rules 1972; published in the Bihar Gazette (Extraordinary) dated 1 July 2026.

  • OSH
    State: Rajasthan
    30/06/2026

    Rajasthan notifies Occupational Safety, Health and Working Conditions Rules, 2026

    Rajasthan finalises the Rajasthan OSH Rules, 2026 under sections 133 and 135 of the OSH Code, 2020, in force 30 June 2026 (S.O.23). Covers registration, licensing, welfare, working hours, hazardous processes, MAH installations, benzene handling and chemical works via LDMS and RajFAB portals.

  • OSH
    State: Uttarakhand
    22/05/2026

    Uttarakhand OSH&WC Rules, 2026

    Draft Uttarakhand state rules under Sections 133 and 135 of OSH&WC Code 2020.

  • OSH
    State: Himachal Pradesh
    22/05/2026

    Himachal Pradesh (Draft) OSH&WC Rules, 2026

    Draft Occupational Safety, Health and Working Conditions (Himachal Pradesh) Rules, 2026 published on 22 May 2026 for public objections.

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