The Occupational Safety, Health and Working Conditions Code 2020: Implications for Employers

Introduction

The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code 2020) is one of the four labour codes introduced by the Indian government as part of its labour law reform initiative. This new legislation consolidates and rationalizes multiple existing labor laws into a single framework, aiming to improve workplace safety, health standards, and overall working conditions. Employers across various industries must now align their policies with the new regulations to ensure compliance and promote a safer work environment.

This article explores the key provisions of the Occupational Safety Health and Working Conditions Code 2020, its impact on employers, and strategies businesses should adopt to stay compliant.

Understanding the OSH Code 2020

The OSH Code 2020 replaces 13 existing labour laws related to occupational safety, health, and working conditions, including the Factories Act, 1948, the Mines Act, 1952, and the Contract Labour (Regulation and Abolition) Act, 1970. It aims to simplify and standardize labor laws while ensuring a high standard of workplace safety and well-being for employees across various sectors.

The OSH Code 2020 applies to establishments with at least 10 workers and covers a wide range of sectors, including manufacturing, mining, construction, and transportation. It also introduces new provisions concerning gig and platform workers, recognizing their right to a safe and healthy work environment.

Key Provisions of the OSH Code 2020

1. Health, Safety, and Welfare Measures

Under the Occupational Safety Health and Working Conditions Code 2020, employers must ensure adequate working conditions, provide necessary health and safety measures, and maintain welfare facilities such as:

• Clean drinking water and proper sanitation facilities

• Ventilation, lighting, and temperature control

• First aid and medical facilities

• Canteens and crèche facilities in large establishments

• Protection against hazardous substances

2. Working Hours and Overtime

The OSH Code 2020 sets out provisions regarding working hours, overtime, and weekly rest. Employers must adhere to prescribed working hour limits and provide fair compensation for overtime work.

• The maximum working hours per day cannot exceed eight.

• Overtime wages must be paid at twice the regular wage rate.

• Employees are entitled to at least one day of rest every week.

3. Duties of Employers

Employers have a direct responsibility to implement safety protocols and ensure compliance with occupational health standards. The key duties include:

• Providing a safe working environment with minimal risks

• Conducting risk assessments and hazard identification

• Offering health check-ups for employees in hazardous workplaces

• Educating workers about safety protocols and emergency procedures

• Appointing a safety officer in establishments employing 250 or more workers

4. Duties of Employees

Employees are also expected to comply with safety and health regulations. The OSH Code 2020 mandates that workers must:

• Follow safety instructions and use protective equipment

• Cooperate with the employer in maintaining workplace safety

• Report any unsafe conditions or hazards

• Refrain from engaging in reckless behavior that could endanger themselves or others

5. Registration and Licensing Requirements

The Occupational Safety Health and Working Conditions Code 2020 introduces a centralized registration system for all establishments. Employers must:

• Obtain a registration certificate from the relevant authority

• Renew licenses as per prescribed timelines

• Maintain detailed records related to worker health and safety compliance

6. Contract and Gig Workers

The OSH Code 2020 extends protections to contract laborers, gig workers, and platform workers, ensuring their right to a safe and secure work environment. Principal employers must:

• Ensure compliance with safety norms for contract workers

• Provide necessary protective equipment and training

• Maintain health and welfare facilities for outsourced workers

7. Penalties and Non-Compliance Consequences

The Occupational Safety Health and Working Conditions Code 2020 introduces strict penalties for non-compliance. Employers may face:

• Fines up to ₹2,00,000 for general non-compliance

• Imprisonment up to three years for severe violations leading to serious injuries or fatalities

• Additional penalties for repeat offenses

Implications for Employers

Compliance and Documentation

Employers must ensure that their workplace policies align with the OSH Code 2020 by maintaining proper documentation, including:

• Safety protocols and training records

• Health check-up reports

• Incident and accident reports

• Working hour records and overtime payments

Investment in Workplace Safety

To comply with the Occupational Safety Health and Working Conditions Code 2020, businesses should invest in workplace safety measures, such as:

• Installing safety equipment and protective gear

• Conducting regular safety drills

• Ensuring compliance with fire safety regulations

Training and Awareness Programs

Employers must organize training sessions and workshops to educate employees on:

• Workplace hazards and safety measures

• Emergency procedures and first aid

• Proper handling of hazardous materials

Adapting to Technological Innovations

The OSH Code 2020 encourages the use of technology to enhance workplace safety. Employers can integrate:

• AI-based monitoring systems for hazard detection

• IoT-enabled devices for real-time safety tracking

• E-learning platforms for safety training

Challenges in Implementation

Complex Compliance Requirements

Many employers may find it challenging to comply with the new registration and licensing requirements due to the complexity of regulatory procedures.

Increased Costs for Small Businesses

Smaller establishments may struggle with the financial burden of implementing workplace safety measures and maintaining compliance records.

Need for Employee Cooperation

For successful implementation of the OSH Code 2020, employers must ensure that employees actively participate in workplace safety initiatives.

Conclusion

The Occupational Safety, Health and Working Conditions Code 2020 is a significant step toward strengthening workplace safety regulations in India. Consolidating multiple labor laws into a single code simplifies compliance while ensuring enhanced protection for workers.

For employers, the OSH Code 2020 brings both opportunities and challenges. While it mandates stringent safety standards, it also offers a framework for improving productivity and reducing workplace risks. Employers who proactively align their business practices with the new code will not only ensure compliance but also foster a culture of safety and well-being in their organizations.