Occupational Safety, Health and Working Conditions (OSH) Code, 2020

The OSH Code, 2020 consolidates 13 Central labour laws into one.

Objective:

• Simplify compliance

• Ensure uniformity across States

• Strengthen worker welfare

• Promote ease of doing business

From a fragmented regulatory structure to a single, modernised, transparent labour framework.

Mandatory for all employees.

Ensures transparency on wages, social security, designation, category of employment.

Eligibility reduced from 240 days to 180 days of work.

Improves rest, recovery, productivity and work–life balance.

The OSH Code allows flexible weekly work arrangements, provided the worker gives consent.

Depending on the weekly schedule, the following daily limits apply without treating them as overtime:

• 12 hours per day in a 4-day workweek

• 9.5 hours per day in a 5-day workweek

• 8 hours per day in a 6-day workweek

Earlier, the maximum overtime permitted was 75 hours per quarter under the Factories Act.

Under the OSH Code:

• The appropriate government now has full authority to determine the overtime limit.

• This allows States/UTs to adjust overtime ceilings based on:

  • Industry needs

  • Regional employment patterns

  • Seasonal fluctuations

Includes:

• Direct employees

• Contract workers

• Self-migrating workers

To-and-fro journey allowance once every 12 months.

Portability of benefits under Building & Other Construction Workers BOCW cess and PDS ration.

Toll-free helpline for grievance redressal.

Enrols unorganised and migrant workers.

Enables targeted social security and skill mapping.

Courts can direct minimum 50% of the fine to be paid as compensation to injured workers or legal heirs in case of death.

Audio-visual workers now include digital creators, dubbing artists, stunt persons.

Working journalists now include electronic/digital media journalists.

Ensures contemporary coverage and workplace protections.

Mandatory for:

• Factories with 500+ workers

• Building & Other Construction Workers BOCW establishments with 250+ workers

• Mines with 100+ workers

Safety, health and welfare norms extended to all sectors, not just seven regulated sectors earlier.

Annual free health check-ups for all employees.

Plantations may now avail ESI medical facilities.

Replaces six earlier boards.

Tripartite representation (unions, employers, states).

Sets national uniform standards for OSH.

Built from compounding and penalty funds.

Supports unorganised sector welfare.

Code can be applied even to establishments with one employee in hazardous occupations.

Uniform threshold: 10 workers.

Single registration replaces multiple registrations.

Threshold increased for factory licences:

• From 10 to 20 workers (with power)

• From 20 to 40 workers (without power)

30-day time limit for factory construction permissions and site appraisal.

Replaces traditional “inspector raj”.

Web-based random inspections.

Focus on facilitation and compliance guidance.

Allowed for start-ups and specified establishments.

Reduces regulatory burden and speeds up compliance.

Registers reduced from 84 to 8.

Allows contract labour even in core activities if:

• It is ordinarily done by contractors, or

• Activity does not require full-time workers, or

• Volume of work increases suddenly in core area.

Threshold for regulation increases from 20 to 50 workers.

Small contractors exempted from licensing; large units retain obligations.

Principal employer liable for unpaid wages.

Ensures timely payment and basic welfare guarantees.

First-time offences (fine-only): 50% of max fine.

Offences with fine or imprisonment: 75% of max fine.

Funds credited to Social Security Fund.

Procedural offences treated as civil violations.

Mandatory 30-day notice before action.

Encourages voluntary compliance.

Women allowed in all types of work, including night shifts, with consent and mandatory safety arrangements.

Mandatory for establishments with 50+ workers.

Now gender-neutral, available to all workers—not just women.

OSH Code, 2020 unifies fragmented labour laws, strengthens worker welfare, enhances safety standards, and improves ease of doing business.

It contributes to a more formal, transparent, and future-ready labour market aligned with India’s inclusive growth vision.