Understanding the OSH Code, 2020: India’s Modern Framework for Occupational Safety, Health, and Working Conditions

India’s labor law framework has long been in need of simplification and modernization. For decades, a web of over 40 central labor laws governed various aspects of labor rights, making compliance a burdensome and inefficient process. In response, the Indian government undertook a major reform initiative to consolidate and rationalize these laws into four labor codes, one of which is the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code 2020).

The OSH Code is a landmark legislation that aims to ensure the safety, health, and welfare of workers across a wide range of industries. It repeals and replaces 13 existing labor laws, including the Factories Act, 1948; the Mines Act, 1952; and the Contract Labour (Regulation and Abolition) Act, 1970. This consolidation seeks to create a single, uniform legal framework to enhance workplace safety standards while ensuring ease of doing business.

In this article, we will explore the key features of the OSH Code 2020, its scope and applicability, compliance requirements, benefits for employers and employees, and the challenges that lie ahead.

The Need for the OSH Code

Before the implementation of the OSH Code, India’s labor law framework was fragmented and outdated. Various laws dealt with occupational safety and health in silos and had sector-specific applicability. Many of these laws had not kept pace with the changing nature of work, technological advances, and the rise of the gig and platform economy.

For instance, the Factories Act focused only on manufacturing units with certain thresholds, and the Mines Act applied exclusively to mining operations. As a result, millions of workers in unorganized and service sectors were left without adequate safety coverage.

The OSH Code 2020 fills this critical gap by creating a unified framework that extends protections to a broader workforce, including contract labor, inter-state migrant workers, gig workers, and workers in unorganized sectors.

Coverage and Applicability

The OSH Code applies to all establishments employing 10 or more workers and to all mines, docks, and factories, regardless of the number of employees. It also brings into its fold previously excluded sectors such as construction, IT, and warehousing.

Notably, the Code applies to both formal and informal sectors and includes special provisions for women workers, inter-state migrant labor, and workers in hazardous occupations. This broader applicability makes the OSH Code more inclusive and reflective of India’s evolving employment landscape.

Additionally, the OSH Code 2020 mandates registration of all establishments with 10 or more workers, promoting transparency and accountability across sectors.

Key Features of the OSH Code 2020

1. Consolidation of Laws

The Code subsumes 13 central labor laws into one, including:

• The Factories Act, 1948
  
  

• The Mines Act, 1952
  
  

• The Dock Workers (Safety, Health and Welfare) Act, 1986
  
  

• The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
  
  

• The Contract Labour (Regulation and Abolition) Act, 1970
  
  

This consolidation reduces legal complexity and makes compliance easier for businesses.

2. Wider Definitions

The Code provides updated and broader definitions for terms like "establishment," "worker," "employee," and "employer," ensuring more categories of workers fall under its protection.

3. Health and Safety Standards

It empowers the Central Government to set occupational safety and health standards for different sectors. These standards will be periodically reviewed and updated to reflect industry developments.

4. Duties of Employers

Employers must ensure a safe working environment by:

• Providing a hazard-free workplace
  
  

• Conducting regular health check-ups
  
  

• Ensuring availability of clean drinking water and sanitation
  
  

• Offering safety training to workers
  
  

These obligations are mandatory and must be documented for compliance checks.

5. Rights and Duties of Employees

Employees, too, have duties under the Code. They must follow safety instructions, report hazards, and undergo training. The Code gives them the right to obtain health records and report unsafe conditions without fear of retaliation.

Compliance Framework under the OSH Code

The OSH Code emphasizes digitization and transparency. Establishments must:

• Register with the appropriate government
  
  

• Maintain electronic registers and records
  
  

• Submit returns electronically
  
  

• Display notices digitally or on-site
  
  

Furthermore, the Code introduces a single license for staffing agencies and contract labor suppliers, simplifying the licensing process across multiple states.

To ensure effective enforcement, the Code proposes an Inspector-cum-Facilitator model. This replaces the traditional inspector-based regime with a more collaborative approach that emphasizes guidance and support over penal action.

Impact on Contract Labor and Gig Workers

One of the most significant shifts brought by the OSH Code 2020 is its treatment of contract labor and gig workers. The Code mandates that principal employers are responsible for the safety and welfare of contract labor working under them. This includes ensuring amenities such as canteens, restrooms, and medical facilities.

Moreover, the inclusion of gig and platform workers is a notable development. Although their exact benefits under the Code are still evolving, their inclusion signals a move toward formal recognition of India’s growing digital workforce.

This shows that the osh code 2020 is not just about traditional employment—it is a forward-looking framework adapting to new forms of work.

Inter-State Migrant Workers: A New Deal

The plight of inter-state migrant workers during the COVID-19 pandemic highlighted the need for better protections. The OSH Code now provides:

• Portability of benefits like public distribution and welfare schemes
  
  

• Mandatory registration of migrant workers by employers
  
  

• Travel allowances
  
  

• Ensuring parity in wages between local and migrant workers
  
  

This is a major step toward creating a safety net for India’s mobile workforce and signals a shift from neglect to inclusion.

These provisions make the OSH Code an important instrument for social equity.

Advantages for Employers

The OSH Code doesn’t just benefit workers—it also creates advantages for businesses:

• Simplified compliance through digital tools and single licensing
  
  

• Predictable regulatory environment
  
  

• Lower litigation due to clarity in rules
  
  

• Better employee satisfaction and productivity through safer workplaces
  
  

For multinational companies, which often face challenges in navigating India’s complex regulatory environment, the OSH Code brings much-needed predictability and efficiency.

Challenges in Implementation

Despite its benefits, implementation of the OSH Code 2020 is not without hurdles.

1. Lack of Awareness: Many small and medium businesses are unaware of their new obligations.
   
   

2. Infrastructure Gaps: Enforcement in rural and remote areas is still weak.
   
   

3. State Rules Pending: Since labor is a concurrent subject in India, states must draft their own rules to operationalize the Code. As of now, several states are yet to complete this process.
   
   

4. Digital Divide: The push for digital compliance could be a barrier for smaller establishments lacking technical capability.
   
   

The Road Ahead

The success of the OSH Code will depend on its implementation. Both central and state governments must build awareness, strengthen inspection systems, and assist small businesses in adapting to digital compliance.

Capacity building among inspectors, clarity in rules for new-age work arrangements (gig/platform), and worker education will also be crucial.

As India moves toward becoming a $5 trillion economy, workplace safety and health will be central to ensuring sustainable growth. The OSH Code 2020 lays the groundwork for this transformation.

Conclusion

The OSH Code 2020 is a bold step in modernizing India’s labor framework. By consolidating 13 diverse laws into a single, comprehensive code, it brings uniformity, inclusiveness, and clarity to occupational safety and health.

Its focus on extending coverage to all workers—regardless of sector, form of employment, or location—marks a fundamental shift in labor governance.

However, its true impact will depend on timely rule-making, robust enforcement, and digital enablement across all tiers of industry.

For large organizations, especially multinational companies operating in India, aligning with the OSH Code is not just a legal obligation—it is an investment in workforce wellbeing, brand reputation, and operational resilience.

In this new era of labor reform, the osh code stands as a symbol of progress—bringing India closer to international standards of workplace safety while addressing the unique challenges of its labor market.