OSH Code 2020 Explained: 40 Questions Every Employer Is Asking

With the implementation of the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code), India's labour laws are undergoing an important transformation. Pratik Vaidya, Managing Director and Chief Vision Officer of Karma Management Global Consulting Solutions Pvt. Ltd., shared this FAQ-based explainer that breaks down the OSH Code in practical terms. It uses illustrations to make obligations, liabilities, and compliance priorities clear during the transition to India's new labour codes framework.

1. Coverage and big picture

Q1. What is the main purpose of the Occupational Safety, Health and Working Conditions Code 2020?

The OSH Code brings together many central laws on safety, health and working conditions into a single framework. It is intended to:

• reduce overlap between multiple Acts,
• standardise minimum safety and welfare duties, and
• make registration, licensing, inspection and record keeping more consistent across factories, construction, contract labour, migrant workers, mines, docks, transport, plantations, beedi establishments and some media sectors.

Illustration

Earlier, a large manufacturer needed separate registrations and licences under Factories, CLRA, ISMW and BOCW for the same campus. Under OSH the same campus is expected to have one OSH registration that captures all these dimensions, and eventually a common licence.

Q2. Which earlier Acts are broadly covered under the OSH Code

The Code consolidates provisions from, among others:

• Factories Act 1948
• Mines Act 1952
• Dock Workers safety law
• Contract Labour (Regulation and Abolition) Act 1970
• Inter State Migrant Workmen Act 1979
• BOCW Act 1996 and its Cess Act
• Motor Transport Workers Act 1961
• Plantation Labour Act 1951
• Beedi and Cigar Workers employment law
• Provisions for working journalists and audio visual workers

These Acts are repealed to the extent specified,subject to savings. Existing registrations and actions under those Acts do not vanish on day one, they continue until migrated.

Illustration

A BOCW registration and cess assessment for a project that started in 2023 will continue to be valid and enforceable, even if the OSH Code is brought into force in the middle of that project, until it is specifically shifted to the OSH regime.

Q3. Does OSH Code apply only to factories?

No. Factories are only one part. Other sectors covered include:

• construction sites and building workers,
• contract labour and inter State migrant workers,
• mines, docks, motor transport undertakings, plantations, beedi establishments,
• certain media and audio visual workplaces.

Illustration

An IT company with only offices and data centres may not be a factory at all but may still fall under OSH if it employs a large contract workforce for housekeeping, security and cafeteria, or if it undertakes major construction and fit out projects which trigger BOCW provisions.

Q4. Who is the appropriate government under OSH Code?

The appropriate government is:

• Central Government for railways, mines, oilfields, major ports, central public sector undertakings and units run by or under the authority of the Union,
• State Government for most other establishments within that State.

This decides whose Rules apply, which online portal is used and which inspector cum facilitator has jurisdiction.

Illustration

A refinery run by a central public sector undertaking in Gujarat will still be under the Central Government for OSH. A private chemical factory in the same industrial area will fall under the State Government for OSH.

2. Registration, licensing and earlier approvals

Q5. What is meant by single OSH registration?

Single OSH registration means that each establishment is identified once in the OSH system, and then tagged with:

• its sector category (factory, mine, construction site, plantation, motor transport undertaking, beedi establishment, dock operation, media unit), and
• whether it engages contract labour or inter State migrant workers above thresholds.

Illustration

A cement plant has a clinker unit, a grinding unit and a packing plant inside one campus. Under OSH Code, the entire campus can be treated as one OSH registered establishment with factory tag and with flags that it uses contract labour and interstate migrants. The older model of multiple factory and CLRA registrations across sub-units is expected to reduce over time.

Q6. What is the common licence concept under OSH Code?

Common licence is a single licence that can cover multiple permissions that earlier required separate licences.

For example, a principal employer may have one common licence that allows it to:

• operate as a factory, and
• engage contract labour, and
• engage inter State migrant workers.

A contractor may have one licence that covers:

• supply of contract labour, and
• engagement of inter State migrant workers,
• across multiple client establishments.

How exactly this is implemented depends on Central and State Rules and their portals.

Illustration

A facility management company supplies housekeeping and security staff to ten different client sites in a city. Instead of holding ten separate CLRA licences, OSH common licence permits one licence for the contractor, which lists all ten client sites and the number of workers at each site.

Q7. What happens to existing licences under Factories, CLRA, ISMW and BOCW when OSH Code is implemented?

Existing registrations and licences under those Acts do not disappear. They continue to be valid by virtue of repeal and savings sections, until:

• the government issues Rules and migration instructions, and
• the establishment obtains an equivalent OSH registration or licence.

Illustration

A factory licence valid up to 31 March 2027 will not automatically become invalid on the OSH Code commencement date. The establishment must continue to renew and comply with that licence until a clear mechanism is issued for conversion to OSH registration and licensing.

Q8. Will an establishment need to take fresh OSH registration if it already has a factory licence?

Yes, in the long term. The policy direction is towards:

• one OSH registration for the establishment, and
• one common licence where possible.

In the interim, both the factory licence and OSH registration may co exist till migration is completed.

Illustration

A plant is asked, after OSH Rules are notified, to create a profile on an OSH portal and obtain OSH registration. Its existing factory licence is uploaded and linked. Fresh OSH licensing conditions apply from that point onward, but prior actions under the Factories Act remain valid.

3. Factories, working hours and women in night shifts

Q9. Are safety, health and welfare duties for factories diluted under OSH Code?

No. The substantive duties are carried forward. Employers must still ensure:

• safe plant and machinery,
• safe systems of work,
• controlled exposure to dust, fumes, noise, chemicals and hazards,
• proper guards and interlocks,
• effective fire prevention and emergency response,
• proper cleanliness, ventilation, lighting and sanitation,
• first aid, canteens, rest rooms, crèches and welfare facilities where required.

Illustration

If an accident occurs due to unguarded belts and pulleys on a machine, it is not a defence to say that the Factories Act has been repealed and the OSH Code is new. The duty to guard dangerous parts of machinery exists in the OSH Code, and enforcement can proceed on that basis.

Q10. What is the position on working hours and overtime for workers under OSH Code?

The Code sets limits on daily and weekly hours, rest intervals and spread over. Exact numbers are in Rules, but the typical pattern continues to be:

• around 8 hours per day,
• up to 48 hours per week,
• specified rest breaks,
• specified number of consecutive working days before a weekly off.

The Code on Wages then requires that overtime beyond these limits is paid at not less than double the ordinary rate of wages.

Illustration

If an establishment runs a twelve hour shift pattern for some weeks due to a surge in orders, it is not enough to say that the weekly total is within 48 hours. The arrangement must respect daily limits, rest intervals and overtime calculation at double rate.

Q11. Can women work in night shifts under OSH Code?

Yes, but with conditions. Women can work in night shifts if:

• they have consented to such work, and
• the establishment provides adequate safety,security and transport measures, as prescribed.

Illustration

A business process outsourcing centre runs a night shift from 9 pm to 6 am. It employs women in this shift, but must ensure:

• safe, company arranged transport from home to office and back,
• security presence in vehicles and at the campus,
• CCTV coverage and lighting in common areas,
• separate and secure washrooms and rest rooms,
• functioning sexual harassment prevention and complaint mechanisms.

Q12. Does OSH Code fix a uniform pan India rule on five day week or six day week?

No. The Code gives the outer limits on hours and rest. Whether the establishment runs:

• six days of 8 hours,
• five days of 9½ hours,
• or any other pattern within the legal limits,

continues to depend on business needs, Rules and State specific laws like Shops and Establishments Acts.

Illustration

A factory may operate six days at 8 hours under OSH, while the corporate office in the same group operates five days at 9 hours and follows the State Shops and Establishments Act.

4. Contract labour under OSH Code

Q13. Has the basic structure of principal employer, contractor and contract worker changed?

No, the structure remains similar. Key elements:

• principal employer entrusts work to contractor,
• contractor engages workers and is their employer in law,
• contract workers are deployed at the establishment.

What changes is the way registration and licensing are organised under OSH.

Illustration

A logistics company hires a warehouse staffing contractor. The warehouse company is principal employer, the staffing firm is contractor and the pickers and packers are contract workers. The OSH Code retains this structure but routes registration and licensing through OSH systems.

Q14. When does an establishment come under OSH contract labour provisions?

When it engages contract labour above the threshold prescribed in Rules. At that point:

• the establishment must have OSH registration with a contract labour tag, and
• each contractor meeting licensing threshold must have an OSH licence or common licence.

Illustration

If the threshold is 50, and a manufacturing unit engages 30 security guards from one agency and 25 housekeeping workers from another, the total contract headcount of 55 will bring the establishment within the contract labour chapter.

Q15. Who is responsible for payment of wages to contract workers under OSH Code?

The contractor is primarily responsible. However:

• if the contractor fails to pay wages correctly or on time,
• the principal employer can be directed to make payment to the workers, and
• the principal employer can later recover the amount from the contractor.

Illustration

A canteen contractor delays wages by two months due to cash flow issues. Workers complain to labour authorities. The inspector directs the principal employer to release wages to the affected workers within a short time frame. The principal employer then adjusts this against contractor bills and security deposit.

Q16. Will termination of a non compliant contractor remove liability for past wage shortfall?

No. Termination may prevent further non compliance, but wage shortfall for past periods remains payable.

Illustration

A security contractor has under paid ESI covered guards for the last six months. The principal employer discovers this and terminates the contract. Even after termination, the authority can still raise demand for past under payment, and the principal employer can be brought in if the contractor is unable to pay.

5. Inter State migrant workers

Q17. How has the definition of inter State migrant worker changed under OSH Code?

Earlier, only workers recruited in one State for work in another State through a contractor were covered. Under OSH:

• workers who come from or ordinarily reside in one State and work in another State can be covered,
• whether they were recruited in their home State or migrated on their own,
• if their wage level and other conditions in Rules are satisfied.

Illustration

A contractor brings 200 workers from West Bengal to a construction project in Karnataka. They are clearly inter State migrants. Under OSH, a worker who came on his own from Bihar to Karnataka and took up a job on the same site at similar wage levels can also qualify as an inter State migrant worker.

Q18. Are all out of State employees automatically inter State migrant workers?

No. The chapter is mainly intended for lower wage migrant workers. Senior staff and high paid employees from another State are not the target.

Illustration

A chartered accountant from Rajasthan joins a company in Maharashtra as finance manager at a high salary. She is a migrant in ordinary language, but not necessarily an inter State migrant worker under OSH chapter. She will be covered as an employee or worker for wage and social security purposes, not under the specific ISMW benefits.

Q19. What are the key benefits for inter State migrant workers under OSH Code?

Subject to Rules, inter State migrant workers may be entitled to:

• parity in wages with local workers doing similar work,
• displacement allowance at the time of recruitment,
• journey allowance for travel from home State to work State and back in certain situations,
• suitable accommodation and welfare facilities,
• identity documents and records that support portability of benefits.

Illustration

A contractor recruits 100 workers from Uttar Pradesh for a factory expansion project in Tamil Nadu. Each worker is paid a displacement allowance before leaving UP and entitled to journey allowance when returning home at the end of contract, in addition to parity wages at the project site.

Q20. What data should establishments collect at the time of joining to handle inter State migrants?

At the minimum:

• permanent home address and State,
• whether the worker has moved from another State for this job,
• wage level,
• name of contractor if recruited through a contractor,
• date of arrival in the work State.

Illustration

A construction company modifies its joining form so that each worker states whether he is a resident of the work State or another State. For those from another State at lower wages, the company checks whether OSH inter State migrant provisions apply.

6. Building and other construction workers and BOCW

Q21. Who registers a construction establishment under BOCW chapter in OSH Code?

Generally, the project owner or principal employer registers the construction establishment and handles BOCW cess on cost of construction.

Illustration

A developer building a residential tower engages three large contractors for civil, finishing and mechanical work. The developer must register the project under BOCW chapter and pay cess on the total project cost, even if individual contractors are also registered for their operations.

Q22. Can only contractors register under BOCW and pay cess for their portion?

Contractors can register and pay cess for their portion, but this does not fully absolve the principal employer for project level registration and cess. Authorities may still hold the project owner responsible for any shortfall in cess on overall construction cost.

Illustration

A public works department project has a main contractor and several sub contractors. The main contractor pays cess only on the value of its own contract. The department can still be asked to pay cess on the remaining portion of cost of construction not covered by that payment.

Q23. Are building workers also covered under social security?

Yes. BOCW Welfare Boards are integrated with the social security framework. Building workers who are registered with the Board and for whom cess is paid can receive benefits such as:

• accident assistance,
• medical assistance,
• education support for children,
• pensions and other welfare schemes.

Illustration

A registered building worker in one State has worked on multiple projects during a year. Even though the contractors changed, the worker remains registered with the Board and can apply for medical benefit when he meets with an accident at site.

7. Sectorspecific chapters - mines, docks, transport, plantations, beedi, media

Q24. What is the impact of OSH Code on mines?

Mines have a separate chapter. The duties of mine owner, agent and manager, and safety requirements on ventilation, support, haulage, explosives, rescue and medical arrangements continue, with detailed rules and regulations under OSH.

Illustration

In an underground coal mine, obligations to maintain methane levels within safe limits, provide self rescuers and maintain rescue stations are unchanged. They are now enforced through OSH mining provisions rather than the old Mines Act.

Q25. How does OSH Code affect dock work at ports?

The OSH dock chapter governs safety and welfare of dock workers in loading, unloading and stacking operations at ports. It covers:

• certification and periodic testing of cranes, wire ropes, chains and hooks,
• safe handling of containers and hazardous cargo,
• housekeeping and access in holds and decks,
• welfare facilities such as rest rooms, drinking water and first aid.

Illustration

A container terminal must ensure that all quay cranes and reach stackers are periodically tested and certified. A serious accident due to use of uncertified lifting gear can lead to action under OSH dock provisions.

Q26. What about motor transport undertakings under OSH Code?

Motor transport undertakings are covered by a chapter that deals with:

• working hours and spread over for drivers, conductors, cleaners and loaders, daily and weekly rest,
• welfare facilities at depots and operating centres,
• Uniforms and medical checks where prescribed.

Illustration

A bus company running inter city buses must ensure that a driver does not drive continuously without sufficient rest. Records of duty hours at depots can be examined by OSH authorities to check for fatigue related risk.

Q27. What is the position of plantations under OSH Code?

Plantations such as tea, coffee and rubber estates must:

• obtain OSH registration as plantations,
• provide housing and sanitation for resident workers,
• provide drinking water, medical facilities, crèches and schools where required, comply with working hours and leave norms suitable to plantation work.

Illustration

A tea estate with 400 resident workers must maintain workers quarters, a primary health centre with basic medical staff, crèches for small children and schooling facilities or transport for school going children as per the Rules.

Q28. How are beedi and cigar establishments covered?

Beedi and cigar manufacturing units must be registered under OSH and comply with:

• health and safety in workrooms, including ventilation and cleanliness,
• restrictions on excessive hours,
• weekly days of rest,
• proper records of work and wages.

Illustration

A beedi rolling unit that previously had only a local licence now needs to be registered under OSH. Inspectors can check whether lighting and ventilation are adequate, whether children are illegally employed and whether hours comply with the Code and Rules.

Q29. What changes for journalists and audio visual workers?

Journalists and audio visual workers come in as special categories forsafety and working conditions, while pay and retrenchment aspects are addressed in the Wage Code and Industrial Relations Code.

Illustration

A television news channel sends camera teams to cover civil unrest. Under OSH, the channel is expected to assess risks, provide protective gear where necessary, and ensure reasonable working hours and rest. For salary and notice periods the wage and IR provisions will apply.

8. Leave, welfare and record keeping

Q30. How is annual leave with wages calculated under OSH Code for factory type workers?

The familiar pattern continues:

• a worker who has worked at least 240 days in the previous calendar year becomes eligible for annual leave in the following year,
• an adult worker earns one day of annual leave for every twenty days of work actually performed in that year.

Certain non working days are counted for the 240 day gate, such as lay off with pay, maternity leave up to the statutory limit and annual leave days already taken. These days however do not themselves generate additional leave.

Illustration

A worker in a six day week factory has:

• 230 days of actual work,
• 10 lay off days with pay,
• 6 days of annual leave.

For eligibility, these total 246 days, so he qualifies for leave next year. For accrual, leave is calculated on 230 actual work days, giving 11.5 days, which the company may round to 12 days.

Q31. Are weekly offs and public holidays treated as days worked for leave calculation?

Weekly offs and public holidays do not automatically count as days worked. They are days when the worker is on the rolls but not on duty. They are not counted for the one in twenty accrual calculation.

Illustration

If a worker has 260 days of actual work, 52 Sundays and 10 public holidays, only the 260 working days count for leave accrual. Leave next year will be 260 divided by 20, that is 13 days, subject to rounding.

Q32. Does OSH Code standardise casual leave and sick leave?

No. Casual leave and sick leave are still defined mainly by State Shops and Establishments Acts and by company policy where those Acts apply. OSH is more concerned with safety, health, annual leave for factory workers and welfare measures.

Illustration

In one State, Shops and Establishments Act provides 6 casual leave and 6 sick leave in a year. In another State, it may be 12 sick leave and no casual leave. The employer must respect those State specific minima. OSH does not change that.

Q33. What welfare facilities are typically required under OSH Code?

Depending on the number of workers and the sector, OSH can require:

• safe drinking water and washing facilities,
• separate toilets and rest rooms,
• canteens where worker strength exceeds a threshold,
• crèches where women workers and workers with small children exceed a threshold,
• first aid boxes and first aid rooms,
• arrangements with hospitals or medical practitioners.

Illustration

A manufacturing unit with 320 workers may cross the threshold for canteen and crèche, especially if a prescribed number of women workers are employed. A smaller warehouse with 30 workers may need only basic washrooms, drinking water and first aid boxes.

9. Inspections, enforcement and penalties

Q34. Why is the term inspector cum facilitator used in OSH Code?

The term shows that officials have a twin role:

• to guide and encourage establishments to comply, and
• to verify compliance through inspections and to enforce the law where needed.

They can enter premises, examine persons, inspect and copy records,seize relevant material and issue improvement or prohibition notices.

Illustration

An inspector cum facilitator may first suggest improvements in machine guarding and training during an inspection. If an establishment ignores these and a serious accident occurs, the same authority can bring enforcement action.

Q35. How will inspections change under OSH Code?

Inspections are expected to be more:

• risk based, using computer systems to select establishments,
• coordinated across departments where possible,
• documented through online inspection reports.

Illustration

A refinery, a chemical plant and a small office may all be under the same region. A risk based system may plan more frequent inspections for refinery and chemical plant based on hazard profile and past incidents, and less frequent routine inspections for the small office.

Q36. Are penalties under OSH Code higher than before?

In general, yes. Penalties are more structured and higher, especially when non compliance leads to death or serious injury. Some first time minor offences may be compounded on payment of a specified sum, but repeated or serious violations can lead to higher fines and possible imprisonment for persons in charge.

Illustration

If a fatal accident occurs due to removal of machine guards, the penalty under OSH for the establishment and its responsible officers can be significantly higher than what the Factories Act provided earlier, especially if there is evidence that the risk was known but ignored.

10. Cross Code interaction and transition

Q37. How does OSH Code interact with Code on Wages?

Any decision on work hours, overtime, weekly off and shift patterns under OSH has a direct impact on:

• whether a worker has done overtime,
• how overtime is to be calculated at double rate,
• whether wage payments are aligned with the new wage definition.

Illustration

If an establishment introduces a twelve hour day for peak season, it must not only check OSH provisions on maximum hours and rest intervals but must also pay overtime at twice the ordinary rate for the extra hours as per Wage Code.

Q38. How does OSH Code interact with Code on Social Security?

Many OSH categories like contract labour, building workers, inter State migrants and plantation workers are also social security categories for PF, ESI, gratuity and other benefits.

OSH regulates:

• registration, safety, working conditions, welfare facilities.

Social security law regulates:

• contributions, benefits, cess based welfare schemes.

Illustration

At a construction site, OSH requires safe scaffolds, PPE, guardrails, fall protection and welfare facilities. Socialsecurity provisions require coverage of eligible workers under PF and ESI, and BOCW cess and registration for welfare benefits.

Q39. How does OSH Code interact with Industrial Relations Code?

OSH failures or safety concerns often lead to disputes,strikes or disciplinary action. Industrial Relations Code provides the framework for:

• standing orders,
• misconduct and disciplinary processes,
• notice of strikes and lockouts,
• conciliation and adjudication.

These mechanisms must be consistent with OSH duties.

Illustration

If workers refuse to operate a machine which they believe is unsafe, management must first address OSH concerns. Treating such refusal as misconduct without investigating safety issues can lead to disputes under IR Code and liability under OSH if the risk is real.

Q40. What should employers focus on during the transition to OSH Code regime?

Key focus areas:

• mapping all existing registrations and licences to OSH categories,
• strengthening safety systems, risk assessments and training,
• regularising contract labour and migrant worker documentation,
• reviewing working hours, overtime and leave in light of Wage and OSH provisions,
• monitoring Central and State notifications on OSH Rules and online systems.

Illustration

A group may run a short internal project to:

• list all its units and licences across India,
• identify which ones are factories, which are construction sites, which use contract labour above threshold,
• create a simple OSH compliance matrix per unit.
• This becomes the base document when State OSH Rules and portals go live.