Will Raising the Factory Threshold Exclude Workers from Safety Protections?
No. A common misconception is that the revised factory definition (from 10 workers with power / 20 without power to 20 workers with power / 40 without power) reduces worker protection. However, the Code mandates health, safety, and welfare provisions for all establishments employing 10 or more workers, regardless of whether they meet the factory definition. This means smaller establishments still enjoy comprehensive coverage, ensuring no worker falls outside the safety net due to definitional changes.
The revised threshold primarily affects licensing and registration requirements for administrative purposes, not the application of core safety and welfare standards. Workers in establishments with 10 or more employees remain fully protected under the Code's health, safety, and working condition provisions.
Does the Increased Licensing Threshold for Contract Labour Deprive Workers of Protections?
No. The licensing threshold for contract labour has increased from 20 to 50 workers for administrative simplification. However, this change does not affect worker protections. All establishments employing 10 or more contract workers must comply with the Code's mandatory safety and welfare measures, including provision of basic amenities, health insurance coverage, and proper working conditions.
The principal employer remains responsible for providing welfare facilities such as washrooms, drinking water, first-aid boxes, and canteen facilities to contract workers. Contract workers are entitled to the same health, safety, and welfare benefits as regular employees, with no dilution of protections due to the revised threshold.
Which Categories of Workers Are Covered Under the OSH Code?
The OSH Code provides universal coverage to all categories of workers, including:
Regular and permanent workers
Contract labourers and temporary workers
Inter-State Migrant Workers (ISMW)
Fixed-term employment workers
Transgender workers (recognized for the first time in labour legislation)
Motor transport workers (including drivers and conductors)
Audio-visual workers (including stuntmen, dubbing artists, and digital content workers)
Building and construction workers
Mine workers
Plantation workers
Dock workers
Beedi and cigar workers
Each category receives tailored provisions addressing sector-specific hazards while maintaining baseline safety standards. For instance, motor transport workers enjoy specific provisions on working hours and rest intervals, while audio-visual workers benefit from newly formalized protections and safety standards.
Are Fixed-Term Employment Workers Protected Under the OSH Code?
Yes. Fixed-term employment workers receive comprehensive coverage under the OSH Code, including:
Appointment letters documenting employment terms and conditions
Annual health check-ups at employer expense
Welfare facilities including rest areas, drinking water, and sanitation
Working hour restrictions (maximum 8 hours per day)
Leave entitlements and wage protections
Safety committee representation where applicable
These provisions ensure that temporary or fixed-term workers do not face discrimination in access to safety and welfare benefits. The Code treats employment type as irrelevant to the right to a safe working environment.
What Are the Standard Working Hours Under the OSH Code?
Answer: The OSH Code prescribes the following standard working hours:
Maximum 8 hours per day
Maximum 48 hours per week
Mandatory intervals and rest periods as notified by the appropriate Government
The Code allows flexibility to extend daily working hours to a maximum of 12 hours per day, but only under specific conditions:
1.Worker consent is mandatory - Extensions cannot be imposed without the worker's written agreement
2.Overtime compensation - Extended hours must be compensated at twice the ordinary wage rate
3.Limited duration - Extensions are typically allowed for urgent repairs, exceptional workload, or emergency situations
4.Weekly limits apply - Even with flexibility, the weekly working hours generally remain restricted to prevent worker exploitation
For example, if a worker's ordinary wage is ₹500 per day for 8 hours, overtime hours (hours 9-12) must be paid at ₹1,000 per day. This ensures that increased flexibility does not result in wage suppression or worker exploitation.
What Are the Leave Entitlements for Workers?
Answer: Leave entitlements vary by worker category and tenure. The general framework includes:
Annual Leave (Earned Leave):
Workers must have worked 180 or more days in a calendar year to be eligible
Regular workers: 1 day of leave for every 20 days of work
Adolescent workers: 1 day of leave for every 15 days of work
Underground mine workers: 1 day of leave for every 15 days of work
Leave Encashment:
Unavailed leave may be carried forward up to 30 days to the next year
Refused or withheld leave with wages can be carried forward without any limit
Upon separation (discharge, dismissal, resignation, superannuation, or death), all pending leave must be paid in cash within two months of the separation event
Overtime Leave:
Workers cannot accumulate unlimited overtime; provisions require employers to grant compensatory rest or pay at double wages.
This framework protects workers from wage loss while recognizing business continuity needs through reasonable carry-forward provisions.
Are Wages Affected by Flexibility in Working Hours?
No. The Code incorporates strict wage protection mechanisms:
1.Overtime rates are mandatory - Any work beyond 8 hours per day must be paid at twice the ordinary wage rate
2.Wages cannot be reduced - Flexibility in working hours cannot result in lower daily or weekly wages
3.Wage transparency - Employers must issue electronic or physical wage slips detailing hours worked, wages earned, and deductions
4.Penalty for violations - Unlawful wage deductions or modifications attract penalties up to ₹1,00,000 for first offence
For instance, if a worker's monthly salary is ₹20,000 (for 8 hours/day, 25 days/month), and the employer extends the working day to 10 hours with overtime, the worker must receive additional compensation at double the hourly rate for the extra 2 hours daily.
Are Health and Welfare Facilities Limited to Large Establishments Only?
No. This is a critical FAQ addressing a common misconception. The OSH Code mandates health and safety provisions for all establishments employing 10 or more workers, regardless of size or sector. Welfare facilities include:
Mandatory Welfare Facilities:
Clean drinking water (potable, easily accessible)
Sanitation facilities (separate for male, female, and transgender workers)
Ventilation and lighting (meeting prescribed standards)
First-aid boxes (readily accessible during working hours)
Washing and bathing facilities (separate for each gender and transgender workers)
Lockers and changing rooms (for storing personal belongings and work clothing)
Sitting arrangements (for workers required to work standing)
Canteen facilities (for establishments with 100+ workers)
Health-Related Provisions:
Free annual health check-ups for all workers (mandatory)
Free health examinations for workers in hazardous processes or mines
Pre-employment medical examination (before hiring)
Occupational disease screening (for workers in specified processes)
For example, a small manufacturing unit with 15 workers must provide clean drinking water, separate toilet facilities for male and female workers, functional first-aid boxes, and arrange free annual health check-ups—regardless of the unit's size or profitability.
Does the Code Ensure Protections for Women Working in Night Shifts?
Yes. The OSH Code provides unprecedented protection for women workers while promoting gender equality. Key provisions include:
Women's Right to Work in Night Shifts:
The Code permits women to work in night shifts in all establishments (previously restricted in many sectors)
Mandatory safeguards include:
Adequate safety, transport, and security arrangements
Separate rest areas and sanitation facilities
Workplace lighting and CCTV surveillance where applicable
Counselling support and harassment redressal mechanisms
Consent Requirement:
Written consent of women workers is mandatory before assigning night shift duties
Consent can be withdrawn without penalty or job loss threat
Employers cannot coerce or manipulate consent
Working Conditions:
Women must not work more than 8 hours per day or 48 hours per week
Overtime is voluntary and must be compensated at double rates
No pregnancy-related discrimination
By mandating safety safeguards, the Code balances women's economic empowerment with occupational health, ensuring that flexible work opportunities do not compromise safety.
Is the Code Safe for Women Working in Hazardous Occupations?
Yes. The OSH Code ensures women's right to work in any occupation, including those classified as hazardous, provided:
1.Adequate safety safeguards are in place (equipment, training, monitoring)
2.Written consent is obtained from the woman worker
3.Health surveillance is provided (periodic medical examinations)
4.Separate welfare facilities are maintained
5.No pregnancy-related discrimination occurs
The Code recognizes that blanket bans on women's employment in hazardous work can be discriminatory and economically restrictive. Instead, it promotes a competence-based approach where work allocation is based on individual capability and training, with robust safety measures for all workers regardless of gender.
Are Transgender Workers Protected Under the OSH Code?
Yes. The OSH Code recognizes transgender workers for the first time in Indian labour legislation. Specific protections include:
Dedicated Welfare Facilities:
Separate bathing facilities (providing privacy and dignity)
Separate toilet and restroom facilities
Changing rooms with secure lockers
Gender-neutral terminology in workplace policies
Non-Discrimination Provisions:
Protection against harassment and discrimination
Equal access to safety committees and worker representation
Same health and safety benefits as other workers
Appointment letters and experience certificates
Workplace Dignity:
Employers cannot enforce uniform dress codes that conflict with gender identity
Privacy in personal spaces is guaranteed
Redressal mechanisms for harassment must be gender-sensitive
This inclusive approach ensures that transgender workers are not marginalized in occupational health and safety protections.
What Are the Requirements for Safety Committees?
Safety committees are mandatory in specific establishments to ensure worker participation in safety governance. Requirements include:
Mandatory Safety Committee Establishments:
Factories with 500 or more workers
Factories with hazardous processes employing 250 or more workers
Building and construction work with 250 or more workers
Mines with 100 or more workers
Committee Composition:
Equal representation from employers and workers
Worker representatives elected by workers
Employer representatives appointed by management
Specific skills (safety officer, occupational health professional where required)
Committee Functions:
Monitor health and safety conditions at the workplace
Review accident and incident reports
Recommend improvements in safety standards
Conduct safety audits and inspections
Facilitate communication between workers and management on safety matters
Cost Allocation:
Employers bear all costs of safety committee operations (no deduction from worker wages)
Workers serving on committees receive ₹0 additional cost to the employer but maintain full salary entitlements
Safety committees empower workers as partners in workplace safety, moving beyond traditional top-down compliance approaches.
Are Contract Workers Treated Differently Under the OSH Code?
No. The OSH Code explicitly provides that contract workers receive the same safety, health, and welfare protections as regular employees. There is no distinction in entitlements. Key provisions include:
Welfare Facilities:
Principal employer is responsible for providing welfare facilities (washrooms, drinking water, first-aid boxes, canteen, creche if 50+ workers)
Contractor is responsible for payment of wages and ensuring workers attend their workplace
Safety Protections:
Same working hour limits (8 hours/day, 48 hours/week)
Same overtime compensation (twice the ordinary wage rate)
Same leave and medical examination rights
Same safety equipment and training provisions
Experience Certificates:
Contract workers can demand experience certificates from their contractor upon separation
Such certificates must detail the nature of work, duration, and wages
These certificates improve portability of work records and skills
Hiring Threshold:
While the licensing threshold for contract labour has increased from 20 to 50 workers (for administrative ease), all establishments with 10 or more contract workers remain subject to comprehensive safety and welfare provisions.
Example Scenario: A construction company hiring 30 contract workers must register the contractor with authorities, ensure the principal employer (construction company) provides canteen and sanitation facilities, and guarantee the contractor pays wages on time without deductions—regardless of the lower licensing threshold.
What Protections Does the OSH Code Offer Inter-State Migrant Workers (ISMW)?
Inter-State Migrant Workers receive specific protections recognizing their vulnerability:
Dedicated Protections:
Registration requirement - Inter-state migrant workers must be registered within 15 days of commencement of work
Toll-free helpline - Government mandates setting up toll-free helplines for ISMW grievances
Information accessibility - Employers must provide information about work conditions, wages, and safety in the worker's language
Portability of Benefits:
ISMW retain access to social security benefits (ESI, PF) even when changing employers or locations
Health insurance portability is ensured
Leave encashment is portable and cannot be forfeited due to relocation
Wage Protection:
ISMW must receive written contracts detailing wages, hours, and benefits
Wages are protected from illegal deductions
Overtime compensation applies uniformly
Redressal Mechanisms:
Dedicated ombudsman for ISMW disputes
Language-accessible complaint systems
Protection against retaliation for filing complaints
Cost Implications: While employers incur modest registration costs (typically ₹100-₹500 per worker depending on state rules), these are investment in compliance and worker integration.
Are Motor Transport Workers (Drivers) Specifically Covered?
Yes. The OSH Code provides sector-specific protections for Motor Transport Workers, including drivers, conductors, and helpers:
Working Hour Restrictions:
Maximum 8 hours of driving per day
Mandatory rest intervals (typically 30 minutes after 4-5 hours of continuous driving)
Weekly rest days guaranteed
Safety Provisions:
Vehicles must maintain proper maintenance schedules
Safety equipment (first-aid kits, fire extinguishers, reflectors) are mandatory
Regular fitness tests for vehicles and drivers
Health Protections:
Free annual health check-ups
Occupational health screening for conditions like hypertension and vision problems
Medical fitness certification before employment and periodically
Working Condition Standards:
Vehicle design must ensure ergonomic comfort (proper seats, ventilation)
Protection against excessive heat, cold, or noise
Wage security and payment discipline
Wage and Leave:
Overtime compensation at double rates
Leave entitlements (1 day per 20 days of work)
Shift allowances as prescribed
For example, a taxi driver working 10 hours daily must receive 2 hours of overtime compensation (₹1,000 if ordinary wage is ₹500 per hour) plus mandatory rest periods, ensuring safety on roads and worker well-being.
Are Audio-Visual Workers (Including Stuntmen and Dubbing Artists) Protected?
Yes. The OSH Code provides formal recognition and protection to audio-visual workers, including:
Newly Protected Categories:
Stuntmen and stunt coordinators
Dubbing artists
Digital and audio-visual workers
Camera operators
Sound technicians and production assistants
Safety Protections:
Hazard assessment for stunt work and hazardous production conditions
Safety equipment provision (harnesses, padding, helmets for stunt work)
Medical insurance covering occupational injuries
Health surveillance for workers exposed to noise, chemicals, or physical hazards
Working Conditions:
Standard 8-hour working day (extended hours require consent and double compensation)
Break and rest period requirements
Separate welfare facilities on set
Wage and Leave:
Minimum wage compliance
Leave entitlements (1 day per 20 days of work)
Wage slips for transparency
No wage deductions for safety equipment
Contractual Clarity:
Written contracts detailing work scope, hazards, and safety measures
Clarity on injury compensation and insurance coverage
This represents a significant advancement, as audio-visual workers previously operated in a largely unregulated informal sector with minimal safety protections.
Are Plantation Workers Covered, and What Are Their Specific Protections?
Yes. Plantation workers receive comprehensive coverage with sector-specific provisions:
Housing and Living Conditions:
Employers must provide housing accommodation to plantation workers
Facilities include drinking water, kitchen, and toilet access
Accommodation must meet basic health and safety standards
Welfare Facilities:
Crèche facilities (for plantations employing 50+ workers)
Medical facilities (free medical examination before employment)
Drinking water and sanitation facilities
Adequate ventilation and lighting in workspaces
Health and Safety:
Free annual health check-ups
Occupational disease screening (for workers exposed to pesticides or hazardous substances)
Medical examination records maintenance
Working Conditions:
Maximum 8 hours per day
Suitable protective equipment for hazardous tasks
Training on safe pesticide handling
Cost Coverage:
Employers bear all costs of medical facilities, housing maintenance, and crèche facilities (no wage deductions)
ESI facility available for medical services
For example, a tea plantation with 200 workers must provide housing, drinking water, sanitation, a functioning crèche for workers' children, and free medical check-ups—creating safer, healthier working conditions compared to previous unregulated practices.
What Is the Process and Cost for Registering an Establishment Under the OSH Code?
Registration is a mandatory, one-time electronic process with state-specified fees:
Registration Timeline:
60 days from the commencement of the establishment or employment of 10+ workers
Late applications incur additional fees (25%-100% surcharge depending on delay period)
Registration Fees (Typical Structure Across States):
Number of Workers Registration Fee (INR)
10-50 ₹500-₹1,000
51-100 ₹1,000-₹2,000
101-500 ₹2,000-₹5,000
501-1,000 ₹5,000-₹10,000
1,001-5,000 ₹10,000-₹15,000
5,000+ ₹20,000+
Note: Fees vary by state; check your state government's labour department portal for exact amounts.
Registration Process:
1.Visit the online portal designated by the state labour authority
2.Complete electronic Form I with establishment details
3.Upload required documents (proof of address, identity, occupancy)
4.Pay registration fee online
5.Receive digital registration certificate
Certificate Validity:
Valid indefinitely (unless cancelled due to non-compliance or closure)
Must be displayed at the workplace
Registration number must appear on all official documents
Differential Fees:
If worker count increases after initial registration, a differential fee applies
Employers need not re-register; they pay only the difference
Cost-Benefit Perspective: While registration involves modest upfront costs (₹500-₹20,000), it provides legal clarity, reduces inspection penalties, and demonstrates commitment to compliance.
What Are the Penalties for Violations Under the OSH Code?
The OSH Code incorporates rationalized, tiered penalty structures balancing enforcement with compliance facilitation:
General Penalties (When Specific Penalty Not Mentioned):
First violation: ₹2,00,000 to ₹3,00,000
Continued violation: Additional ₹2,000 per day until compliance
Repeat violation within 5 years: Up to ₹5,00,000
Specific Violation Penalties:
Violation Type Penalty Amount
Non-maintenance of records/registers ₹50,000 to ₹1,00,000
Employment violations (women, youth, contract labour) ₹50,000 to ₹1,00,000
Unauthorized activity/work continuation ₹2,00,000 to ₹5,00,000
Hazardous process violations Up to ₹5,00,000 + imprisonment (2 years)
Violations causing serious injury ₹2,00,000 to ₹4,00,000
Violations causing death ₹5,00,000 to ₹20,00,000 + imprisonment (2 years)
Medical report failures (by practitioners) Up to ₹10,000
Obstructing inspector ₹1,00,000 + imprisonment (3 months)
Imprisonment Provisions:
Serious violations resulting in death: up to 2-3 years imprisonment
Obstructing inspectors: up to 3-6 months imprisonment
Continued hazardous work: up to 2 years imprisonment
Penalty Rationalization (Decriminalization):
The Code shifts from purely punitive to compliance-oriented approaches:
1.Compounding of Minor Offences:
First-time offences (fines only): Compoundable at 50% of maximum fine
Serious offences (imprisonment possible): Compoundable at 75% of maximum fine
Example: A ₹1,00,000 fine can be settled at ₹50,000-₹75,000 if paid before formal prosecution
2.Mandatory Notice Period:
Employers receive 30 days' notice to comply before legal proceedings
Encourages voluntary compliance over punishment
3.Compensation to Victims:
Courts must direct minimum 50% of imposed fine as compensation to injured workers or heirs
Example: If ₹5,00,000 fine is imposed for violation causing death, minimum ₹2,50,000 goes to victim's family
Social Security Fund:
Compounded penalties and fines contribute to a Social Security Fund for unorganized workers, creating a broader welfare impact
Employee Penalties:
Employees violating code provisions face maximum ₹10,000 fine (substantially lower than employer penalties)
Protects workers from punitive measures by employers
This penalty structure reflects a shift from purely deterrent to educative and restorative justice, encouraging genuine compliance improvement.
What Is the Role of the Inspector-cum-Facilitator?
The OSH Code introduces Inspector-cum-Facilitators (ICF), replacing traditional inspectors. Their role is balanced between enforcement and facilitation:
Key Functions:
Function Details
Inspection and Compliance Monitoring Random, technology-based inspections of registered establishments
Facilitation and Advice Provide guidance on compliance measures and safety standards
Investigation of Accidents Investigate workplace accidents and dangerous occurrences
Dispute Resolution Mediate disputes between employers and workers on safety matters
Record Verification Inspect registers, medical records, and safety documentation
Disease Reporting Coordination Oversee occupational disease reporting by medical practitioners
Technology-Driven Inspection:
Random assignment of inspectors (reduces corruption and harassment)
Online inspection systems (transparent, traceable)
Real-time reporting (immediate documentation of findings)
Employer Protection Mechanisms:
30-day notice before legal action (unless emergency/serious breach)
Opportunity to comply before enforcement action
Complaint-based inspection (targeted response to specific grievances)
Worker Redressal Access:
Workers can report hazards to ICF directly
Toll-free helplines for grievances (especially for migrant workers)
Protection against retaliation for reporting violations
Advantage Over Previous System:
Unlike the older inspector system, which was often adversarial and prone to corruption, the ICF model emphasizes cooperative compliance, where both enforcement and facilitation occur simultaneously. This reduces inspection harassment while maintaining accountability.
What Are the Primary Duties of Employers Under the OSH Code?
Employers face comprehensive, non-negotiable responsibilities to ensure worker safety and welfare:
Facility and Infrastructure Duties:
Provide and maintain safe plant and systems of work
Ensure safe handling, storage, and transport of articles and substances
Maintain all workplace premises in safe condition (physical structure, access routes, equipment)
Provide proper ventilation, lighting, and temperature control
Ensure sanitation facilities (separate for male, female, and transgender workers)
Maintain adequate space to prevent overcrowding
Health and Medical Duties:
Conduct and pay for free annual health check-ups for all workers
Arrange occupational health screening for workers in hazardous processes
Maintain first-aid facilities and trained personnel
Report occupational diseases to health authorities
Information and Training Duties:
Provide necessary information and instruction on workplace hazards
Conduct safety training for all workers (language-accessible)
Display safety notices at the workplace
Maintain records of training provided
Documentation and Compliance Duties:
Maintain registers of workers, health records, and accident reports
Issue wage slips (electronic or physical)
Prepare safety policies and procedures
Register the establishment within 60 days
File returns to the Inspector-cum-Facilitator
Specific Duties for Hazardous Work:
Hazard assessment and risk control
Personal protective equipment (PPE) provision at employer cost
Health surveillance (periodic medical examinations)
Accident investigation and corrective action
Cost Implications:
All these responsibilities are employer-funded. No costs can be deducted from worker wages. For a small establishment with 20 workers, annual health check-ups might cost ₹5,000-₹10,000 (₹250-₹500 per worker), while comprehensive safety training might cost ₹10,000-₹20,000 annually.
Can Employers Reduce Health and Safety Standards to Cut Costs?
No. The OSH Code prohibits cost-driven compromises on worker safety:
Non-Negotiable Provisions:
Health and safety standards are mandatory, not negotiable
Cost reduction cannot justify inadequate safety measures
Substandard equipment or facilities are not permitted
Worker consent cannot override minimum safety standards
Violation Consequences:
Failure to maintain standards invokes penalties from ₹2,00,000 to ₹5,00,000
For violations resulting in death, penalties reach ₹5,00,000 to ₹20,00,000
Criminal liability and imprisonment are possible for serious breaches
Compliance is a Legal and Moral Obligation:
The Code treats workplace safety as non-discretionary. While employers have flexibility in implementation methods, the fundamental standards are fixed by regulation and cannot be compromised for profitability.
Can Workers Lodge Complaints About Safety Violations?
Yes. The OSH Code empowers workers with robust complaint mechanisms:
Direct Complaint Rights:
Workers can directly report safety concerns to the Inspector-cum-Facilitator without employer notification
Reporting can be anonymous for protection against retaliation
Complaints can be lodged via toll-free helplines, email, or online portals
Protected Complaint Categories:
Unsafe working conditions
Non-provision of safety equipment
Unfair health check-up procedures
Wage or leave violations
Welfare facility deficiencies
Anti-Retaliation Protections:
Employers cannot dismiss, demote, or discriminate against workers for reporting violations
Wage cuts or adverse changes in terms of employment are prohibited
Retaliation itself constitutes a violation attracting penalties up to ₹2,00,000
Remedy and Investigation:
ICF investigates complaints within prescribed timelines
Employers are mandated to address findings
Workers receive updates on investigation progress
Compensation for Retaliation:
Workers subjected to retaliation can seek compensation
Courts can award compensation beyond statutory penalties
Example: A worker reporting inadequate sanitation facilities cannot face termination. If the employer terminates the worker in retaliation, the employer faces ₹2,00,000+ penalties, and the worker may claim wrongful dismissal and compensation.
What Happens if a Worker Is Injured Due to Workplace Negligence?
The OSH Code provides multi-layered protection for injured workers:
Immediate Support:
Employer must provide immediate first aid and medical treatment
Employer must report the accident to authorities within prescribed timelines
Workplace accident records must be maintained and available
Medical Coverage:
Employee State Insurance (ESI) or similar schemes cover medical costs
Medical examination and treatment are employer-funded
Occupational disease treatment is covered
Financial Compensation:
If injury results from employer negligence, the worker can claim damages
Courts may direct minimum 50% of fine imposed on the employer as compensation to the worker
Workers can pursue civil suits for personal injury
Example: If a worker loses limbs due to inadequate machine guarding, the worker can claim:
All medical costs
Lost wages during recovery
Permanent disability compensation
Pain and suffering damages
Criminal Liability:
If negligence results in serious injury, the employer faces ₹2,00,000 to ₹4,00,000 fine and up to 1 year imprisonment
If negligence results in death, the employer faces ₹5,00,000 to ₹20,00,000 fine and up to 2-3 years imprisonment
Rehabilitation and Reintegration:
Employers must facilitate medical rehabilitation for injured workers
Provisions for retraining or job adjustment upon recovery
Protection against dismissal during recovery period
This framework ensures that worker safety is not merely regulatory compliance but also carries significant financial and criminal consequences, incentivizing genuine safety culture.
How Do State Governments Implement the OSH Code?
The OSH Code operates as a concurrent subject, allowing states to implement and customize provisions:
State Government Authority:
States have rule-making power for matters allocated to them
State Governments designate registering officers and inspectors
States set registration fees (within central government guidelines)
States can establish state-level grievance redressal mechanisms
Uniform vs. Customizable Provisions:
Uniform provisions: Working hours (8 hrs/day), leave calculation, basic safety standards
State-customizable provisions: Welfare facilities standards, registration fees, inspector protocols
State Variations:
Different states may have varying:
Registration fee structures
Inspection protocols
Additional state-specific regulations
Implementation timelines
Coordination with Central Government:
Central Government sets national standards through rules
Central Government oversees mines, docks, and building/construction work directly
States oversee other establishments within their jurisdiction
Employer Implication:
Employers with multi-state operations must comply with state-specific rules while maintaining central government standards. For example, registration fees in Tamil Nadu may differ from those in Karnataka, but working hour standards remain identical.
Does the OSH Code Dilute Worker Rights?
Absolutely not. This is a critical misconception addressed by official FAQs:
Evidence Supporting Worker Protection:
The Code consolidates 13 laws, removing ambiguities and creating consistency
Coverage expanded from 7 sectors to all sectors
New categories (transgender workers, audio-visual workers, digital workers) gained formal recognition and protection
Welfare facilities extended to all 10+ worker establishments
Health check-ups made mandatory (previously discretionary in many sectors)
Penalty Structure:
Serious violations (death, serious injury) attract enhanced penalties (₹5,00,000 to ₹20,00,000)
Repeat violations face doubled penalties
Injured workers gain compensation rights (minimum 50% of imposed fine)
Worker Participation:
Safety committees ensure worker representation in safety governance
Workers can lodge direct complaints to inspectors
Anti-retaliation protections prevent employer punishment for reporting violations
The rationalization of penalties is for minor administrative violations (like late record-keeping), not for serious safety breaches. This encourages compliance while preventing excessive punishment for procedural lapses.
Will Stricter Penalties Drive Employers Away?
No. The Code balances enforcement with compliance support:
Compliance Facilitation:
30-day notice before legal action (except emergencies)
Inspector-cum-Facilitators provide guidance and support
Compounding options allow settlement of minor offences at 50-75% of maximum penalties
Emphasis on remedial action over punishment
Ease of Doing Business:
Consolidation of 13 laws reduces compliance complexity
Single registration instead of multiple registrations
Unified standards reduce ambiguity
Technology-driven inspection reduces harassment and corruption
Cost-Benefit Analysis:
While safety investments are necessary, the Code's structure does not impose unreasonable burdens. For example:
Registration fee for a 20-worker establishment: ~₹500-₹1,000
Annual health check-ups: ~₹2,500-₹5,000
Basic safety equipment: ~₹5,000-₹10,000
Total annual compliance cost: ~₹10,000-₹20,000 (₹500-₹1,000 per worker)
This is substantially lower than potential penalties (₹2,00,000+) or productivity losses from workplace accidents.