A Comprehensive Analysis of the Occupational Safety, Health, and Working Conditions (OSH&WC) Code, 2020: Impact on Corporate and Labour Sectors

The Occupational Safety, Health, and Working Conditions (OSH&WC) Code, 2020, represents a crucial step in the ongoing reform of India’s labor laws. Passed by the Parliament and receiving Presidential assent on September 28, 2020, this Code aims to consolidate and amend the existing laws regulating the occupational safety, health, and working conditions of employees across various sectors. This blog provides a detailed analysis of the key provisions, sections, and the impact of the OSH&WC Code on both corporate entities and the labour force

Overview of the OSH&WC Code, 2020

The OSH& WC Code, 2020, consolidates and subsumes 13 existing labour laws, including:

1. The Factories Act, 1948
2. The Mines Act, 1952
3. The Dock Workers (Safety, Health and Welfare) Act, 1986
4. The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
5. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
6. The Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955
7. The Motor Transport Workers Act, 1961
8. The Plantations Labour Act, 1951
9. The Contract Labour (Regulation and Abolition) Act, 1970
10. The Sales Promotion Employees (Conditions of Service) Act, 1976
11. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
12. The Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981

Key Provisions and Sections
1. Applicability and Scope (Chapter I, Section 1-2)
The OSH&WC Code applies to all establishments employing 10 or more workers and includes specific provisions for certain types of establishments such as factories, mines, and plantations. It also extends to the unorganized sector under certain conditions.

2. Duties of Employers and Employees (Chapter III, Sections 6-15)
Section 6 outlines the duties of employers to ensure that workplaces are free from hazards that could cause injury or occupational diseases. Employers are required to provide a safe working environment, adequate training, and appropriate safety measures.
Section 13 details the duties of employees, emphasizing their responsibility to comply with safety protocols and report unsafe conditions.

3. Occupational Safety and Health Standards (Chapter IV, Sections 16-18)
Section 16 mandates the establishment of a National Occupational Safety and Health Advisory Board to advise the government on matters related to occupational safety and health standards.
Section 18 empowers the Central Government to set and enforce occupational safety and health standards across various industries, including factories, mines, and construction sites.

4. Registration and Licensing (Chapter II, Sections 3-5)
Section 3 requires all establishments covered by the Code to register with the relevant authorities within 60 days of the Code's applicability.
Section 5 necessitates that certain establishments, such as factories and mines, notify the authorities before commencing or ceasing operations.

5. Health and Working Conditions (Chapter V, Sections 19-31)
Sections 19-24 address the health and working conditions for workers, mandating provisions for clean drinking water, restrooms, ventilation, lighting, and safety from hazardous substances.
Section 26 requires employers to provide free annual health examinations to workers in hazardous industries

6. Welfare Provisions (Chapter VI, Sections 32-33) The Code mandates the establishment of welfare facilities such as canteens, creches, and first aid rooms in establishments with a significant number of employees.

7. Working Hours, Leave, and Overtime (Chapter VII, Sections 34-38) Section 34 stipulates the maximum working hours, daily and weekly limits, and provisions for overtime. The Code also provides for paid leave and rest intervals during work hours.

8. Special Provisions for Certain Categories of Workers (Chapter VIII, Sections 39-48) The Code includes special provisions for women, adolescents, and contract workers. For example, Section 43 outlines restrictions on employment of women and adolescents in hazardous work

9. Offences and Penalties (Chapter XIII, Sections 89-96) The Code prescribes penalties for non-compliance with its provisions, ranging from fines to imprisonment, depending on the severity of the offence. Section 94 deals with the penalties for contraventions of the provisions of the Code.

10. Inspector-cum-Facilitators (Chapter X, Sections 64-73) The Code introduces the concept of Inspector-cum-Facilitators who are tasked with enforcing compliance and assisting employers in meeting their obligations under the Code.

# Impact on Corporate Sector

1. Increased Compliance Requirements The OSH&WC Code increases the compliance burden on corporations by mandating stricter safety standards and regular inspections. Companies must ensure that their workplaces adhere to the prescribed safety norms to avoid penalties.

2. Financial Implications Compliance with the Code's provisions, such as mandatory health checks, provision of safety gear, and maintenance of welfare facilities, will have financial implications for employers. However, these measures are essential for improving worker safety and reducing workplace accidents.

3. Administrative Challenges The requirement to register establishments and obtain licenses, coupled with the need for regular audits and inspections, adds to the administrative responsibilities of corporate entities.

# Impact on Labour Sector

1. Enhanced Safety and Health Standards
The OSH&WC Code aims to significantly improve the safety and health conditions in workplaces, particularly in hazardous industries. Workers will benefit from safer working environments, regular health checks, and access to welfare facilities.

2. Greater Job Security The Code’s provisions for contract workers, including the requirement for written contracts and specified working conditions, provide greater job security and protection for this vulnerable segment of the workforce.

3. Improved Working Conditions With mandatory provisions for clean drinking water, ventilation, and adequate sanitation facilities, workers can expect a considerable improvement in their working conditions, leading to better overall well-being.

Conclusion

The Occupational Safety, Health, and Working Conditions (OSH&WC) Code, 2020, is a progressive step towards ensuring safer and healthier workplaces across India. While it places additional responsibilities on corporate entities, the long-term benefits of reduced workplace accidents, healthier workers, and improved productivity are significant. For the labor sector, the Code promises enhanced protection, better working conditions, and greater job security. As the government moves towards implementing the OSH&WC Code, both employers and employees must familiarize themselves with its provisions to ensure compliance and fully realize the benefits it offers.