New Delhi, 22 Nov

The Occupational Safety, Health and Working Conditions (OSH) Code, 2020, one of the four Labour Codes that came into effect on 21 November 2025, aims to simplify India’s complex labour law framework by replacing 13 Central laws with a single, uniform piece of legislation.

The Code is part of the Centre’s broader labour reforms focused on transparency, worker welfare and ease of doing business. According to the government, the law seeks to balance worker rights and safe working conditions with a business-friendly regulatory environment to boost growth and employment.

The new regime promotes job formalisation by mandating appointment letters for all employees. These letters must specify details such as designation, wage structure and social security benefits.

The Code also eases eligibility for paid leave. Workers will now qualify after 180 days of work in a calendar year, instead of the earlier 240 days. The government said the change, along with flexibility in working hours, is aimed at improving rest, productivity and job satisfaction.

The four Labour Codes cap the working day at eight hours and the working week at 48 hours. States will retain the power to fix break intervals and daily spread-over. Workers may opt for compressed working weeks, up to 12 hours a day in a four-day week, 9.5 hours in a five-day week and eight hours in a six-day week, without overtime. The appropriate government can now set its own overtime limits, replacing the earlier uniform cap of 75 hours per quarter.

The definition of inter-state migrant workers has been widened to include those hired directly, through contractors, or those who migrate on their own. Establishments will have to report their ISMW numbers during registration and licensing. The Labour Ministry is also creating a national database to enrol unorganised and migrant workers, supporting job matching, skill mapping and delivery of social security schemes.

Courts will now be able to direct that at least half of any fine imposed for violations causing serious injury or death be paid to victims or their families. The Code also expands the definition of audio-visual workers to include digital creators, dubbing artists and stunt performers, providing them with legal protections and workplace safety benefits.

Working journalists employed in digital and electronic media are now covered under labour safety norms, extending protection beyond print.

Factories with 500 or more workers, construction employers with 250 or more workers, and mines with 100 or more employees must set up safety committees with representation from both employers and workers.

All employees will be eligible for free annual health check-ups, and plantation workers can now access ESIC medical facilities.

A new tripartite National Occupational Safety and Health Advisory Board will set mandatory national standards for all sectors, replacing six separate boards under older laws.

The Code also introduces a Social Security Fund for unorganised workers, funded through penalties and composition amounts. Several offences have been decriminalised, shifting from criminal to civil penalties and providing employers a mandatory 30-day compliance window before legal action.

Women are now allowed to work in all establishments and at night with their consent, subject to safety and transport measures.

The government said the four Labour Codes, on Wages, Industrial Relations, Social Security and OSH, mark a major step in modernising labour regulation and creating a future-ready workforce aligned with India’s growth goals.