The New Occupational Safety, Health, and Working Conditions Code: What’s Changed for Employers?

The Occupational Safety, Health, and Working Conditions (OSHWC) Code is a comprehensive legislation introduced in India to streamline labor laws. It consolidates 13 existing laws into one. The new OSH Code aims to improve workplace safety standards while ensuring better working conditions for employees across sectors. This shift brings a set of new responsibilities for employers. Understanding these changes is crucial for maintaining compliance.

In this article, you will learn about the new occupational safety, health, and working conditions code that will help you recruit in India. 

Why Was the Code Introduced?

The OSHWC Code, introduced in 2020, aims to create a safe, healthy, and productive work environment for all workers. It simplifies the existing legal framework, making it easier for employers to follow safety and health regulations. It also focuses on the welfare of workers in sectors like construction, mining, manufacturing, and more. The previous laws were considered outdated and scattered, making compliance difficult for many employers.

Applicability and Coverage

One of the most significant changes in the Occupational Safety, Health, and Working Conditions Code is the broader scope of applicability. It applies to all establishments with 10 or more workers. This includes industries that previously had different laws based on sector-specific rules. For example, factories, construction sites, and even IT companies are now covered under the same code.

In addition to this, the code brings in gig workers and platform workers under its purview. These are workers involved in the digital economy, like delivery personnel and ride-sharing drivers, ensuring their health and safety are also considered.

Key Changes for Employers

The OSHWC Code introduces several changes that employers must be aware of. Some of these changes involve mandatory provisions for ensuring workers’ well-being, while others focus on simplifying compliance procedures.

• Duties of Employers
  Employers are now required to ensure a safe workplace for all employees. This involves providing appropriate safety equipment, maintaining cleanliness, and offering drinking water, ventilation, and first-aid facilities. There is a greater emphasis on the employer’s role in preventing workplace accidents. Employers are also required to notify any accidents or diseases that occur at work to the relevant authorities.
• Work Hours and Overtime
  The Occupational Safety, Health, and Working Conditions Code mandates specific work hours for employees. The new code sets the maximum working hours at 8 per day and 48 per week. Overtime payment is required for any work done beyond these limits. Additionally, employees must be given one day of rest each week. Employers must adhere to these regulations to avoid legal complications.
• Contract Workers and Gig Workers
  The code ensures that contract workers and gig workers are now protected under the same umbrella. Employers hiring contract workers need to register their contracts and maintain proper records. Gig workers and platform workers, who previously had minimal legal protection, now have the right to basic health and safety measures. This change is a direct response to the growing gig economy, providing much-needed security for these workers.
• Registration and Licensing
  Under the new OSHWC Code, all employers must register their establishments. This step simplifies the earlier complex registration process. Employers no longer have to deal with multiple registrations for different labor laws. Additionally, a single license will now be issued for contractors, simplifying the hiring process and improving transparency.
• Inspections and Penalties
  The inspection regime under the new code has been updated. Employers can expect more transparency in inspections, with digital records playing a key role. Randomized inspections are introduced to ensure compliance. Employers who fail to follow the Occupational Safety, Health, and Working Conditions Code could face strict penalties. The penalties for non-compliance have been significantly increased, which could include fines or imprisonment depending on the severity of the violation.
• Welfare Provisions
  The code emphasizes the welfare of workers. It requires employers to provide facilities like canteens, restrooms, and childcare rooms (where applicable). Welfare officers must be appointed in establishments with more than a certain number of workers. This move ensures that workers’ needs are better addressed, contributing to their well-being.

Compliance Requirements for Employers

To stay compliant with the Occupational Safety, Health, and Working Conditions Code, employers need to take several proactive measures. First, employers must conduct regular health and safety assessments. These assessments help identify any risks in the workplace, allowing employers to mitigate them early on. Additionally, employers must train their employees on safety protocols, ensuring they know how to respond to emergencies.

Record-keeping is another critical aspect of compliance. Employers need to maintain detailed records of employees’ working hours, overtime, accidents, and diseases. These records must be readily available for inspection.

Impact on Small and Medium-Sized Enterprises (SMEs)

The new OSH Code affects all employers, including SMEs. While larger corporations may find it easier to adapt to these changes, small businesses might face some challenges. However, the government has introduced various digital tools to simplify compliance for smaller enterprises. Employers can now register their establishments and submit required documentation online, making the process more accessible for businesses of all sizes.

Moreover, SMEs need to ensure they have the necessary infrastructure to comply with the safety and welfare provisions of the code. This might involve some upfront investment, but it will help create a safer, more productive work environment in the long run.

Benefits for Employers and Workers

The Occupational Safety, Health, and Working Conditions Code benefits both employers and workers. For employers, a streamlined legal framework reduces the complexity of compliance. Instead of dealing with multiple laws, employers now have a unified code to follow, which saves time and resources.

For workers, the code offers better protection, ensuring that their health and safety are prioritized. Workers are entitled to better facilities, safer work environments, and fair compensation for overtime. These changes lead to improved employee satisfaction and retention, which ultimately benefits employers.

Conclusion

The Occupational Safety, Health, and Working Conditions Code is a significant step towards modernizing India’s labor laws. For employers, the new code simplifies compliance, but it also imposes stricter responsibilities to ensure workplace safety and welfare. Employers must take the necessary steps to comply with the code, including providing safe working conditions, registering their establishments, and maintaining proper records.

By understanding and adhering to the new provisions, employers can create a safer, healthier, and more productive environment for their employees. The code marks a positive shift towards better working conditions across industries, benefiting both employers and workers alike.