Workplace Safety and Labour Law Reforms

A recent study highlights unsafe practices in auto component manufacturing and delays in the implementation of the Occupational Safety, Health and Working Conditions Code, 2020, raising concerns about worker safety and legal coverage.

Occupational Safety and Labour Codes: Balancing Industry Needs and Worker Protection

Background

• India’s industrial sector, especially auto component manufacturing, faces rising cases of workplace injuries, including serious accidents such as crushed finger incidents.
• The Safe in India (SII) Foundation’s “Crushed Report 2025” flags systemic gaps in occupational safety measures.
• Legislative framework includes traditional laws like The Factories Act, 1948, now subsumed into the Occupational Safety, Health and Working Conditions Code, 2020 (OSH&WC Code).

Key Data Points

• 2,333 workers injured over three years in auto and auto component manufacturing.
• 875 workers lost fingers in 2024 (increase from 759 in 2023 and 699 in 2022).
• 32 States/UTs have pre-published draft rules for the OSH&WC Code; some, like West Bengal and Lakshadweep, have not published any.

OSH&WC Code – Salient Features

• Objective: Consolidate and amend laws relating to occupational safety, health, and working conditions.
• Coverage Threshold: Applies to establishments with 20+ workers (manufacturing with power) or 40+ workers (without power).
• Extended Benefits: Includes unorganised workers, inter-State migrant workers, gig workers, platform workers, and their families.
• Consolidates Laws: Subsumes The Factories Act, 1948; The Mines Act, 1952; The Dock Workers (Safety, Health and Welfare) Act, 1986; among others.

Concerns Raised

• Safety Concerns
  • Lack of strict enforcement of workplace safety norms.
  • Potential exclusion of small units from coverage due to increased threshold limits under the Code.
• Implementation Delays
  • OSH&WC Code yet to come into force pending notification.
  • Lack of uniform readiness among States/UTs.
• Trade Union Apprehensions
  • Fear that threshold changes will dilute worker protection.
  • Concern over removal of smaller establishments from the scope of safety regulations.

Comparative Perspective: Factories Act vs OSH&WC Code

• Factories Act, 1948: Applied to smaller establishments; had stricter thresholds.
• OSH&WC Code: Broader coverage of worker categories but higher thresholds could reduce applicability to small-scale units.

Way Forward

• Early Notification: Expedite rule-making and implementation across all States/UTs.
• Lower Thresholds: Ensure smaller units with high accident risks are not excluded.
• Stronger Monitoring: Mandatory safety audits and digital reporting of workplace accidents.
• Worker Awareness: Training on safety measures and legal rights.