Code on Occupational

Code on Industrial
Safety, Health and
Relations
Working Conditions
New Labour Code
Bills 2020

Code on Social Security Code on Wages

 02. Code on Occupational Safety, Health and
Working Conditions, 2020

Threshold for coverage of establishments

The 2020 Code increases the threshold to:

• (i) 20 workers for premises where the manufacturing process is carried out using
power, and
• (ii) 40 workers for premises where it is carried out without using power.

Establishments engaged in hazardous activity: . The 2020 Bill

includes all establishments where any hazardous activity is carried
out regardless of the number of workers.
 Contract workers:
It specifies that the Code will apply to establishments or contractors employing 50 or
more workers (on any day in the last one year).

The 2020 Bill prohibits contract labour in core activities, except where:

• (i) the normal functioning of the establishment is such that the activity is ordinarily
done through contractor,
• (ii) the activities are such that they do not require full time workers for the major
portion of the day, or
• (iii) there is a sudden increase in the volume work in the core activity which needs to
be completed in a specified time.
The appropriate government will decide whether an activity of the establishment is
a core activity or not. The Bill defines a list of non-core activities where the
prohibition would not apply. This includes a list of 11 works including:
• (i) sanitation workers,
• (ii) security services, and
• iii) any activity of intermittent nature even if that constitutes a core activity of an
establishment.
The Bill allows the appropriate government to exempt contractors from the
provisions of the Bill in case of an emergency, subject to such conditions as may be
notified.

The 2020 Bill clarifies that the Code will apply to contract labour engaged through a
contractor in the offices of the central and state governments (where the
respective government is the principal employer).
 Work hours and employment conditions
Daily work hour limit
• The 2020 Bill fixes the maximum limit at eight hours per day.

Employment of women:
• The 2020 Bill provides that women will be entitled to be employed in all
establishments for all types of work under the Bill.
• It also provides that in case they are required to work in hazardous or dangerous
operations, the government may require the employer to provide adequate
safeguards prior to their employment.

Present Factories Act, 1948

• A woman worker cannot be employed beyond the hours 6 a.m. to 7.00 pm.
• State Government can grant exemption to any factory or group or class of factories,
but no woman can be permitted to work during 10 PM to 5 AM.
 Inter-state migrant workers and unorganized workers
Inter-state migrant worker as a person who:
• (i) has been recruited by an employer or contractor for working in another state, and
• (ii) draws wages within the maximum amount notified by the central government.

The 2020 Bill adds

• that any person who moves on his own to another state and obtains employment there will also be
considered an inter-state migrant worker.
• The 2020 Bill also specifies that only those persons will be considered as inter-state migrants who are
earning a maximum of Rs 18,000 per month, or such higher amount which the central government
may notify.

Benefits for inter-state migrant workers, these include:

• (i) Option to avail the benefits of the public distribution system either in the native state or the state
of employment,
• (ii) Availability of benefits available under the building and other construction cess fund in the state of
employment, and
• (iii) Insurance and provident fund benefits available to other workers in the same establishment.
Displacement allowance
• The 2019 Bill required contractors to pay a displacement allowance to inter-state migrant workers at
the time of their recruitment, which was equivalent to 50% of the monthly wages.
• The 2020 Bill removes this provision.

Database for inter-state migrant workers

• Central and state governments to maintain or record the details of inter-state migrant workers in a
portal.
• An inter-state migrant worker can register himself on the portal on the basis of self-declaration and
Aadhaar.
Social Security Fund
• The 2020 Bill provides for the establishment of a Social Security Fund for the welfare of unorganised
workers.
• The amount collected from certain penalties under the Code (including the amount collected
through compounding) will be credited to the Fund.
• The government may prescribe other sources as well for transferring money to the Fund.
Comparison of the general provisions and special provisions in the 2020 Bill
General
Feature Specific provisions
Provisions
• Factories, mines, docks, plantation and construction:
Employer must provide a risk-free workplace and
instruct employees on safety protocol.
• Duties include • Inter-state migrant workers: Employers/contractors
providing a safe have to:
workplace, issuing (i) notify specified authority of both states in case of
Duties of appointment
•

fatal accidents and serious bodily harm,

letters, and
Employers complying with the • (ii) ensure suitable work conditions, and
provisions of the • (iii) extend medical check-up and other benefits like
Code. provident fund and ESI entitlements which other
workers in the establishment may be entitled to.
• Mines: The owner and agent of the mine will be jointly
responsible for providing a safe work environment.
Sources: Bill on Occupational Safety, Health and Working Conditions, 2020; PRS.
 Working conditions and welfare facilities
General Provisions Specific provisions
• Factories, mines, plantation, construction, and motor transport
undertakings: Appropriate government may require provision of added
facilities like ambulance rooms, welfare officers, and temporary housing.
• Factories, mines, plantation, and motor transport undertakings: Appropriate
government may appoint medical officers to examine, certify, and supervise
• To be notified by the the health of workers.
central government. • Factories involved in hazardous processes: Maximum permissible limits of
These may include exposure to chemical and toxic substances in manufacturing processes will
bathing spaces, be prescribed by state government. Further, it may specify medical
canteens, and first aid examinations for workers, among other facilities.
boxes. • Interstate migrant workers: Employers must provide suitable conditions of
work, medical facilities and journey allowance. They must also be given an
option to avail benefits of the public distribution system in their native or
destination state where they may be employed.
• Plantations: Employer to provide welfare facilities such as housing
accommodation, creches, educational, health and recreational facilities.
 Dangerous operations
General Provisions Specific provisions

Factories involved in hazardous processes:

• Emergency standards may be set.
• The National Advisory Board may give recommendations
• No general provision
in cases of extraordinary occurrences.
for hazardous and
Plantations:
dangerous operations.
Arrangements must be made for the safety of workers in
connection with use, handling, storage and transport of
insecticides, pesticides and chemicals and toxic substances.
 Inspector; Licenses and other registration requirements
General Provisions Specific provisions
• Inspector-cum-
Facilitators may inquire • Factories, mines, docks, and construction work: Inspector-cum-
into accidents and Facilitators may limit number of employees working or prohibit work
conduct inspections, in an establishment, if it appears that workers are in danger.
among others.

• All establishments with

ten or more workers • Factories: Additional licenses may be required.
must register with the • Beedi workers and contract labour: License required for beedi and
appropriate cigar establishments (except for family establishments). Contractors
government. (or in must either obtain a five-year license or obtain work-specific
hazardous licenses.
establishments as • Audio-visual workers: A signed agreement between the employer or
notified by the contractor and worker must be registered with the government.
government)
 Inspector; Licenses and other registration requirements
General Provisions Specific provisions
• Inspector-cum-
Facilitators may inquire • Factories, mines, docks, and construction work: Inspector-cum-
into accidents and Facilitators may limit number of employees working or prohibit work
conduct inspections, in an establishment, if it appears that workers are in danger.
among others.

• All establishments with

ten or more workers • Factories: Additional licenses may be required.
must register with the • Beedi workers and contract labour: License required for beedi and
appropriate cigar establishments (except for family establishments). Contractors
government. (or in must either obtain a five-year license or obtain work-specific
hazardous licenses.
establishments as • Audio-visual workers: A signed agreement between the employer or
notified by the contractor and worker must be registered with the government.
government)
 General
Feature Specific provisions
Provisions
• Maximum eight • Working Journalists: Work hours cannot exceed 144 hours
Work hours
hours per day. in 4 weeks.

• Workers are entitled • Sales promotion employees and working journalists are
to one day off for entitled to leave for 1/11th of time on duty, and medical
Leave every 20 days of leave for 1/18th of time on duty. Motor transport
work and one day off workers are entitled to one day off in every 10 days, in
every week. certain cases.

• Construction work: No employer can hire workers with

• No general provision
Disability defective vision, deafness, or a tendency for giddiness, if
in the Code.
there is a risk of accident.

• No person below • Mines: No worker below the age of 18 or

Age the age of 14 may be apprentice/trainee below the age of 16, may work in a
allowed to work. mine.