The Occupational Safety, Health and Working Conditions Code 2020 is the fourth labour code. It merges 13 sector-specific safety and welfare laws into one statute. The headline changes are a uniform 8-hour daily / 48-hour weekly cap across all sectors, a factory threshold raised to 20 workers (with power) or 40 (without power), contract labour rules that now apply at 50 or more workers, a mandatory appointment letter for every employee, and permission for women in night shifts with consent and safety provisions. The Code received Presidential assent on 28 September 2020, central rules were notified in November 2020, and the central government brought the Code into force on 21 November 2025, with state rules aligning through 2025-26.

OSH Code 2020 India: Working Hours, Factories, Contract Labour and Migrants

The Occupational Safety, Health and Working Conditions Code 2020 is the fourth labour code. It merges 13 sector-specific safety and welfare laws into one statute. The headline changes are a uniform 8-hour daily / 48-hour weekly cap across all sectors, a factory threshold raised to 20 workers (with power) or 40 (without power), contract labour rules that now apply at 50 or more workers, a mandatory appointment letter for every employee, and permission for women in night shifts with consent and safety provisions. The Code received Presidential assent on 28 September 2020, central rules were notified in November 2020, and the central government brought the Code into force on 21 November 2025, with state rules aligning through 2025-26.

The 13 laws it replaces

The OSH Code is the largest consolidation of the four labour codes by number of laws merged. It subsumes the Factories Act 1948, Mines Act 1952, Dock Workers (Safety, Health and Welfare) Act 1986, Contract Labour (Regulation & Abolition) Act 1970, Inter-State Migrant Workmen (RECS) Act 1979, Plantations Labour Act 1951, Building & Other Construction Workers Act 1996, Beedi & Cigar Workers Act 1966, Cine-Workers Act 1981, Sales Promotion Employees Act 1976, Working Journalists Act 1955 with its 1958 Conditions of Service companion, and the Motor Transport Workers Act 1961. As of early 2026, several of these underlying statutes continue to apply alongside notified Code provisions in each state during the transition.

Working hours (Section 25)

Section 25 introduces a uniform cap of 8 hours a day and 48 hours a week for adult workers across all sectors. Earlier laws set sector-specific limits, so a factory allowed 9 hours, mines 8, plantations 9 and motor transport 8. The single cap replaces that patchwork.

Daily hours max out at 8 and weekly at 48. Spread-over, the total time at the workplace including breaks, is typically 10.5 hours and is set by state rules. Workers get at least one full day of weekly off. Continuous work is capped at 5 hours, after which a 30-minute break is due. Overtime is permitted up to state-notified limits and is paid at double the ordinary rate. Some states allow flexibility: Gujarat's rules permit a 12-hour daily limit subject to the same 48-hour weekly cap, which suits compressed manufacturing shifts.

The new factory definition (Section 2(w))

The Code raises the coverage threshold for a factory. The old Factories Act 1948 caught premises with 10 or more workers using power, or 20 or more without power. Under the OSH Code the figures move to 20 or more workers with power, and 40 or more without power.

The practical effect is that small manufacturing units with 10 to 19 workers no longer qualify as factories under the Code, so they exit the heaviest sector-specific compliance regime. They stay covered by the Code's general establishment provisions, just with lighter compliance. State governments can still apply factory provisions to smaller premises by notification, and several states have kept the old 10/20 threshold for hazardous processes regardless of headcount.

Contract labour (Chapter XI, Section 41)

Section 41 applies the Code's contract labour provisions to establishments employing 50 or more contract workers on any day in the preceding 12 months, raised from 20 under the older Act. Contractors must obtain a licence from the appropriate authority and renew it annually. Principal employers must register if they engage contract labour, and must give contract workers the same wages and working conditions as direct employees doing similar work. Welfare facilities such as drinking water, restrooms, first aid and a canteen where applicable are provided at the principal employer's cost. Contract labour cannot be engaged in core activities notified by government, though states differ on what counts as core. The higher threshold cuts the compliance burden for small operations while larger ones face stricter licensing and parity duties.

Mandatory appointment letters (Section 6)

Section 6 requires every employer to issue a written appointment letter to every employee, in a format prescribed by the central government. It typically records employer and employee identity details, date of appointment, designation and department, the wage breakup (Basic, DA, allowances and pay cycle), hours and weekly off, notice period, statutory benefits such as PF, ESI, gratuity and leave, and the grounds and procedure for termination, signed by both sides. Failure to issue a letter is a compliance violation carrying a fine up to ₹50,000, and it is a recurring line rather than a one-time issue. The practical fix is a standard template wired into onboarding so every hire gets a letter on day one.

Women in night shift, migrants and welfare

Section 43 lets women work in any establishment and at night, between 7 PM and 6 AM, subject to written consent, adequate safety, employer-provided group transport for those leaving after 8 PM or arriving before 6 AM, and no forced night-shift assignment. Chapter XI Part C covers inter-state migrant workers with registration on a central portal, a journey allowance of ₹300 per year, social security continuity across home and host states, a state helpline, and wage parity with local workers. Welfare thresholds under Chapter VI include a crèche at 50 or more workers, a canteen at 250 or more, and a welfare officer at 500 or more. Penalties range from the ₹50,000 appointment-letter fine up to ₹2 lakh to ₹5 lakh with imprisonment up to 2 years for a safety violation causing serious injury or death.

Work it out / Related tool

To standardise the Section 6 appointment letter across every hire, use the appointment letter generator at /hr-tools/appointment-letter-generator, which produces a letter in the prescribed format from the employee record.

What is the new working hours limit under the OSH Code?

Section 25 caps daily working hours at 8 and weekly at 48 for adult workers across all sectors, with overtime allowed on double wages. State rules notify spread-over (work + rest) limits at 10.5 hours typically. Women workers can be employed in all establishments and at night (between 7 PM and 6 AM) subject to safety provisions and consent (Section 43). This is uniform across sectors, replacing the older patchwork of sector-specific limits.

What is the new threshold for factory coverage?

Section 2(w) defines factory as a premises employing 20+ workers (with power) or 40+ workers (without power), raised from 10/20 under the older Factories Act. This brings smaller manufacturing units out of the factories regime, but the OSH Code still applies to them through its general establishment provisions. The change is administrative, not regulatory exemption.

What is the appointment letter requirement?

Section 6 makes it mandatory for every employer to issue an appointment letter to every employee. The format is prescribed by central government. This formalises what was always best practice. Failure to issue an appointment letter is now a compliance violation, with fines up to ₹50,000.