The OSH Code 2020 replaces the Contract Labour (Regulation and Abolition) Act, 1970. For industrial employers who rely heavily on contract workers for power plant operations, construction, and maintenance, the changes are both significant and operational.
What Has Changed
The threshold for applicability has been raised from 20 to 50 workers for contractors, and from 20 to 50 for principal employers. This means smaller contractors are now exempt from registration requirements, but principal employers retain responsibility for ensuring welfare provisions regardless of contractor size.
The new code introduces a single electronic registration that replaces the dual licensing system under the old act. Principal employers and contractors can now register through a unified portal, reducing paperwork but increasing digital compliance requirements.
Key Compliance Areas for Industrial Sites
Safety Standards: The OSH Code mandates annual health examinations for workers in hazardous processes. For power plants handling coal, ash, chemicals, or high-voltage equipment, this means systematic health monitoring for every contract worker on site.
Working Hours: The code caps daily working hours at 8 hours and mandates overtime pay at twice the normal rate. For sites running continuous operations with shift-based contract labour, roster management becomes a compliance issue.
Welfare Provisions: Canteen facilities, first-aid boxes, and washing facilities are mandatory for sites with 100+ workers. The responsibility falls on the principal employer when the contractor fails to provide these.
Practical Steps for Compliance
First, audit all existing contractor agreements to align with the new thresholds and welfare provisions. Second, migrate to electronic registration before enforcement begins. Third, implement a digital attendance and working hours tracking system to ensure overtime compliance. Fourth, schedule annual health examinations for all contract workers on hazardous sites.
PeoplePulse manages end-to-end contract labour compliance for power plants and industrial sites across India. From registration to welfare audits, we handle it so you can focus on operations. Schedule a compliance review →