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Salient points of Occupational Safety, Health and Working Conditions Code, 2019

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Ensuring occupational safety, no harm to existing health and proper working condition for all the workforce in every enterprise is a necessary and essential requirement for running any business, In India we have four main legislations that cover Occupational Safety and Health at workplace. (i) The Factories Act, 1948 , covering factories wherein the enforcement of safety at workplace is by the Chief Inspector of Factories in the respective states, (ii) The Mines Act, 1952 and Mines Rules, 1955 for mining industry where the enforcement is by Directorate General of Mines Safety (DGMS) under Ministry of Labour & Employment , Government of India, (iii) The Dock Workers (Safety, Health and Welfare) Act, 1986 followed by notification of the Dock Workers (Safety, Health and Welfare) Regulations, 1990 dealing with the major ports of India and the enforcement is by Director General, Directorate General of Factory Advice Service & Labour Institutes (DGFASLI), under Ministry of Labour & Employment, Government of India, and (iv) The Building & Other Construction Workers (Regulations of Employment and Conditions of Service) Act, 1996, covering construction workers at construction sites wherein the enforcement is by the State Government.

The Second National Commission on Labour submitted its Report on ??ccupational Safety, Health and Working Conditions of the Workers??in June, 2002 and made certain recommendations including the need to consolidate various laws. In pursuance of the recommendations of the said Commission, the National Democratic Alliance Government has introduced Bill Number 186 of 2019 on 23 July 2019 called ??he Occupational Safety, Health and Working Conditions Code, 2019??in the Lok Sabha, which has 134 clauses and three schedules. While the schedule one and three are identical to the schedules in The Factories Act ,1948, but the schedule two covers many items relevant to occupational safety, health and working conditions. The Code will subsume 13 labour laws and would apply to all establishments employing 10 or more workers. These include (a)The Factories Act, 1948; (b) The Mines Act, 1952; (c) The Dock Workers (Safety, Health and Welfare) Act, 1986; (d) The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996; (e) The Plantations Labour Act, 1951; (f) The Contract Labour (Regulation and Abolition) Act, 1970; (g) The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; (h) The Working Journalist and other News Paper Employees (Conditions of Service and Miscellaneous Provision) Act, 1955; (i) The Working Journalist (Fixation of rates of wages) Act, 1958; (j) The Motor Transport Workers Act, 1961; (k) The Sales Promotion Employees (Conditions of Service) Act, 1976; (l) The Beedi and Cigar Workers Act, 1966; (m) The Cine Workers and Cinema Theatre Workers Act, 1981 (details refer section 134). Presently each of these 13 labour laws have Rules and we still have to await the Rules that the Central Government frames for this code, which can be the same or modified by the State Governments.

This code is one of the four labour codes and is currently referred to the Parliamentary Standing Committee for consideration, and hence will take some time, before it gets passed by the Lok Sabha and becomes an Act. The rules with reference to the Code have still to be framed and made public.

Given below are summary analysis of certain relevant sections in the code:

Section 2 of every labour legislation deals with definitions. Since, this code is to replace 13 labour legislations which deal with various aspects apart from the area of Occupational Safety, Health and Working Conditions the definition of the words in section 2 needs to be understood and analysed, to realise the modification where they are taking place through the code. In most cases, the word as defined in the code is a continuation of the definition in one of the 13 acts, but in certain cases the same has been modified and hence has implications of applicability.

Section 2 (g): In ??uilding or other construction work??the definition specifies that it does not include any building or other construction work of any factory or mine or any building or other construction work employing less than ten workers.

Section 2 (u): The term ??stablishment??has been defined as a place where any industry, trade, business, manufacture or occupation is carried on in which ten or more workers are employed; or a factory, motor transport undertaking, newspaper establishment, audio-video production, building and other construction work or plantation, in which ten or more workers are employed; or a mine or dock work. The word ??stablishment??is used in many of the sections

Section 2(zb)(b): The term ??ndustry??does not include domestic service.

Section 2(zo): The term Occupier has been modified compared to The Factories Act, 1948 and an independent director cannot be an occupier.

Section 2(zz): The term ??ales promotion employees ??efinition does not include apprentices as specified in The Sales Promotion Employees (Conditions of Service) Act, 1976;

Section 8 specifies duties of manufacturers, designer, importers or suppliers and holds them responsible for the safety of the equipment and material designed, imported, supplied, erected, installed as to be safe and without risk to the health of the workers when properly used. There are details specified which were not covered in the existing legislations.

Section 9 in detail specifies the duties of architects, project engineers and designers and holds them responsible for ensuring that they have considered all aspects of safety and health for the workers that are carrying out the construction, but to also take into account the safety aspects associated with the maintenance and upkeep of the structures and buildings where maintenance and upkeep may involve special hazards.

Section 12: (1) and 12(2) deal with notice of certain diseases and these sections are identical to section 89 and 90 of The Factories Act, 1948 except the word factory has been replaced by the word establishment. Also, the Schedule Three specifying list of notifiable diseases is identical to the schedule three in The Factories Act, 1948.

Sectior 16 and 17 deal with constituting a National Occupational Safety and Health Advisory Board and State Occupational Safety and Health Advisory Board which is something new compared to the present legislation. Section 18 deals with occupational safety and health standards and the second schedule is a very exhaustive list covering list of matters to be covered in factories, mines, ports, construction, offices, plantation and others. The second schedule under section 41-F of The Factories Act, 1948 which dealt with permissible limits of 116 chemical substances is not to be found in the second schedule of the code and since the schedule mentions that ??he Central Government shall declare, by notification, standards on occupational safety and health for work places relating to factories, mines, dock work, building and other construction work and other establishments ??robably these will be specified later .

Section 21 deals with an effective programme of collection, compilation and analysis of occupational safety and health statistics.

Section 22 deals with Safety Committee and safety officers in establishments.

Section 24 deals with welfare facilities in the establishment and in subsection (2) specifies bathing places and locker rooms for male, female and transgender employees separately. This is a recognition of accepting the employment of transgender employees at the work place.

Section 25 deals with weekly and daily working hours, leave, etc. and since the Code also covers sales promotion employees. It is silent on the working hours of sales promotion employees but specifically in sub – section (3) in detail specifies the leave benefits. It has to be seen how this will get interpreted, as sales promotion employees have to work when they can meet the doctors and the eight hours working per day cannot be from 9 am to 5 pm like the general shift of establishments.

Section 37 provides for a third-party audit and certification for start-up establishments and class of other establishments to get the same done and submit their reports to the concerned employer and Inspector-cum-Facilitator separately for the purpose of ensuring compliance of the provisions of this Code.

Section 43 provides for women to work in with her consent, to be employed in an establishment before 6 a.m. and beyond 7 pm.

Section 45 to 62 deal with contract Labour and Inter State Migrant worker, as both these Acts have been merged with this code.

Section 50 (1) states that when a contractor receives work order from an establishment, he has to intimate the same to the appropriate Government.

Section 60(1) the contractor to every inter-State migrant worker at the time of recruitment, has to pay a displacement allowance equal to fifty per cent of the monthly wages payable to him which was already there in the existing act.

Section 73 states that a person who is deaf or has a defective vision or has a tendency to giddiness be not employed in building or other construction work which is likely to involve a risk of any accident either to the building worker himself or to any other person. This is keeping safety in mind.

Section 75 deals with premises or buildings leased to different occupiers for use as separate factories, the owner of the premises and occupiers of the factories utilising such common facilities include safety and fire prevention and protection, shall jointly be responsible for providing maintenance of common facilities and services as may be prescribed.

Section 83 deals with maximum limit of exposure of chemical and toxic substances in manufacturing process in any factory. Earlier these limits were specified in Schedule Two of The Factories 1947. Act, Under the code these are not specified and it is mentioned that the limits of exposure of chemical and toxic substances in manufacturing process in any factory will be decided by the State Government.

Section 87 deals with general penalty which shall not be less than Rs 2 lakh to the employer of any establishment for the contravention of the code.

Section 96 (1) deals with a dangerous occurrence resulting in (a) death, then the person responsible shall be punishable with an imprisonment for a term which may extend to two years or with a fine which shall not be less than Rs five lakh or with both.

Section 107 (1) deals with compounding of offence and its procedure.

However, this compounding is only applicable for offence in which the punishment does not involve imprisonment.

Conclusion

The Code is an effort by the Ministry of Labour & Employment, Government of India at combining 13 labour laws which not only dealt with safety, health and working conditions plus other areas relevant to the workers employed in factories, mines, docks, building and construction, plantation, motor transport, beedi and cigar, cine and cinema theatre, journalism, field force, plus the contract workers and interstate migrant workers.

Presently a large number of enterprises are engaging contract labour through contractors/ service providers under the existing Contract Labour (Regulation and Abolition) Act, 1970. It is to be seen how the proposed code will impact the employers, contractors and contract workers once the Rules to the Occupational Safety, Health and Working Conditions Code, 2019 are released.

There are techniques such as ??ontrolled Implosion??which can be used for swift demolition of structures and there was need that these from the point of occupational safety and health should have been included in the Code , Also new forms of employment based on App Platforms that have entered the business area have not been dealt with, as we need to also look at their occupational safety, health and working conditions

Since the code subsumes 13 labour laws the terminology of enterprise is used in most sections. Since this code is going to replace legislations of 1948 and later, it is too early to predict how this legislation will help the workers, trade unions and employers associated with enterprises in India in ensuring occupational safety and improved health. The acid test on the clarity of a legislation comes with judicial interpretations.

ABOUT THE AUTHOR:

Dr Rajen Mehrotra is past President of Industrial Relations Institute of India (IRII), Former Senior Employers??Specialist for South Asian Region with Internation.al Labour Organization (ILO) and Former Corporate Head of HR with ACC, and Former Corporate Head of Manufacturing and HR with Novartis India Ltd. Email: rajenmehrotra@gmail.com

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Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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