India’s workplace safety and labour compliance framework has undergone a major transformation with the implementation of the Occupational Safety, Health and Working Conditions Code, 2020 (OSHWC Code).
For decades, the Factories Act, 1948 served as a primary legislation governing worker health, safety and welfare in Indian factories. However, with the OSHWC Code coming into effect on 21 November 2025, the country has transitioned towards a consolidated occupational safety and working conditions framework.
So, what is the difference between the Factories Act, 1948 and the OSHWC Code, 2020? What has changed for factory owners, HR Managers and EHS professionals?
Understanding these changes is essential for evaluating factory compliance requirements, employee medical examinations, occupational health facilities and workplace safety obligations.
What Is the Factories Act, 1948?
The Factories Act, 1948 was introduced to regulate working conditions in factories across India and protect workers from occupational hazards.
The Act established requirements covering:
- Factory cleanliness, ventilation and sanitation.
- Safe machinery and working environments.
- Working hours, overtime and leave.
- First aid and employee welfare facilities.
- Fire safety and emergency precautions.
- Occupational health monitoring and reporting of specified diseases.
- Medical examinations for workers involved in hazardous processes.
The Act also empowered State Governments to frame factory-specific rules governing occupational health facilities, medical personnel and safety requirements.
Although the Factories Act has now been repealed under the OSHWC Code, certain existing rules and actions may continue through the Code’s repeal-and-savings provisions until they are replaced or superseded.
What Is the OSHWC Code, 2020?
The Occupational Safety, Health and Working Conditions Code, 2020 is a central labour law enacted to consolidate and modernise occupational safety, health and working conditions legislation in India.
Unlike the Factories Act, which primarily focused on factories, the OSHWC Code brings provisions relating to several sectors under one legislative framework.
It consolidates 13 Central labour laws, including legislation relating to factories, mines, plantations, contract labour, construction workers and other specified categories of employment.
The Code focuses on:
- Occupational safety and employee health protection.
- Standardised workplace safety obligations.
- Medical examinations and occupational health surveillance.
- Employee welfare and working conditions.
- Simplified registration, licensing and reporting.
- Worker participation and safety-related responsibilities.
The final Occupational Safety, Health and Working Conditions (Central) Rules, 2026 were notified on 8 May 2026. However, factories must also consider the applicable State rules and notifications.
Factories Act, 1948 vs OSHWC Code, 2020: Comparison Table
The following table highlights important differences between the two legislations.
| Compliance Area | Factories Act, 1948 | OSHWC Code, 2020 |
|---|---|---|
| Scope | Primarily factories | Consolidates occupational safety legislation across multiple sectors |
| Factory threshold with power | 10 workers under the original central definition | 20 workers under the Code’s definition |
| Factory threshold without power | 20 workers under the original central definition | 40 workers under the Code’s definition |
| Employee health examinations | Medical surveillance under hazardous-process provisions and applicable rules | Free prescribed health examinations, with specific requirements for hazardous processes |
| Working hours | Generally up to 9 hours daily and 48 hours weekly, subject to exceptions | Generally 8 hours daily, with prescribed working-hour arrangements and overtime provisions |
| Annual leave eligibility | Generally 240 qualifying days | Generally 180 qualifying days |
| First aid facilities | First aid boxes and trained attendants under Section 45 | First aid facilities under Section 24 and applicable rules |
| Safety officers | Requirements under Section 40B and State notifications | Revised thresholds under Section 22, subject to applicable requirements |
| Women working night shifts | Restrictions under the Act, with State-specific exceptions | Permitted with consent and prescribed safety safeguards |
| Compliance administration | Separate statutory procedures and records | Greater emphasis on electronic registration, licensing and returns |
| Inspection framework | Factory Inspectors | Inspector-cum-Facilitators |
Important: The original central factory thresholds under the Factories Act were amended by several States before the OSHWC Code commenced. Therefore, the comparison should not be interpreted as an identical change in every State.
Key Changes Under the OSHWC Code, 2020
1. Revised Definition of a Factory
One significant difference is the worker threshold used to define a factory.
Under the original Factories Act, 1948, a manufacturing premises was generally classified as a factory when it employed:
- 10 or more workers where power was used.
- 20 or more workers where power was not used.
Under Section 2(1)(w) of the OSHWC Code, the corresponding thresholds are:
- 20 or more workers with power.
- 40 or more workers without power.
However, the Code also recognises existing State-level thresholds until amended by the competent legislature.
Furthermore, the higher factory threshold does not automatically exempt smaller establishments from all occupational health and safety requirements.
What this means for HR and factory management: Employers should review workforce strength, manufacturing activities and the applicable State legislation before determining their registration and licensing responsibilities.
2. Greater Emphasis on Employee Medical Examinations
Employee medical examinations are a significant component of occupational health compliance.
Under the Factories Act, medical examinations and health surveillance were particularly important for workers exposed to hazardous substances or dangerous manufacturing operations.
The OSHWC Code continues these protections and includes provisions for employer-funded health examinations.
Section 6(1)(c) provides for free annual medical examinations or tests for the categories of employees and establishments prescribed by the appropriate Government.
Additionally, Section 85(c) requires medical examinations for workers handling hazardous substances:
- Before assignment to the hazardous job.
- During continued employment in that job.
- After ceasing such work, at prescribed intervals not exceeding 12 months.
Therefore, workers engaged in specified hazardous processes cannot be assumed to be exempt from medical examinations simply because they are below 40 years of age.
Importantly, the precise applicability of general annual medical check-ups depends on the relevant rules. The age threshold prescribed for particular centrally regulated establishments should not automatically be applied to every factory in India.
What this means for employers: HR and EHS teams should identify statutory medical examination requirements according to workers’ occupational exposure, job roles and applicable State rules.
Regular occupational health examinations may include vision testing, audiometry, pulmonary function testing, ECG and laboratory investigations where clinically or legally appropriate.
Read more about VMEDO’s Employee Medical Examination Services.
3. Occupational Health Centre (OHC) and Medical Facilities
Occupational Health Centres play an important role in industrial healthcare.
Under the Factories Act and associated State rules, medical infrastructure and staffing requirements depended on workforce strength, hazardous operations and other prescribed conditions.
The OSHWC Code continues to address occupational health and employee welfare through Sections 6, 23, 24 and the factory-specific provisions.
Depending on applicable requirements, a factory’s occupational health arrangements may involve:
- Qualified Factory Medical Officers.
- Occupational health nurses and medical assistants.
- Onsite medical examination facilities.
- First aid equipment and emergency medical supplies.
- Employee medical records and health surveillance.
- Medical emergency response procedures.
However, there is no single OHC staffing threshold that should be applied to every factory across India without checking the applicable rules.
For example, medical officer qualifications, OHC equipment, staffing and ambulance-room requirements may vary according to State regulations and the nature of the manufacturing activity.
Explore VMEDO’s OHC Setup and Staffing Services.
4. Changes in Working Hours and Overtime
Working hours are another important area of comparison.
Under the Factories Act, 1948, the general statutory limit for adult factory workers was 9 hours per day and 48 hours per week, subject to applicable exemptions.
Section 25 of the OSHWC Code generally provides for an 8-hour working day, while working-hour arrangements, intervals and spread-over requirements are governed by applicable provisions and notifications.
For overtime, Section 27 provides for wages at twice the applicable rate, subject to the prescribed conditions. Worker consent is also required for overtime under the Code.
For HR departments, this makes reviewing shift schedules, working-hour registers and overtime calculations particularly important.
5. Revised Annual Leave Eligibility
The OSHWC Code also changes the qualifying period for annual leave with wages.
Under Section 79 of the Factories Act, an eligible worker generally needed to complete 240 days of work during a calendar year.
Under Section 32 of the OSHWC Code, the general qualifying requirement is reduced to 180 days.
The standard leave accrual rate for adult workers remains one day for every 20 days of work, subject to the applicable provisions.
The Code also contains provisions relating to leave carry-forward and encashment.
Consequently, employers should review their leave policies, payroll systems and employee entitlement calculations to ensure alignment with the applicable framework.
6. Employee Safety and Welfare Responsibilities
Both legislations recognise that employers have a responsibility to maintain safe working conditions.
However, the OSHWC Code consolidates workplace health, safety and welfare responsibilities within a broader framework.
Section 23 addresses matters such as:
- Cleanliness and hygiene.
- Ventilation and temperature.
- Exposure to dust, fumes and harmful substances.
- Drinking water and sanitation.
- Adequate lighting and working space.
- Waste and effluent management.
Section 24 addresses welfare facilities, including accessible first aid supplies, with additional facilities prescribed according to the relevant requirements.
The Code also contains provisions concerning safety officers and employee participation in workplace safety matters.
Therefore, workplace health compliance involves more than arranging occasional medical camps. It requires continuous attention to occupational hazards, preventive measures, emergency preparedness and employee wellbeing.
7. Women Employees and Night Shift Employment
The Factories Act, 1948 contained restrictions concerning the employment of women during specified hours, although State-level amendments and exemptions introduced additional flexibility.
Under Section 43 of the OSHWC Code, women are entitled to employment in all establishments for all types of work covered by the Code.
They may also work before 6 AM and after 7 PM, subject to:
- Their consent.
- Prescribed safety conditions.
- Applicable requirements concerning working hours and holidays.
Employers must therefore ensure that night shift arrangements comply with the relevant safety and welfare safeguards.
8. Simplified Registration and Compliance Documentation
The OSHWC Code introduces a more integrated approach to labour compliance administration.
The framework provides for electronic registration, licensing and submission of returns, together with an inspection system involving Inspector-cum-Facilitators.
However, simplification of administrative procedures does not eliminate the employer’s responsibility to maintain relevant documentation.
Factories should continue to maintain required records relating to employee details, attendance, working hours, medical examinations, accidents, dangerous occurrences and statutory reporting.
In addition, Section 12 of the OSHWC Code addresses reporting of specified occupational diseases listed in its Third Schedule.
What Does the OSHWC Code Mean for Factories in Karnataka?
For factories operating in Bengaluru and other parts of Karnataka, the transition requires particular attention to State-specific provisions.
Karnataka had already amended certain factory-related worker thresholds before the implementation of the OSHWC Code.
Furthermore, the Karnataka Government published draft Occupational Safety, Health and Working Conditions (Karnataka) Rules, 2026, in January 2026.
Factory management should verify the latest applicable Karnataka Gazette notifications, final rules and provisions preserved during the transition.
This is especially important when determining:
- Occupational Health Centre requirements.
- Factory Medical Officer and nursing staffing.
- Pre-employment and periodic medical examinations.
- First aid, ambulance-room and emergency medical facilities.
- Hazardous-process medical surveillance.
- Mandatory registers and compliance documentation.
HR Managers and EHS Officers should avoid relying solely on general national compliance checklists when determining their factory’s legal obligations.
OSHWC Code Compliance Checklist for HR and EHS Teams
Factories reviewing their occupational health arrangements can use the following checklist as a starting point.
- Review applicability: Confirm the factory’s registration and licensing requirements under the Code and relevant State rules.
- Assess occupational hazards: Identify chemical, physical, biological and other workplace health risks.
- Review medical examinations: Determine the required pre-employment, periodic and exposure-specific health checks.
- Evaluate OHC facilities: Check applicable medical staffing, equipment and emergency healthcare arrangements.
- Verify first aid readiness: Maintain suitable first aid supplies and trained responders according to applicable requirements.
- Review working conditions: Assess ventilation, sanitation, lighting and exposure-control measures.
- Update statutory records: Maintain required health, safety, training, accident and employee records.
- Monitor regulatory updates: Track Central and State notifications affecting factory compliance.
A structured review can help organisations identify gaps before they affect workplace safety or regulatory compliance.
How VMEDO Supports Occupational Health and Safety in Factories
Adapting to changing occupational health requirements involves medical infrastructure, skilled personnel, reliable health examinations and well-maintained records.
VMEDO Healthcare supports factories and industrial establishments with integrated occupational healthcare services.
Our solutions include:
Occupational Health Centre Setup and Staffing: OHC infrastructure, qualified medical officers, nurses, equipment and operational support.
Employee Medical Examinations: Pre-employment, periodic and occupational-risk-based medical examinations, with medical reporting and documentation.
First Aid and Fire Safety Training: Practical workplace emergency response training, CPR, AED awareness and fire safety programs.
Standby Ambulance Services: Emergency medical transportation support for factories and industrial locations.
Occupational Health Documentation: Employee health records, medical reporting and digital health management solutions.
VMEDO works with organisations to support occupational health preparedness according to their workforce size, industrial risks and applicable healthcare requirements.
For more information, visit VMEDO Healthcare.
FAQs: Factories Act vs OSHWC Code
1. Has the OSHWC Code, 2020 replaced the Factories Act, 1948?
Yes. The OSHWC Code came into effect on 21 November 2025 and repealed the Factories Act, 1948 under Section 143. However, relevant earlier rules, actions and notifications may continue through savings provisions where legally applicable.
2. What is the main difference between the Factories Act, 1948 and OSHWC Code, 2020?
The Factories Act primarily regulated factory working conditions. The OSHWC Code consolidates 13 Central labour laws and establishes a broader framework for occupational safety, health, welfare and working conditions.
3. Are annual medical check-ups mandatory for all factory employees under the OSHWC Code?
Not necessarily. Section 6 provides for free medical examinations for prescribed categories of employees and establishments. Workers involved in hazardous processes or dangerous operations may have additional medical examination requirements irrespective of age. The applicable State rules must be reviewed.
4. Is setting up an Occupational Health Centre mandatory under the OSHWC Code?
OHC requirements depend on the factory’s workforce strength, nature of manufacturing operations, occupational hazards and applicable rules. Employers should verify the specific infrastructure and staffing obligations for their establishment.
5. What are the factory worker thresholds under the OSHWC Code?
The Code generally defines a factory as a qualifying manufacturing premises employing 20 or more workers with power or 40 or more workers without power. Existing State-specific thresholds may apply under the statutory proviso, and other provisions can extend to smaller establishments.
6. Who is responsible for occupational health and safety compliance in a factory?
The employer and other legally responsible persons must comply with applicable occupational health, safety and welfare obligations. HR, EHS, administrative and medical teams usually coordinate their implementation at the workplace.
The transition from the Factories Act, 1948 to the OSHWC Code, 2020 marks an important development in India’s occupational health and safety framework.
Although several foundational protections continue, the Code introduces changes relating to factory definitions, employee welfare, working hours, annual leave and compliance administration.
For HR Managers, EHS Officers and Factory Owners, the priority is to understand the new framework while ensuring that existing occupational health responsibilities are not overlooked.
Ultimately, effective compliance depends not only on understanding legislation but also on maintaining appropriate medical facilities, trained personnel, preventive healthcare systems and workplace safety practices.
VMEDO – Occupational Health & Wellness Experts!
Official References
- The Occupational Safety, Health and Working Conditions Code, 2020 – India Code
- The Factories Act, 1948 – India Code
- Ministry of Labour and Employment – Labour Codes and Rules
- Government FAQ on the OSHWC Code, March 2026
Disclaimer: This article provides general information and is not a substitute for legal advice. Employers should verify the latest Central and State rules, notifications and industry-specific requirements before making compliance decisions.