The Factories Act, 1948 has been subsumed and repealed by the Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020 (which came into force on November 21, 2025).

 

The Factories Act, 1948 has been subsumed and repealed by the Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020 (which came into force on November 21, 2025).

Key Structural & Regulatory Shifts (Factories Act, 1948 vs. OSHWC Code, 2020)

Feature / Area	Factories Act, 1948	OSHWC Code, 2020
1. Statutory Framework	Standalone Act with 11 chapters and 120 sections.	Consolidated code (part of 4 labour codes) with 143 sections.
2. Laws Subsumed	Single focused law governing factories.	Consolidates 13 central labour laws (including Factories Act, Contract Labour Act, Mines Act, BOCW, etc.).
3. Threshold: With Power	Applies to factories with 10 or more workers using power.	Raised to 20 or more workers using power.
4. Threshold: Without Power	Applies to factories with 20 or more workers without power.	Raised to 40 or more workers without power.
5. Registration Process	Separate physical/state-wise factory licenses and registrations.	Single electronic all-India registration via the Shram Suvidha portal (for 10+ workers).
6. License Validity	Annual or short-term renewals required as per state rules.	5-year validity single all-India license system.
7. Appointment Letters	Not explicitly mandated under the core Act.	Mandatory appointment letters for every employee.
8. Daily Work Hours	Max 9 hours per day.	Flexible/standardized up to 8 or agreed daily hours (subject to weekly caps).
9. Weekly Work Hours	Max 48 hours per week.	Max 48 hours per week.
10. Spread-over Limit	Generally up to 10.5 hours.	Extended spread-over limit up to 12 hours.
11. Overtime Rate	Paid at double the ordinary rate.	Paid at double the ordinary rate with worker consent.
12. Quarterly Overtime Ceiling	Typically capped at 50 to 100 hours (state-dependent).	Increased quarterly ceiling (e.g., up to 125–144 hours under central/state rules).
13. Paid Annual Leave Eligibility	Earned 1 day of leave for every 20 days worked; accumulation/eligibility mapped from 240 days.	Paid leave eligibility threshold reduced from 240 days to 180 days of work.
14. Women in Night Shifts	Restricted; women generally not permitted to work night shifts (6:00 PM to 6:00 AM).	Permitted to work night shifts (e.g., 7 PM to 6 AM) with written consent, safety, and transport safeguards.
15. Creche Facility Threshold	Mandatory if 30 or more women workers are employed.	Mandatory for establishments with 50 or more employees (gender-neutral).
16. Canteen Facility Threshold	Mandatory for factories employing 250 or more workers.	Threshold streamlined under applicable rules (typically 100+ workers).
17. Safety Officer Threshold	Required for factories with 1,000 or more workers.	Lowered threshold—required for factories with 500 or more workers.
18. Safety Committee	Advisory/limited structures in select large units.	Mandatory Safety Committees for factories with 500+ workers (and lower thresholds for mines/construction).
19. Welfare Officer Threshold	Required for factories with 500 or more workers.	Standardized welfare officer mandate for 250+ workers.
20. Health Check-ups	Periodic checks limited mostly to hazardous processes.	Mandatory annual free health check-ups for specified/older/all employees as per rules.
21. Inspection System	Traditional Inspector with rigid enforcement powers.	Inspector-cum-Facilitators using web-based, randomized, transparent inspection systems.
22. Third-Party Audits	Not formally integrated into routine compliance.	Third-party audits and certification introduced to ease regulatory burden.
23. Registers and Records	Maintained across up to 84 physical statutory registers.	Consolidated and digitized down to 8 digital registers.
24. Victim Compensation	Fines went mostly to state exchequer; minimal direct payout mechanism.	Mandates that at least 50% of fines imposed on employers for safety violations causing injury or death be paid directly to the worker or legal heirs.
25. Offence Treatment & Decriminalization	Strict criminal prosecution and imprisonment for minor technical defaults.	Decriminalisation of minor/procedural offences with compounding mechanisms.
26. Penalty Severity	Lower nominal fines (e.g., up to ₹1 Lakh) combined with imprisonment risks.	Substantially higher monetary fines (scaling up to ₹2 Lakhs – ₹5 Lakhs+ for severe safety/hazardous non-compliance).
27. Inter-State Migrant Workers (ISMW)	Narrow definition restricted to contractors/recruited workers crossing state lines.	Expanded definition including self-migrated workers earning up to ₹18,000/month, with annual journey allowance and portable benefits.
28. National Database for Unorganised/Migrant Labour	Absent under the 1948 Act.	Establishment of a national database for unorganised and migrant workers for benefit portability.
29. Employee Right to Information	Limited statutory channel to query safety data.	Explicit right for employees (Sec. 14) to report hazards to the Safety Committee and request health/safety info.
30. Contract Labour Threshold Integration	Governed separately under the Contract Labour Act (20+ workers).	Raised contract labour applicability threshold to 50 workers under unified code integration.
31. First-Aid Appliances	Required (e.g., 1 box per 150 workers).	Standardized first-aid provisions with modern occupational health integration.
32. Hazardous Process Regulations	Handled via specific state/central amendment schedules.	Strengthened statutory duties for employers handling hazardous processes (Schedule I).
33. Hazard Prevention Approach	Reactive, rule-and-inspection bound.	Proactive, risk-assessment and hazard-prevention oriented framework.
34. Technology & Monitoring	Paper-based statutory logs and manual reporting.	Digitized compliance, web portals, and modern tech-driven safety monitoring.
35. Grievance Redressal for Safety	Ad-hoc internal plant mechanisms.	Structured mechanisms tied to safety committees and Inspector-cum-Facilitators.
36. Adolescent Worker Provisions	Strict fitness certificate and age (14–18) rules.	Streamlined adolescent work conditions with strict prohibition of child labor and updated certification.
37. Rest Rooms and Shelters	Mandatory for factories exceeding specific worker counts (e.g., 150+).	Re-affirmed and integrated mandatory rest room and shelter standards.
38. National Occupational Safety Board	Not provided under Factories Act.	Establishes national and state advisory boards on safety and health.
39. Single Return Submission	Multiple annual/half-yearly returns under different laws.	Single unified digital annual/periodic return submission.
40. Employer General Duty of Care	Limited to specific enumerated safety rules in the Act.	Codified overarching general duty of care (Section 6) for employer to ensure a safe and healthy workplace.
41. Compounding of Offences	Limited or non-existent for various criminalized clauses.	Broader compounding provisions allowing resolution of non-fatal/minor infractions without lengthy trials.
42. Working Environment & Ergonomics	Basic lighting, ventilation, and sanitation rules.	Explicit modern focus on ergonomics, occupational health hazards, and psychological/physical well-being.
43. National Floor Wage / Wages Linkage	Governed separately (Payment of Wages Act).	Interlocked with the Code on Wages, 2019 (e.g., universal minimum/floor wages and 50% wage structure rules).
44. Gig and Platform Worker Overlap	Zero coverage under 1948 Act.	Part of the broader 4-code labor overhaul (via Social Security Code integration).
45. Transition & Savings Clause	Replaced legacy text directly upon code enforcement.	Savings clause (Sec. 142) kept old factory rules active temporarily until respective state OSH rules were notified.
46. Safety Policy Display	Mandatory written safety policy for specific large/hazardous factories.	Universalized written occupational safety and health policy requirements for applicable establishments.
47. Training and Awareness	Ad-hoc safety orientation.	Mandatory worker safety training and hazard communication protocols.
48. Appeals Mechanism	Traditional appeal to local/state labor commissioners.	Streamlined appellate channels via designated appellate authorities under the Code.
49. Occupational Disease Reporting	Notifiable diseases listed with manual reporting.	Digital, mandatory reporting of occupational diseases and dangerous occurrences.
50. Overall Compliance Philosophy	Inspector-raj, punitive, paper-heavy, and siloed.	Ease of doing business, self-certification, transparency, digital-first, and worker-centric welfare.