Factories play an important role in India’s industrial growth, but manufacturing activities also involve workplace risks. Employees working with heavy machinery, chemicals and electrical equipment require proper safety measures to prevent accidents and occupational health problems.
This makes EHS compliance in Indian factories an important responsibility for employers. Environmental, Health and Safety (EHS) practices help businesses maintain safe working conditions, protect employees and meet legal requirements.
The introduction of the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code 2020) has brought significant changes to India’s workplace safety framework. Effective from 21 November 2025, the Code replaces the Factories Act, 1948, along with several other labour laws.
Understanding these requirements helps factory owners and HR managers maintain compliance and reduce workplace risks.
What Is EHS Compliance in Indian Factories?
EHS compliance in Indian factories means following applicable safety, health and environmental regulations to protect employees and maintain responsible industrial operations.
It covers workplace safety inspections, machinery maintenance, employee training, medical examinations, emergency preparedness and proper waste management.
For example, factories handling chemicals must maintain safe storage arrangements and provide protective equipment. Similarly, manufacturing units using heavy machinery must ensure proper machine guarding and regular maintenance.
A strong EHS framework focuses on three areas:
- Environmental: Waste management, pollution prevention and safe disposal of hazardous materials.
- Health: Medical examinations, workplace hygiene and occupational health protection.
- Safety: Machinery protection, fire safety, employee training and accident prevention.
The OSH Code primarily addresses occupational safety and health. Businesses must also follow applicable environmental laws separately.
Key EHS Requirements Under the OSH Code 2020
The OSH Code establishes important responsibilities for employers regarding workplace health, safety and employee welfare.
1. Maintaining a Safe Workplace
Employers must provide a working environment that protects employees from workplace hazards. This includes maintaining machinery, ensuring electrical safety, providing adequate ventilation and identifying potential risks.
Regular workplace inspections help identify safety gaps before they lead to accidents.
2. Health and Medical Facilities
Employers must arrange prescribed medical examinations for applicable employees. Factories involving hazardous processes may have additional health examination requirements.
Maintaining medical records and addressing occupational health risks are important parts of occupational health and safety compliance.
3. Safety Committees and Safety Officers
Depending on workforce strength and applicable requirements, factories may need to establish safety committees or appoint qualified safety officers.
These arrangements help management identify workplace risks, review accidents and improve safety procedures.
4. Machinery and Equipment Safety
Factories must maintain machinery and equipment in safe working condition. Regular inspections, preventive maintenance and appropriate machine guards help prevent workplace injuries.
Employees should also receive proper training before operating machinery.
5. Emergency Preparedness and Accident Reporting
Factories must establish suitable emergency arrangements, including firefighting equipment, emergency exits, evacuation procedures and first-aid facilities.
Employers must also follow applicable accident and occupational disease reporting requirements.
6. Employee Training and Safety Awareness
Workers should understand the risks associated with their responsibilities. Regular training on machine operation, chemical handling, electrical safety and personal protective equipment helps reduce workplace accidents.
OSH Code 2020 vs Factories Act 1948
The Factories Act, 1948, governed factory health, safety and welfare requirements for several decades. The OSH Code 2020 consolidates the Factories Act and 12 other labour laws into a broader framework.
Here are the major differences:
| Compliance Area | Factories Act 1948 | OSH Code 2020 |
|---|---|---|
| Legal coverage | Primarily factory-related requirements | Consolidates 13 labour laws |
| Factory threshold | 10 workers with power and 20 without power | 20 workers with power and 40 without power |
| Employer responsibilities | Factory-specific safety obligations | Broader consolidated responsibilities |
| Medical examinations | Prescribed requirements for specified workers | Health examinations under applicable provisions |
| Safety officers | Required in specified factories | Requirements under the consolidated framework |
| Contract labour | Governed separately | Incorporated into the OSH Code |
| Working hours | Generally 9 hours daily and 48 hours weekly | Standard 8 hours daily and 48 hours weekly |
Important: The increased factory-definition threshold does not exempt smaller establishments from all workplace safety requirements. Relevant health and safety protections continue to apply to establishments employing 10 or more employees, subject to the applicable provisions.
Common EHS Compliance Challenges Faced by Factories
Even factories with established safety policies can face difficulties implementing compliance requirements consistently.
Some common challenges include:
- Incomplete safety inspection and employee training records.
- Improper machinery maintenance and workplace hazard identification.
- Gaps in contractor and vendor safety documentation.
- Limited employee awareness of safety procedures.
- Difficulty tracking changing statutory requirements.
These issues can increase workplace risks and create problems during regulatory inspections.
How Can Factories Improve EHS Compliance?
Manufacturing businesses should regularly review their safety procedures and statutory obligations.
Conducting workplace safety inspections, maintaining proper documentation, training employees and monitoring contractor activities can help reduce compliance gaps.
Businesses should also review applicable labour registrations, statutory records and reporting requirements to ensure that their compliance systems remain updated.
Working with experienced statutory compliance consultants can make this process easier. Professional support can help factories review documentation, identify compliance gaps and manage applicable statutory responsibilities.
Transparian provides EHS compliance services to help businesses maintain workplace safety, manage health and environmental requirements, identify compliance gaps and meet applicable statutory obligations. Our compliance support helps manufacturing businesses build safer workplaces and manage their regulatory responsibilities effectively.
Conclusion
The OSH Code 2020 has introduced a consolidated framework for workplace safety, health and working conditions in India. Factory owners must understand their responsibilities and maintain appropriate safety procedures, employee training and compliance documentation.
A structured approach to EHS compliance in Indian factories helps businesses protect employees, reduce workplace risks and manage statutory responsibilities more effectively.
FAQ’s
EHS compliance refers to following applicable environmental, health and safety regulations to protect workers, prevent workplace accidents and maintain safe industrial operations.
The Occupational Safety, Health and Working Conditions Code, 2020 is an Indian labour law that consolidates 13 existing labour laws, including the Factories Act, 1948, into a unified framework.
The Factories Act primarily addressed factory-related health, safety and welfare. The OSH Code consolidates these provisions with requirements from other labour laws and covers a broader range of establishments and workers.
Employers must maintain safe workplaces, prevent occupational hazards, provide prescribed medical examinations, maintain safe machinery, provide employee training and fulfil applicable reporting and documentation requirements.
Non-compliance can result in regulatory action, financial penalties, prosecution in applicable cases, operational disruption and increased workplace safety risks.
Yes. Professional statutory compliance consultants can assist with factory compliance reviews, EHS documentation, contractor compliance monitoring, statutory inspections and identifying regulatory gaps.
