Explained: What new labour codes mean for petroleum industry workers

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The new labour codes promise major relief for petroleum sector workers, with the Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020, introducing clearer safeguards and benefits that go beyond what the old factories law offered.

 

On November 21, the government brought into effect the four new labour codes, which consolidate 29 central labour laws. The move was aimed at streamlining compliance, modernising outdated provisions, and creating a simplified, efficient framework that promotes ease of doing business while safeguarding workers’ rights and welfare.

 

Under the new reforms, the OSHWC Code was drafted after the rationalisation of provisions of the 13 Central Labour Acts, which previously governed the safety and working conditions. Some of these include the Factories Act, 1948; the Plantations Labour Act, 1951; the Mines Act, 1952; and the Contract Labour (Regulation and Abolition) Act, 1970, among others.

Why it matters for petroleum sector

The move assumes significance given that the petroleum industry is one of the most safety-critical and hazard-intensive sectors. These operations often involve handling of highly flammable hydrocarbons, toxic gases such as hydrogen sulfide, pressurised LPG, and carcinogenic benzene vapours, thereby exposing workers to thermal radiation hazards and exposure-related illnesses.

 

Earlier, safety regulations in this sector relied mainly on the Factories Act, 1948, which provided a limited, factory-centric approach to hazardous industries. Key limitations included scattered emergency requirements and outdated enforcement mechanisms, which need to evolve to address complex risks in exploration and production.

 

Additionally, cross-country pipelines, fuel retail outlets, and multi-location storage hubs often require approvals from multiple departments, creating fragmented oversight.

What will change?

The new OSHWC Code aims to make the petroleum industry safer and more organised. Before starting any risky operation, companies will now have to identify hazards, assess risks, and obtain government approval. They also need to follow national standards for storing, handling, moving, and disposing of petroleum products.

 

Under the new guidelines, workers will get better health protection. Instead of only periodic check-ups that were the norm earlier, workers will have to get medical tests before joining, during work, and after any exposure. Free yearly health check-ups will be provided to all workers handling hazardous jobs.

 

Training rules are set to become stricter. Workers need to be properly trained and certified before handling petroleum or dangerous chemicals. Employers must provide better safety gear, ensure it is used correctly, and follow an eight-hour shift limit to reduce fatigue in continuous-process plants.

 

Emergency systems will be stronger. Most importantly, workers will get the right to refuse dangerous work, and there will be stronger protections for pregnant women and adolescents. Detailed on-site emergency plans and regular mock drills are compulsory under the new guidelines.

 

The  OSHWC Code also replaces heavy inspections with a simpler 'inspector-cum-facilitator' system. Risk-based inspections, online filings, and single-window approvals are also being set up to reduce paperwork and improve compliance.