Health and Working Conditions (OSH) Code, 2020

The construction industry is one of the most risk-prone sectors in India. Accidents caused due to unsafe working conditions, lack of protective equipment, poor supervision, unsafe scaffolding, electrical hazards, or non-compliance with statutory safety norms can lead to serious injuries or even death of workers.

To strengthen workplace safety and employer accountability, the Government enacted the Occupational Safety, Health and Working Conditions Code, 2020 (“OSH Code”). The Code consolidates multiple labour laws relating to safety, health, and welfare of workers, including building and construction workers.

Responsibility of Builders and Developers

Under the OSH Code, builders, contractors, occupiers, and employers engaged in construction activities are required to:

• Provide a safe working environment
• Ensure use of helmets, harnesses, safety belts, gloves, and PPE kits
• Maintain safe scaffolding, lifts, machinery, and electrical systems
• Conduct safety training and supervision
• Report accidents and dangerous occurrences
• Appoint safety officers where required
• Ensure compliance with welfare and working condition provisions

Failure to comply with these obligations may result in prosecution, heavy penalties, and imprisonment.

Penalty for Safety Violations

General Contravention of Safety Provisions Section 94

If a builder or employer violates provisions relating to safety, health, or working conditions under the OSH Code, penalties may include:

• Fine up to ₹2,00,000 for first contravention
• Additional penalty for continuing offences
• Enhanced punishment for repeated violations

The authorities may also issue improvement notices or prohibition orders stopping unsafe construction activities.

Penalty in Case of Death of Worker

Where non-compliance with safety provisions results in the death of a worker, the consequences become far more serious.

Punishment for Fatal Accident

If a worker dies due to violation of safety standards by the employer, builder, or contractor:

• Imprisonment for up to 2 years, or
• Not less than ₹5,00,000 as Fine or 
• Both imprisonment and fine

Serious Bodily injury:

• Imprisonment for up to 2 years, or
• Not less than ₹2,00,000 which may extent up to ₹4,00,000  as Fine or
• Both imprisonment and fine

In case of repeated offences, the punishment may be substantially enhanced.

Apart from criminal liability under the OSH Code, the builder may also face:

• Compensation liability under employee compensation laws
• Criminal prosecution under the Bharatiya Nyaya Sanhita for negligence causing death