How India’s New Labour Codes Reshape Safety Rules for Petroleum Sector Workers
Published: December 3, 2025 | Reading Time: 8 minutes
India’s evolving industrial landscape has seen significant changes over the past few years, and one of the most notable transformations has been the introduction of new labour codes. The government of India has consolidated and amended several archaic labour laws, replacing them with four modernised codes to streamline compliance, enhance workers' welfare, and improve the ease of doing business. Among the various sectors affected, the petroleum industry has undergone substantial shifts in its safety protocols and regulations due to these changes. This article delves into how India’s new labour codes reshape safety rules for workers in the petroleum sector, comparing the old and new labour codes in the context of occupational safety and health (OSH).
Understanding the Old Labour Laws: A Quick Overview
Before the introduction of the new labour codes, India had a fragmented and outdated set of regulations that governed worker safety in various sectors, including petroleum. Some of the key laws governing safety were:
- Factories Act, 1948: The primary legislation governing industrial safety, the Act included general safety provisions related to the working environment, machinery, and worker health. However, its applicability to the petroleum sector was somewhat limited, and many provisions were outdated, not adequately addressing the complexities of modern industries.
- The Petroleum Act, 1934: This Act provided a legal framework for regulating the exploration, production, and storage of petroleum. While it contained some provisions for safety, it did not align with the latest safety standards, nor did it provide a comprehensive approach to worker safety within petroleum facilities.
- The Mines Act, 1952: This was another important law that addressed safety in hazardous sectors such as mining and petroleum extraction. However, its scope was more focused on mines rather than oil and gas facilities, and it did not cater to all the nuances of petroleum sector operations.
- The Employees’ State Insurance (ESI) Act, 1948: This Act provided social security benefits, including health insurance, to workers in hazardous sectors, but its provisions did not fully account for the specialized risks inherent in the petroleum sector.
Although these laws aimed at ensuring worker safety, their fragmented nature and outdated provisions often resulted in gaps in safety enforcement, compliance, and overall industry standards. The challenge was compounded by the slow pace of updating these laws to meet the rapidly evolving demands of the petroleum sector.
The New Labour Codes: An Overview
In 2020, India introduced four consolidated labour codes, which aimed to simplify the country’s complex labour law framework and bring it in line with global best practices. These codes are:
- The Code on Wages, 2019: This code consolidates four previous wage-related laws, ensuring fair wages, minimum wage, and timely payment of salaries across sectors.
- The Industrial Relations Code, 2020: This code focuses on industrial disputes, strikes, and working conditions, making it easier to hire and fire workers while ensuring fair treatment of employees.
- The Code on Social Security, 2020: This code integrates social security schemes such as pensions, health insurance, and maternity benefits under a single framework, providing greater protection for workers across industries.
- The Occupational Safety, Health, and Working Conditions (OSH) Code, 2020: This code addresses issues related to worker safety, health, and working conditions across all industries, with a particular emphasis on high-risk sectors like petroleum, mining, and chemicals.
The Occupational Safety, Health, and Working Conditions (OSH) Code is the key legislation affecting safety in the petroleum sector. It replaces and modernizes several older laws and brings stricter safety provisions that align with international standards.
Key Changes in Safety Rules for the Petroleum Sector
Wider Applicability and Expanded Scope
One of the most significant changes under the OSH Code is the expansion of its scope. Under the previous laws, safety rules were often scattered across multiple regulations, with specific provisions for different industries. The new OSH Code provides a uniform framework for all sectors, including the petroleum industry, and covers all aspects of worker safety. This includes not just operational safety but also worker well-being, ensuring that safety rules are comprehensive and extend to new risks and technologies.
The OSH Code now covers a wide range of industries, such as petroleum refining, natural gas production, and chemical plants, with specific provisions for hazardous operations. This helps address sector-specific challenges by providing a unified approach to safety, which was lacking in the old laws.
Stricter Safety Standards
The OSH Code introduces stricter safety norms for hazardous industries such as petroleum, which involves high-risk operations like drilling, refining, and storage of flammable substances. The new code mandates specific measures to ensure worker protection, including more rigorous inspections, compliance with national and international safety standards, and adoption of modern technologies for hazard control.
Under the previous laws, safety measures were often prescribed without clear enforcement mechanisms. The OSH Code now requires regular audits, risk assessments, and the implementation of safety management systems (SMS). It also mandates a detailed procedure for handling hazardous chemicals and materials, ensuring the petroleum industry adheres to the highest global safety standards.
Mandatory Safety Training and Awareness
The new code places an increased emphasis on safety training and awareness. It mandates that all workers in hazardous industries, including petroleum, undergo regular training in workplace safety. This training must cover a range of areas, including the use of personal protective equipment (PPE), emergency evacuation protocols, first aid, and safe handling of hazardous substances.
Under the older laws, safety training was not always compulsory, and many workers did not receive adequate education on safety practices. The new OSH Code ensures that training is an ongoing process, with refresher courses and certification requirements.
Workplace Health and Hygiene Standards
The OSH Code introduces stronger provisions for workplace hygiene and health, which are critical in the petroleum sector. For instance, it mandates regular health check-ups for workers involved in hazardous tasks, such as exposure to toxic fumes, oil spills, and noise pollution. The code also enforces stricter guidelines on occupational diseases and the management of health risks like respiratory problems, hearing loss, and skin diseases—common concerns for workers in the petroleum sector.
In contrast, the old laws did not provide the level of detail and enforcement required to manage these health risks effectively. While the Petroleum Act did touch upon health and safety, the OSH Code goes further in integrating preventive health measures into the workplace culture.
Welfare Provisions for Women Workers
Another critical change under the new labour codes is the inclusion of welfare provisions for women workers in hazardous industries like petroleum. The new OSH Code recognizes the need for gender-sensitive policies and provides specific provisions for the protection of female workers, including provisions for maternity leave, rest periods, and special accommodations in hazardous environments.
In comparison, the old laws did not adequately address gender-specific challenges, leaving women workers in the petroleum sector without clear protections or equal treatment in terms of safety and welfare.
Penalties and Enforcement
The OSH Code introduces stricter enforcement mechanisms and penalties for non-compliance. Companies in the petroleum sector that fail to adhere to safety regulations now face heavier fines and penalties. This is a significant improvement over the older system, where safety violations often went unchecked due to insufficient enforcement.
The new labour codes also empower authorities to suspend operations in case of severe safety violations, ensuring that petroleum companies take immediate action to rectify hazardous conditions. This serves as a strong deterrent against neglecting worker safety.
Comparison: Old vs New Safety Rules
| Aspect | Old Laws (Pre-2020) | New Labour Codes (Post-2020) |
|---|---|---|
| Scope of Safety Regulations | Fragmented, sector-specific laws (Petroleum Act, Factories Act, Mines Act) | Unified safety framework covering all sectors including petroleum |
| Safety Standards | Limited enforcement, outdated standards | Stricter, updated safety standards aligned with global norms |
| Training and Education | Voluntary, limited focus on ongoing training | Mandatory, regular safety training with certification |
| Health and Hygiene | Basic provisions for health and hygiene | Comprehensive health management including disease prevention |
| Women Workers | Limited provisions for gender-specific protections | Clear provisions for women's welfare and safety in hazardous environments |
| Enforcement and Penalties | Inconsistent enforcement, lower penalties | Stronger penalties, stricter enforcement mechanisms |
Conclusion
India’s new labour codes, particularly the Occupational Safety, Health, and Working Conditions Code, represent a much-needed overhaul of worker safety regulations in high-risk sectors such as petroleum. The shift from outdated, fragmented laws to a comprehensive, unified framework promises better protection for workers, with a focus on stricter safety standards, health management, training, and welfare.
For the petroleum sector, which involves complex and hazardous operations, these changes are vital for improving safety, reducing accidents, and aligning with international best practices. While challenges remain in implementation, the new codes are a step in the right direction toward ensuring safer and more equitable working conditions for petroleum sector workers in India.
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