factories under compliance lens?

Hey - Bhanu here,

If you're running auto plants, warehouses, or construction sites, you should know that worker safety isn't just compliance.

As per the OSH Code 2020, it's also about proving your workforce is medically fit, trackable, and compliant. Or facing shutdowns.

The recent tragic accident that happened at Sigachi Industries' pharmaceutical manufacturing unit in Telangana on June 30, 2025 serves as a wake up call.

42 people lost their lives and 33 were injured in an explosion. 

Workers had repeatedly warned company management about outdated machinery and the risk of a catastrophic accident. 

The learning? Itisn't just about safety protocols anymore. It's survival.

While the exact implementation date of OSH Code 2020 remains unnotified, Gujarat has already notified its OSH Rules 2025 on June 6, 2025, signaling that implementation is imminent. 

When do you need to to do:

Auto Manufacturing:

• Welders need respiratory function tests, vision screening, hearing assessments

• Assembly workers require musculoskeletal screening and repetitive stress evaluations

• Chemical handlers need liver function tests and respiratory monitoring

Warehousing:

• Forklift operators need vision and reaction time tests

• Loading staff require back and joint health monitoring

• Cold storage workers need respiratory and cardiovascular screening

Construction:

• All workers need baseline health screening before starting

• Role-specific hazard tests

• Digital health records that follow workers across projects

OSH Code Penalties:

Real-World Impact:

The Sigachi Industries incident shows what happens when safety systems fail. 

An FIR was filed against company management under Sections 105 (culpable homicide), 110 (attempt to commit culpable homicide), and 117 (voluntarily causing grievous hurt).

ESIC Non-Compliance: Missing the SPREE window means returning to regular enforcement:

• Retrospective coverage from original liability date

• Penalties and legal action for past non-registration

• Complex compliance procedures

For the last 18 months, we’ve been working with brands across manufacturing, logistics, and food retail to simplify exactly this problem.

Here’s how we’re doing it:

If you're figuring out how to implement these compliance mandates at scale - without breaking operations or your budget - we can help.

Want to schedule a compliance audit or check pricing for your plants?

Here’s a 15-minute slot to start the conversation:

1. Do these rules apply to contract workers on construction sites?

Yes. Under Section 23, employers are responsible for maintaining health, safety and working conditions for all employees, including contract and migrant workers on-site for any duration.

2. What specific tests will be required for auto manufacturing workers? 

Based on OSH Code provisions:

• Welders: Respiratory function tests, vision screening, hearing assessments

• Assembly line workers: Musculoskeletal screening, repetitive stress evaluations

• Chemical handlers: Liver function tests, skin sensitivity tests, respiratory monitoring

• Equipment operators: Vision tests, reaction time assessments, hearing evaluations

3. Are warehouse workers subject to the same requirements as manufacturing staff?

Yes, with role-specific additions:

• Forklift operators: Vision and reaction time tests

• Loading staff: Back and joint health monitoring

• Cold storage workers: Respiratory and cardiovascular screening

• All workers over 45: Annual medical examinations within 120 days of each calendar year

4. What about seasonal construction workers?

All workers need baseline health screening before starting, hazard-specific tests based on their roles, and digital health records that follow them across projects.

5. What are the penalties for non-compliance under OSH Code?

Penalties range from ₹50,000-₹1 lakh for failing to maintain required registers or documents, up to ₹5 lakhs and 2 years imprisonment for serious violations leading to worker death.

6. Do I need an on-site medical facility? 

Requirements vary by size:

• Factories with 500+ workers: Likely need occupational health centers

• Hazardous process facilities with 250+ workers: Enhanced medical facilities required

• Smaller operations: Tie-ups with certified medical practitioners acceptable

7. Can I use existing health records for OSH Code compliance?

The Code requires specific medical examinations using prescribed formats (Form V) conducted by qualified medical practitioners. Existing records may need updating to meet new standards.

8. How do I ensure compliance during surprise inspections? 

Three critical elements:

• Instant digital access to all worker health records in prescribed formats

• Current compliance documentation showing all required examinations are up-to-date

• Proper accident reporting systems with immediate notification capabilities

9. What happens if a worker gets injured and I'm not OSH Code compliant?

Beyond financial penalties, you face potential criminal liability under the Code. Insurance claims could be complicated, and you're liable for medical expenses and compensation without proper compliance documentation.

Don't wait for the notification/inspection or a disaster.

Start building OSH Code compliance now.

If you want to explore how this could work for your factory, schedule a quick call here -

Stay Well,
Bhanu