India Employer Forum

Compliance

Workplace Safety Must Be a Core Business Commitment, Not an Afterthought

  • By: India Employer Forum
  • Date: 23 July 2025

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A tragic explosion at a chemical plant in Andhra Pradesh in June 2025, reportedly caused by a malfunction in the quality control unit’s dryer, has once again brought the issue of workplace safety to the forefront. This ₹500-crore facility now joins a long list of industrial sites where serious lapses in safety protocols have led to devastating outcomes. Unfortunately, such incidents are not isolated.

Data from the Labour Bureau reveals that nearly 10,000 workers died and over 60,000 were injured in Indian factories between 2008 and 2021. In 2024 alone, according to IndustriALL, over 240 industrial accidents occurred in sectors like manufacturing, mining, and energy resulting in more than 400 fatalities and upwards of 850 serious injuries. These figures point to a much larger issue: the inadequate enforcement of safety standards across workplaces in India.

Why Workplace Safety Compliance Must Be a Strategic Focus

One of the biggest barriers to improving safety is the way many companies perceive it as a regulatory obligation or operational expense. In reality, workplace safety should be treated as a core principle that underpins responsible business conduct. India has a well-established framework of safety laws; what’s needed is a sincere commitment to compliance from within the organisation.

From the Factories Act to rules governing gas storage, explosives, hazardous materials, and state-specific safety norms like the Andhra Pradesh Fire Service Act, a factory is subject to a wide range of legal and procedural requirements. These are not just checkboxes, they are structured to protect lives and ensure business continuity.

Navigating Compliance Requirements: A Case from Andhra Pradesh

To understand the extent of regulatory obligations, consider a factory operating in Andhra Pradesh. It must comply with approximately 1,100 regulatory requirements, of which more than 130 relate specifically to Environment, Health and Safety (EHS), and around 225 pertain to labour-related provisions.

These mandates are designed to minimise operational risks and protect workers. They include obtaining fire safety clearances, maintaining equipment like hoists and pressure vessels, training emergency response teams, and implementing standardised fire protection systems. In practice, this translates to measures like:

  • Framing and displaying emergency plans near entry points

  • Keeping logs of lifting equipment inspections (Form 37)

  • Regularly recharging and tagging fire extinguishers

  • Mounting extinguishers or placing them on designated trolleys

  • Conducting bi-monthly fire drills

  • Maintaining proper humidity and temperature records

  • Ensuring fire-resistant construction for gas storage areas

  • Annual testing of safety relief valves by certified professionals

  • Informing workers and nearby residents about emergency protocols

  • Installing and monitoring 24×7 surveillance at key locations

These may appear routine, but they serve as the foundation of a robust workplace safety ecosystem.

Regulatory Framework: Key Acts Governing Workplace Safety

In Andhra Pradesh, nearly 75 acts and rules may apply to a factory. These include:

  • Andhra Pradesh Fire Service Act, 1999

  • Andhra Pradesh Labour Welfare Fund Act, 1987

  • Public Safety (Measures) Enforcement Act, 2013

  • Environment (Protection) Act, 1986 and its various rules

  • Explosives Act, 1884 and Gas Cylinders Rules, 2016

  • Factories Act, 1948 & Andhra Pradesh Factories Rules, 1950

  • E-Waste (Management) Rules, 2022

These laws are comprehensive in scope, covering everything from fire prevention and chemical handling to employee welfare and environmental safeguards. However, compliance with them depends largely on implementation at the ground level.

The Enforcement Challenge: Systemic Gaps in Inspection and Oversight

Even with a strong legal framework, the system’s effectiveness is limited by its capacity. The Economic Survey 2024–25 notes that only 644 inspectors are currently responsible for monitoring compliance in over 3.2 lakh factories. This equates to one inspector for every 500 factories, a clear indicator of resource strain.

In states with high industrial density, like Maharashtra, the situation is just as pressing. Only 30 of the 105 sanctioned posts for factory inspectors are filled. This shortage not only delays inspections but also weakens enforcement. Key areas such as electrical safety, elevator inspections, and weights and measures suffer from inconsistent oversight, further widening the risk gap.

Leadership’s Role in Building a Culture of Compliance

The recent industrial accident in Andhra Pradesh is a sobering reminder of what can go wrong when workplace safety is not taken seriously. Building a culture of safety begins with leadership. Organisations must go beyond regulatory checklists and take genuine ownership of their safety practices.

Establishing a strong internal compliance framework and setting the right tone from the top are crucial steps. Safety cannot be delegated or outsourced; it must be deeply embedded into business strategy and day-to-day operations. Waiting for regulatory push or legal consequences should not be the driver for action.

The case for prioritising workplace safety is clear. It is not merely a compliance requirement or risk mitigation strategy it is a responsibility that reflects the values and integrity of an organisation. Every rule ignored or inspection delayed creates room for incidents that can cause irreversible harm.

In today’s industrial landscape, organisations must rise above the minimum requirements. Building safer workplaces is not just about following the law, it’s about doing what’s right. And that responsibility lies squarely with the business leaders who shape the culture, systems, and priorities of the organisations they lead.

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