Col Ashok Kumar Singh (Retd.)
From Watchmen to Professionals:
How New Labor Codes are Globalizing PSI
The Private Security Industry (PSI) in India has long occupied a unique position as a critical bridge between public safety and private enterprise. Traditionally characterized by high labor intensity and a fragmented regulatory history under the PSARA (2005), the sector is currently undergoing a radical metamorphosis. This change is driven by the implementation of the four New Labor Codes – on wages, social security, industrial relations, and occupational safety, health, and working conditions.
At the heart of this transition is the ‘Global Quality Standard’ imperative. As the Codes mandate increased formalization – through compulsory appointment letters, digitized payrolls, and stringent social security compliance – they effectively narrow the gap between Indian statutory requirements and international benchmarks such as ISO 18788 (Security Operations Management) and ISO 45001 (Occupational Health and Safety).
For Indian security agencies, this legislative overhaul is a double-edged sword. While it introduces significant cost implications through a broader definition of ‘wages’ and mandatory social security contributions for a massive migrant workforce, it also offers a path to global competitiveness. By institutionalizing the ‘Quality-First’ approach, the New Labor Codes are decoding a future where the Indian private security guard is not just a ‘watchman’ but a ‘protected, trained & certified professional’ operating within a framework of global excellence.
Here, I have explored, how these legislative reforms act as a conduit for global standards, transforming the PSI from a low-margin unorganized sector into a robust, quality-driven industry ready for the world stage.
Key themes
The three critical ‘Impact Pillars’ which have been given weightage here:
- Professionalization through ISO Alignment: How the Occupational Safety (OSH) Code mirrors the safety protocols required by international clients.
- The Digital Dividend: The shift from manual registers to the ‘One Nation, One Portal’ system as a step toward global transparency.
- Human Rights & Ethics: How the Social Security Code aligns with the International Code of Conduct for Private Security Service Providers (ICoC) by ensuring worker dignity.
To connect the Code on Wages with ISO 9001 (Quality Management Systems), one needs to focus on how legal compliance acts as the foundation for ‘Quality.’ In the ISO framework, a service cannot be considered ‘high quality’ if it does not meet the statutory and regulatory requirements of the land.
The intersection of the Code on Wages and ISO 9001:2015
For a Private Security Agency (PSA), maintaining an ISO 9001:2015 certification is more than a badge of honour; it is often a mandatory requirement for high-value government and multi-national tenders. The core of ISO 9001 is Clause 8.2.2, which mandates that an organization must meet the ‘statutory and regulatory requirements’ related to its services.
With the enforcement of the Code on Wages (2019/ 2020), the definition of quality in the Indian security sector has been recalibrated.
Standardization of the ‘Wage Ceiling’
Under the old regime, fragmented definitions of wages allowed for creative accounting, which often led to non-compliance during audits. The New Code simplifies this by ensuring that ‘allowances’ cannot exceed 50% of the total remuneration.
- Impact on ISO Compliance: This standardization streamlines Clause 7.1.5 (Monitoring and Measuring Resources). For a security firm, the ‘resource’ is the human guard. If the wage structure is legally opaque, the agency fails the ISO audit on risk management and resource integrity.
Risk-Based Thinking (Clause 6.1)
ISO 9001:2015 emphasizes risk-based thinking. The New Labor Codes introduce stiff penalties for non-compliance, including higher arrears and potential imprisonment for directors.
- Old Risk: Minor fines for delayed payments.
- New Risk: Business continuity threat due to license revocation under PSARA if wage codes are violated. By adhering to the strict payment timelines (wages paid by the 7th of every month), agencies are effectively fulfilling the process control requirements of ISO, ensuring a stable and motivated workforce that reduces service delivery failures.
Documentation and Transparency
The Code on Wages mandates digitized registers and electronic pay slips. This creates an ‘audit trail’ which is the backbone of ISO Clause 7.5 (Documented Information). When an ISO auditor reviews a security agency, the ability to produce instant, digital proof of fair wage distribution serves as primary evidence of an ‘effective management system.
Summary Table: Compliance vs. Quality
| New Labor Code Provision | ISO 9001:2015 Connection | Impact on Global Standards |
| 50% Allowance Cap | Clause 8.2 (Service Requirements) | Eliminates wage-parity disputes. |
| Timely Wage Payment | Clause 7.1.2 (People/Resources) | Reduces turnover and improves guard vigilance. |
| Digital Wage Slips | Clause 7.5 (Documented Info) | Ensures transparency for global client audits. |
Occupational Safety, Health, and Working Conditions (OSH) Code
In the private security industry, the ‘product’ being sold is essentially ‘risk mitigation’. Therefore, the Occupational Safety, Health, and Working Conditions (OSH) Code is perhaps the most critical legislative link to global standards, specifically ISO 45001:2018 (Occupational Health and Safety Management Systems).
At the heart of this transition is the ‘Global Quality Standard’ imperative. As the Codes mandate increased formalization – through compulsory appointment letters, digitized payrolls, and stringent social security compliance – they effectively narrow the gap between Indian statutory requirements and international benchmarks such as ISO 18788 (Security Operations Management) and ISO 45001 (Occupational Health and Safety)
Aligning the OSH Code with ISO 45001: Safety as a Service
While the Code on Wages handles the financial integrity of the industry, the OSH Code focuses on the physical integrity of the security force. In an industry where personnel are often deployed in hazardous environments – ranging from volatile industrial sites to high-traffic ATM cash loading – safety is not an elective; it is a core deliverable.
Duty of Care: The Employer’s Mandate
The OSH Code introduces a universal ‘Duty of Care,’ requiring employers to provide a workplace free from hazards. This mirrors ISO 45001 Clause 5.1 (Leadership and Worker Participation), which demands that top management take responsibility for preventing work-related injury and ill health.
- The Global Standard: International clients (such as tech giants or global banks) perform due diligence on security partners to ensure their guards aren’t working in sub-standard conditions.
- The Legislative Trigger: The OSH Code mandates annual health check-ups and formalized appointment letters that clearly define the nature of the risk involved in the duty.
Hazard Identification and Risk Assessment (HIRA)
A central pillar of ISO 45001 Clause 6.1 is the systematic identification of hazards. Traditionally, Indian security agencies treated safety as the ‘client’s responsibility.’ The New OSH Code shifts this burden, making the security agency legally responsible for the safety of its personnel, regardless of the site of deployment.
- Strategic Shift: Security agencies must now conduct joint risk assessments with their clients. This elevates the agency from a ‘manpower supplier’ to a ‘safety consultant’ a transition that is essential for achieving ISO 45001 certification.
Welfare Facilities and Working Hours
The OSH Code provides strict guidelines on working hours, overtime, and the provision of basic welfare facilities (restrooms, drinking water, and first aid).
- Impact on Fatigue Management: Fatigue is the leading cause of security breaches globally. By limiting excessive overtime, the OSH Code enforces the ‘fatigue management’ protocols required by ISO 18788 (Security Operations Management System).
- Dignity of Labor: Providing adequate facilities is no longer just a ‘best practice;’ it is a statutory requirement that directly influences the Performance Evaluation (Clause 9) of an ISO-certified management system.
Comparison: OSH Code vs. ISO 45001
| OSH Code Requirement | ISO 45001 Requirement | Synergistic Outcome |
| Annual Health Exams | Clause 8.1.2 (Hazard Elimination) | Proactive identification of guard unfitness. |
| Mandatory Safety Training | Clause 7.2 (Competence) | Improved response to emergencies & fires. |
| Overtime Regulation | Clause 8.1 (Operational Planning) | Reduced human error and liability. |
| Workplace Welfare | Clause 5.4 (Worker Participation) | Higher retention and improved moral. |
The OSH Code effectively codifies the safety requirements that were previously only found in high-end international contracts. For a Private Security Agency in India, compliance with the OSH Code is no longer a legal chore – it is a pre-requisite for ISO 45001, transforming safety from a cost centre into a competitive advantage in the global market.
Changes likely to impact ‘Brand India’ in the global security market
The shift toward the New Labor Codes (2025/ 2026) is not just a domestic compliance exercise; it is a strategic rebranding of the Indian workforce. By shedding colonial-era complexities, the Private Security Industry (PSI) is required to position itself as a high-integrity partner for the global market.
The transition from a fragmented regulatory landscape to the unified framework of the New Labor Codes represents more than just legal progress; it is a ‘soft power’ milestone for India. As the world’s most populous nation formalizes its workforce, the Private Security Industry stands as a primary beneficiary of this enhanced global perception.
From Low-Cost to High-Compliance
Historically, India’s security sector was viewed by international investors as a low-cost, high-risk labor pool. The implementation of the Codes – coupled with India’s 2025 International Social Security Association (ISSA) Award – signals a shift. Global Capability Centers (GCCs) and Fortune 500 companies increasingly prioritize ‘Ethical Sourcing.’ An Indian security agency that can demonstrate 100% compliance with the Code on Social Security and Code on Wages effectively eliminates the reputational risk for these global clients.
Alignment with International Benchmarks
The Codes bridge the gap between Indian law and the International Labour Organization (ILO) principles. By mandating:
- Universal Appointment Letters: Aligning with global transparency standards.
- Portability of Benefits (UAN): Supporting a modern, mobile workforce.
- Gender-Neutral Workspaces: Opening high-skilled roles (e.g., control room monitoring and executive protection) to women with guaranteed safety.
These reforms make Indian security firms ‘investment-ready’ for global mergers and acquisitions (M&A) and allow them to compete for international contracts in the Middle East, Southeast Asia, and beyond.
Infographic: A ‘Before vs. After’ comparison showing
the leap from 19% social security coverage (2015)
to over 64% (2025/2026).
The ‘Global Bridge’ Diagram: A visual showing how the
4 Codes (Wages, OSH, IR, Social Security) act as the four
pillars supporting an ISO 18788 certification.
The Code on Wages mandates digitized registers and electronic pay slips. This creates an ‘audit trail’ which is the backbone of ISO Clause 7.5 (Documented Information). When an ISO auditor reviews a security agency, the ability to produce instant, digital proof of fair wage distribution serves as primary evidence of an ‘effective management system
The Digital Dividend
The shift to the Shram Suvidha Portal and digital audit trails mirrors the data integrity requirements of the West. When an Indian security firm can provide real-time, digital proof of wage parity and safety training, it moves from being a local vendor to a global strategic partner. The New Labor Codes have successfully decoded the complexity that once held the Indian security industry back. By institutionalizing quality through legislation, India is no longer just providing guards – it is exporting Global Standard Security Solutions. The era of the unorganized watchman is over; the era of the certified security professional has begun.
Conclusion
The Indian Private Security Industry (PSI) is at a crossroads, transitioning from a historically unorganized sector to a formalized powerhouse. As India marches toward its goal of becoming a global economic powerhouse, the Private Security Industry (PSI) must realize that it is the silent custodian of this growth. While the road to alignment with international benchmarks is paved with challenges – from regulatory hurdles to training gaps – the transition is inevitable. Ultimately, quality means doing it right when the world isn’t even looking – because eventually, the world will look. The global stage is set; it is now up to the Indian PSI to decide if it is ready for its close-up or just its debut.
The integration of Indian PSI with global quality standards is no longer a matter of prestige; it is a matter of survival in a borderless economy. To compete on the world stage, we must move away from the lowest-bidder mindset and embrace a value-driven approach. In the global marketplace, quality is no longer a differentiator – it is the entry fee. For the Indian PSI, the choice is simple: standardize or subsidize the cost of failure. Only by adopting these rigorous standards can we ensure that Indian security firms are not just local players, but global leaders. Bracing for global standards requires more than just updated manuals; it requires a fundamental shift in organizational DNA. We cannot build a ‘New India’ on the foundations of yesterday’s logic. If we are to bridge the gap between our current capabilities and international expectations, we must move from a culture of compliance to a culture of conscience. Global standards aren’t barriers to trade; they are the bridges to it. The Indian PSI is ready to cross – but only if it leaves the baggage of inconsistency behind.
Col AK Singh is a highly accomplished Army officer with 34 years of distinguished service, demonstrating exceptional leadership across diverse domains, terrains and designations. Commanded a unit during the Kargil operations with distinction, earning Unit Citation, a recognition for operational excellence under extreme conditions and a testament to resilience and tactical acumen under the most challenging conditions.
In the second phase of his career, He spearheaded Training & Development, the most critical vertical of India’s fourth-largest private security agency for over 11 years. Played a pivotal role in shaping industry standards and workforce capability in collaboration with CAPSI, BIS and FSAI.
As an established thought leader in the Indian Private Security Industry, He actively contributes through insightful articles, keynote addresses and participation in leading industry forums. His passion lies in knowledge sharing, fostering innovation and driving progressive change in security paradigms.
