ARTICLE
4 September 2025

When It Rains, It Pours – Navigating The Impact Of Climate Change On Employment

BA
BTG Advaya

Contributor

BTG Legal is an Indian law firm with particular focus on: defence; industrials; digital business; energy (renewables and nuclear); retail; transport (railways and electric vehicles); and financial services. Practices include corporate transactions, commercial contracting, public procurement, private equity, regulatory compliance, employment, disputes and white-collar crime.
Workplaces have undergone significant transformations since the onset of the pandemic, driven by extensive global shifts.
India Employment and HR

INTRODUCTION

Workplaces have undergone significant transformations since the onset of the pandemic, driven by extensive global shifts. Climate change is now poised to instigate further evolution within this landscape. Recently, various states across India have experienced severe conditions, including extreme heat and heavy rainfall.

In light of recent rains, the Brihanmumbai Municipal Corporation had issued work-from-advisories. Similarly, during summers in April 2025, Union Government issued an advisory to the administrators of all States and Union Territories. This communication outlined measures for managing the impact of extreme heat waves in India, particularly concerning the well-being of workers. The advisory, inter-alia, recommended the implementation of specific provisions, such as the rescheduling of working hours, the provision of adequate drinking water facilities, and the establishment of designated rest areas.

This article focuses on the potential ramifications of climate change on employer and explores some strategies for addressing these challenges, including the implementation of statutory measures.

EFFECTS OF CLIMATE CHANGE

The following are some effects of climate changes on employees, workplaces, and the employers, which must be taken into consideration:

  1. Occupational safety of workers:The occupational safety of workers stands as the most immediate and evident impact of climate change. The inherent heat generated by machinery, combined with extreme heat conditions,such as heatwaves, will render work in factory environments exceedingly challenging, if not impossible. Furthermore, workers relying on public transportation may encounter significant difficulties commuting to their workplaces. Consequently, an increase in absenteeism and a corresponding decrease in productivity is to be expected.
  1. Changing set-ups:The increasing prevalence of heavy rains and floods has necessitated a shift towards remote work arrangements. While the COVID-19 pandemic served as a notable precedent for evolving work setups, climate change indicates that this transformation is permanent. Employers must therefore adjust their work schedules to align with the growing imperative for remote operations. A broader implication of climate change for employers involves the potential impact on employees' willingness to relocate or undertake work-related travel. Prospective employees or existing staff may express reluctance to move to or travel to locations characterized by extreme climatic variations.
  1. Increasing costs for employers: Climate change directly contributes to increased operational costs for employers in several ways. However, this can be managed by carefully planning and evaluating alternatives, such as work from home, where possible.

LAWS ADDRESSING CLIMATE CHANGE AND EMPLOYMENT

While India's labour laws do not specifically address climate change, the Factories Act, 1948 ("Factories Act"), mandates various measures for factories to ensure the occupational health of their workers. One such provision is the requirement to supply cool drinking water during hot weather. Notably, Section 18 of the Factories Act specifies that factories employing over 250 workers must provide this facility.

Beyond this central legislation, several states, including Karnataka and Maharashtra, have further regulations that define the specific periods during which cool water must be accessible to workers. These regulations also require factories to maintain fresh and reasonably cool working environments.

It is crucial to understand that the Factories Act, along with its state-level rules, applies exclusively to 'factories' and not to all types of establishments. However, recent advisories from the Central Government and past notifications/circulars issued by various State Governments extend these expectations, requiring all employers and establishments to provide such facilities, among others, particularly during the summer and monsoon seasons.

HOW CAN ORGANISATIONS PREPARE FOR THIS?

Organizations must proactively prepare for the many effects of climate change, including increasing costs and operational challenges. Here are several key strategies to consider:

  • Work from home options: Organisations can explore work from home options for suitable positions. This keeps employees comfortable and safe at home, shielding them from harsh weather during their commutes. It also benefits organizations by potentially allowing them to move into smaller, more cost-effective office spaces.
  • Creating schedules/shifts in advance: Organizations should create schedules and shifts inadvance, taking predicted weather changes into account. This foresight can significantly reduce disruptions and hassle when weather-related advisories or circulars are issued, ensuring smoother operations.
  • Basicfacilities:To safeguard the occupational safety of employees, all establishments must ensure basic facilities are in place. This includes providing cold drinking water and ensuring that all premises have adequate ventilation to mitigate the effects of extreme temperatures.

CONCLUSION

Climate change poses a clear and ongoing challenge to employment in India, requiring organizations to fundamentally change how they prepare. It is already affecting worker safety, forcing new ways of working, and increasing costs, proving it is an immediate rather than future issue. While the Factories Act offers a basic safety framework, broader government advisories highlight that all employers share the responsibility for worker welfare. By proactively using strategies like flexible work, smart scheduling, and better facilities, companies can reduce risks, maintain operations, and build a workforce ready for climate change.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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