Working Hours Under the Labour Code with Overtime and Leave in 2026

Written by CA Nandini Hasija, Krystal7 Consultants. Last updated 23 October 2026.

The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) has been in force since 21 Nov 2025. Under it, a worker may work up to 8 hours a day and six days a week. Overtime needs the worker's consent and earns twice the rate of wages under section 27. Annual leave accrues at one day for every 20 days worked once a worker completes 180 days in a calendar year. Women may work at night with consent and safety conditions.

This page covers hours, overtime, weekly holidays, leave, night shifts, appointment letters and the overlap with state Shops and Establishments Acts. It ends with overtime and leave worked in rupees for an IT subsidiary.

What are the working hours under the labour code?

Section 25 of the OSH Code says no worker shall be required or allowed to work more than 8 hours in a day. Section 26 says no worker may work more than six days a week. Together they give a 48 hour week. The appropriate government notifies rest intervals and the spread over.

The Government brought the OSH Code into force on 21 Nov 2025 through S.O. 5321(E). The ministry announced the date that day. The Code subsumed 13 central laws, including the Factories Act, 1948, according to paragraph 2.7 of the ministry's Annual Report 2025-26. It did not repeal the state Shops and Establishments Acts that govern most offices.

Section 25(1) works in two parts:

1. Clause (a) sets the limit at 8 hours in a day.
2. Clause (b) requires the daily period to be fixed with intervals and spread overs that the appropriate government notifies.

The weekly figure comes from the ministry. Additional FAQ 24 of the Additional FAQs as on 16 Mar 2026 says the Code prescribes 8 hours a day. It treats work beyond 8 hours a day for a daily wager, or 48 hours a week, as overtime.

The Code on Wages, 2019 has a parallel rule for pay. Section 13 lets the appropriate government fix the hours that make a normal working day. Rule 5 of the Code on Wages (Central) Rules, 2026 (G.S.R. 343(E) of 8 May 2026) sets 8 hours for time rated employees, with intervals under the OSH Code. For other employees it caps the week at 48 hours.

For a private company office, the state is usually the appropriate government. Section 25(1)(b) leaves the intervals and spread over to its notification, so the limits sit in your state's rules or orders. Read your state's current notification before you fix a roster. Until your state's rules are final, its Shops and Establishments Act continues to set them, as covered below.

Who counts as a worker for the hours rules?

The hours, overtime and leave rules protect "workers" as defined in section 2(1)(zzl) of the OSH Code. A worker does manual, skilled, technical, operational, clerical or supervisory work. The definition excludes people employed mainly in a managerial or administrative capacity. It also excludes supervisors earning more than INR 18,000 a month.

The ministry's FAQs of 30 Dec 2025 confirm the INR 18,000 threshold in FAQ 14. Additional FAQ 20 says the leave provisions apply to workers and to supervisors with wages up to INR 18,000. Additional FAQ 22 adds that sales promotion employees fall within the worker definition in section 2(1)(zzl).

The test turns on the job, not the salary. On the text, a software engineer who writes code and manages no one does technical work and is a worker on INR 30,00,000 a year. A team lead who supervises five engineers and earns INR 25,000 a month is not.

Role in a typical IT subsidiary	Worker under section 2(1)(zzl)?	Why
Software engineer, analyst, tester with no reports	Yes	Technical work; not managerial or supervisory
Customer support associate	Yes	Operational or clerical work
Sales or business development executive who promotes sales	Yes	Sales promotion employees fall within the worker definition (Additional FAQ 22)
Team lead supervising others, earning above INR 18,000 a month	No	Supervisor above the wage threshold
Supervisor earning INR 18,000 a month or less	Yes	Below the threshold (FAQ 14)
Engineering manager, finance head, country director	No	Mainly managerial or administrative
Driver, office assistant, housekeeping staff on the payroll	Yes	Manual or operational work

The count of workers also decides whether the Code applies at all. Section 2(1)(v) defines an establishment as a place with ten or more workers, with separate rules for mines, dock work and notified hazardous activities. A 12 person subsidiary with three managers has nine workers on the text, so it sits outside the definition. The ministry's Compliance Handbook for Employers of February 2026 describes registration at 10 or more "employees". Count both ways and register if either count reaches 10.

A subsidiary below the threshold is not free of hours rules. The state Shops and Establishments Act still applies to the office, usually to every employee.

How is overtime calculated under the OSH Code?

Section 27 gives a worker twice the rate of wages for work beyond the hours prescribed for a day or a week. The overtime period is counted on a daily or weekly basis, whichever is more favourable to the worker. The employer may require overtime only with the worker's consent.

The section has a main rule and two provisos:

• Rate. Overtime earns "twice the rate of wages".
• Counting. The overtime period is calculated "on a daily basis or weekly basis, whichever is more favourable to such worker".
• Consent. The first proviso makes overtime "subject to the consent of such worker".
• Cap. The second proviso lets the appropriate government prescribe the total hours of overtime. Check the rules that cover your establishment for any cap before you plan release week hours.

Additional FAQ 24 says overtime is paid at the end of each wage period. Its answer refers to work beyond 8 hours in a day "as daily wager", or beyond 48 hours a week. Read alone, that suggests monthly paid workers earn overtime only above 48 hours a week. Section 27 points the other way, because it counts daily or weekly, whichever favours the worker.

We follow section 27, because the FAQ says the Code prevails if they differ. So we count overtime both ways each week and pay the higher figure. The worked example shows how far apart the two can be.

The Code on Wages adds a second route. Section 14 requires overtime at not less than twice the normal rate for an employee whose minimum rate of wages is fixed under the Code. Additional FAQ 5 says this covers supervisors and managers too, where their minimum rate is fixed. For most office managers, the state's minimum wage notification decides whether this route applies. Check the schedule of skill categories before assuming it does not.

Rule	What it says	Source
Daily limit	8 hours	OSH Code, section 25(1)(a)
Weekly limit	No more than six days; 48 hours in the ministry's reading	OSH Code, section 26(1); Additional FAQ 24
Intervals and spread over	As the appropriate government notifies	OSH Code, section 25(1)(b)
Overtime trigger	Hours prescribed for a day or week, counted whichever way favours the worker	OSH Code, section 27
Overtime rate	Twice the rate of wages	OSH Code, section 27; Code on Wages, section 14
Consent	Required	OSH Code, section 27, first proviso
Total overtime	As the appropriate government prescribes	OSH Code, section 27, second proviso
Payment	At the end of the wage period	Additional FAQ 24
Weekly holiday	Compensatory holiday within the same month or the next two months if an exemption removes it	OSH Code, section 26(3)

The rate of wages uses the Code wage definition, which section 2(1)(zzj) of the OSH Code adopts. We compute the hourly rate as monthly Code wages ÷ 26 ÷ 8. Rule 3 of the Code on Wages (Central) Rules, 2026 uses the same conversion for minimum wages. Our guide to the 50 percent wage rule explains how to compute Code wages.

A compensatory day off does not replace overtime pay under section 27. The section gives wages at twice the rate. A comp off policy can sit on top, but it cannot stand in for the payment.

Is a four day week allowed under the labour codes?

Not on 12 hour days as normal hours. Section 25 caps a worker's normal day at 8 hours. A 12 hour day therefore includes 4 hours of overtime, which needs consent, twice wages and room within the spread over and the overtime cap. The Code itself does not create a four day week.

Additional FAQ 24 was asked whether overtime applies after 8 hours where a state allows a 12 hour day. Its answer restates the 8 hour day and the 48 hour week, and does not deal with the 12 hour case. On section 27's daily count, four 12 hour days give 16 overtime hours a week, even though the week totals 48 hours.

A four day week of four 10 hour days is 40 hours. It still exceeds 8 hours on each day, so the daily count gives 8 overtime hours. A subsidiary that wants compressed weeks needs two things in writing first. One is your state's current notification or rules on the length of the working day, because the ministry has not answered the 12 hour question. The other is the worker's consent to the pattern.

What are the rules on weekly holidays, night shifts and shift notices?

A worker may not work more than six days in any week under section 26(1). If an exemption takes away a weekly holiday, section 26(3) requires a compensatory holiday within that month or the next two months. Sections 28 to 31 deal with night shifts, overlapping shifts, double employment and the notice of work periods.

The supporting rules are these:

• Night shifts. Under section 28, a worker whose shift runs past midnight gets the weekly holiday as 24 consecutive hours from the end of the shift. Hours after midnight count towards the previous day.
• Overlapping shifts. Section 29 bars relays doing the same kind of work at the same time, unless the government or the Chief Inspector cum Facilitator exempts the establishment in writing.
• Double employment. Section 30 bars a worker from working in a factory or mine who worked in a similar establishment in the preceding 12 hours.
• Notice of periods of work. Section 31 requires a displayed notice of the periods each day when workers may be required to work. A change needs advance notice to the Inspector cum Facilitator, and changes must be at least a week apart.

For an IT subsidiary, the shift notice is the one most often missed. Flexible hours do not remove it. We display the core hours and each shift pattern, and file changes before a new roster starts.

The Code on Wages central rules add a weekly rest day for employees. Rule 6 makes Sunday the default in a six day week and lets the employer choose another day with advance notice.

How does annual leave work under section 32?

A worker who has worked 180 days or more in a calendar year earns leave with wages at one day for every 20 days of work. Up to 30 unused days carry forward to the next year, and leave refused after an application carries forward without limit. On separation, the worker receives wages for all leave to their credit.

Rule	Detail	Clause of section 32(1)
Qualifying work	180 days or more in the calendar year	(i)
Accrual	1 day for every 20 days worked; 1 for 15 for adolescents and below ground mine workers	(ii)
Days that count	Lay off, maternity leave and annual leave count towards 180 days but earn no leave	(iii)
Holidays inside leave	Excluded from the leave taken	(iv)
Joiners after 1 January	Eligible if they work a quarter of the remaining days of the year	(v)
Exit	Wages for leave due, within two working days on discharge, dismissal or resignation; within two months on superannuation or death	(vi)
Carry forward	Up to 30 days; refused leave without limit	(vii)
Encashment at year end	On the worker's demand	(viii)
Leave above 30 days	Encashable	(ix)

The ministry has added three answers:

1. Additional FAQ 21 confirms the 30 day carry forward and the unlimited carry forward of refused leave.
2. Additional FAQ 26 says the Code sets no maximum for encashment. On separation, the worker encashes all leave to their credit.
3. Additional FAQ 25 says a more favourable state benefit continues. If your state law gives more leave than the Code, the worker keeps the higher figure.

The 180 day test in section 32(1)(i) is the Code's own. Offices were never under the repealed Factories Act, 1948. Their old leave rules came from the state Shops and Establishments Act, which continues.

Most IT subsidiaries already give more than one day for every 20 worked. The quantum is rarely the problem. The usual breach is a lapse rule. A policy that cancels unused leave above 10 days at year end conflicts with clause (vii). Workers can carry forward up to 30 days and encash more.

Can women work night shifts under the OSH Code?

Yes. Section 43 entitles women to be employed in all establishments for all types of work. With their consent, they may work before 6 am and after 7 pm. The appropriate government prescribes the conditions on safety, holidays and working hours that the employer must meet. The ministry's Compliance Handbook for Employers states the same in section 5.8.

The ministry's release of 21 Nov 2025 says women in IT and ITES may work night shifts in all establishments. For export sector night shifts, it names consent and safety measures such as safe transport and CCTV surveillance. The release of 25 Nov 2025 repeats that night work is subject to consent and the required safety measures.

The appropriate government prescribes the detailed conditions, so the list sits in the rules of the government that covers you. For a state office, read your state's OSH rules, and its Shops and Establishments Act where the rules are not final. The Handbook says only that the employer must get consent and follow the prescribed safety measures.

In practice, we put four controls in place before a woman works a night shift:

1. Written consent for the shift pattern. We let the employee withdraw it.
2. Transport from home and back, with a log of each trip.
3. A lit workplace and entry, CCTV and emergency numbers on display.
4. An Internal Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 that covers night shifts.

Section 44, headed "Adequate safety of employment of women in dangerous operation", requires safeguards before women work in a dangerous operation. That rarely touches an IT office, but it can reach a lab or a data centre.

What must an appointment letter contain?

Section 6(1)(f) of the OSH Code requires the employer to issue a letter of appointment to every employee on appointment. The rules prescribe the form. An employee who had none when the Code started had to receive one within three months of commencement, so by 21 Feb 2026. The duty sits among the employer duties of an establishment the Code covers.

Rule 6 of the OSH (Central) Rules, 2026 (G.S.R. 345(E) of 8 May 2026) bars employment until the letter is issued, in the central sphere. It lists the contents, including name, date of birth, worker ID, UAN or ESI number, designation, type of employment and skill category. It also covers the joining date, wages and allowances, social security coverage, broad duties and, for women, maternity benefits.

The same rules handle health checks. Rule 5 requires a free annual medical examination for employees who have completed 40 years in the sectors it names, which include dock work and mines. The ministry's release of 21 Nov 2025 describes a free annual health check for all workers above 40. Additional FAQ 27 says the central rules apply only where the Centre is the appropriate government. For an office, the state's rules decide.

We add the hours, overtime and leave terms to each letter. A letter that says "hours as per business needs" leaves the employer unable to prove consent to overtime.

How do state rules and Shops and Establishments Acts fit with the OSH Code?

Both apply. Labour is on the Concurrent List, so states legislate alongside the Centre, as the ministry's Annual Report 2025-26 notes. The OSH Code repealed only central Acts. Each state's Shops and Establishments Act still governs office registration, hours, holidays and leave.

Three rules decide which provision wins:

• The Code prevails where the two conflict. Additional FAQ 25 says so for leave.
• A more favourable state benefit continues. The same FAQ keeps the higher state entitlement.
• Old rules continue until new ones arrive. FAQ 1 of 30 Dec 2025 says existing rules stay in force so far as they fit the Codes, relying on the General Clauses Act, 1897.

In practice, we apply the stricter limit to the employer and the higher benefit to the worker. If a state Act allows 9 hours a day, we still count overtime from the Code's 8 hours. The ministry has not said that a longer state day moves the trigger. If a state Act gives 18 days of leave, the worker keeps 18.

State	Shops and establishments law that continues	Check before changing policy
Karnataka	Karnataka Shops and Commercial Establishments Act, 1961	State OSH rules; any IT and ITES exemption order
Maharashtra	Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017	Final state OSH rules in the state gazette
Haryana	Punjab Shops and Commercial Establishments Act, 1958, as applied in Haryana	State OSH rules; night work permissions
Tamil Nadu	Tamil Nadu Shops and Establishments Act, 1947	State OSH rules; any IT and ITES exemption order
Telangana	Telangana Shops and Establishments Act, 1988	State OSH rules; any IT and ITES exemption order
Delhi	Delhi Shops and Establishments Act, 1954	Delhi OSH rules; night work permissions

Some states exempt IT and ITES establishments from parts of their Shops and Establishments Acts, with conditions on hours, leave and women's safety. Check your state's current exemption order and its conditions. An exemption under a state Act does not exempt you from the OSH Code. Read both before you rely on either. Our shops and establishments registration service checks the state side.

To choose where to base an IT subsidiary, our guide to the best city for a tech company compares four hubs, from Bengaluru to Gurugram.

Does an IT subsidiary need OSH Code registration?

Yes, once it has ten or more workers. Section 3 requires an establishment to apply electronically within 60 days of the Code applying to it. The registering officer must issue the certificate within the prescribed time, failing which the establishment is deemed registered. Changes in ownership or management must be reported within 30 days.

Section 3(8) treats an establishment already registered under a Central labour law as registered under the Code, once it provides its details to the registering officer. The Compliance Handbook says the same. A Shops and Establishments registration is a state one, so a subsidiary with only that registration should apply.

In the central sphere, rule 3 of the OSH (Central) Rules, 2026 uses Form I on the Shram Suvidha portal. The certificate comes in Form III within seven days of a complete application, or the establishment is deemed registered. Establishments already registered under other central laws must update Form I within six months of the rules starting, so by 8 Nov 2026. A state office uses the portal its state names.

What must an IT subsidiary change?

Start with classification. Mark every role as worker or non worker, because the hours, overtime and leave rules turn on it. Then fix the overtime process, the leave policy, night shift controls, appointment letters and registration. The table sets out each change against the current practice we usually see.

Area	Common practice in a foreign owned IT subsidiary	What to change	Section
Classification	Everyone treated as "salaried staff"	Mark workers and non workers by role	OSH Code, section 2(1)(zzl)
Hours	Global 40 hour policy, hours not recorded	Record daily hours for workers; keep to 8 a day and six days a week	Sections 25 and 26
Overtime	No overtime; comp off for release weeks	Written consent, approval before the work, pay at twice the rate	Section 27
Compressed weeks	Four 10 hour days by team choice	Check state notification; count daily overtime	Sections 25 and 27
Leave	20 days with a lapse rule above 10	Carry forward up to 30 for workers; encash on demand and on exit	Section 32
Exit	Leave encashed in the full and final at 45 days	Leave wages within two working days of resignation	Section 32(1)(vi)
Night shifts	Informal for women on global calls	Written consent, transport and safety measures	Section 43
Appointment letters	Parent's template offer	Letter in the prescribed form with hours and leave terms	Section 6(1)(f)
Shift notice	None for flexible hours	Display core hours and shift patterns	Section 31
Registration	State Shops and Establishments certificate only	OSH Code registration at ten workers	Section 3

Hours, rest intervals, leave and holidays are Third Schedule matters under section 40 of the Industrial Relations Code. Give the workers affected 21 days' notice before any change. Our payroll management team builds the overtime and leave computations into the monthly run.

What changed in 2026

The OSH Code took effect on 21 Nov 2025, and the rules and FAQs arrived during 2026. The table compares the position for a typical office and factory.

Topic	Before 21 Nov 2025	From 21 Nov 2025	Instrument
Governing law for hours	Factories Act, 1948 for factories; state Shops and Establishments Act for offices	OSH Code for establishments with ten or more workers; state Act continues	S.O. 5321(E)
Daily hours	Set by the Factories Act or the state Act	8 hours a day; intervals and spread over by notification	OSH Code, section 25
Overtime	Set by the Factories Act for factories and by state Acts for offices	Twice the rate, with consent, counted daily or weekly in the worker's favour	OSH Code, section 27
Annual leave threshold	Factories Act day count; state Acts varied	180 days in a calendar year	OSH Code, section 32
Women at night	Restricted in many occupations	All establishments, with consent and safety conditions	OSH Code, section 43; PIB, 21 Nov 2025
Appointment letters	Practice varied by employer and state	Required for every employee; existing staff by 21 Feb 2026	OSH Code, section 6(1)(f)
Official reading of the hours rules	None	Overtime after 8 hours a day for daily wagers or 48 a week; leave carry forward and encashment answered	MoLE Additional FAQs, 16 Mar 2026
Central rules	Rules under the repealed Acts	OSH (Central) Rules, 2026 and Code on Wages (Central) Rules, 2026	G.S.R. 345(E) and 343(E), 8 May 2026

Draft central rules under all four codes were published for comment on 30 Dec 2025, according to the ministry's Annual Report 2025-26. The final central rules followed on 8 May 2026. State rules vary, so check your state gazette before changing forms or registers.

Worked example

Scenario 1. Overtime in a release week. An engineer at a Hyderabad IT subsidiary is a worker under section 2(1)(zzl), with no reports. Code wages are INR 80,000 a month. She consents in writing to overtime during a release week.

Her hourly rate is INR 80,000 ÷ 26 ÷ 8 = INR 384.62. The overtime rate is twice that, or INR 769.23 an hour.

Day	Hours worked	Hours over 8
Monday	11	3
Tuesday	11	3
Wednesday	10	2
Thursday	9	1
Friday	9	1
Week total	50	10 on the daily count; 2 on the weekly count (50 minus 48)

On the daily count, overtime is 10 hours × INR 769.23 = INR 7,692. On the weekly count in Additional FAQ 24, it is 2 hours, or INR 1,538. Section 27 counts whichever is more favourable to the worker, so we pay INR 7,692 at the end of the wage period. Three such weeks in a month cost INR 23,077, against INR 4,615 on the weekly count.

Scenario 2. A compressed week. A team asks for four 12 hour days, 48 hours in all. On the daily count, each day has 4 overtime hours, so the week has 16. At INR 769.23 an hour, that is INR 12,308 a week for this engineer. The weekly count gives nil, and the gap is why we do not run compressed weeks until the state's rules settle the point.

Scenario 3. Leave for a mid year joiner. A tester joins on 1 Jul 2026. The rest of 2026 has 184 days, and a quarter of that is 46. He works 120 days by 31 Dec 2026, so clause (v) of section 32(1) applies. He earns 6 days of leave (120 ÷ 20).

Scenario 4. Leave on resignation. The engineer from scenario 1 resigns with 18 days of leave to her credit. We pay leave wages of INR 55,385 (INR 80,000 ÷ 26 × 18). Section 32(1)(vi) requires payment before the end of the second working day after she quits. Her final wages fall due on the same timetable under section 17(2) of the Code on Wages.

Common mistakes

1. Treating well paid engineers as outside the hours rules. The worker test turns on the job, not pay, unless the person supervises. Fix: classify every role under section 2(1)(zzl).
2. Counting overtime only above 48 hours a week. Section 27 counts daily or weekly, whichever favours the worker. Fix: compute both each week and pay the higher figure.
3. Using comp off instead of overtime pay. Section 27 gives twice the rate of wages. Fix: pay overtime and offer comp off only on top.
4. Running overtime without consent. The first proviso to section 27 requires the worker's consent. Fix: take written consent before the release week, not after.
5. Lapsing leave above a low carry forward. Workers may carry forward up to 30 days and encash more. Fix: rewrite the lapse rule for workers.
6. Paying leave encashment in the 45 day settlement. Section 32(1)(vi) requires it within two working days of resignation. Fix: run leave encashment with the final wages.
7. Assuming a state exemption covers the OSH Code. An IT exemption under a state Act does not exempt you from the Code. Fix: read both and keep the stricter rule.
8. Skipping the shift notice for flexible hours. Section 31 still applies. Fix: display core hours and shift patterns.
9. Changing hours or leave without notice. These are Third Schedule matters under section 40 of the IR Code. Fix: give workers 21 days' notice first.

Checklist

1. Classify every role as worker or non worker under section 2(1)(zzl).
2. Count workers and employees to test the ten worker establishment threshold.
3. Register under the OSH Code within 60 days of reaching the threshold.
4. Record daily hours for every worker, including those working from home.
5. Take written consent before any overtime and record approvals.
6. Compute overtime on the daily and weekly counts and pay the higher amount.
7. Display the notice of periods of work and file changes before new rosters.
8. Rewrite the leave policy for the 180 day threshold, 30 day carry forward and encashment.
9. Pay leave encashment and final wages within two working days of a resignation.
10. Put written consent, transport and safety measures in place before women work night shifts.
11. Issue appointment letters in the prescribed form with hours, overtime and leave terms.
12. Check your state's OSH rules and Shops and Establishments Act and keep the stricter rule.
13. Give 21 days' notice to workers before changing hours, intervals, leave or holidays.
14. Add registration and policy review dates to your 2026-27 compliance calendar.

For the other labour code changes, see our overview of the new labour codes for foreign owned companies and our note on gratuity under the Code on Social Security.

Frequently Asked Questions

What are the maximum working hours under the new labour code?+

Eight hours a day under section 25 of the OSH Code, 2020, and no more than six days a week under section 26. The ministry's Additional FAQ 24 of 16 Mar 2026 reads this as 48 hours a week. Work beyond the prescribed hours is overtime, which needs the worker's consent and earns twice the rate of wages.

Is overtime paid at double wages under the OSH Code?+

Yes. Section 27 of the OSH Code gives a worker twice the rate of wages for overtime. Section 14 of the Code on Wages gives at least twice the normal rate to employees whose minimum wage is fixed. Additional FAQ 24 says overtime is paid at the end of each wage period.

Is overtime counted daily or weekly under the OSH Code?+

Section 27 counts the overtime period on a daily or weekly basis, whichever is more favourable to the worker. Additional FAQ 24 mentions 8 hours a day for daily wagers and 48 hours a week. Where the two readings differ, we follow the Code and pay on whichever count gives the worker more.

Can an employer make overtime compulsory?+

No. The first proviso to section 27 of the OSH Code, 2020 makes overtime subject to the worker's consent. Take written consent before the overtime starts, and keep it with the overtime register. The appropriate government may also cap the total overtime hours a worker can do.

Do managers get overtime under the labour codes?+

Not under the OSH Code, which excludes managerial and administrative staff and supervisors earning above INR 18,000 a month. Section 14 of the Code on Wages is wider. Additional FAQ 5 says any employee whose minimum rate of wages is fixed under the Code, including a manager, is eligible.

Do software engineers count as workers under the OSH Code?+

Yes, if they do not mainly manage or supervise. Section 2(1)(zzl) covers technical work and excludes only managerial or administrative staff and supervisors earning more than INR 18,000 a month. On the text, an engineer with no reports is a worker whatever the salary, so the hours, overtime and leave rules apply.

Does the labour code allow a four day work week?+

Not as four 12 hour normal days. Section 25 caps the normal day at 8 hours, so the extra hours are overtime that needs consent and twice wages. Additional FAQ 24 did not settle the 12 hour case. Check your state's notification and take the worker's consent before you run a compressed week.

When does a worker become entitled to annual leave under the OSH Code?+

After working 180 days or more in a calendar year, under section 32(1)(i) of the OSH Code, 2020. Leave accrues at one day for every 20 days of work. A worker who joins after 1 January qualifies by working a quarter of the remaining days in that year, under clause (v).

How many days of leave can be carried forward under the OSH Code?+

Up to 30 days, under section 32(1)(vii) of the OSH Code, 2020, which the ministry's Additional FAQ 21 confirms. Leave that the worker applied for and the employer refused carries forward without limit. Leave above 30 days is encashable under clause (ix), and the worker can demand encashment at year end.

Is leave encashment mandatory on resignation?+

Yes, for workers. Section 32(1)(vi) of the OSH Code gives wages for leave due on discharge, dismissal or resignation. They are due before the end of the second working day. On superannuation or death, the deadline is two months. Additional FAQ 26 says all leave to the worker's credit is encashed on separation.

Can women work night shifts in an IT company in India?+

Yes. Section 43 of the OSH Code, 2020 allows women to work before 6 am and after 7 pm in all establishments, with their consent. The appropriate government prescribes safety conditions. The ministry's release of 21 Nov 2025 confirms night shifts for women in IT and ITES. Record consent and arrange safe transport.

Do the OSH Code hours rules apply to a subsidiary with eight employees?+

Usually not. Section 2(1)(v) defines an establishment as a place with ten or more workers. The Code's registration, hours and leave rules apply to establishments. The state Shops and Establishments Act still governs hours and leave for a smaller office. Appointment letters under section 6(1)(f) are best issued anyway.

Does the Shops and Establishments Act still apply after the OSH Code?+

Yes. The OSH Code repealed 13 central laws, not the state Shops and Establishments Acts. Where the two differ, the Code prevails, but a more favourable state benefit continues, as Additional FAQ 25 says for leave. In practice, apply the stricter limit on hours and the higher leave entitlement.

What is the deadline for appointment letters to existing employees?+

Section 6(1)(f) of the OSH Code required employers to issue letters to employees in service on the Code's start within three months. The Code started on 21 Nov 2025, so the deadline was 21 Feb 2026. If you missed it, issue the letters now in the prescribed form and keep signed copies.

Sources

• Ministry of Labour and Employment, The Occupational Safety, Health and Working Conditions Code, 2020 (Act 37 of 2020), https://www.labour.gov.in/static/uploads/2025/07/36fcfa5d8e6b9145e282bf7b950d6c47.pdf
• India Code, The Occupational Safety, Health and Working Conditions Code, 2020, https://www.indiacode.nic.in/bitstream/123456789/22041/1/2020-37.pdf
• Ministry of Labour and Employment, The Code on Wages, 2019 (Act 29 of 2019), https://www.labour.gov.in/static/uploads/2025/06/c328da14bbb15fc4ad571dc33e7a4ab3.pdf
• Ministry of Labour and Employment, The Industrial Relations Code, 2020 (Act 35 of 2020), https://www.labour.gov.in/static/uploads/2025/07/682a44b5426bff2c1f4943ee1b2fd566.pdf
• Ministry of Labour and Employment, FAQs on Labour Codes, 30 Dec 2025, https://www.labour.gov.in/static/uploads/2026/01/de4758d5bfeffc456d7de97a801891b0.pdf
• Ministry of Labour and Employment, Additional FAQs on Labour Codes (as on 16 Mar 2026), https://www.labour.gov.in/static/uploads/2026/03/a4ccf4c6d97c4f1f36a6d83f8c64213d.pdf
• Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes (Central Government Sphere), February 2026, https://www.labour.gov.in/static/uploads/2026/02/83978455025732b99b0165def80ab171.pdf
• Gazette of India, Occupational Safety, Health and Working Conditions (Central) Rules, 2026, G.S.R. 345(E), 8 May 2026, https://www.labour.gov.in/static/uploads/2026/05/ee246f790cad0b8e99c3828f34fa09a6.pdf
• Gazette of India, Code on Wages (Central) Rules, 2026, G.S.R. 343(E), 8 May 2026, https://www.labour.gov.in/static/uploads/2026/05/6eb0c35ba63b776487a025e5123b6b12.pdf
• Ministry of Labour and Employment, Annual Report 2025-26, https://www.labour.gov.in/static/uploads/2026/06/4b7ec0e8206aa4860576d6f75b432e97.pdf
• Press Information Bureau, Government Makes the Four Labour Codes effective to Simplify and Streamline Labour Laws, 21 Nov 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2192463
• Press Information Bureau, Union Government's Four Labour Codes Simplify and Streamline Labour Laws, 25 Nov 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2194018