OSH Code 2020 Explained (2026): Working Hours, Leave, Safety

Quick answer: The OSH Code has applied since 21 November 2025. Work is capped at 8 hours a day and 48 a week, with overtime at twice the wage rate and only with consent. Annual leave is 1 day for every 20 days worked, once you have worked 180 days in the year (earlier 240). Contract labour rules apply from 50 contract workers.

The Occupational Safety, Health and Working Conditions Code, 2020, known as the OSH Code, governs working hours, leave, safety, welfare facilities, women's night work, contract labour and inter-state migrant workers. It is one of the four new Labour Codes. It replaced 13 laws, including the Factories Act, 1948 and the Contract Labour Act, 1970. It came into force on 21 November 2025, and the central rules under it took effect on 8 May 2026.

The headline rules:

Working hours: 8 a day and 48 a week, with overtime at twice the wage rate and only with the worker's consent.
Annual leave: one day for every 20 days worked, once you have worked 180 days in the year.
Factory definition: now 20 workers with power or 40 without.
Contract labour rules: apply from 50 contract workers.
Women: can work night shifts with their consent.
Appointment letters: mandatory for every worker.

OSH Code 2020 explained: 8 hours a day and 48 a week, overtime at twice wages with consent, 1 day leave per 20 days worked, factory 20/40 workers, contract labour 50+, women night shifts with consent

OSH Code at a glance

In force	21 November 2025; central rules effective 8 May 2026; states notify their own rules
Applies to	Establishments with 10 or more workers. Mines and docks are covered whatever the size. Factory provisions apply at 20 workers (with power) or 40 (without power)
Working hours	8 hours a day and 48 hours a week. Some daily flexibility is allowed within the weekly cap, as rules permit
Overtime	At twice the ordinary rate of wages, with the worker's consent
Annual leave	1 day per 20 days worked (1 per 15 for adolescents and underground mine workers), after 180 days' work in the calendar year
Leave carry-forward	Up to 30 days; leave above that can be encashed
Women at night	May work before 6 a.m. and after 7 p.m. with consent and the safety conditions the rules prescribe
Contract labour	Applies to establishments and contractors with 50 or more contract workers (earlier 20)
Health check-up	Free annual check-up for workers aged 40 and above, where prescribed

Higher worker thresholds take many small units out of these rules

Number of workers at which the rule starts to apply, earlier law vs OSH Code

Earlier lawOSH Code

Factory, with power

10 workers

20 workers

Factory, without power

20 workers

40 workers

Contract labour rules

20 contract workers

50 contract workers

Source: OSH Code, 2020, Sections 2 and 45; Factories Act, 1948; Contract Labour Act, 1970

The 13 laws it replaced

Factories Act, 1948
Plantations Labour Act, 1951
Mines Act, 1952
Working Journalists and other Newspaper Employees Act, 1955
Working Journalists (Fixation of Rates of Wages) Act, 1958
Motor Transport Workers Act, 1961
Beedi and Cigar Workers Act, 1966
Contract Labour (Regulation and Abolition) Act, 1970
Sales Promotion Employees Act, 1976
Inter-State Migrant Workmen Act, 1979
Cine-Workers and Cinema Theatre Workers Act, 1981
Dock Workers (Safety, Health and Welfare) Act, 1986
Building and Other Construction Workers Act, 1996

Working hours and overtime

Normal limits: 8 working hours a day and 48 a week, with a weekly day of rest.
Flexibility: the government's summary describes daily hours of 8 to 12 within the 48-hour weekly cap. Longer days (for example, a four-day week of 12-hour days) are possible only where the rules permit, with rest intervals and spread-over limits.
Overtime: paid at twice the ordinary rate of wages, and only with the worker's consent (Section 27). Hours beyond 48 in a week are overtime (Rule 64 of the central rules). Overtime limits are set by the rules, and state rules may differ.

The "12-hour day" myth. The Code does not make 12-hour days compulsory, and it does not lift the 48-hour weekly cap. Any work beyond the limits is overtime at double pay.

To work out overtime pay at double the ordinary rate, use the overtime calculator under the new labour code and the overtime calculation guide. Overtime is calculated on wages, so the 50% wage rule matters; check the wage figure with the new labour code salary calculator.

Annual leave (Section 32)

Eligibility: 180 days of work in a calendar year, down from 240 under the Factories Act. Layoff, maternity leave and annual leave taken count towards the 180 days (Section 32).
Accrual: 1 day for every 20 days worked for adults; 1 day for every 15 days for adolescents and underground mine workers.
Carry-forward: up to 30 days. Leave above that can be encashed at the end of the calendar year, so earned leave no longer simply lapses. Leave the employer refused is carried forward without this limit.

Example: a worker who works 240 days in a year earns 240 ÷ 20 = 12 days of annual leave.

Annual leave now starts after 180 days of work, not 240

Days a worker must work in a calendar year to earn annual leave

Factories Act, 1948OSH Code, Section 32

Eligibility

240 days

180 days

Source: OSH Code, 2020, Section 32; Factories Act, 1948, Section 79

Company policies can be more generous than this minimum, and states may notify further details. To value unused leave, use the leave encashment calculator and see leave encashment calculation.

Women's night work

Women may work in all establishments and all types of work. They can work before 6 a.m. and after 7 p.m. only with their consent, and only where the employer meets the safety, holiday and working-hour conditions in the rules. These typically include:

safe transport;
adequate lighting and CCTV;
separate facilities.

Night work is a right, not an obligation.

Appointment letters and health check-ups

Appointment letter: every employer must issue one to every employee, stating designation, category, wages and other prescribed details.
Annual health check-up: free for workers aged 40 and above, in the establishments and manner the rules prescribe.

Welfare facilities

Every workplace: drinking water, washrooms (separate for women) and first aid.
Canteen: where 100 or more workers are employed, counting contract labour.
Welfare officer: where 250 or more workers are employed.
Crèche: where 50 or more employees are employed, under the Code on Social Security.
Safety committee and safety officer: in larger and hazardous establishments, as prescribed.

Contract labour

Threshold: the contract labour rules apply at 50 or more contract workers, up from 20 under the old Contract Labour Act.
Single licence: a contractor can work across states with one licence.
Core activities: contract labour in an establishment's core activities is prohibited, with specified exceptions.
Principal employer: remains responsible for welfare facilities and for making sure contract workers are paid.

Inter-state migrant workers

Who counts: the definition now includes workers who migrate on their own, not only those brought by a contractor.
Journey allowance: the employer must pay a lump-sum fare once a year for the worker's journey to their native place and back, as prescribed.
Portability: ration (PDS) and other benefits can be accessed in the destination state.
Registration and helpline: registration on a portal, plus a helpline.

Gig and platform workers: which Code covers them?

Social security for gig and platform workers comes under the Code on Social Security, not the OSH Code. That is where aggregators contribute 1% to 2% of turnover. The OSH Code's working-hour and leave rules apply to "workers" and "employees" in covered establishments.

Inspections and penalties

Inspector-cum-facilitators: inspectors now act as "inspector-cum-facilitators", with randomised, web-based inspection schemes.
Penalties: contraventions attract fines, and serious safety lapses can lead to prosecution. Penalties are higher where a contravention causes death or serious injury, and the court can direct part of the fine to the victim or their heirs.
Factory registration: operating a factory without registration can attract a fine.

HR and employer checklist

1. Check applicability10+ workers, factory at 20/40, contract labour at 50+.
2. Issue appointment lettersTo all employees, including existing staff.
3. Set working hoursWithin 8 a day and 48 a week. Get consent for overtime and pay it at twice the rate.
4. Update leave policy180-day eligibility, 1-in-20 accrual, 30-day carry-forward and encashment of the excess.
5. Put women's night-shift safeguards in writingIncluding consent, transport, lighting and CCTV.
6. Arrange annual health check-upsFor workers aged 40 and above, where applicable.
7. Review contractorsLicences, no contract labour in core activities, and welfare facilities.
8. Track your state's rulesFor working hours, overtime limits and leave details.

Updating hours, leave and pay for the new Codes? The free course on salary calculation under the new Labour Codes covers the wage definition behind overtime and leave encashment. For a desk reference, the New Labour Codes practical guide (eBook) covers all four Codes. Test yourself with the Labour Codes quiz.

Frequently asked questions

What are the working hours under the OSH Code?

8 hours a day and 48 hours a week. Some daily flexibility is allowed within the weekly cap where the rules permit, and overtime is paid at twice the normal rate with the worker's consent.

How much annual leave does the OSH Code give?

One day for every 20 days worked, once you have worked 180 days in the calendar year. You can carry forward up to 30 days, and leave above that can be encashed.

Can women work night shifts under the OSH Code?

Yes, before 6 a.m. and after 7 p.m., with their consent and subject to the safety conditions in the rules.

What is a factory under the OSH Code?

Premises with a manufacturing process employing 20 or more workers with power, or 40 or more without power. Earlier the thresholds were 10 and 20.

When do contract labour rules apply?

To establishments and contractors with 50 or more contract workers, up from 20 under the old Act.

Does the OSH Code cover gig workers?

Gig and platform workers' social security is covered by the Code on Social Security. The OSH Code covers workers and employees in establishments.

Other Labour Code guides

Position as of 29 October 2026. Official texts are on the Ministry of Labour and Employment's website; see also the Acuity Law FAQs on the OSH Code and central rules and the greytHR summary. Working-hour, overtime and leave details can vary by state rules. This is general information, not legal advice.