Quick answer: The OSH Code, formally the Occupational Safety, Health and Working Conditions Code, 2020, sets India’s rules on working hours, overtime, annual leave, safety and contract labour. It merged 13 laws, including the Factories Act and the Contract Labour Act, on 21 November 2025. It also made a written appointment letter compulsory for every employee.
- Section 6(1)(f) requires a letter of appointment for each employee on joining.
- Work is capped at 8 hours a day and 48 hours a week, with overtime paid at twice wages and only with consent.
- The central rules limit overtime to 144 hours a quarter.
- Establishments with 10 or more workers need a single registration, deemed granted if no certificate arrives within 7 days.
What are the OSH Code leave rules?
A worker qualifies for annual leave after 180 days of work in a calendar year, down from 240. Leave then accrues at one day for every 20 days worked.
Let’s say a new hire works 220 days in 2026.
| Rule | Old 240-day test | OSH Code |
|---|---|---|
| Eligible after | 240 days worked | 180 days worked |
| Leave earned at 220 days | Nil | 11 days (220 ÷ 20) |
| Carry forward | Varied by law | Up to 30 days |
| Encashment | Varied by law | At year-end on demand, and on exit |
That is a real gain for first-year and part-year staff. Budget for it. The text sits in section 32 of the OSH Code on India Code.
In Pune, the Maharashtra Shops and Establishments Act also sets earned leave, so your leave policy has to satisfy both texts at once.
One headline shrank in the final rules. The launch promised free annual health check-ups for workers over 40, yet KPMG’s note on the final rules shows the central rules confine it to docks, mines and construction.
What does the OSH Code change for an office team?
Mostly paperwork, hours and night work. Start with the letter. Every employee needs an appointment letter, even if they already hold an offer letter and contract.
Overtime needs the employee’s consent and pays at twice wages. Track it.
Women may work any shift, including before 6 a.m. and after 7 p.m., with their consent, which matters for Indian teams that overlap with US or European working hours late into the evening. Central rules add written consent, safe transport, lighting, CCTV and POSH compliance.
The bar on double employment covers only factories and mines, so the Code does not ban moonlighting in an office job. Contracts and standing orders do that work instead.
Contract workers fall under separate rules once an establishment uses 50 or more of them, explained under contract labour.
How does Remunance apply the OSH Code to your India hires?
As the legal employer, Remunance issues the appointment letter, records hours and overtime consent, and runs leave administration for the people it employs for you. Onboarding can take as little as 2 working days from a signed contract, and our note on how Remunance manages employee onboarding shows each step. When you are ready to hire, start a compliant India onboarding.
What else do people ask about the OSH Code?
Is annual leave encashable under the OSH Code?
Yes. A worker can encash leave at the end of the calendar year on demand, and unused leave is encashed when employment ends.
Can women work night shifts in India now?
Yes, with their consent and the safeguards the rules prescribe. State laws, such as Maharashtra’s shops law, add their own conditions.
Which laws did the OSH Code replace?
Thirteen, including the Factories Act, the Mines Act and the Contract Labour (Regulation and Abolition) Act. Our overview of labour laws in India maps the rest.