Labour Laws
Hours of Work, Leave and Overtime under the OSH Code
Limits on working hours are among the oldest protections in labour law, and the eight-hour day is their best-known form. Chapter VII of the OSH Code sets uniform rules on hours, rest, overtime, shifts and annual leave for workers in all covered establishments, replacing separate rules in the Factories Act, Mines Act and other laws. The Central Rules of 2026 add detail on spread-over, rest intervals and overtime caps. This note explains each rule and the leading case.
1. Hours, Rest and Overtime
Figure 1: Working time rules
- Consent for overtime. Section 27 requires the consent of the worker before he can be required to work overtime, a change from the older position where overtime could be required within limits.
- Compressed weeks. Because the weekly limit is 48 hours and the spread-over 12 hours, a four-day week of longer days is possible only within these limits and with the worker's agreement.
- Code on Wages link. The normal working day and the overtime rate for wage purposes are also fixed under ss.13 and 14 of the Code on Wages (Topic 5)
- Notice of periods of work, s.31. The employer displays the periods of work, rest intervals and shifts.
2. Annual Leave with Wages, Section 32
Figure 2: Annual leave
- Adolescents. Earn leave faster, at one day for every 15 days of work.
- Refused leave. Leave applied for and refused is carried forward without the 30-day limit.
- On exit. On discharge, dismissal, resignation or death, wages for unavailed leave are paid, to the worker within two working days or to the heirs within two months.
- New joiners. A worker joining during the year earns leave proportionately if he works one-fourth of the remaining days.
3. Leading Case
- Gujarat Mazdoor Sabha v State of Gujarat (2020). During the pandemic, Gujarat exempted factories from the obligation to pay overtime at double rate. The Supreme Court struck down the notifications: a public emergency threatening the security of the State was not shown, and denying overtime wages violated Articles 14 and 21 and the guarantee of humane conditions of work.
⚠ Exam trap Hours: 8 a day, 48 a week, six days a week, rest of 30 minutes after five hours, spread-over of 12 hours. Overtime needs the worker's consent and is paid at twice the ordinary rate; the Central Rules cap it at 144 hours a quarter for Central-sphere establishments. Leave: one day for every 20 days worked after 180 days in the year (15 for adolescents), carry forward up to 30 days, and exit dues within two working days. |
4. Frequently Asked Questions
Can an employer compel a worker to work overtime?
No. Section 27 of the OSH Code allows overtime only with the consent of the worker, and overtime must be paid at twice the ordinary rate of wages. In Central-sphere establishments, the Central Rules of 2026 cap overtime at 144 hours in a quarter.
How is annual leave earned under the OSH Code?
A worker who works for 180 days or more in a calendar year earns one day of leave with wages for every twenty days of work in that year, or every fifteen days for an adolescent. Unused leave can be carried forward up to thirty days, and leave beyond that may be encashed at the end of the year.
5. Related Topics
- Topic 5: Minimum Wages and the Floor Wage. Overtime under the Code on Wages.
- Topic 31: Women Employees, Night Work and Safety. Night work by women.