What are the leave rules under the OSH Code in India?

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The leave rules under section 32 of the OSH Code in India say a worker who has worked 180 days or more in a calendar year earns annual leave with wages at one day for every 20 days worked. Up to 30 days can be carried forward, and leave can be encashed at year end or on leaving.

At a glance

  • Eligibility: 180 days or more worked in the calendar year.
  • Accrual: 1 day for every 20 days worked (1 for 15 for adolescent and below-ground mine workers).
  • Carry-forward: up to 30 days; refused leave can be carried without limit.
  • Encashment: on demand at year end, and at separation.

How do the leave rules under the OSH Code work in India?

  • Layoff, maternity leave and annual leave taken count towards the 180 days, but do not earn leave.
  • Holidays that fall within a period of leave are excluded from the leave counted.
  • Workers who join after 1 January earn leave if they work one-fourth of the days in the rest of the year.

Carry-forward and encashment

The Ministry's FAQs state that a worker can carry forward up to 30 days to the next calendar year, and that leave applied for but not granted can be carried forward without limit. There is no prescribed maximum on encashment under the Code. Leave above 30 days, if applied for and not granted, can be encashed at the end of the calendar year, and a worker is entitled to encash the credit at separation. See leave encashment.

On leaving

If a worker is discharged, dismissed or quits, wages in lieu of accrued leave are payable before the end of the second working day after leaving. For superannuation or death, the period is two months. This feeds into full and final settlement.

Who is covered?

The Ministry says leave provisions apply to workers, and to supervisors drawing wages up to 18,000 rupees a month. Others follow their contract and state law. Where a state law is more favourable, the worker keeps that benefit; the Code prevails over inconsistent state provisions.

What this page does not cover

Casual leave, sick leave and public holidays depend on state law, rules and company policy. Maternity leave is covered in maternity benefit. For the employer's view, see what changes for employers.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.