Leave Entitlements & Working Hours Under Indian Labour Law 2025
Working hours and leave entitlements in India are governed by two overlapping frameworks — the Factories Act, 1948 (for factories and manufacturing establishments) and state-specific Shops and Establishments Acts (for offices, shops, commercial establishments, and IT companies). The two frameworks have different rules, and the applicable provisions depend on the type of establishment and its registration.
Working Hours, Overtime & Leave Under the Factories Act, 1948
The Factories Act, 1948 applies to every factory (any premises where a manufacturing process is carried on with 10+ workers using power, or 20+ workers without power). The Act prescribes mandatory limits on working hours, compulsory rest intervals, and annual earned leave entitlements.
Maximum daily working hours (Section 51)
No adult worker in a factory shall be required to work for more than 9 hours in any day. The spread-over (total period from start to finish including rest intervals) must not exceed 10.5 hours per day.
Maximum weekly working hours (Section 51)
No adult worker in a factory shall work for more than 48 hours in any week. The week runs from midnight on Saturday to midnight the following Saturday for record-keeping purposes.
Compulsory weekly holiday (Section 52)
Every worker in a factory must be allowed at least one whole day of rest (weekly holiday) in every period of 7 days. The employer must give notice of the substituted day in advance if the rest day is changed.
Annual Earned Leave (Section 79 — adult workers)
Every adult worker who has worked 240 days or more in a calendar year is entitled to earned leave at the rate of 1 day for every 20 days of actual work. Leave can accumulate up to 30 days maximum.
Annual Earned Leave (Section 79 — child workers)
Every child worker who has worked 240 days or more is entitled to earned leave at the rate of 1 day for every 15 days of actual work.
Overtime rate (Section 59)
Where a worker works for more than 9 hours on any day or 48 hours in any week, they must be paid at twice the ordinary rate of wages for all overtime hours worked. Overtime register in Form 19 must be maintained.
Maximum continuous work before rest interval (Section 55)
No adult worker shall work in a factory for more than 5 hours before a rest interval of at least 30 minutes. No period of work including the interval shall spread over more than 6 hours.
Overtime limits
Total working hours including overtime must not exceed 60 hours in any single week. Total overtime in a quarter (3 months) must not exceed 50 hours. State governments may grant exemptions for specific industries.
Mandatory Registers: Factories Act compliance requires employers to maintain Form 25 (Overtime Register), Form 5 (Annual Leave Register), Form 26 (Notice of Periods of Work), and Form 10 (Register of Adult Workers). These registers must be available for inspection at all times on factory premises.
Statutory Leave Types Under Indian Labour Law — What Every Employer Must Provide
Indian labour law — across Factories Act and state S&E Acts — prescribes several types of leave. The actual entitlement, carry-forward rules, and encashment rights vary by the applicable statute.
Earned Leave / Annual Leave
Also called Privilege Leave (PL) in S&E Acts. Factories Act: 1 day per 20 days worked (adults), minimum 240 days worked in the year. S&E Acts vary — typically 1 day per 20 working days. Carry-forward up to 30 days under Factories Act; varies under S&E Acts. Can be encashed on termination/resignation.
Casual Leave
Not prescribed by the Factories Act but standard in S&E Acts. Typically 7–12 days per year. Cannot be carried forward (usually) and cannot be encashed. Used for unforeseen, short-duration absences.
Sick / Medical Leave
Prescribed by most state S&E Acts — typically 7–14 days per year with a medical certificate requirement for absences over 3 consecutive days. Not prescribed by the Factories Act as a separate category (incorporated into earned leave provisions).
Maternity Leave
Governed by the Maternity Benefit Act, 1961. 26 weeks of paid maternity leave for establishments with 10+ employees for women who have worked 80+ days in the preceding 12 months. 12 weeks for third or subsequent pregnancies. Cannot be reduced by employer.
Paternity Leave
Not mandated by central law (Factories Act or S&E Acts). Some state governments and PSUs provide it as policy. Central government employees get 15 days under CCS Leave Rules. Private sector employers may provide it under HR policy.
National & Festival Holidays
All establishments must observe National Holidays (Republic Day, Independence Day, Gandhi Jayanti — 3 days). Festival/state holidays (typically 3–5 additional days) are prescribed state-wise or under negotiated settlements. Holiday List must be displayed on the notice board at the start of each year.
Working Hours & Leave Under Key State Shops & Establishment Acts
State Shops and Establishments Acts apply to all commercial establishments — offices, shops, hotels, restaurants, theatres, and IT/ITeS companies. Each state has its own Act with specific working hours and leave provisions.
Maharashtra
Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017
Karnataka
Karnataka Shops and Commercial Establishments Act, 1961
Delhi
Delhi Shops and Establishments Act, 1954
Tamil Nadu
Tamil Nadu Shops and Establishments Act, 1947
Telangana
Telangana Shops and Establishments Act, 1988
Gujarat
Gujarat Shops and Establishments Act, 1948
State S&E Act Amendments: Several states have significantly amended their S&E Acts in recent years — Maharashtra (2017), Telangana (2018), Karnataka (multiple amendments). Always verify the current provisions against the latest state gazette notification and the applicable state's S&E Rules before implementing leave policies or working hour structures.
Leave & Working Hours — Frequently Asked Questions
Is leave carry-forward mandatory under Indian labour law?
Is overtime work mandatory for employees under the Factories Act?
How does the new Labour Code affect leave and working hours?
Do IT companies follow the Factories Act or the S&E Act?
Maintain Leave Registers & Working Hours Records Digitally
Iztty's platform maintains Form 5 (Annual Leave Register) and Form 19 (Overtime Register) in the correct state-prescribed formats — tracking leave balances, overtime hours, and carry-forward entitlements digitally for all employees, across all branches.
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