Leave and Holiday Rules After Labour Code Implementation

India is in the process of implementing the new Labour Codes, which will replace many old labour laws. These reforms are meant to make employment rules more uniform and modern.

One important question that both employees and employers have is:

What will happen to leave and holiday rules after the Labour Codes come into force?

This blog explains the expected changes in a simple way, while keeping the legal points clear.

 

Which Labour Code Deals with Leave and Holidays?

Leave and holiday provisions are mainly covered under the:

Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code)

This Code combines earlier laws such as:

• The Factories Act
• Contract Labour laws
• Migrant worker laws
• Working condition provisions under Shops and Establishments Acts

The purpose is to create a common framework for working hours, leave, and holidays across establishments.

 

Working Hours Under the New Labour Codes

The Labour Codes keep the standard working hour limits:

• 8 hours per day
• 48 hours per week

Legal Note

Some media reports mention 12-hour workdays. Legally, this is possible only if:

• Weekly hours do not exceed 48
• Overtime rules are followed
• State governments permit such arrangements

So, employees cannot be forced to work extra hours without proper legal compliance.

 

Weekly Holiday Rule

The OSH Code clearly provides that:

• Every worker must get one weekly day off

This rule continues as a basic worker protection.

Employers may decide the weekly off day depending on business needs, but one rest day is compulsory.

 

Earned Leave Provisions

For Factory Workers

A worker who has worked for at least:

• 180 days or more in a year

is entitled to earned leave.

The leave calculation is:

• 1 day leave for every 20 days worked

Sick Leave and Casual Leave

The Labour Codes do not provide detailed nationwide rules for:

• Sick leave
• Casual leave

These are generally governed by:

• Employer policies
• State Shops and Establishments laws
• Employment contracts

 

Legal Point

Until states issue specific rules, companies will continue following their existing leave structures.

 

National and Festival Holidays

National holidays such as:

• Republic Day
• Independence Day
• Gandhi Jayanti

remain mandatory.

Festival holidays will continue as per:

• State notifications
• Industry practice
• Employer HR policy

The Labour Codes do not remove public holiday entitlements.

Special Leave Protections Continue

Other important leave benefits remain protected under separate laws, such as:

• Maternity leave
• Benefits for women workers
• Leave-related safeguards for contract labour

The Codes aim to strengthen coverage for more workers, including those in unorganized sectors.

The new Labour Codes do not drastically change leave benefits. Instead, they focus on:

• Simplifying labour law
• Standardizing working conditions
• Ensuring compliance
• Expanding worker protections

Both employees and employers should stay updated, as detailed rules will be notified by state governments once implementation begins.