Business Laws and Ethics · Factories Act, 1948

Working Hours, Weekly Holidays and Overtime under the OSH Code

Updated 10 October 2026 · Fact-checked

Under the OSH Code, 2020, no worker can be required or allowed to work more than eight hours a day or more than six days in a week. Overtime is paid at twice the rate of wages, and the worker must consent. To solve questions, identify the limit, check for exemption, then compute.

Understand Working Hours, Weekly Holidays and Overtime

The Factories Act, 1948 regulated working hours, weekly holidays and overtime for factory workers. The Occupational Safety, Health and Working Conditions Code, 2020 now covers these rules for establishments generally, in Sections 25, 26 and 27. Your syllabus pairs the old Act with the Code, so know both the idea and the Code's wording.

Start with the daily limit. Section 25(1) says no worker shall be required or allowed to work for more than eight hours in a day. The hours in each day are fixed so as not to exceed such hours, with such intervals and spread overs, as the appropriate Government notifies. So the Code itself sets eight hours, and the details of intervals and spread-over come from notification.

Next, the weekly rest. Section 26(1) says no worker shall be allowed to work in an establishment for more than six days in any one week. The appropriate Government may exempt workers by notification, on prescribed conditions. If a worker loses weekly holidays because of such an exemption, Section 26(3) gives compensatory holidays of equal number, within the month in which the holidays were due or within the two months immediately following.

Then overtime. Section 27 says wages are paid at twice the rate of wages for overtime work, where a worker works more than the hours prescribed by the appropriate Government in a day or week. Overtime is calculated on a daily or weekly basis, whichever is more favourable to the worker. The worker must consent to overtime, and the Government may prescribe the total overtime hours.

The old Factories Act is useful for comparison. Section 52 allowed work on the first day of the week only if the worker got a whole-day holiday on one of the three days before or after it, with notice to the Inspector and a displayed notice. No substitution could lead to more than ten consecutive days without a whole-day holiday. Section 65(3) allowed exemptions for exceptional press of work only within limits: 12 hours a day, 13 hours spread over, 60 hours a week including overtime, overtime not beyond seven days at a stretch, and 75 hours of overtime in a quarter.

Key rules to remember

Daily limit (OSH Code, Section 25(1)): Maximum work = 8 hours in a day; Intervals and spread overs are as notified by the appropriate Government.
Weekly limit (Section 26(1)): Maximum work = 6 days in any one week; Government may exempt workers by notification on prescribed conditions.
Compensatory holidays (Section 26(3)): Holidays given = holidays lost, within the month due or the 2 months immediately after; Applies when an exemption deprives the worker of weekly holidays.
Overtime wages (Section 27): Overtime pay = 2 × ordinary rate of wages × overtime hours; Daily or weekly basis, whichever is more favourable to the worker. Worker's consent required.
Factories Act exceptional press of work (Section 65(3)): ≤ 12 hours a day; spread over ≤ 13 hours; ≤ 60 hours a week including overtime; overtime ≤ 7 days at a stretch; overtime ≤ 75 hours a quarter; Conditions for exemptions under Section 65(2) of the 1948 Act.
Factories Act weekly holiday (Section 52): Whole-day holiday on one of the 3 days before or after the first day of the week; no more than 10 consecutive days without a whole-day holiday; Notice to the Inspector and a displayed notice are needed before the day.

How to solve Working Hours, Weekly Holidays and Overtime questions

Use this order for any problem or theory question on hours, holidays or overtime.

1Identify the law the question asks about: the OSH Code, 2020 (Sections 25 to 27) or the Factories Act, 1948 (Sections 52 and 65).
2Note the facts: hours per day, days per week, the wage rate, and whether the worker consented.
3Compare the facts with the limit: eight hours a day, six days a week.
4Check for an exemption, such as a notification under Section 26(2) or an exceptional press of work under Section 65 of the 1948 Act.
5If overtime arises, count the overtime hours on a daily and a weekly basis and take the more favourable to the worker.
6Compute overtime pay as twice the ordinary rate of wages times the overtime hours.
7State the conclusion in one line, citing the section.

Quickest way: Limit, exemption, rate

When to use it: Use for MCQs and short numerical questions where time is tight.

Write 8 hours, 6 days, 2× against the question.
Cross out anything within the limits.
Count only the excess hours as overtime.
Multiply the excess by twice the hourly wage.
For a lost holiday, add compensatory holidays within the same month or the next two months.

Common mistakes in Working Hours, Weekly Holidays and Overtime

Paying overtime at one and a half times the wage.
Students carry over a rule from other laws or from general knowledge.
Fix: Section 27 says twice the rate of wages. Write 2× every time.
Treating the 12-hour and 60-hour limits as the normal limits.
Section 65(3) of the Factories Act is confused with the general rule.
Fix: Normal limit is eight hours a day under Section 25. The 12, 13, 60 and 75 figures apply only to exemptions for exceptional press of work.
Ignoring the worker's consent for overtime.
Students focus on the pay rate and skip the first proviso.
Fix: Mention that overtime requires the consent of the worker under Section 27.
Computing overtime only on a weekly basis.
Students assume one method fits all.
Fix: Compute both daily and weekly overtime and pay whichever is more favourable to the worker.
Giving compensatory holidays at any time.
The time window in Section 26(3) is forgotten.
Fix: They must be given within the month the holidays were due or within the two months immediately following.
Mixing Factories Act and OSH Code section numbers.
Both are in the same chapter of study.
Fix: Label each answer with the law. Use Sections 25 to 27 for the Code, and Sections 52 and 65 for the 1948 Act.

Worked examples

Example 1

A worker at an Indian establishment is paid ₹80 per hour as the ordinary rate of wages. She consents to overtime and works 11 hours on one day. Assume eight hours is the limit before overtime for the day. Find the overtime wages for that day.

Show the solution

Normal hours in a day = 8.
Overtime hours = 11 − 8 = 3.
Overtime rate = 2 × ₹80 = ₹160 per hour (Section 27).
Overtime wages = 3 × ₹160 = ₹480.

Answer: Overtime wages for the day are ₹480, in addition to normal wages for eight hours.

Example 2

Under the OSH Code, 2020, an establishment is exempted by notification from the six-day rule, and a worker works on 3 weekly holidays that were due in March. State what the worker is entitled to and by when.

Show the solution

Section 26(1) bars work for more than six days in a week. Section 26(2) lets the appropriate Government exempt workers.
The worker is deprived of 3 weekly holidays because of the exemption.
Section 26(3) gives compensatory holidays of equal number: 3.
They must be given within March or within the two months immediately following, that is by the end of May.

Answer: The worker is entitled to 3 compensatory holidays, to be allowed in March or in April or May.

Exam tips

Learn the three numbers: 8 hours, 6 days, 2× wages. Most MCQs test these.
In theory answers, name the section: Section 25 hours, Section 26 holidays, Section 27 overtime.
For Factories Act comparisons, remember the Section 65(3) limits: 12, 13, 60, 7 days and 75 hours.
In numericals, show overtime hours, rate and total as separate lines to earn step marks.
MCQs carry no negative marking, so always attempt every option.

Practice questions from Factories Act, 1948

Working Hours, Weekly Holidays and Overtime in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

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Working Hours, Weekly Holidays and Overtime: frequently asked questions

What is the maximum daily working time under the OSH Code, 2020?

No worker can be required or allowed to work more than eight hours in a day. Intervals and spread overs are as notified by the appropriate Government.

What is the overtime rate under the OSH Code?

Overtime is paid at twice the rate of wages. It is counted on a daily or weekly basis, whichever is more favourable to the worker, and the worker must consent.

How many days can a worker work in a week?

Not more than six days in any one week under Section 26(1). Exempted workers who lose holidays must get compensatory holidays within the stated period.

Can the government relax the working hour limits in the old Factories Act?

Yes, under Section 65 the State Government could exempt factories for an exceptional press of work. The conditions included 12 hours a day, 13 hours spread over, 60 hours a week and 75 hours of overtime in a quarter.