Worked for 6 months? You’re eligible for earned leave now - plus annual encashment under new Labour Code 2025
Key takeaways Earned Leave & Carry Forward: Workers can now accumulate earned leaves up to 30 days, and any refused leaves must be carried forward without limit, ensuring no loss due to operational constraints. Annual Encashment: Employees can encash unused earned leaves annually, providing financial compensation for leave that couldn’t be taken, especially beneficial in high-demand roles. Eligibility & Uniformity: Workers become eligible for earned leaves after 180 days of continuous service, creating a standardised leave entitlement across India, while respecting superior state-level provisions. The new labour code 2025 (Occupational Safety, Health and Working Conditions Code, 2020) (OSH Code) was announced by the central government on November 21, 2025 and it brought about several significant changes for salaried employees. Some of these changes are: A standardised earned leave entitlement, along with carry forward and encashment entitlement for workers, which will app...