In Chhattisgarh, labor practices reflect a unique blend of tribal traditions and a growing industrial presence. The governing legislation for employment conditions in non-factory workplaces is the Chhattisgarh Shops and Establishments Act.
This act applies to shops, commercial establishments, and service providers with 10 or more employees, covering areas like leave entitlements, working hours, and overtime compensation. While full-time employees are directly covered under the Act, part-time or contract workers may fall under its scope depending on their contracts and any relevant state notifications.
This guide outlines the key compliance areas for HR teams and employers to manage leave, holidays, and working hours efficiently in 2025.
Leave Rules
Leave policies in Chhattisgarh are structured to balance employee welfare with operational consistency. Below is an overview of the primary leave entitlements:
Types of Leaves and Entitlements
Private Sector Leave Entitlements
| Leave Type | Entitlement | Notes |
|---|
| Earned Leave (EL) | 15 days/year | Accrues at 1 day per 20 days worked (240 days required); max 45 days carry-forward; encashable per employer policy. |
| Casual Leave | 12 days/year | Full pay; no carry-forward; lapses if unused. |
| Sick Leave | 12 days/year | Requires medical certificate; no carry-forward; lapses if unused. |
| Festival/National Holidays | 8–10 days/year | Includes Republic Day, Independence Day, Bastar Dussehra; state-notified. |
| Maternity Leave | 26 weeks (182 days) | Per Maternity Benefit Act, 1961; for women with <2 surviving children; 6 weeks for miscarriage. |
| Paternity Leave | Not specified | May be offered at employer’s discretion; no mandatory provision. |
Public Sector Leave Entitlements
Public Sector Leave Entitlements
| Leave Type | Entitlement | Notes |
|---|
| Earned Leave | ~30 days/year | Higher accrual under Chhattisgarh Civil Services Leave Rules; max carry-forward varies (often 300 days). |
| Casual Leave | ~15 days/year | No carry-forward; lapses if unused; governed by state rules. |
| Sick Leave | ~12–15 days/year | Requires medical certificate; no carry-forward; state-specific rules apply. |
| National & Festival Holidays | 8–10 days/year | Includes Republic Day, Independence Day, Bastar Dussehra; state-notified. |
| Maternity Leave | 26 weeks (182 days) | Per Maternity Benefit Act, 1961; for women with <2 surviving children; 6 weeks for miscarriage. |
| Paternity Leave | Not specified | May be offered at employer’s discretion; no mandatory provision. |
HR Action Tips
- Accrual monitoring: Use HR systems to monitor earned leave accruals tied to 240 days of work. This helps in streamlining leave approvals and reduces disputes.
- Medical documentation: Always request certificates from registered medical practitioners for sick leave to stay audit compliant.
- Holiday planning: Engage employees early to finalize holidays like Bastar Dussehra, aligning business needs with cultural observance.
Working Hours Rules
Regulations around working hours in Chhattisgarh aim to protect employees from overwork while ensuring productivity remains uninterrupted.
Standard Working Hours
| Rule | Details |
|---|
| Daily Limit | 9 hours/day |
| Weekly Limit | 48 hours/week |
| Breaks | 30-minute break after 5 hours of continuous work |
| Weekly Off | One day off per week, typically Sunday |
Overtime Rules
| Rule | Details |
|---|
| Max Overtime | 50 hours/quarter |
| Overtime Pay Rate | 2x regular wages |
| Approval Required? | Yes, prior employee consent |
HR Action Tips
- Schedule transparency: Share weekly rosters in advance to ensure clear communication of shifts and compliance with hour limits.
- Overtime management: Monitor overtime through automated tools to ensure you stay within the 50-hour quarterly cap and process double wage payments promptly.
- Safety in night operations: If any roles require late shifts, prioritize safety protocols and ensure support measures are in place, especially for women workers.
Additional Provisions
Chhattisgarh’s employment law also includes specific compliance points that employers need to observe for smooth operations.
- Night work for women: Not allowed between 7:00 PM and 6:00 AM unless a formal exemption is obtained. Employers must provide safe transport, restrooms, and security measures in such cases.
- Record-keeping: Maintain updated digital or physical registers for attendance, leave, and overtime. These must be reviewed monthly and made available for inspection.
- IT/ITES Exemptions: Businesses in IT and IT-enabled services may apply for exemptions from standard working hour limits. Approval is subject to state review.
- Penalties for non-compliance: Failure to comply with leave, holiday, or working hour rules may lead to fines or other legal action under the Chhattisgarh Shops and Establishments Act.
- Online registration: All establishments must register with the Labour Department through the official portal within 30 days of starting business operations.
Login
Payroll Suite
HR Suite
Talent Suite
Project Services Suite
