Leave and Working Hours Policy 2025: Kerala
Kerala’s labor landscape blends tradition with transformation. From tea estates in Idukki to the growing IT corridors in Kochi, the state’s workforce in 2025 spans tourism, agriculture, manufacturing, and tech. Labour regulations here are guided by the Kerala Shops and Commercial Establishments Act, 1960 for retail and service sectors, the Kerala Industrial Employment Rules for factories, and the Kerala Service Rules (KSR) for government employees.
This guide walks you through leave entitlements, working hour limits, overtime provisions, and compliance norms for establishments employing 10 or more people. Whether you’re planning around Onam or ensuring year-end audits are smooth, this resource helps HR teams stay aligned with Kerala’s employee-first ethos.
Leave Rules
Private Sector (Shops and Commercial Establishments)
| Leave Type | Entitlement | Notes |
|---|---|---|
| Earned Leave (EL) | 12 days/year | Accrues at 1 day per 20 days worked (240 days required); max 24 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 | Full pay; no carry-forward; medical certificate required. |
| National & Festival Holidays | 10–12 days/year | Includes Republic Day, Onam, Vishu; state-notified. |
| Maternity Leave | 26 weeks (180 days) | Per Maternity Benefit Act, 1961; for women with <2 surviving children; 6 weeks for miscarriage; requires 80 days worked in prior 12 months. |
| Paternity Leave | Not specified | May be offered at employer’s discretion; no mandatory provision. |
Private Sector (Industrial Establishments)
| Leave Type | Entitlement | Notes |
|---|---|---|
| Earned Leave | 15 days/year | Max 45 days carry-forward; encashable per employer policy. |
| Casual Leave | 7 days/year | Full pay; no carry-forward; lapses if unused. |
| Sick Leave | 7 days/year | Full pay; no carry-forward; medical certificate required. |
| National & Festival Holidays | 10–12 days/year | Includes Republic Day, Onam, Vishu; state-notified. |
| Maternity Leave | 26 weeks (180 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. |
Government Sector (Kerala Service Rules)
| Leave Type | Entitlement | Notes |
|---|---|---|
| Earned Leave | 30 days/year | Max 300 days carry-forward; encashable per policy. |
| Casual Leave | 20 days/year | Max 30 days accumulation for specific employees; full pay; lapses if unused beyond limit. |
| Half Pay Leave (HPL) | 20 days/year | Credited 10 days biannually; half pay; for medical/private reasons. |
| Maternity Leave | 180 days | For <2 surviving children; 6 weeks for miscarriage. |
| Paternity Leave | 15 days | For <2 surviving children; full pay; combinable with other leaves. |
| Extraordinary Leave (EOL) | 5 years max | Unpaid; for special circumstances. |
| Study Leave | 2–3 years | For higher studies/training; pay per KSR. |
HR Actionable Tips
- Leave management across seasons: Kerala’s tourism calendar drives staffing needs. Align leave cycles after peak seasons like Onam and December vacations to ensure business continuity.
- Verification processes: Ensure a 48-hour window for employees to submit medical certificates. Coordinate with local clinics in Kochi and Thiruvananthapuram for prompt validation.
- Inclusive holiday planning: Run internal polls ahead of the holiday list finalization. Employees may prioritize region-specific festivals like Vishu or Attukal Pongala.
Note:
Contract workers are eligible for leave entitlements equivalent to permanent staff in shops and industrial units, per the state’s labour norms.
Working Hours Rules
Standard Working Hours
| Rule | Details |
|---|---|
| Daily Limit | 8 hours/day (shops); 9 hours/day (industrial); 10 hours/day (factories) |
| Weekly Limit | 48 hours/week (shops/industrial); 60 hours/week (factories) |
| Breaks | 30-minute break after 4 hours (shops); 5 hours (industrial/factories) |
| Weekly Off | One day off per week, typically Sunday |
Overtime Rules
| Rule | Details |
|---|---|
| Max Overtime | 150 hours/12 weeks (shops); 75 hours/quarter (industrial); 120 hours/quarter (factories) |
| OT Pay Rate | 2x regular wages |
| Approval Required? | Yes, prior employee consent |
HR Actionable Tips
- Shift planning during tourist surges: In hospitality and retail, structure 8-hour shifts that rotate weekly offs. Consider festival rush periods when creating rosters.
- Monitoring overtime caps: Set quarterly reminders for HR teams to audit overtime records, ensuring limits are not breached.
- Worker safety: For night shifts in factories, conduct regular training and provide basic amenities. Safety is not just about compliance but also about retention.
Additional Provisions
- Night work for women: Prohibited between 7 PM and 6 AM unless specific exemptions are granted. Employers must ensure safe transportation, security, and rest facilities.
- Record keeping: All establishments must maintain updated registers of attendance, wages, overtime, and leave.
- IT/ITES exemptions: Companies in the IT and IT-enabled services sector can apply for exemptions on work hour limits, provided they meet state-prescribed safety and reporting criteria.
- Penalties for non-compliance:
- Failure to register: ₹500 to ₹5,000
- Violation of work hour or leave rules: Up to ₹2,000 per instance
- Obstructing labor inspectors: Up to ₹5,000- or six-months imprisonment
- Repeated violations can result in business suspension or closure.
- Registration timeline: All businesses must register with the Labour Department within 30 days of starting operations.
- Remote work operations: Work-from-home can be permitted on non-official holidays with managerial approval, especially helpful in regions with transport or climate-related challenges.
Got questions?
Encourage earned leave to be used after high-traffic events like Onam or Christmas. Aim for a one-week notice period to help teams coordinate.
Yes. Onam and Vishu see a rise in tourist footfall. Hotels and restaurants often hire temporary workers or adjust shift rotations to manage them.
Yes. Kerala Service Rules allow 15 days of paternity leave which can be combined with other leave types for extended time off.
Factories may allow up to 120 hours per quarter of overtime, paid at twice the normal rate. This can help boost income during production surges.
Use digital systems to track and update attendance, wage, and leave records. These tools make remote compliance easier during inspections.
