Canteen, Creche and Restroom Thresholds Explained
Employee-count thresholds that trigger mandatory canteen, creche and restroom facilities under Indian labour law and the new OSH Code.
Indian labour law sets specific headcount thresholds that turn canteens, creches and enhanced restroom facilities from "nice to have" into a legal obligation - the moment you cross the threshold, you cannot wait to act.
Key facts at a glance
- A creche is generally mandatory once an establishment employs 50 or more employees, counting men and women together in most current interpretations.
- A canteen is typically mandatory in factories with 250 or more workers, though several states set a lower threshold in their factory rules.
- These thresholds trace back to the Factories Act 1948 and Maternity Benefit Act 1961, both now folded into the Labour Codes framework.
- The Code on Social Security, 2020 retains the 50-employee creche trigger rather than raising or lowering it.
- Restroom and washroom facilities scale with headcount under most state Factories Rules and Shops and Establishments Acts, separate from the canteen/creche thresholds.
- All four Labour Codes are in force nationally since 21 November 2025, but state-level rules are still being notified through 2026, so practical enforcement varies by state.
Why these thresholds exist
Canteen, creche and restroom rules exist to make sure basic welfare facilities scale with the size of the workforce rather than being left to employer discretion. A 10-person startup and a 500-worker factory face very different practical needs, so the law ties specific obligations to specific headcounts rather than applying one rule to everyone.
The canteen threshold
A canteen becomes mandatory in most factories once the workforce reaches 250 or more workers on any working day, a threshold that originates in the Factories Act 1948 and continues under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020. Some states set this threshold lower for specific categories of factories, so always check your state's factory rules rather than relying on the central figure alone.
The obligation is not just about having a room - inspectors typically look for a functioning canteen with adequate seating, hygienic food preparation, and proper maintenance records.
The creche threshold
A creche (childcare facility) is required once an establishment - factory, mine, plantation, or in many states, a shop or commercial establishment - employs 50 or more employees. This threshold has stayed consistent from the Maternity Benefit Act 1961 through to the Code on Social Security, 2020.
Unlike the canteen rule, the creche threshold is not limited to factories in most state interpretations - it applies more broadly once headcount crosses 50, making it relevant to offices, retail chains and service businesses too.
Restroom and washroom facilities
Separate toilet and washing facilities for women employees are near-universal requirements regardless of headcount under state Factories Rules and Shops and Establishments Acts. What does scale with headcount is the number of facilities required and, in some states, additional rest-room or lunch-room space once the workforce passes certain size bands.
Threshold summary table
| Facility | Typical trigger | Governing framework |
|---|---|---|
| Canteen | 250+ workers (factory) | Factories Act 1948 / OSH Code, 2020 |
| Creche | 50+ employees | Maternity Benefit Act 1961 / Code on Social Security, 2020 |
| Separate women's restroom | No fixed headcount - near-universal | State Factories Rules / Shops & Establishments Act |
| Rest rooms / lunch rooms | Varies by state, often 150+ workers | State Factories Rules |
Counting your headcount correctly
Most interpretations count everyone actually working at the establishment on a given day, including contract and temporary workers, not just those on direct payroll. If your headcount fluctuates near a threshold - say, between 45 and 55 employees - it is safer to plan for the facility rather than assume you are exempt, since inspectors typically look at peak or average headcount over a period rather than a single day.
What changes under the Labour Codes
The OSH Code, 2020 and the Code on Social Security, 2020 largely carry forward these existing thresholds rather than rewriting them from scratch. The bigger practical change is procedural: as states notify their own Labour Codes rules through 2026, the specific forms, registers and inspection processes tied to these facilities may shift even though the headcount triggers themselves stay broadly the same.
If you are not sure where your business stands on canteen, creche or restroom obligations as the Labour Codes roll out state by state, ComplianceCheck's labour code assessment gives you a clear picture in a few minutes.
Sources
- Ministry of Labour and Employment - labour.gov.in
- EPFO - epfindia.gov.in
- ESIC - esic.gov.in
- Respective state labour department websites
This guide is general information, not legal advice. Requirements vary by state, sector and headcount - confirm specifics with a compliance professional or the relevant authority.
Frequently Asked Questions
- At how many employees is a creche mandatory in India?
- A creche is generally mandatory at establishments employing 50 or more employees, a threshold long set under the Maternity Benefit Act 1961 and carried forward into the Code on Social Security.
- At how many workers is a canteen mandatory in a factory?
- Under the Factories Act framework (now folded into the OSH Code), a canteen is typically required where 250 or more workers are employed, though some state rules set the threshold lower.
- Do these thresholds count contract workers?
- Yes, in most interpretations the headcount used for these thresholds includes contract and temporary workers actually working at the establishment on a given day, not just direct payroll employees.
- Is a separate restroom for women a fixed-headcount requirement?
- Separate toilet and washing facilities for women are required regardless of headcount in most state factory and shops rules, but additional restroom or rest-room facilities scale up as the workforce grows.
- Do the Labour Codes change the creche threshold?
- The Code on Social Security, 2020 retains the 50-employee creche threshold from the Maternity Benefit Act, but final applicability depends on your state notifying its own Code rules.
- Does this apply to offices or only factories?
- Canteen requirements historically applied mainly to factories, mines and larger establishments, while creche requirements apply more broadly across factories, establishments and shops once the 50-employee threshold is crossed, subject to the applicable state Act.
- What happens if an employer ignores these thresholds?
- Non-compliance can trigger inspector notices, penalties under the applicable Act or Code, and reputational risk during audits, client due diligence, or POSH and labour inspections.
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