Crossing 50 Employees: Creche, Canteen and What Else
At 50 employees a creche facility becomes mandatory in India, with canteen obligations following soon after. Here is the full welfare checklist.
Crossing 50 employees puts a crèche facility on your compliance checklist immediately, with canteen and other welfare obligations following as you keep growing.
Key facts at a glance
- A crèche facility becomes mandatory for establishments with 50 or more employees under the Maternity Benefit Act (as amended).
- The creche headcount counts all employees, not just women employees.
- Canteen requirements typically apply at a higher threshold - 100 or more workers for factories under the newer OSH Code, historically 250 under the earlier Factories Act.
- Many employers satisfy the creche requirement through a shared or outsourced facility rather than an in-house one.
- The next major threshold after 50 is generally 100 employees, where works committee and standing orders obligations begin.
- A welfare officer becomes mandatory in factories only at 500 workers.
Creche: the obligation that starts right now
The Maternity Benefit (Amendment) Act, 2017 requires every establishment with 50 or more employees to provide a crèche facility, either on its own premises or within a prescribed distance. Importantly, the 50-employee count is based on total employees, not just women employees or mothers, so this applies broadly once you cross the line.
Employers commonly meet this obligation through a dedicated in-house room, a tie-up with a nearby creche provider, or a shared facility serving multiple establishments in the same building or industrial area. Whichever route you choose, it needs to be a real, accessible facility - not just a policy statement.
Canteen: coming soon, not yet due
The word "canteen" in the same breath as crèche makes many founders think both kick in at 50. They don't, quite. Canteen obligations for factories are pegged to a higher headcount - 100 or more workers under the newer Occupational Safety, Health and Working Conditions Code (a reduction from the 250-worker threshold under the earlier Factories Act, 1948, for factories that remain under that regime pending full state notification of the new Codes).
The practical takeaway: at 50 employees, canteen isn't legally due yet, but it's close enough that budgeting and space planning should start now rather than waiting for the trigger to hit.
What else changes around this size
Fifty employees is also roughly where businesses start feeling the weight of other welfare-linked obligations even if the strict legal thresholds sit slightly higher or lower depending on the law - first aid provisioning scales with headcount, and if you operate a factory, safety committee expectations often become a practical necessity even before they're a strict legal requirement in your state.
What changes, at a glance
| Obligation | Trigger | Applies to |
|---|---|---|
| Crèche facility | 50+ employees | Establishments generally (Maternity Benefit Act) |
| Canteen | 100+ workers (OSH Code) / 250+ (older Factories Act) | Factories |
| Works committee, standing orders | 100+ workers | Industrial establishments |
| Welfare officer | 500+ workers | Factories |
What to do this week
Confirm your total headcount against the 50-employee creche trigger and, if you're covered, arrange either an in-house facility or a shared/outsourced tie-up. Separately, start tracking your trajectory toward 100 employees so canteen, works committee and standing orders obligations don't catch you by surprise.
Sources
- Ministry of Labour and Employment - labour.gov.in
- EPFO - epfindia.gov.in
- Respective state labour department portals
If you're not sure where your business stands on this, ComplianceCheck's statutory compliance assessment gives you a clear picture in a few minutes.
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
- Is the creche requirement only for factories, or all establishments?
- The crèche facility requirement under the Maternity Benefit Act applies to establishments with 50 or more employees generally, not only factories, and counts all employees rather than only women employees.
- Does canteen become mandatory at 50 employees too?
- No, canteen requirements typically apply at a higher headcount than creche - generally 100 or more workers for factories under the Occupational Safety, Health and Working Conditions Code, historically 250 under the earlier Factories Act - so 50 is the point to start planning rather than the point it becomes due.
- Can we outsource the creche requirement instead of running our own facility?
- Many employers meet the creche obligation through a shared or outsourced facility, such as a common creche serving multiple nearby establishments, rather than operating one in-house, subject to the applicable rules.
- Do all 50 employees need to be at one location for this to apply?
- Generally these thresholds are assessed per establishment or factory, so headcount at a single location typically determines applicability - check the specific state rule for how multi-location businesses are treated.
- What other obligations should we expect as we keep growing past 50?
- As headcount rises further, expect canteen obligations, works committee and standing orders requirements around 100 employees, and eventually a welfare officer requirement at 500 employees under factory welfare rules.
- Does this apply to office-based businesses or only manufacturing?
- The creche requirement under the Maternity Benefit Act applies broadly to covered establishments, not just factories, while canteen requirements are more specifically tied to factories and industrial premises.
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