A crèche facility under OSH Code is now a major compliance question for employers in India. If you run a factory, office, retail unit or startup in Jaipur, Rajasthan or anywhere in India, this guide explains your duties in plain English. Foreign companies setting up Indian operations will find it equally useful. The Ministry of Labour and Employment (labour.gov.in) oversees the labour codes, and Khanna & Associates helps businesses apply them in practice. Read on for the rules, the mistakes to avoid and a clear action plan.
What is a Crèche Facility Under the OSH Code? Complete Definition & Overview
A crèche is a safe, supervised space where employees’ young children stay during working hours. The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) requires employers above a set headcount to provide it. In simple terms, a business with 50 or more employees must support working parents, especially mothers, with childcare.
Foreign readers can think of it as workplace daycare required by law. The idea is to keep skilled women in the workforce and protect child welfare. If you are planning to set up business in India, this duty applies from the point your headcount reaches the threshold. Companies registered through the Ministry of Corporate Affairs (mca.gov.in) should add it to their compliance calendar. You can also read more on our home page.
What is a Crèche Obligation? Simple Global Explanation
Imagine an employer with 60 staff in Jaipur. Several employees have children under six. The law expects the employer to arrange a clean, safe room with trained caregivers, either on site or at a shared nearby location. The same expectation exists under the Maternity Benefit Act, which also allows mothers four visits a day to the crèche, including rest intervals.
For Indian and international readers, the core points are:
- Who: establishments with 50 or more employees
- For whom: young children of employees
- What: a safe, supervised crèche, with details set by state rules
- Why: child safety, gender inclusion and retention
Legal Framework & Regulations in India
India’s four labour codes were brought into force in November 2025. The main laws are the OSH Code, 2020, the Code on Social Security, 2020 and the Maternity Benefit Act, 1961, as amended in 2017. State governments frame the detailed rules on room size, staffing, hygiene and inspection, so Rajasthan employers must follow Rajasthan rules.
A good legal partner connects these laws with your daily operations. Our labour and service lawyers review employment contracts and policies. Our employment practice covers workforce planning. For wider needs, we offer corporate compliance, corporate documentation, business lawyers, contract drafting and dispute resolution. We also handle labour court cases, Rajasthan High Court matters, startup and venture capital advice and commercial and corporate transactions. As a law firm in Jaipur, we know how local inspectors apply these rules.
Key Legal Insights, Compliance Rules & Benefits
Facility or allowance? The statute is built around a crèche facility. An allowance is not a safe substitute unless your state rules or a competent authority clearly allow it. Many employers pay a childcare allowance only as an added benefit, never as the sole compliance step.
Practical options for 50+ employee establishments:
- An on-site crèche with trained caregivers
- A shared crèche with neighbouring establishments
- A contracted, accredited childcare provider close to the workplace
- An added childcare allowance, documented in your HR policy
Forms, filings and timelines: Keep a written crèche policy, inspection records, caregiver details and attendance logs. Review headcount every quarter. Once you cross 50 employees, plan the crèche before the next inspection cycle.
Example: A Jaipur textile unit with 72 workers tied up with a certified provider 400 metres away and recorded the arrangement in its HR manual. It passed a labour inspection without notice.
Cross-border use: A foreign parent company counts Indian staff by establishment, not by group total. A US firm with a 55-person Jaipur centre must comply locally. Our foreign direct investments team guides such entrants.
Common Mistakes & Legal Challenges (Indian + Foreign Clients)
- Counting errors: leaving out contract and part-time staff when checking the 50 threshold
- Allowance-only approach: assuming a cash payment replaces the facility
- Weak documentation: no inspection logs, caregiver records or policy file
- Cross-border delays: approvals and local registrations missed during India entry
- Tax confusion: unclear treatment of crèche costs and allowances, which needs advice from direct taxation experts
Khanna & Associates prevents these problems with a compliance audit, policy drafting, vendor agreements and inspection support. If notices arrive, we respond quickly before penalties grow. Many clients call us the best law firm in Jaipur because we treat compliance as business protection, not paperwork. Our reach also serves clients in Dehradun and across India as a top law firm in India.
Expert Tips from Leading Legal Advisors
- Risk mitigation: Audit headcount quarterly and keep one dated compliance file for every establishment.
- Global compliance strategy: Align your India policy with your group’s parent policy, but follow the local rule where it is stricter.
- India entry planning: Budget for crèche costs when modelling hiring beyond 50 staff.
- Vendor control: Sign written agreements with childcare providers covering safety, staffing and liability.
- Long-term structuring: If you run several units, record each as a separate establishment and review the thresholds for each.
- Employee communication: Publish the policy so staff know their rights, which reduces disputes.
Conclusion + CTA
A compliant crèche facility under OSH Code protects your employees, your reputation and your balance sheet. Count your staff carefully, choose a safe arrangement, treat any allowance as a supplement and keep clean records.
Ready to comply with confidence? Speak to a law firm in Dehradun and Jaipur that businesses trust.
Khanna & Associates
47 SMS Colony, Shipra Path, Mansarovar 302020, Jaipur, Rajasthan, India
📞 +91-9461620007
📧 info@khannaandassociates.com
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FAQs
1. Is a crèche mandatory under the OSH Code for 50 employees?
Yes. Establishments with 50 or more employees must provide a crèche facility under the labour code framework. State rules set room size, staffing and hygiene details, so check your state’s notified rules or ask Khanna & Associates for guidance.
2. Can I pay a crèche allowance instead of building a crèche?
Generally, no. The law focuses on providing a facility. An allowance works only as an added benefit unless your state rules specifically permit it. Rely on written legal advice before replacing a facility with cash.
3. Do contract workers count toward the 50-employee limit?
Often yes, depending on how the Code defines employees and how your workforce is engaged. Count contract and part-time staff carefully, and have a lawyer review your headcount before an inspection.
4. Can several employers share one crèche?
Yes, shared crèches are a practical option, usually within a prescribed distance of the workplace. Keep a written agreement covering safety, staffing, costs and liability among all participating establishments.
5. What happens if my business does not comply?
Non-compliance can bring inspector notices, penalties and reputational damage. Early correction usually reduces the impact. A law firm in Jaipur can audit your setup, fix gaps and represent you if proceedings begin.