Factory with 160 Employees: Is a Statutory Canteen Mandatory Under the OSHWC Code?
Published: 17 October 2026
A common question among factory owners, HR professionals and compliance managers is: If a factory has 160 employees, is it legally required to provide a canteen?
The answer depends not only on the total headcount but also on the number of qualifying workers ordinarily employed, including applicable contract labour.
Under Section 24(1)(v) of the Occupational Safety, Health and Working Conditions Code, 2020 (OSHWC Code), the statutory canteen requirement is linked to establishments where 100 or more workers, including contract labour, are ordinarily employed, subject to applicable rules and requirements.
Therefore, employers should not rely exclusively on the total number of employees appearing in their payroll records.
1. What Does the OSHWC Code Provide?
Section 24(1)(v) of the OSHWC Code, 2020, addresses the provision of canteen facilities in covered establishments meeting the prescribed workforce threshold.
The employer must assess whether the establishment falls within the applicable requirement and ensure that the prescribed welfare facilities are provided and maintained in accordance with the relevant provisions and rules.
For a factory employing 160 people, the first step is to determine how many individuals qualify as workers under the Code.
2. Why Is the Difference Between “Employee” and “Worker” Important?
The OSHWC Code distinguishes between the terms employee and worker. These terms should not be treated as interchangeable when calculating the workforce for a specific statutory requirement.
Under Section 2(1)(zzl), the definition of “worker” covers specified categories of persons engaged in manual, skilled, technical, operational, clerical and other covered work, subject to statutory exclusions.
Persons employed mainly in managerial or administrative capacities are excluded from the definition. Certain supervisory employees may also fall outside the definition if the applicable statutory conditions, including the prescribed wage threshold, are met.
Consequently, job titles alone are not sufficient to determine whether an individual should be included in the calculation.
For example, an employee designated as an “Executive” may perform clerical or operational duties that bring them within the definition of a worker. Conversely, a person performing primarily managerial or administrative functions may be excluded, subject to the statutory criteria.
The actual nature of the duties and the applicable legal definition must guide the classification.
3. How Does the 100-Worker Threshold Apply to a Factory with 160 People?
Consider the following illustrative scenarios:
| Workforce composition | Assessment under the threshold |
|---|---|
| 110 qualifying workers and 50 excluded employees | The 100-worker threshold is met. |
| 90 qualifying workers and 70 excluded employees | The 100-worker threshold is not met on these figures alone. |
These examples assume that the relevant workforce has been correctly identified and that applicable contract labour has been included.
A factory with 160 people may therefore meet the statutory threshold if at least 100 qualify as workers. However, a total headcount of 160 does not automatically establish that the threshold has been met.
Similarly, a count below 100 should not be treated as a blanket exemption from other applicable welfare obligations, existing requirements or specific directions issued by the competent authority.
4. Should Contract Labour Be Included?
Yes. The relevant assessment must include applicable contract labour rather than being restricted to workers directly employed on the company's payroll.
This is an important compliance consideration because factories often engage contract workers for housekeeping, material handling, production support, loading and unloading, security or other operational activities.
HR and compliance teams should reconcile the direct workforce with contractor deployment records and assess the relevant workers according to the applicable statutory requirements.
Ignoring contract labour could result in an incorrect assessment of whether the canteen threshold has been reached.
5. What Do the OSHWC Central Rules, 2026, Say?
Rule 53 of the Occupational Safety, Health and Working Conditions (Central) Rules, 2026, notified through G.S.R. 345(E) dated 8 May 2026, addresses canteen-related requirements in specified establishments, including factories.
The rule covers matters relating to the prescribed workforce threshold, canteen arrangements, hygiene, food handling, pricing and canteen management.
Employers should review the applicable provisions of Rule 53 alongside Section 24 of the Code and verify any relevant State rules, applicable notifications, exemptions or specific directions before finalising their compliance position.
6. Practical Compliance Checklist for Factory HR
To assess whether a statutory canteen is required, employers should take the following steps:
Prepare a consolidated workforce statement: Combine the relevant direct workforce records with contractor deployment details.
Classify workers correctly: Review actual job responsibilities and apply the statutory definition rather than relying solely on designations.
Assess ordinary employment: Examine normal workforce deployment patterns and supporting records instead of relying on attendance figures from a single day.
Document exclusions: Record the individuals excluded from the calculation and the legal and factual basis for each exclusion.
Verify applicable requirements: Review the relevant Central or State rules, notifications, exemptions and directions applicable to the factory.
Review canteen arrangements: Where the requirement applies, assess the existing facility against the applicable provisions governing hygiene, food handling, management and other prescribed conditions.
Conclusion
A factory employing 160 people should not determine its canteen obligations merely by looking at the total headcount.
The key question is whether 100 or more qualifying workers, including applicable contract labour, are ordinarily employed, as required under the relevant statutory provisions.
A properly documented workforce assessment helps employers establish their compliance position, identify potential gaps and take timely corrective action.
Compliance takeaway: Maintain clear records showing who was counted, who was excluded and the reasons supporting the classification.
Disclaimer: This article is intended for general information and compliance awareness. Employers should verify the latest applicable legislation, rules, notifications and State-specific requirements before making decisions for their establishments.