How many leaves should employees be provided in a year? - factories act

shyamali Started The Discussion:

Hello Everyone!

Different companies allocate different number of leaves in a year.

How many leaves should employees be provided in a year?Kindly support it with your train of reason. Also mention the industry type, location, working hours and whether saturdays are off days or not.

Looking forward to all your replies.


shyamali -  Member Since: Jun 2006
Hello Everyone,

I would like to design a new leave policy. I really would appreciate your inputs in this regard.

Different companies allocate different number of leaves in a year.

How many leaves should employees be provided in a year?Kindly support it with your train of reason. Also mention the industry type, location, working hours and whether saturdays are off days or not.

Looking forward to all your replies.


R Devarajan -  Member Since: Sep 2006

normally an employee should be given atleast 16 days leave in a calender year. you may please refer to the indian factories act sec.74, leave with wages column. it is said, every employee should be given one day leave for 20 days worked during the month. so, if you calculate the no of leave during the year, it will come to 15 or 16 during the year. Mind that this is leave is apart from the national and festival holidays you declare in your company.
further doubt you can ask me
R Devarajan

Jitendra Rami -  Member Since: Oct 2006
If your org. is in Mumbai/Maharastra/Gujarat and registered under Bombay Shop & Estb Act, you shall provide for 21 days of leave (min. PL or EL this shall include your CL, Sick Leave).

In addition under National Holiday Act - 04 National Holiday (26 Jan, 1 May, 15 Aug & 2 Oct)

Festival Holiday you can decide. (most company give 6 - 8 days)

Also, there is a provision in Bombay Shop & Estb Act under which you can provide for leave (An employee who has not worked for one year is entitled to leave with pay for 5 days for every 60 days of work. ) This provision can be activated if you have to give leave to trainee/under probations.

Jitendra Rami

abg -  Member Since: Jun 2006

Generally the leave policy differs from company to company. In manufacturing industries leave policy gets divided for two sets of employees:

1. Unionized Employee: They are entitled for Privileged leave / Earned Leave as per the India Factories Act i.e one leave for each 20 days worked. Casual Leave as per the provisions of Standing Orders and Sick Leave at the discreation of the management.

2. Non Unionized Employee: They are entitled for 30 Privilleged leave in a year if intervening W/O and Holidays during leave availed are counted as leave. if intervening W/O and Paid holiday during leave availed is not counted as leave 26 or 24 days of Privileged leave is allowed. In some comapnies having 5 working days the leave is allowed for 21 days. Apart from this 07 casual leave or 10 leave is allocated (Refer Standing Orders act). Sick leave is at the discreation of the management.

Over and above both sets of employees are allowed 6,7,8 or 10 days paid holiday as per the policy.

Hope it clarifies


puja_jhunjhunwala -  Member Since: Jul 2006

Is there a law definng the leave for non-unionised workers also, I mean the executive & Managerial class.

Or is the practice of 30days EL / PL a norm followed in the industry and can be changed at the company's discretion.


smvsiyer -  Member Since: Nov 2006
The below given link talks about the leave entitlement of Central govt employees as 30 days : Please check this out.. Regards Sathya

kuganparamasivam -  Member Since: Nov 2006
hai shymali,

Try this...............

Employees are entitled to Casual Leave, Sick Leave and Earned leave during the course of their employment.

Earned leave:
This is to facilitate the employees to take sufficient rest and break for short spells and the minimum leave available is 12 days per annum provided the employee has worked for 240 days in the calendar year, ie Earned leave is applicable only after one year of service.

Casual leave:
The object of casual leave is to enable an employee to attend to some urgent or unforeseen contingencies and the leave available is 12 days per annum. For availing CL the employee shall get the prior approval of the concerned HOD / superior. Casual Leave cannot be carried forward to next year. Casual leave cannot be taken twice a month or more than 3 days at a stretch nor can be clubbed with other leave at the same time. Casual leave is applicable for all types of employees. (included Probationer, Temporary Employee & Casual Employee)

Sick leave:
This is to help the employee attend to sickness and related disturbances and the leave available is 12 days per annum. The balance of sick leave at the end of any year can be carried forward to the next year. Any sick leave beyond 3 days at a stretch, need to be accompanied by a proper medical certificate from an authorized Medical Doctor, not below the rank of Asst Surgeon

+ National HD/Festival h/d has per the Shot & Est. Act 11 days

Total As per the Shops & Est. 11 days
C L 12 days
S L 12 days
PL/EL ( after a CL yr ) 12 days.

With warm regards
Kugan Paramasivam.

subhash Chandra -  Member Since: Nov 2006
Hi Puja!

Each and every employee of the Organization covered under Shop and Establishment Act is entitled for statutory leave as specified in the Act. As per Delhi Shop and Establishment Act 15 PL/EL and 12SL/CL in a calender year are compulsory.

But these days in the coemption of being number one company wrt to best HR Practices Companies are providing 25 to 40 PL/EL and 20 to 24 SL/CL. There is no fix practice on leave as well on saturday off. To attract good calibre Companies are doing a lot on this.

But General Trend is around 30PL and 12 SL/CL and Alternate saturdays are off in many companies.


shyamali -  Member Since: Jun 2006
Hi everyone! Thanks. Please do help me in this regard. I am looking forward to more responses. Regards, Shyamali


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