Labour Law & Hr Consultant
Legal Analyst, Hrm
Hr-manager, Trainer, Writer
Shiva Prasad
Human Resources And Ir
Core HR
Recruitment Lead
Human Resource
+10 Others

Thread Started by #pavani2646

Please help me
Now in my company we are giving all kind of leaves like CL,SL &EL .Actually as per the Factories Act,1948 an employee is entitle only for ANNUAL LEAVE WITH WAGES(Earn leave).Now i want to rewrite my company leave policy wihtout casual leave and sick leave. Is any problem as per legal?
Is employee eligible CL,SL as per the factories act,1948.
11th August 2009 From India, Delhi
Due to recession we stoped giving OT payment in my company and instead of OF we are giving Compensatory Off to the workers but they didnt understand that problem now thery are asking OT MONEY or they are saying they will not come to duties on National holidays.Ok i will comply above the condition as per the Labour Acts.Now i also want to go as per the Labour Acts.In my view there is no law, employer should provide CL & SL to the employees.Leaves we are providing for employee welfareas.
Now can i change my company policies as i like.
If any legal problem PLEASE ENSURE ME
11th August 2009 From India, Delhi
In my view every employer should provide at least 8 holidays PA & 12 days of leave policy includes CL & SL......
OT money depends on ability of the employer....
that can't be demanded by the employee unless it is not mentioned in any of the documents......
11th August 2009 From India, Hyderabad
As per the Factories Act Employer should pay overtime pay-Double wages
CL & SL i am not taking about leave policy.As per labour laws is employee eligible for CL &SL.If yes, please send supported documents.
11th August 2009 From India, Delhi
its a valid point, even i to read mentioning only about Annual Leave but nothing about CL, SL. Can any one let me know is CL, SL applicable to Officers, Managers, Sr. Executives who work in a manufacturing unit. As per Act every employee should be eligible for AL including workers who come under below Executive cadre. Which one is correct. Please reply soon
12th August 2009 From India, Hyderabad
Dear, As per Factories Act,1948, there is Min entitlement of atleast 7 CL and 7 S.L , therefore it is depending upon the management oupon higher side min in this much.
13th August 2009 From India, Delhi
Dear Kailashkumar,
Thanks for your reply,but have you supported document
i dont find any supported documents like this in Factories Act,1948.
If u have any supported documents please post regarding CL & SL .
13th August 2009 From India, Delhi
Hi sekar,
Wages is best associated with employee compensation based on the number of hours worked multiplied by an hourly rate of pay.
Salary is best associated with employee compensation quoted on an annual/monthly basis.
13th August 2009 From India, Lucknow
Hi adminsupport, 1st do not put your post/thread inbetween like this. this distract the main subject. you may ask your question in another post. Raj
13th August 2009 From India
Dear all,
This is my 1st reply. The topic of legality of CL,SL to factories act could be taken from the state factory rules or from labour commissioner office where they will provide u the information of Casual leaves(5-7) & Sick leaves (0-15) varying as per state legislations.
For reference u can go through the Standing Orders oficials in the labour department.
13th August 2009 From India, Bangalore

No doubt leave cannot be claimed as a matter of right and even annual leave cannot be granted to an employee when desired in an emergent situation, what to say of any other kind of leave other than the kind of leave prescribed in the Factories Act. So, a company has the unfettered discretion to follow rigid policies only which are provided statutorily. But some vital aspects need not be overlooked that may cause harm to the interests of the company.

The job of an HRM man is of complex nature and results more in discontentment rather than contentment of the employees of an organization. If he adopts negative attitude, the results are always negative in terms of profitability and efficiency of the organization in terms of employee unrest, strikes, lockouts, resulting in to larger financial and image loss of the company than if the company allows some insignificant benefits to the employees. So, it is necessary for a HR man to be positive. Leave, if allowed to an employee at the time of need definitely creates loyalty amongst the employees and respect for the management. During my service period of 39+ years, I was never bothered by any employee or their unions and they had full faith in my working methods. Even I allowed short leave to employees in addition to their leave entitlements. In turn, no employee refused to work even when I asked to sit after office working hours and they never dared to ask for OT at their own, as they knew wherever justified I would allow OT without their asking. My units had always been giving much better results than all other Units.

Legislative acts provide statutory provisions that a company has to comply with in definite terms. Acts provide for minimum of the facilities that the organizations must have to provide to their employees and rest depends upon the local policy of the management of the organization.


Efficiency, excellence and economy should always be the watchword of any organization. But, doubtlessly, both excellence and economy depend upon employee’s efficiency. So, the HR man has to make such a policy on behalf of the management so that employee’s efficiency is not retarded intentionally or unintentionally. An HR man should know that rigidity never pays for ever. It is always against the interest of the organization, as it leads to unrest amongst the workers. So, HRM has to think positively to motivate employees to remain at work and provide efficient and service. So, per force, HR has to think about motivation of the working cadres that contribute to the profitability of the company. Its policy should be of the long term nature and not of the short term nature.

Needless to emphasize, HR and Finance has to go side by side to achieve results for the company. Neither Finance Wing, nor the HR wing alone can contribute efficiency, excellence and economy. The present economic crisis, or the so called recession, has not impacted all the organizations, except a few large scale organizations whose management was corrupt and could not observe ethics of corporate governance. But in the name of recession, every organization is trying to take advantage of that limited recession caused in the handful of organizations due to the unethical acts of their managements. So, I must advise managements not to try taking undue advantage of the so called crisis.

Take the employees and their unions in to confidence to discuss such issues, not in such a way that they should consider that as their birth right to discuss every issue with them, but with the feeling of gratitude that they are getting additional unwarranted service benefit.

Emergencies happen to everyone in his/her life. So, may be to some limited extent, but CASUAL LEAVE IS A MUST for employees.

For sick leave, of course that should not be mandatory. But, if a long hospitalization occurs to an employee, the management must be sympathetic to its employee and members of his/her family to provide adequate means of their livelihood, may be in the shape of half pay, or ex-gratia amount. HR need not take everything on it. Delegation is a must in such cases. Only the immediate supervisor or manager may be knowing the state of affairs of his/her subordinate. So, their recommendation should be taken as a valid ground for grant of such kind of leave or compensation. By making all such provisions you will definitely be winning your employees loyalty. These things are also necessary to attract talents from the open market for better results when they are able to know that your company I would allow them more facilities and benefits than the competitor organizations.

National Holidays are always paid holidays and are to be compensated by OT if the employees are called to work. However compenatory off can be granted in lieu of other holidays on which a worker has been made to work.

SO, HR should always be flexible to adjust itself according to the needs of time and in the interest of the organization! Not allowing CL or SL, of course is inhuman. HR is supposed to take welfare of staff also.

P S Dhingra

Vigilance and Change Management Consultant

13th August 2009 From India, Delhi
Though as per Factories Act, only annual leave is to be provided, however, in respect of those covered under ESI, they are entitled for
Sick Leave for which they get payment also from ESI. As regards CL, Model Standing Orders under Standing Orders Act, provide for CL of 8 days. So, when we go for certification of standing orders, drafted based on model standing orders which we do generally, Certifying Authority makes sure that we provide for CL. Therefore, CL is a provision we need provide for.
In addition, Shops and Establishment Act also provides for CL maximum of 12 days.
Therefore, we need to recognise the principle for extending a particular leave.
As per labour law provisions, no workman can refuse to work on overtime, as long as we comply with the provisions.
DN Rao
13th August 2009 From India, Hyderabad
Dear Pavani,
Mr. Dinghra is right. Also, just because a company is in recession, the leave priveleges cannot be stopped or denied under the Shops & Establishment Act of the pertaining state. OT is not mandatory. CL/SL are compulsory. Many of the members here have suggested the minimum number of leave days allowable under different states.
Leave days cannot be written off but carried forward to the succedding year and accumulated. If things improve next year, take a long leave or encash it. Else the excess days may be wasted.This is the process that has to be done with the approval of management and strictly followed by HR without prejudice.
13th August 2009 From India, Madras
Dear All,
Please let me know about the unauthorised letter's signature, if any employee unauthorised absence since last 10 days, we want shoot a letter to him, who is the right person for the signature on that letter. i.e. The Factory Manager is the right person or HR persons should be signed on that letter.
please give the reply on priority, all are requested to please.
manoj kumar
13th August 2009 From India, Chandigarh
Dear Pavani,
Factories Act 1948 provides minimum coverage for employees. An employer can give extra leave in what ever terms they call it to suit their operation requirements. Maybe you should find out why was the CL, EL and SL created in the first place. This is to justify your action later by saying the entitlement is no more relevant with the current operations. However such entitlement if given may not be easy to take back unless you can replace them with something better or suitable. Good luck
14th August 2009 From Malaysia, Kuala Lumpur
Dear folk,

I will clarify you on Factories Act. As per the Act, the employer need not provide any sick leave or casual leave. you are liable to give only Earned leave of one day for every 20 days of work done in a calander year. If the worker or employee has not completed 240 days of work, you need not provide any EL to the concerned worker. With respect to with drawal of SL and CL which is already existing - if the employees dont resist, there isno issue, Otherwise they may raise a dispute under sec 2(k) of ID Act in the labour court that you have diprived the facilities which they were enjoying, though they are not entitled (as per stature) and any customery practive will become a rule of right at a later date which all the HR managers have to keep in mind before implementing any welfare in any company. However, is you want to make any changer stated in the Schedure IV of ID act, you may have issue a notice prior to 21 days of such change in the conditions of employment as per Section 9A of ID Act. Therefore, any welfare given already, you can withdraw it provided you give a better welfare than the existing one then the change is possible. Hope you got it. Regards
14th August 2009 From India, Madras
Many companies has many practices. Large Business houses use to get signature from the Departmental Heads. Small business establishments use their HR manager's signature. As long as the action is not going to result in capital punishment, any person authorised by the Board of Director can sign. If it is going to end up like Termination then, the signatory should have Board's authorisation for issuing such letters includinga charge memo.
Nagendran B
Same Deutz Fahr - Ranipet
14th August 2009 From India, Madras
You can not change. withdrawing the existing facility if any even it is more than act of any will be treated as change in service condition of the employees. if any one approaching court your management will be punished. Please contact good legal practitioner on labour issues.
Dr. Shiva Prasad
14th August 2009 From India, Bangalore
Unauthorised Absence
Hi Manoj,
This is with reference to your query about unauthorised absence. Doubtlessly, the authority who is competent to sanction leave or the authorised HR personnel is fully empowered to sign the letter of unauthorised absence on report of the immediate superior/foreman of the Unit.
P S Dhingra
Vigilance and Change Management Consultant

14th August 2009 From India, Delhi
Dear Pavani & Friends: While the factories Act talks of annual leave with wages, the mention of CL, EL etc would be there in your Certified Standing Orders or the Model Standing orders whichever is applicable to you. Sick leave provision is based on ESI Act requirement but even if you are an exempted establishment, the provision has to be complied.Hence the requirement of CL, Annual leave, sick leave are mandatory provisions and cannot be tinkered.
One more important thing; leave is a matter of custom or previlege and any change therein can be made only after giving Notice of Change as per ID Act provision and after following the procedure therein
KK Nair
15th August 2009
It depends on the contents of letter proposed to be sent. If it is a letter in the nature of advising the employee concerned to report for duty, it can be signed by either Department Head concerned or HR. However, if HR signs the letter, information should be shared with Department Head concerned so that he/she is in knowledge of it.
If it involves "dispensing with services" based on "voluntary abandonment of service", there are two ways to do it:
1) it can be issued by Disciplinary Authority as notified under company's certified standing orders, or Discipline, Conduct & Appeal Rules or any other relevant rules as notified;
2) it can be issued by HR taking approval from Disciplinary Authority and wording the letter appropriately in that the letter should indicate it is being issued with the approval of Disciplinary Authority.
However, to avoid any avoidable situations either in Court of Law or otherwise, it is suggested that we need to opt for alternative(1) above.
DN Rao
16th August 2009 From India, Hyderabad
Dear pavani 2646,
1. Factories act is dealt with Annual leave only. (EL). But these leaves can not be availed by the new employees, those who have joined in the mid of a particular calender year,as there will not be any credit in their account. They can avail it only in the subsequent year based on the accumulation in their account. Hence, based on the principle of natural justice, companies start giving CL as well as SL apart from EL.
2. If your organisation is covered under shops and establishments act, then there is provision for CL.
But in general, Leaves are as per the company policies except the annual leave with wages.
18th August 2009 From India, Madras
Dear Friends, Are all employees in a factory entile for overtime payment (double wages) if they stay after 8 hours in a day. Regards, Swarnali
9th October 2009 From India, Madras
Please let me know if an employer denies to give Cl/SL/EL facilities to thier employees what action should be required from employee?
7th June 2010 From India, Mumbai
Dear friend,

As rightly pointed out by Mr.Dhingra, the standards of conditions of service prescribed by any Labour Law would be the minimum to ensure consistent retention of the productivity of workmen.So, if you are providing a concession not provided for in a particular statute, it in itself cannot be a valid reason for its withdrawal for with the passage of time it has assumed the status of a conventional concession or a customary right of the workmen which cannot be changed prejudicially without complying with the provisions of section 9A of the Industrial Disputes Act,1947. Psychologically, there is an atavistic urge in man to despise work. But he is compelled to work for the sake of his subsistence. When his work becomes highly organized and systematic,his hatred for work also becomes more pronounced and results in lesser productivity or absenteeism. So, the Law sets the minimum standards of working hours and leave provisions depending upon the nature of work and the exigencies associated therewith. Someone else raised a question about the necessity of various leave concessions to gold-collar employees. Of the major factors of production, men are the most sensitive and volatile and hence the most unpredictable for their activities, irrespective of their employment status, extend to larger spheres of family and society beyond the sphere of work. It is, therefore, quite natural that whether an employed person is a General Manager or an ordinary workman, he cannot be indifferent to his family obligations and social obligations. Hence, leave becomes an inevitable and important condition of service. However, it cannot be a matter of right so as to meddle with the flow of work of the organization. That's why the prerogarative of prior sanction is vested with the employer. Hope, all your doubts are cleared now!
2nd July 2014 From India, Salem
Dear Sir, In my company has more than 20 employees,my quistion is what the minimum salary for pf, and maximum also,and tell mi ESI rulls like minimum or maximum emp, wages report ets.
5th July 2014 From India, Siliguri
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™