Labour Laws & Ir
Anurag Jain
Hr Manager
Sr Hr Professional
Employee Relation And Hr Operations
+13 Others

I was wondering if anyone could tell me what the general leave policy in India is. How many days EL, CL and SL are you entitled to per year.
Also please let me know what do ISO laws state for leave policy.
Look forward ro receiving a reply as soon as possib
Thank You
8th July 2005 From India, Bangalore
Hey Juliana,
Go through this site, am sure it will help you.
Am also attaching what i have set up for my Company, this is a start up too..& unfortunately did not know about this site.. i did reseacrh myself...
Hope thses things help you.
8th July 2005 From India, New Delhi

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Do let me know if it has helped you
8th July 2005 From India, New Delhi

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Hi Juliana


- (1) Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of - (i) if an adult, one day for every twenty days of work performed by him during the previous calendar year;

(ii) if a child, one day for every fifteen days of work formed by him during the previous calendar year.

Explanation 1 : For the purpose of this sub-section - (a) any days of lay off, by agreement or contract or as permissible under the standing orders;

(b) in the case of a female worker, maternity leave for any number of days not exceeding twelve weeks; and

(c) the leave earned in the year prior to that in which the leave is enjoyed; shall be deemed to be days on which the worker has worked in a factory for the purpose of computation of the period of 240 days or more, but he shall not earn leave for these days.

Explanation 2 : The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave.

(2) A worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages at the rate laid down in clause (i) or, as the case may be, clause (ii) of sub-section (1) if he has worked for two-thirds of the total number of days in the remainder of the calender year.

(3) If a worker is discharged or dismissed from service or quits his employment or is superannuated or dies while in service, during the course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his discharge, dismissal, quitting of employment, superannuation or death calculated at the rates specified in sub-section (1), even if he had not worked for the entire period specified in sub-section (1) or sub-section (2) making him eligible to avail of such leave, and such payment shall be made - (i) where the worker is discharged or dismissed or quits employment, before the expiry of the second working day from the date of such discharge, dismissal or quitting, and

(ii) where the worker is superannuated or dies while in service, before the expiry of two months from the date of such superannuation or death.

(4) In calculating leave under this section, fraction of leave of half a day or more shall be treated as one full day's leave, and fraction of less than half a day shall be omitted.

(5) If a worker does not in any one calendar year take the whole of the leave allowed to him under sub-section (1) or sub-section (2), as the case may be, any leave not taken by him shall be added to the leave to be allowed to him in the succeeding calendar year :

Provided that the total number of days of leave that may be carried forward to a succeeding year shall not exceed thirty in the case of an adult or forty in the case of a child :

Provided further that a worker, who has applied for leave with wages but has not been given such leave in accordance with any scheme laid down in sub-sections (8) and (9) or in contravention of sub-section (10) shall be entitled to carry forward the leave refused without any limit.

(6) A worker may at any time apply in writing to the manager of a factory not less than fifteen days before the date on which he wishes his leave to begin, to take all the leave or any portion thereof allowable to him during the calendar year :

Provided that the application shall be made not less than thirty days before the date on which the worker wishes his leave to begin, if he is employed in a public utility service as defined in clause (n) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947) :

Provided further that the number of times in which leave may be taken during any year shall not exceed three.

(7) If a worker wants to avail himself of the leave with wages due to him to cover a period of illness, he shall be granted such leave even if the application for leave is not made within the time specified in sub-section (6); and in such a case wages as admissible under section 81 shall be paid not later than fifteen days, or in the case of a public utility service not later than thirty days from the date of the application for leave.

(8) For the purpose of ensuring the continuity of work, the occupier or manager of the factory, in agreement with the Works Committee of the factory constituted under section 3 of the Industrial Disputes Act, 1947 (14 of 1947), or a similar Committee constituted under any other Act or if there is no such Works Committee or a similar Committee in the factory, in agreement with the representatives of the workers therein chosen in the prescribed manner, may lodge with the Chief Inspector a scheme in writing whereby the grant of leave allowable under this section may be regulated.

(9) A scheme lodged under sub-section (8) shall be displayed at some conspicuous and convenient places in the factory and shall be in force for a period of twelve months from the date on which it comes into force, and may thereafter be renewed with or without modification for a further period of twelve months at a time, by the manager in agreement with the Works Committee or a similar Committee, or as the case may be, in agreement with the representatives of the workers as specified in sub-section (8), and a notice of renewal shall be sent to the Chief Inspector before it is renewed.

(10) An application for leave which does not contravene the provisions of sub-section (6) shall not be refused, unless refusal is in accordance with the scheme for the time being in operation under sub-sections (8) and (9).

(11) If the employment of a worker who is entitled to leave under sub-section (1) or sub-section (2), as the case may be, is terminated by the occupier before he has taken the entire leave to which he is entitled, or if having applied for and having not been granted such leave, the worker quits his employment before he has taken the leave, the occupier of the factory shall pay him the amount payable under section 80 in respect of the leave not taken, and such payment shall be made, where the employment of the worker is terminated by the occupier, before the expiry of the second working day after such termination, and where a worker who quits his employment, on or before the next pay day.

(12) The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.

__________________________________________________ ______

CL and ML together should be atleast 12 in a year if you have got a 6 days a week working

Further you need to give atleast 10 holidays, from the list given out by the Labour officer of your State. [Gazzatte is published by State Government every year]
8th July 2005 From India, Ahmadabad
Dear Ajmal,
Your answer is quite comprehensive. One aspect you may consider.
what you have stated is under the Factories Act, however BPOs are covered under shops & Commercial Establishment Act.
For the purpose of drawing guidelines, you can use it as shops & estab act is not as comprehensive but the number of leave etc has to be in line with the Shops & Estb act.
12th July 2005 From India, Delhi
The leaves are provided under the following acts:
The Factories Act
The shops and commercial establishment act applicable to the state in which the establishment is located
The employees State insurance act
The permissable leaves are:
Earned/privilege leave-----Factories act/shops act
Accident cum sickness provided under the state Shops and commercial estd act.
CASUAL LEAVE IS NOT MANDATORY in all the state acts>Some states i understand have this as alternative to sick leave or combo.
Presently with establishments having multi location units the policy has to be relevant/confirmity with that states rules
I would APPRECIATE if the Hr faternity here presents after refering to their state law the statutory leaves permissable in order to make a work sheet for ready reference for all
22nd July 2006 From United States
I am confueed with EL? Is it a combo of CL & SL? is EL and privedlge leaves are same? If you have 5 days working in a week then ideally how many EL should be given to the Employees ? Pls Reply ASAP. THanks Vandana
21st February 2008 From India, New Delhi
Hi all, I am in need of Employee hand book. I have got this as a project. Need some inputs. Regards, Harish
12th September 2008 From India, Mumbai
Hello Juliana,
Hope that all your queries related to CL, EL and SL are answered by the above posts.
Remaining is ISO thing. If it is as per International organisation for standardization then there are no set rules in any ISO standards for Leave related benifits. It only says to stick to the policy standards set by the organisation.
25th September 2008 From India, Ahmadabad
Can anyone clarify the followings:
1. Defination of Wages for the encashment of leaves; there is confusion reg Basic + DA or on Gross Salary basis
2. Laws applicable to IT Comapnies for the purpose of encashment of leaves
3. Preferable with some example.
24th November 2008 From India, Jaipur
Do you have any mandatory provisions of SL and Cl to support our side in the talk with union do the needful sir, Deva HR chennai
7th December 2008 From India, Madras
Commonly three type of leaves are in practice. One is (i) Casual leave (CL), (ii) Sick Leave (SL), (iii) Earn leave (El).

All the above CL and SL is not mandatory. EL or Leave with wages is mandatory infactories act and other acts. Mandtory is every 20 working days is eligible for one day so that every year ending normally the working days is 310 days is eligible for 16.5 days per year.

On the purview we worked on the leave policy. In cl and Sl we mutully come an agreement,to fix it in year basis. EL is most commonly for workers. In staff category it is not mandatory. So that most of the companies Give the leave policy in the appointment letter or confirmation letter.

In General:huh:

CL -12 days CL -10 days CL -6 days CL -8 days
Sl -12 days SL -6 days SL -6 days Sl - 8 days
EL -12 days El -15 days EL -12 days EL - 12 days

On the above CL is lapsed on the year end we are not availed it.
SL is carry over one year what the leave is in account.After the second year end it is also lapsed. minimum one year leave only in the SL account in year end whaterever it is in balance sickleave.

EL is carry over upto 35 days some companies. 51 days some companies execess the limit company encashed the leave amount based on the basic salary. EL leave encashment is applicable for the PF dedcutions.

Some companies have compulsory policy to deduct three days EL. on the time of LTA amount claim.


21st February 2009 From India, Madras
Hi everybody,
I am falling short of words to thank all those who are contributing to his site for the immense benefit of novices like us. Kudos to all of you.
I request any of you could explain me the difference between sick leave and medical leave. i am confused as to whether both of them could be clubbed or maintained separately.
Thanks in anticipation.
30th March 2009 From India, Hyderabad
Hello Ajmal,
I am a production manager for an outsourcing unit in chennai. my company offers casual leave (CL), sick leave (SL) and earned leave (PL). I have a few questions regarding leave policies:
1. Could you please let me know if there is a standard policy for leaves in BPO/outsourcing units. For example, is there a limit on the number of (casual) leaves that an employee can club together.
2. Is there any law that states that two types of leaves cannot be combined together. i.e. CL and SL should not be taken together.
3. If a person not eligible for leave (i.e. during probation) falls ill and is unable to come to work, this is sometimes taken as Loss of Pay (LOP). If during the period of absence, any weekly offs/holidays occur, would that be considered as LOP as well.
I would really appreciate it if you could let me know your comments and provide me with the correct laws for these instance so that I can refer them up. Also if there are any websites for these.
23rd April 2009 From India, Madras
Excellent answers team, as we're reviewing our Leave Policy in Hyderabad. We aer all IT / software developers, and provide employees with an entitlement of 30 days per year (2.5 per month). Whislst the policy states they can only cary forward 18 days, this 30 day entitlements seems very high. What is the standard in india? In USA we only provide 15 !
16th June 2009 From New Zealand, Auckland
Hi Can sombody tell me that the employer can deduct the leaves accumulated since last 4 year in one go is it legel vinodknautiyal
18th September 2009 From India, New Delhi
could anybody please give me details of leave policy for staff other than factory workers. in a factory.( I am refering to management staff. Will we fall under shop and establishments act.)
23rd December 2009 From India, Madras
i have one query we have form one pvt. ltd. company and there is no leave policy, is there any leave policy as per govt.
7th January 2010 From India, Delhi
Hi All, What is the EL/PL Calculation formula as per delhi Shop& establishment Act. Plz deo help me on it. Mohd.Anish
20th January 2010 From India, Delhi
Hello Please find the attached.................
20th January 2010 From India, Mumbai

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File Type: xls Leave Clauses Per various Shops&Estb Acts.xls (42.0 KB, 1629 views)

can some one give info about leave policy for bpo, and is there any laws in regards to that.or any is it like each company have there own leave policy .
21st January 2010 From India, Madras
To cite HR
I was wondering if anyone could tell me what the general leave policy in India is. How many days EL, CL and SL are you entitled to per year.
Also please let me know what do ISO laws state for leave policy.
Look forward ro receiving a reply as soon as possib
Thank You
27th January 2010 From India, Bhopal
Hi i jst want know that if i have no of C-Off and if i have to adjust it in between holidays gape so how it calculated.
suppose 26 jan is holiday and 28 also a holiday i have 2 c-off
i was absent for 25,26,27,28,29 so how it calculated?
5th March 2010 From India, Ahmadabad
Dear all,
I hv the following queries, please advise.
an employee goes for leave from monday to saturday, and he come back on work on nex monday, in this case, will we need to cut his sunday??
11th May 2010 From India, Hyderabad
Hello all,
I am new for this site, can you please let me know if i am taking Friday off (EL/CL any leave) and 2nd Saturday and Sunday, already off in my company, than how many leave will be deducting in my salary one or Three, if i am joining back on Monday.
Bharti Sharma
7th July 2010 From India, Ludhiana
Dear Member,
Prepare leave policy keeping in view your applicable State Shops & Commercial Establishment Act. If you are employing woman employee & the Maternity Benefit Act is applicable then also go through this Act for maternity leaves.

17th August 2010 From India, Delhi
i work in a pharmaceutical company. i want to know under which act should i have my leave policy i.e under sales and promotion act or shop and establishment act or under factory act? also if i may have the same leave policy for the office staff and the factory workers and the field staff? and should the leaves be given in d same year or the consecutive year on the basis of a financial year already worked by a staff?
9th November 2010 From India, Delhi
dear all respected suggest me about KPA and KRA organization and also about function and how to make policy for such org. pandey AShutosh
15th March 2017 From India, Delhi
Hello Seniors,
I recently joined a pharmaceutical Organization as HR executive & heading the department alone and facing problem in Leave Policy and related calculations. So can anyone please help me.
10th January 2018 From India, Dehradun
Hi Smita,
I am just sharing the thumb rule.
1. Earned/ Privilege Leave - 1 per 20 working days.
2. Casual Leave - 7 per year.
3. Sick Leave - 7 per year.
Except EL every kind of leave will lapse after the year end.
Rest as per Factories Act, you are required to List 10 holidays in a year.
Thanks and regards,
Shamsheer Pal Singh Dhillon
Head Legal
1st May 2018 From India, Mohali
Hi All,
We are amending leave policy in our organisation please help me with long leave policy if any.Kindly share it to
8th May 2018 From India, Bengaluru
Dear Juliana
As per general HR policy we can give CL=12, SL=12, Per year who has more than 21000 rs of gross salry those personnels only eligible for SL's
Comes to PL personnel should complet 1 year service with the company then only those personnels are eligible for PL's
PL=15 per Year.
8th June 2019 From India, Hyderabad
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