I want to know that why we take only 240 days for annual leave, gratuity etc. My que is that why only 240 days? & not the other other.
From India, Vapi
Acknowledge(0)
Amend(0)
11From India, Vapi
Acknowledge(0)Amend(0)
Please read the article written by Mr. K. Varadan, Business Head - CAS of Aparajitha, titled "240, Its Factors, and Multiples," which was published in two parts in the journal section of Volume 129 - 15th April 2011 - Part 8 and Volume 129 - 1st May 2011 - Part 9 of Indian Factories and Labour Reports (FLR).
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Understanding the 240-Day Rule for Annual Leave
240 days are not specifically for annual leave. The Factory Act states that if an adult completes 240 days, they are eligible for 20 days of leave. After 240 days, the company management has to decide their policy regarding leave.
Reference: Chapter VIII of the Factory Act
Annual Leave with Wages
79. Annual leave with wages. (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 performed by him during the previous calendar year.
Explanation 1: For the purpose of this sub-section:
(a) Any days of layoff, 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 the computation of the period of 240 days or more, but he shall not earn leave for these days.
With Regards,
Vikas Vyas
From India, Vapi
Acknowledge(0)Amend(0)
240 days are not specifically for annual leave. The Factory Act states that if an adult completes 240 days, they are eligible for 20 days of leave. After 240 days, the company management has to decide their policy regarding leave.
Reference: Chapter VIII of the Factory Act
Annual Leave with Wages
79. Annual leave with wages. (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 performed by him during the previous calendar year.
Explanation 1: For the purpose of this sub-section:
(a) Any days of layoff, 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 the computation of the period of 240 days or more, but he shall not earn leave for these days.
With Regards,
Vikas Vyas
From India, Vapi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
240 days Gratuity Act-Case Law.doc