R B Yadav
Advocate & Management Consultant On Labour
+2 Others

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Dear Sir / Madam, Kindly share me any Leave Policy as per the Factories Act. We want to define the Leave Policy as per the act for this year. Earlier we were having the policy, but as per my knowledge it is not as per the Factory act. We are having 7 CL, 7 SL & 8 PL as per the earlier policy.
Also let me know if it can be accumulated & added in the next year. Kindly do the needful.

From India, New Delhi
Dear Mr. Vinayak Sonawane,
As per the Factories Act 1948, the leave entitlement can be given in two different cases:
1) Employees (Regular) - The employees are eligible for a 30 day PL/EL (intervening Holidays and Weekly off are also counted in that period as leave)
- Company that has 5 day working, the leave is allowed for 21 days.
- CL is allocated from 7-10 days referring to the Standing Orders
- Sick Leave is to the dicretion of the management.
2) Workers in the Factory - One leave for every 20 days worked is considered in the EL as per the Factories Act.
- CL & Sl are more or less similair to that of the regular employees.
- The PL can be carried forward.

From India, Visakhapatnam
Hi Sharmila, Can you tell me leave policy as per Shop establishment act. Regards, Monali Shinde.
From India, Pune
Dear Ms. Monali Shinde,
Please refer the discussions had in this forum just a couple of days back. Attached is the link for your knowledge and insight on leaves under Shops & Establishments Act.
CiteHR Attribution: https://www.citehr.com/447481-leave.html

From India, Visakhapatnam
Dear Sharmil,
Thank you very much . I want to discuss 26th January and 15th August and 1st May is National Holiday , is it necessary under shop establishment act or any other act to close the organization. If organization is working on this day then what problem they will face? I am working in Diamond industry so I have to convince the management for this because employee also want leave.
Monali Shinde

From India, Pune
Dear Vinayak Sonawane

The Chapter VIII of the Factories Act, 1948 is dealing with annual leave with wages, which provided one full day leave for every twenty working days, hence the Previlage Leave/Earn Leave are calculated only upon working days. I have reproduced the relevant section of Factories Act for better understanding the same


78. Application of Chapter.— (1) The provisions of this Chapter shall not

operate to the prejudice of any right to which a worker may be entitled under any other law or under the terms of any award, 2[agreement (including settlement)] or contract of service:

3[Provided that if such award, agreement (including settlement) or contract of service provides for a longer annual leave with wages than provided in this Chapter, the quantum of leave, which the worker shall be entitled to, shall be in accordance with such award, agreement or contract of service, but in relation to matters not provided for in such award, agreement or contract of service or matters which are provided for less favourably therein, the provisions of sections 79 to 82, so far as may be, shall apply.]

(2) The provisions of this Chapter shall not apply to workers 4[in any factory] of any railway administered by the Government, who are governed by leave rules approved by the Central Government.

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 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 calendar year.

1[(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) 2[or in contravention of sub-section (10)] shall be entitled to carry forward the 3[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.


(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 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.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.

As far as question of other leaves belongs, you have to provide the same in accordance with the State Rules as defined in the State Industrial Establishment NH and FH Act.

You can frame you own leave policy in accordance with the rules stipulated in concern Act.



R B Yadav


From India, Mumbai
what if an employee has not completed 240 days or more will he get PL
From India, Pune
Dear Sharmila,
You answered exactly for the point which i am looking for.
I am framing a leave policy for my company.
I would request you to send a thesis or some reference along.
I simply cannot put forth something with no proof or relevance.
Awaiting for an reply.

From India
My organization is an IT Company registered under Factories Act, 1948. I am desirous to know what are the minimum earned leaves for the employees not falling within the category of "workmen".
Any help will be appreciated.
Thanks & Regards,

From India, Faridabad
Factory EL one day can use immediate after completion of 20 days to all employees
From India, Visakhapatnam
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