R.N.Khola
Labour Laws & Ir
Sanjeev.Himachali
Hr & Od Consultant
Amit Insha
Hr & Compliance
Rajeev Verma
Hr Professional
Rose_S
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Amansi207
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Ssonu81
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MANJU1970
Manger Purchase Logistics
Raghu230
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Ombir Singh
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Naveenthapliyal@27
Finance Manager
+10 Others

hi, my name is karthik narayanan, i have been a hr manager for all these years. Iam used to labour inspections. Iam told that whilst counting number of el availed by employees, the intervening festival holidays/weekly holiday/government holidays should not be taken in to account. Is this correct?

Every organisation has it's own leave rules. There is no uniformity. No hard and fast rules indeed. I want to know the exact leave rules as per shop and establishment act (tamil nadu). To my knowledge, an employee will be eligible for earned leave upon completing 240 days of service. Earned leave can be availed only thrice in a year. Balance leaves, if any will be clutch forward to the next year. Maximum 30 days el can be accumulated in a span of 3 years. These are rules in general. But my doubt pertains as to whether intervening holidays should be counted or not (while availing el). I even tried bench marking in this regard. But iam surprised that there is no uniformity. Kindly clarify my doubt.

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Per TN S&E Act
12 days of earned leave to be credited to employeers after completing 12 months of continuous service. Employee can avail this 12 days in the next year i.e., year after continuous 12 months of service. For example one employee joings on 1.1.2008 and he will get 12 days EL on 1.1.2009 and he can enjoy this leave during 2009. and on 1.1.2010 he will get 12 days again if he continues in service.
Employees are allowed to accumalate upto 24 days
I think Section 79 of Factories Act 1948, will be of some help to you. This is the standard that all the companies in India should be following. However, this act will not be applicable in case the industry or the company proposes / implements anything better than this.

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 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 calendar 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.
Sanjeev have done the good job by producing the section 79 of the Factories Act, which is related to the Earned Leave.
The crux ....as per the Factories Act.......is that
Earned leaves are given only after the completion of 240 days of working in a calender year.
It is given 1 leave on every working of 20 days........for the calender Year.
For the purpose of working days.....It includes only working days of the Employees and it excludes any Festival holiday, Leave, without pay, any kind of absence from the work.
The holidays days are counted only for the purpose of continuity of the job of the employee.
according to factory act earn leave given only after completion of 240 days of working in aclender year but if any employees left th job after 162 days then he take his earn leave as i know 240*2/3 formula will be applie if he left company after 162 days please reply my q. urgently
Mr. Rajeeb what do you mean by 240 working days? IS it include holidays, let 30 days or exclude holiday 26 days? Pls inform. I wants to know 240 days are include or exclude holidays?
Hi.
Is there any rule about Earned leaves that an associate can apply for it only once or twice in a year? Provided if the leaves are segregated as Sick leaves, casual leaves and earned leaves.
And if yes then how may EL an associate will get in a year.
HI this is priya, i'm working in IT company. I'm working as a HR associate.
i was calculating leave balance for a employee, for eg:
a employees has taken alternate days leave for 7 days in month for MBA studies. do in need to deduct leave from CL or EL
Pls explain
HI this is priya, i'm working in IT company. I'm working as a HR associate.
i was calculating leave balance for a employee, for eg:
a employees has taken alternate days leave for 7 days in month for MBA studies. do in need to deduct leave from CL or EL
Pls explain
hai all
i working in pvt ltd company ( print media)since 01.01.2009 i copleat 1 year service . I used 12 casual leaves & 12 sick leaves in this year. my queation is. how many erned leves i will get. how can caluclate erned leaves in news paper field .
Thanking you sir
SRINIVAS
you need to deduct from Earned leave As per act CL-12 & SL-12 Per Anum but per month only one CL & one SL Regards Charvaka Reddy
HI,
if we go through the above post ,according to shop and establishment act - a company can just credit 12 EL in a year but what about carrying forward of these ELs…………….. what is the maximum that an employee can accumulate in his service ………….. can these leaves be encashed after a set period of employment with particular company…………………….how many can be encashed…………………
Thanks
Shweta
Dear SRINIVAS,

See the below rules of EL, In short you can get one EL after 20 working days.

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.

(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.

Amit Insha
Dear Kartick

Please purchase a book of the Tamil Nadu Shops & Establishment bare act from a book vendor. Additionally Tamil Nadu also has its own Tamil Nadu National Holidays & Festivals Act. Suggest you purchase this also.

Exact regulatory guidelines will be given in these two acts on the number of Earned leaves, Sick Leave, Casual Leave and Holidays to be given to an employee.

Per information currently available on the citehr site & google sources, Tamil Nadu has 12 EL, 12 CL and 12 SL + 3 National & 5 Festival holidays. EL can only be availed after completion of 12 months of contiuous service and can be accumulated up to 24 days.

Every state has its own say on how many leaves an employee is eligible to and therefore there is no uniformity in the number of leaves that may be given to an employee.

Holidays appearing within the Earned leave period are generally counted as Earned leave and not treated separately as Holidays. This appears specifically in the Bombay Shops & Establishment Act, Chapter VII, Clause 35, b....

"....The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days during the period of such leave, on which a shop, or commercial establishment remains closed under sub-section (1) of section 18, or on which he is entitled to a holiday under sub-section (1) of section 24 or section 31....."

I am not sure if Tamil Nadu Shops & Establishment specifies this, hence you need to procure the Bare Act.

regards

Rose S
Dear shriram priya, 7 Days leave you have to deduct from Employee EL. Regards Charvaka Reddy
Dear All, Earned leaves employee can avail three times in a year.please check AP SHOPS & Establishment ACT 1988 Regards Charvaka Reddy
Dear Shwetha, please let me know your comapany name & state.so that i can help you. Charvaka Reddy
Dear All,
As per AP SHOPS & ESTABLISHMENT ACT aN Employee will have 12 CL &12 SL.
if the employee is working continuously 240 days he/she will eligible for Earned leaves i.e 15 days per anum.
CL will lapse at the end of the financial year
SL Will carry forward to the next year.
Leave encashment calulation = Gross salary/30 * no.of paid leaves or basic salary/26*no.of paid leaves
Regards
Charvaka Reddy
Dear Shweta,
If your unit is situated in Haryana & you are covered the Shops Act then go through section 14 of the Punjab Shops & Commercial Establishment Act, 1958 as applicable to the State of Haryana. If the number of employees is less than ten then you are to grant maternity benefit as section 31 of this Act & if the strength is ten or more then in that case adhere to Maternity Benefit Act, 1961. If your management is interested in giving additional leaves under any of the heads then you are to make Rules/ policy otherwise grant leaves as per the applicable Act & Rules.
With Regards,
R.N.Khola




Dear
Encashment of Earned leaves is made at the time of making full & final payment to any employee/ worker as per the provisions contained in State Shops Act / Factories Act, 1948/ Certified Standing Orders which ever is applicable in your case.
With Regards,
R.N.Khola




Hi,
Could you please let me know the following things:-
There are 3 types of leaves usually company provides- EL, CL & SL
But is there any law which says that CL is mandatory apart from EL?
Does an employee is eligible to accumulate her earned leave during her leave on Maternity leave period? if yes please send me the link and the act
And how about sick leaves? how many days an employee is eligible for Sick leave and what is the responsibility on a company lies on sick leaves?
Your kind clarification on above is highly appreciated.
Thanx
Amjad
Dear Sir,
I am working in a manufacturing unit at noida (Uttar Pradesh) and i have some cnfusion about the EL. My question is-
1. After how many days, an employee can avail EL from the date of joining whether we calculate EL after 240 days completation.
2. If an employee join the company in August 2010 and he does not work 240 days in the same year. In that case, is he eligible to get EL for the year 2011?
3. In case no- 2, how many EL will be forwored for next year in Janaury 2011, if he is not absent in the year 2010.
4. If any employee jon the company and leave aslo the comany within 240 days, is he eligible to get EL in cashment.
5. if he complete 240 days in the month of June 2011 then can we post the EL on the Leave register in the month of June or July?
Kindly send me the update of my 5 questions to mail id- , if it may be possible.
Thanks & Regards,
Adi Tiwari.
Hi,
I am Vaishnavi working in medical manufacturing company, i have doubts in the below
if an employee has carry forwarded leave of 10 days, how long can he utilize these leave within 90 days or for the entire year can he use these leaves.
Dear RN Khola,
My query is:- according to factory act earn leave given only after completion of 240 days of working in aclender year but if any employees left th job after 162 days then he is eligible to take his earn leave or not.
Dear sir
I am working in Manufacturing company from 1992 and have accumulated 145 EL ( Earned Leave ) My company is not giving any Re reimbursement
I Want to know the correct rules, should i save my EL or what to do Please help me
I Am continuing with the same company from 1992 till date and further i will be here for at least 6years from now, i am 43 year old.
Regards
Manjunath Naik
Hi All,
Please clarify the EL issue:
One employee is taken 3 days EL on Friday, Saturday and Monday, please confirm Sunday we have to count EL or weekly off.
And please confirm in the month minimum and maximum EL eligibility.
Please explain.
Dear Sir,
I have been appointed as Admin Manager in a Manufacturing Company registered under Factory Act 1948 and joined on 13 October 2015. Please advise me whether I entitle for EL during year 2015 and can availed it in the same year. Please advise me.
Dear All
My company employee completed one year 1 st jan 2016 to Dec-2016
his working days are in each month
Jan- = 31
Feb = 28
March = 31
April = 30
May = 31
June = 30
July = 31
aug = 31
Sep = 30
Oct = 31
Nov = 30
Dec = 31
Total Working Days = 365
His Gross Salary = 17000/-
Please help us
Kindly Suggest me How Leave Paid to employee in this year.
Dear Sir
Please let me know about the Earned Leave credit systems. I am working with a hotel in Uttarakhand and My joining date is 1 Jan 2015 now the point is I had asked the management for my earned leave salary for period of Jan 2015 to Dec 2015 in the time of April 2016 but they refused my application due to reason I am not earned my earned leave salary because of the labor law says that applicable only to employees whom leave salary earned after the completion of one year will be started earning leave salary. so you will start your earned leave Jan 2016 I mean to say they according to my leave salary payable next year Jan 2017 for period of Jan 2016 - Dec 2016. but my question is they is right or wrong. If they are wrong so please send copy of rules.
Naveen
Hai ,
I have a query regarding EL ,
If an employee avails earned leave from 22Jan'18 to 27Jan'18 will the National Holiday (26Jan) be treated as holiday or included as leave ? Please clarify.
6 days EL has been taken.
26 Jan will be treated as leave.
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