The rules of leave depend whether it is a factory or a commercial establishment.
In case of Factory, every worker who has worked for more than 240 days in a year, is entitled to fully paid privilege leave in the next year at the rate of 1 day for every 20 working days. The year is a calender year and not a financial year. This facility is available to all persons including probationers.
If any person has joined in the middle of a year, say on 1-8-2013, then he is also entitled to PL in the year 2014, calculated at the above rate, but the qualifying clause of 240 days is proportionately adjusted. Meaning the employee should have worked for more that two third of the entire period. In the given example, it comes to 5 x 2/3= 3 and 1/3 months.
To have a complete idea of legal provisions, it is recommended to read Chapter 8 having Sections 78 to 84 of the Factories Act. Similar provisions are also embodied in the Maharashtra Shops and Establishments Act, in which annual leave is prescribed of 21 days.
25th October 2013 From India, Kolhapur
Leave with Pay and Payment of Wages
35. Leave.-7[(1)(a) Subject to the provisions of clause (b), every employee who has been employed for not less than three months in any year, shall for every 60 days on which he has worked during the year be allowed leave, consecutive or otherwise, for a period of not more than five days:
(b) every employee who has worked for not less than two hundred and forty days during a year 15[ irrespective of the date of commencement of his service,]15 shall be allowed leave, consecutive or otherwise, for a period of not less than twenty-one days:
Provided that such leave may be accumulated up to a maximum period of forty-two days.
Explanation:-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.]7
x x x ]23
(2) If an employee entitled to leave under sub-section (1) 14[or (1-A)]14 is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect of the leave.
(3) If an employee entitled to leave under sub-section (1)14[or (1-A)]14 is refused the leave, he may give intimation to the Inspector or any other officer authorised in this behalf by the 5[State]5 Government regarding such refusal. The Inspector shall enter such intimation in a register kept in such form as may be prescribed. 8[The employee shall also send a copy of such intimation to his employer and, thereupon, the employee shall be entitled to carry forward the unavailed leave without any limit.]8
24[(4) Notwithstanding anything contained in this section, every employee, irrespective of his period of employment, shall be entitled to additional holiday on the 26th January, 25[1st May, 15th August and 2nd October every year. For holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding overtime), which he earns during the month in which such compulsory holidays falls:
Provided that the employer may require any employee to work in the establishment on all or any of these days, subject to the conditions that for such work the employee shall be paid double the amount of the daily average wages and also leave on any other day in lieu of the compulsory holiday.]24
Hope that the above has resolved your query
26th October 2013 From India, Ahmadabad
27th October 2013 From India, Kolhapur
S c Gupta
27th October 2013
1. Casual Leave - 7 days
2. Sick Leave - 7 days
3. Privilege Leave - 21 days
According to Shops and est. Act.
Privilege Leave is applicable to employees from 1st Jan and leave is calculated on pro-rata basis.
Correct me if I am wrong.
27th October 2013 From India, Ahmedabad
#AnonymousDear Team ,
My company is under shop establishment at we are labour contractor.We have 90 % employee in probation period in (Maharashtra) so please suggest how I cal implement leave policy my organization.
6th December 2014 From India, Mumbai
I want to know about the Sick Leave policy for ITES sector in Maharashtra along with the following:
1. Can employee working for 12 years with an ITES company be terminated on the grounds of "Absentism from work" even after submitting the relevant medical documents?
2. What is the Distress leave/Accident leave/Temporary Disability leave period in State of Maharashtra ?
3. What an be done by an employee when his ITES company (Employer) has put an employee on "Leave without pay" from September 2015 and not given remuneration as per the Personal Accidental policy in which absentism from work is also covered for 100 weeks?
4. As mentioned in the above scenarios, can the employee claim for the remuneration as per his CTC for the number of months he is not paid by his employer?
5. Can a termination be challenged in Indian Labor court ?
6. Can the employee avail the mediclaim benefits required by him for his treatment (as per the mediclaim policy of the ITES company) while the employee has challenged the termination ?
7. Can an employee file a case of mental and physical harassment against the ITES company for sending the employee termination threats in almost all the communication by the ITES company management ?
29th February 2016 From India, Kalyan
Kindly advice me what is the maximum overtime hours allowed as per Maharashtra Shops and Establishment ACt and Rules.
Pl treat this as urgent and help me pl.
My contact number is 9094007603 and my email id is
Request your support pl.
Thanks & Regards,
24th January 2017 From India, Madras