PL calculation should we consider weekly off / holidays? - CiteHR
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Dear Seniors, Happy new year. With regards to my query I have gone through the previous discussions in this site but could not find answer a correct answer.
My query is of 3 part:
1)In the calculation of eligible days of 240 should we include a) weekly off b) holidays c) PL d)CL,SL
2)When calculating PL (1 PL for every 20 days) should we consider a) weekly off b) holidays c) PL d)CL,SL
3)How the PL eligibility of an employee will be determined if he is joining in the mid month.

Dear Gokul,
In fact a legal fiction is created in defining continuous service with interruptions like weekly offs, authorised leaves and holidays, lay-off, strike which is not illegal.
Therefore, the appropriate answers to your queries (1) and (2) are " YES".
(3) For initial calculation you compute one year of service from the actual date of joining.

Dear Senior,
Thank you for the reply.
For eg: Suppose an employee X is eligible for PL as he has completed 240 days and his attendance in any month is 10 days Physically present,10 Days PL,4 weekly off,2 CL and ,1 declared Holiday and 3 absent.Then which all this days will be taken for PL calculation.
I know that absent days wont be considered. So as you told will the calculation be 27/20 = 1.35 PL for that month or I misunderstood your explanation.


You are talking of factory. Please read Chapter VIII - Annual leave with wages.

Now let us come to your query. Why you want to calculate leave for one month? If you want to know method of calculating annual leave with wages, then consider two cases of employees; one who was already on muster roll of the company on 1st January of the leave calculation year & the other who joined on 1st July. The total days worked are 280 & 140. Not to complicate the matter simple to say that these should be 'work performed days'; only maternity leave is to be included for calculation of eligibility limit of 240 days.

Method of calculation of leave

Case 1: 280/20 = 14 days.

Case 2: The employee has worked for less than 240 days. Will he get leave? Yes. To quote part of section 79 (2) of The Factories Act, 1948 "if he has worked for two-thirds of the total number of days in the remainder of the calendar year". His 'work performed days' are 140 & max working days could be 156 or so. 140/145 > 2/3. Hence he will get leave of 7 days.

Hope this is clear as far as annual leave with wages under the factories act are concerned.

P.S. While calculating leave quantum, any fraction of 0.5 or more is to rounded of to higher number.

Umakanthan M.

His 1st query is not related to continuous service but about 'eligible days' (for eligibility of annual leave with wages)

Shrikant Prabhudesai

Dear Mr.Shrikanth,

The question, as I see, is not confined only to the Annual Leave with Wages under the Factories Act,1948. On the other hand it covers that particular leave which is earned by an employee by virtue of his continuous service rendered during the preceding 12 months period to be availed of only in the suceeding period of his service. We can find this leave in almost all the establishment-related Labour Laws like Beedi&Cigar Workers Act,1966, Factories Act,1948, Mines Act,1952, Plantations Labour Act,1951, Sales Promotion Employees Act,1976, Working Journalists Act,1955 and the various States' Shops and Establishments Acts. They are called differently as Earned Leave, Privilege Leave, Annual Leave with Wages well as granted in different scales. But the method of determining eligibility is uniform taking into account only the continuous service rendered in the previous year whether it is specified in nos. like 240 days or otherwise as quoted by you from the Factories Act including the interruptions mentioned therein. For calculation purpose, of course, they will not be taken into account since the employee earns no leave on those days.

Dear all
Section 79 provides for GRANT OF LEAVE WITH WAGES to a worker who had joined after 1st January of a year
Example [a] One joins FACTORY A on 2.1.2016 he will be eligible for Leave with wages if he had in 2016 worked for 2/3 rd two third of the calendar days that is 2-1-2016 to 3-12-2016 = 364 x 2/3 - 242 days He can at the maximum work for 364- 52 weekly off and 9 National & Festival Holidays =303 So he will be eligible for 303/20 = 15.15 which is equal to 15 days
It is however to be noted that if by chance he had worked only for 240 days, he is not eligible for LEAVE WITH WAGES
EXAMPLE One joins FACTORY on 1.12.2016, he will be eligible for LEAVE WITH WAGES , if he had worked for two third of the calendar days that is 31/3 X 2 = 20 days He will be eligible for One day as LEAVE WITH WAGES for the year 2017

Thank you Shrikanth sir for elaborating the topic so deeply and in simple language. Thank you Pasupathieswaran sir and Umakanthan.M sir for giving a further deep understanding in this topic. Thank you seniors for spending your valuable time for solving my doubts.
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