Madhu.T.K
Industrial Relations And Labour Laws
Gopinath Varahamurthi
Mindhour Partner, Ass.professor/adm. Officer,
Dishuboora
Executive-hr
+5 Others

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Suppose a employee is not worked for 240 days out 365 days including Sundays, Holidays and Weekly Off.
1. He is eligible for all type of leave and statutory benefits?
2. His leave will be reversed ?
3. How we can calculate PL/EL (As per factory act 1948)
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Dear friend,
Please add the following criteria, is the 240 days is continuous leave without pay or with pay, medical leave or absence from working place, is any enquiry conducted for conduct or other related issues will help to see the question in a big clarified way.
Dear friend,
The eligibility of 240 days has been amended to 180 days from November,2015 onwards. Please see the amended factory act
Statutorily only leave with wages are mentioned under the Act. There is so other type of leave unless you have extended it.
Please read chapter Leave with wages under the Act that will explain your queries. Since leave is credited later, there is no question of its withdrawal. If employee joins after 1st January & works for 2/3 days for remainder part of year, s/he will be entitled to 1 day leave for every day paid for. Because 240/365 = 2/3.
Dear Murthy,
Can you please share the amendment? I understand that there was a proposal to amend the Act inorder to make workers who have worked for 90 days eligible to leave with wages.
Supposing that there has no such amendment, I would like to clarify that an employee who has not worked for 240 in the preceding year will not be eligible for any annual leave with wages. Since this is the only leave admissible as per Factories Act, any leave that you grant to employees will be addition to this leave and that will continue to be available to the employee even if he has not worked for 240 days.
Now, I would also like to say that 240 days is inclusive of all weekly off days, paid leave days, maternity leave (in the case of women employees) days, lay off days and holidays. An employee who is eligible to get annual leave with wages will get one day for every 20 days physically present in the preceding year. For this the actual days physically present only will be taken into account. For example, an employee has worked for 153 days in 2016 (12 months from January to December) . He has taken some 20 days of PL. He was on leave due to employment injury for 5 days. There were 52 paid weekly off days and 10 holidays during 2016. Then he will be eligible to leave with wages in 2017 since the total days (paid days) he has worked is 240 days. He is said to have continuous service as per all labour laws also. However, his leave for the year 2017 will be restricted to one day for every 20 days physically present or 7 days only.
As already said this is the way in which the continuous service is decided under Payment of Gratuity Act or Industrial Disputes Act. Therefore, if the sum total of days physically present, holidays, weekly off days etc comes short of 240 days he is said to have interrupted service and that year will not be counted for gratuity and retrenchment compensations.
There is no option for granting leave in advance. Therefore, if already granted the same cannot be recovered from the employee.
There is only one kind of leave under Factories Act and any leave that you give will be additional only.
A serious concern: If the Factories Act is amended with a provision that leave is to be granted to workers who have worked for 90 days (or 180 days) most of the workers including casual labours will get leave because there are at least 52 weekly off days, 10 holidays (in Kerala it is not less than 13 holidays as per Kerala Industrial Establishments National and Festival Holidays Act) and obviously a few number of leave which are paid leaves!!
Madhu.T.K
Dear Mr. Madhu,
Madhya Pradesh Govt. has amended the act in November,2015. Please find the amended notification attached herewith.

Attached Files
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File Type: pdf Amendment of factory act MP rules.pdf (1.13 MB, 587 views)

Thanks for sharing the state amendment. There is an amendment to the provision of working hours and spread over also. I am impressed that no trade union has raised any objection to this.
Madhu.T.K
Yes you are right sir. Overtime limit is also increased to 125 hours in a quarter.
DEAR SIR,
if any worker/employee left/resigned with in year how we calculate leave with wage un this case,
Sir,
Pls tell if any worker/employee joined as on 1st march 2016 and left/resigned as on 31st may 2016, he worked total 76 days during service, so pls tell he his eligible for leave with wage or not
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