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Dear All,

As per the Factory Act, 1 day Privileged Leave for every 20 days worked. And as per the Shops & Establishments Act, there are PL, CL & SL also. And in the Factory Act, the rule on Leave says better benefits given in contract, any other state laws to be considered. For example, as per Maharashtra S&E Act, there are 18 days PL, 8 CL available. My query is, " Wherher factory employees are also eligible for leaves available as per S & E Act as this state laws provide better leave benefits compared to Factory Act provision or they avail leaves as per Factory Act provision only"?


From India, Mumbai
Labour Law & Hr Consultant
Ceo-usd Hr Solutions


There are no special as well as separate laws exclusively on leave benefits other than the erstwhile Weekly Holidays Act and the present State National and Festival Holidays Acts. On the other hand leave benefits are conferred by the various establishment-specific laws like the Factories Act,1948 and others depending on the nature of the work of the establishments and the employees therein. Most of the manufacturing activities are done round the clock and all the 365 days of the year. Apart from this there are continuous process industries based on their end products and service industries like transport and communications. That's the reason for difference in the leave benefits. However, the right to claim more or better leave benefits is not curtailed. Under the provisions of the Industrial Disputes Act, 1947 the trade unions are permitted to get better employment benefits including leave through collective bargaining.
From India, Salem
My query is simple:

As per Factory Act the Earned Leave= Worked Days/20

As per the Maharashtra S& E Act, 2017: PL: 18 And CL: 8 Total: 26 Days

As per my understanding, factory is also an establishment. In this case, better leave benefits as per later provision is applicable or exclusively as per the former?

Thanks & Regards,

From India, Mumbai

Some portions of the factory may be establishment ( Administrative office, accounts, Sales office etc.) but not the manufacturing plant.

There is no harm to provide better leave provision other than what is minimum stipulated in the specific Statue ( Factories Act ). Mr, Umakanthan M very clearly explained the reasons for different type of leave in factory.

If the organization feels that even if the number of workmen availability will be less in a year for enjoying more leave, the organization will be able to fulfil the productivity and quality norms of the products produced in the factory - then can go ahead. It is also essential to remember that in case of extra pressure for production , availability of manpower will be less due to more leave of the workmen. Manpower planning with leave cover and off cover will be complicated and more manpower will be required.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi

My dear friend,

The gist of my previous reply is that the same service condition like leave applicable to one type of establishment cannot be applied to another type of establishment covered by a separate establishment-specific labor law under which the relevant provisions are different.

In this connection, I would like to suggest that misplaced influence of the contents of the saving clause provided u/s 78(1) of the Factories Act,1948 be avoided for "anyother law" means a similar law applicable to the same establishment only.

From India, Salem
Dear All,

Forget about providing better leave, Establishments are not providing basic rightful leaves to the workmen. All these laws, provisions are only good in paper! Has there any efforts in the form of Survey been carried out by the Labour Department to analyse to understand the effectiveness of this Chapter VIII? That is to check and ensure legal benefits are given to the workmen in the past 76 years?

I was just trying to get the insights from the learned members for the validity of Shops & Establishments Act as better provision by law with reference to the below aspect of Chapter VIII of Factory Act.

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:
[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.

Thanks & Regards,

From India, Mumbai
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