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I know in the past lot of discussions happened related to number of leaves in a factory. I have gone through Factories Act and also Maharashtra Factories Act but nowhere it is mentioned about Casual, Sick and Privilege leaves. It just takes about worker becomes eligible for leave after working at least 240 days in a year. Leave will be credited next year i.e. For every 20 days worked 1 leave will be credited. Now my management has decided to reduce number of sick leaves this year. Is this right practice? Our Factory is located in one city and head office in another city. Also the management has specified that sick leaves would be considered only on hospitalization. Please advise how to handle this situation.
From India, Mumbai
In the case of employees working in a manufacturing set up or factories, the only leave available is the Earned leave or privileged Lave which is referred to as Annual leave with Wages in the Act. There is no provision for granting of sick leave and casual leaves. But if the employees have been getting CL and SL, then it should be part of service conditions and the management cannot reduce it or scrap it without giving a notice u/s 9A of the Industrial Disputes Act. Therefore, you can raise a dispute saying a change in the service conditions cannot be enforced without taking the workers in to confidence.

But the employees in your head office which is covered by Shops and Commercial Establishment Act shall get CL and SL because the Shops...Act provides for CL and SL.

From India, Kannur
In addition to what Madhu said, check the standing orders. It mostly has details of SL and CL required.
If it is there, please follow those.

If you want to reduce the SL, then the standing orders has to be reduced.

Again, whether SL will be only for hospitalisation will be also specified in Standing Orders.
If the employees are under ESIC, then those rules will apply

From India, Mumbai
I got the information that though our Head Office is located in another city we are registered under Factories Act so Shops and Establishment act will not be applicable for us. And also i got the information that standing orders not applicable to us as there are less than 100 employees in our company. Experts i appreciate ur responses. But please clarify what needs to be done. As far as esic is concerned we are already following all rules. What about non esic employees.

Because of change in rules there is lot of dissatisfaction among employees

From India, Mumbai
I think that was clarified by me in my previous post itself that you cannot get leaves at par with your head office because the head office is covered by Shops.....Act where there are provisions for CL and SL in addition to PL. Regarding standing orders, many states have separately made rules prescribing it mandatory for establishments with 50 workers. Please go through your state amendment.

As already pointed out, a privilege or any thing that is enjoyed over and above what are allowed under the law is not a right of employees. But at the same time, no employer shall take away any privilege being enjoyed by the employees without taking them into confidence. At the same time, if that privilege is a right conferred to them by means of a settlement or clause under the certified standing order or simply service conditions, whether implied or express, then they can challenge it. the aggrieved employees can challenge the decision of the management.

Employees covered by ESI will get so many benefits, but these benefits cannot be extended by the employer to employees not covered by ESI. The reason is that employees covered under ESI are those who are getting less salaries, say less than Rs 21000 per month. In respect of employees getting above this limit, it is expected that they will be able to find better ways to get their medical expenses met either by taking some mediclaim or insurance policies.

From India, Kannur
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