Casual Workers and Leave: Are They Entitled to Any Under Government Rules?

Hi! Are casual workers entitled to any kind of leave as per government rules?

No, Divya. They are working casually; what is the purpose of giving them leave? They are not eligible to have any type of leave. If they work, for that period only you are going to make payment to the casual worker. Do you have doubts about leave eligibility for casual workers? Even for permanent employees, the company may not allow any type of leave for a certain period according to company procedures. Please reconsider.

With warm regards,

S. Bhaskar
[Phone Number Removed For Privacy Reasons]

If you grant leave, it cannot be paid because you are providing leave/permission to ensure that upon his return from leave, he can be reinstated by the company. That's the value of leave. If he leaves without informing, then we can refuse his request to engage in duties. Therefore, granting leave is solely for the purpose of reinstating him once he returns from leave.

That's all.

With warm regards,

S. Bhaskar

[Phone Number Removed For Privacy Reasons]

When the Contract Labor (CL) is working in your company, you are their principal employer. Therefore, if you have declared leave in the National & Festival Holidays list, they are also eligible for leave. You cannot deny it. Furthermore, if a Contract Laborer works for 240 days, you need to provide Earned Leave (EL) or pay for the eligible days.

If any worker is absent from work for three consecutive days without informing us, we cannot allow them to continue their duty, and we may have to release them from their position.

Regards,
Rajender Bora

Dear All, Greetings! I agree with the point that casual laborers are eligible for Festival & National Holidays when they are directly paid by the principal employer. They are also eligible to claim earned leaves after 240 days, i.e., we have to give them confirmation of regular employment after 240 days of working with us.

This is the detail as per the act. Please give your comments if anything is wrong in my words.

A casual employee is one engaged in a job that arises out of a casual nature. They may be paid on a daily, weekly, or monthly basis, but this job is only casual and not permanent. If they attend work, they get paid; otherwise, they lose their wages for the day. Therefore, the system of 'No work, No pay' is adopted.

However, if you continue to engage the employee for more than 240 days, then you are required to extend leave as per statutory requirements.

Regards,
Balaji

Understanding the Difference Between Holidays and Leave

Holidays are to be paid, no doubt about it. You are even making payment for Sundays. The government fixes the wage rate according to the cost of living points from time to time for the complete month. However, we divide the whole amount by 26 working days and not by the number of days in the month. Hence, we are making the payment for Sundays. In the case of national or festival holidays, we obviously make payment for those days if the worker is working on the previous day or the next day of the holiday.

In Andhra Pradesh, the government insists on 1 day of leave for every completed 20 working days; leave wages are to be paid. So, we are making the payment for leave wages for the number of days worked divided by 20, multiplied by the wage rate.

Here, I would like to inform you that the term is CASUAL labor, which means the labor is engaged for casual work. If the workman is engaged continuously for some specific task for a specific period, then you can say he is a temporary workman.

Please try to avoid using the word "Labor" or "Laborer" and always use "Worker" or "Workmen," which has a positive effect on the minds of workmen too.

With warm regards,

S. Bhaskar

[Phone Number Removed For Privacy Reasons]

Casual workers are not eligible to take any type of leave as their employment is on a temporary basis.

Hello friends, I have a query about contract labor. We are hiring manpower through contract labor, and we are paying them on a no work, no pay basis. If they work continuously for more than 240 days, are they eligible for Earned Leave (EL)? If they work for more than 180 days, will they be eligible for company roles? Please advise.

Regards,
Prabhu.

Dear Baskar,

When the CL (Casual Labor) is working in your organization, you are their principal employer. So if you have declared leave (in the National & Festival Holidays list), they are also eligible for leave. You cannot deny it. Moreover, if a CL works 240 days, you need to give EL (Earned Leave) or pay for the eligible days.

Compensation for Working on Holidays

If such workers are put into the job on national holidays or festival holidays, what will be the compensation for them? Certainly, they will get one day's wages for being present on duty, but what else, if any?

Regards,
Sanjay

As per the Factories Act, each individual/worker who is working on the premises, directly or through a contractor, will be governed by the Factories Act. Therefore, casual workers should not be entitled to avail of Paid Leave.

Regards, Bhanu

I agree with the suggestions given by Mr. Senthill D and Mr. Vigsysjesu. Moreover, if a casual worker completes 240 days in a year, they will become a regular employee and be entitled to all the benefits enjoyed by regular employees. Casual employees are also entitled to casual leave, earned leave, and other festival and national holidays on par with regular employees.

Casual Leave Entitlement

As per the Shops Act, if a casual worker works continuously for 30 days, they are entitled to one day of casual leave. Similarly, if they work for one year, they are entitled to 12 casual leaves, 15 earned leaves with wages, and 10 days of sick leave. Sick leave may not be granted if the worker is covered under the ESI Act, 1948.

Regards,
Sanagapalli VR
Asst Director (Retd) ESIC

Hi, all workers, whether casual or permanent, are subject to all applicable acts. You need to provide them with leaves according to the rules. If a worker has worked for more than 240 days in the previous year, they are eligible for earned leave (EL)/paid leave (PL) or encashment. For a better understanding, please refer to the Abolition and Regulation of Contract Labor Act. It clearly defines why a contract worker is regularized.

I agree with the suggestions given by Mr. Senthill D and Mr. Vigsysjesu. Moreover, if a casual worker completes 240 days in a year, they will become a regular employee and enjoy all the benefits entitled to regular employees. Casual employees are also entitled to casual leave, earned leave, and other festival and national holidays on par with regular employees. As per the Shops Act, if a casual worker works continuously for 30 days, they are entitled to one day of casual leave. Similarly, after working for one year, they are entitled to 12 casual leaves, 15 earned leaves with wages, and 10 days of sick leave. Sick leave may not be granted if the worker is covered under the ESI Act, 1948.

With regards,
Sanagapalli VR
Asst Director (Retd) ESIC

Dear Sir, I understood your explanation for casual leave calculation and would appreciate it if you could also explain the calculation for EL & SL.