Confused About Earned Leave Rules in India? Need Clarity on 11 vs. 21 Days Policy

I am working in a private limited company in Kolkata. My designation is Asst. Officer. I want to know the earned leave rule of Indian labour law. Is it 1 earned leave for each 11 days of working or 1 earned leave for 21 days of working? Please inform me on an urgent basis. I know that it should be 1 earned leave for 11 days of continuous work, but my company is saying that instead of 11 days, it will be 21 days. Is it right? Is it permissible in Indian labour law?

Regards,
Sumon

Hello Sumon,

I am currently employed at a private limited company in Kolkata with the designation of Assistant Officer. I am seeking clarification on the earned leave policy under Indian labor law.

Could you please confirm whether the standard practice is to provide 1 earned leave for every 11 days of work or if it is 1 earned leave for every 21 days of work? This information is urgently required for my understanding.

My understanding is that the norm is 1 earned leave for every 11 days of continuous work. However, my company has informed me that they follow a policy of granting 1 earned leave for every 21 days of work. I would appreciate it if you could clarify whether this deviation is permissible under Indian labor law.

Thank you for your prompt attention to this matter.

Best regards,
Sumon

Dear Sumon,

As per the Factory Act, one Earned Leave (EL) becomes due after working for 20 days, meaning 15 days of EL for a year.

Regards,
Mukesh

Dear Sumon,

The methodology adopted by your organization is quite right. Go ahead with it.

Regards,
Vipin

Dear Sumon,

Earned leaves are granted under either The Factories Act, 1947, or the State Shop Act. It is not known under which Act your unit is covered. Whether you are a worker/employee under these Acts. If you do not fall into this category, then you will have to enjoy the EL as per your Company Rules.

Regards,

R.N. Khola
Sr. Associate
Skylark Associates, Gurgaon

I am working for a company where earned leave is applied for six days (Monday to Friday) with prior approval from the immediate boss. When I received my payslip, they calculated my leave as seven days instead of six, taking into account Sunday as well.

Does This Fall Under Any Act?

Does this fall under any act - either the Factory Act or the Shops and Establishment Act? If so, kindly assist me with the clause. Is this the right way to calculate the leave deduction?

Applicability of the Factory Act

If the employee is working in the administrative office of the company, does the Factory Act apply?

Your earliest response is requested.

Best Regards,
Satish

If you are working in a separate administrative office, then you are eligible to have earned leaves in accordance with your applicable state Shops & Establishment Act. Therefore, go through the EL provision in that Act. If your office is attached to the Factory, then you are to avail EL as per the Factories Act, 1948.

Regards,
R N KHOLA

If a small company (SSI) in a partnership form wants to introduce a leave policy after 4 years of establishment, how should the leave policy be implemented? How is earned leave calculated? Is it based on the current year or past years? Please clarify.

Suresh