Are Contract Employees Entitled to EL, CL, and SL Leave? Let's Discuss Why or Why Not

Dear all,

Is leave such as EL, CL, and SL also applicable for contract employees? If not, why?

Thanks

Dear,

It seems you are very anxious to know the answer to your query. The provision of EL is there in the Factories Act, 1948, and the State Shops and Commercial Establishment Act. Now, it is not clear which of the Acts is applicable. It might be possible that both Acts are not applicable. Whether the employees are working under a contractor or are working for a fixed period on contract with an employer, provisions of CL and SL are there in both the Shop Act and the State I E (National and Festival and Casual and Sick Leaves) Act. Sick leaves are also granted under the E S I Act, 1948. Without proper information, it becomes very difficult to elaborate on which of the Acts is applicable.

Hope you can understand the difficulty in answering the query.

Regards,

R.N.Khola
Skylark Associates, Gurgaon
(Labour Law and Legal Consultants)
09810405361

Hi Meenu,

Let me explain...

Suppose person A is a contract worker. His service will be terminated after a period of time. As per the Factory Act, he will be eligible for the first earned leave (EL) after completion of 240 days. If a contract laborer works for 240 days or more, they will be eligible for the EL and can also claim for permanency. However, companies generally give a break before reaching the 240-day mark, which is why they are not eligible for the EL.

Contract laborers and casual leave (CL) and sick leave (SL) are not provided by companies as they are not considered company employees. However, ESI leave is applicable to them in case of an accident.

I hope your query has been resolved.

Dear Meenu,

To put it very simply, the CLRA Act has no provisions for leave. Hence, whichever type of establishment these CLs are engaged in, they are governed by the leave rules of the Act (i.e. Factories Act, Shops and Establishments Act, etc.).

Dear Meenu,

Regarding commercial and shopping establishments, they are eligible for CL leave.

Regards,
PM

Dear Meenu,

Yes, it is applicable. You can visit our website www.globaloverseas.in for more details or call me on my cell at 9958404503. I have communicated to the company that contract laborers are eligible for CL & EL.

Dear Hi,

Why are you bothering about contract employees? As per the provisions laid out in the Factory Act of 1948, there are guidelines to determine the eligibility of leave for various types of workers, including male, female, and child workers.

If a worker is under a specific term of contract, the details of the type of leaves and their numbers, along with eligibility criteria, must be clearly specified in the contract provisions to grant leave as per the Terms & Conditions of the appointment. Different organizations have varying rules on the number of leaves. Regarding eligibility, the terms of the contract may not be crucial; instead, the provisions of the Factory Act and the Safety & Environment Act will prevail.

For individuals hired through contractors or subcontracted, as well as those on a daily roster, a weekly off must be provided compulsorily. If an individual completes a continuous 90 days of work, including the weekly off, they may claim restoration of permanency.

Hence, in most organizations, when contractor labor is involved, the leave of the worker is managed by the contractor supervisors. The worker may be given unpaid leave if required, based on the provisions of the Factory Act and the Safety & Environment Act, by clearly defining their position as confirmed or casual.

Regarding standards, for permanent employees in any establishment, they earn Paid Leave (PL) after their confirmation, following the completion of their probation period. The probationary period can vary, typically being 6 months in some organizations and 3 months in others. On completing the probation period, the individual becomes eligible for leave.

For instance, if the PL or Earned Leave (EL) quota for the calendar year is 30 days, then on average, the employee will earn 2.5 days per month, making them eligible for leave on confirmation. However, in exceptional cases, leave on a pro-rata basis may be given.

Leave laws are not trivial; they vary from company to company, but the provisions are applicable to all types of employees. It is essential to understand the definitions of a factory and an establishment, as well as the scope and applicability of the laws.

If you need a solution to any concerns related to leave management, feel free to contact me at my email address.

Regards,
Vijay S. Pundir