Understanding Leave Policies: How Much Leave Can Employees Really Take and Carry Forward Each Year?

I want to ask regarding the Leave policy on the following points:

1) How much EL, CL, SL, etc., will be granted to the employee in a year?

2) How much can be accumulated in a year?

3) How many types of leave can we carry forward and encash?

4) How will it be calculated - As on Calendar Year or Financial Year?

5) What is the formula for calculating EL, CL, SL, or other types of leave?

6) How many working days is the employee entitled to for EL, CL, SL, and other types of leave?

7) How many total days are required for calculating EL, CL, and other types of leave?

8) Actually, how many types of leave are there as per the Leave Policy?

9) Should we give EL, CL, ML to the contractor labor, and if not given, is it encashable at the time of resignation?

Kindly give me a detailed reply for all my queries in case I have missed some points regarding the leave policy.

Please explain in detail about all types of leave - EL, CL, SL, ML, and other leaves.

As per the Bombay Shops and Establishment Act, 21 EL can be given to the employee who has worked for 240 days. Accumulation is allowed up to 42 days. Leave of 5 days for every 60 days of work is granted if he has worked for more than 3 months.

According to standing orders, 10 CL are allowed, which are unpaid leaves. Only EL can be carried forward and encashed. SL and CL lapse at the end of the year.

The financial year is calculated from 1st April to 31st March (e.g., the financial year 2009-2010 can be counted as 1st April 2009 to 31st March 2010).

Hi, menu. As per the Factory Act, 1 Earned Leave (EL) is granted for every 20 days worked, totaling 18 EL in a year. You can encash only EL, and this will be calculated from the Financial Year.

EL - 20
CL - 10
SL - 09
Only EL is encashable. EL and SL may be carried forward. After completing 240 days, employees will be eligible for the following leaves:
EL - 20
CL - 10
SL - 09

Contract labor is not eligible for EL leaves; therefore, it is not encashable at the time of their account settlement.

Shakil Khan

Dear Niru,

As per the law, the leave policy varies in different states where your company is covered under the Shop and Establishment Act. For companies covered under the Factories Act, the leave policy will be different as the quantum of leave is different. First, you should explain the location of your state, and secondly, whether it is a service industry or a factory.

Thank you,

J. S. Malik

Dear Sir,

Our company is a factory engaged in the manufacture of Inverters, UPS, 500 Transformer Isolators, etc. Accordingly, which leave policy is applicable?

Sir, after how many working days should one be eligible to avail 01 Casual Leave (CL)? What is the calculation for Earned Leave (EL) and CL? How many working days are required to avail EL, CL, Sick Leave (SL), Maternity Leave (ML), etc.?

Thank you.

Dear,

You are covered under the Factories Act. Regarding Earned Leave (EL), an employee is entitled to 1 day of leave for every 20 days worked, with a maximum of 15 days per year. Therefore, if someone joins in April, they will work fewer days in the year, resulting in fewer entitled leaves, calculated as described above. According to the act, leave earned in a year can be utilized in the following year.

Casual Leave (CL) and Sick Leave (SL) in factories are provided based on the company's standing orders, typically 7 CL and 10 SL (applicable to non-ESI personnel). These are the minimum leaves that should be granted, and additional leave can be provided at the company's discretion as per the leave policy.

Usually, companies allocate CL on a pro-rata basis. Maternity Leave (ML) is granted for 12 weeks as per the Maternity Act to employees not covered under ESI.

Thank you.

J.S. Malik

Dear Parul,

You have to carry forward leave up to 30 days, which can be encashed at the time of leaving the organization.

Thanks,
J. S. Malik