Understanding Sick Leave: Who Qualifies, Carry Forward Limits, and Encashment Process?

Hi All,

We have a practice in our company of providing 7 SL to all. My query is:
1. Who is eligible to get SL? (Does it mean only those who are exempted under the ESI Act or all employees?)
2. How much SL leave can be carried forward at the maximum?
3. What is the procedure for SL encashment? Kindly refer me to the section or clause where it is mentioned.

Thanks,
R.K Katri

Hi,

As per the S&E Act, sick leave should be for 10 days, which can be extended up to 12 days. The additional two days will depend on the company's discretion. This is mentioned in clause (F) of the S&E Act, if I am not mistaken. Please check the bar acts for more details, specifically for the particular state, as it may vary from state to state.

Regards,
Charan

Dear Khatri,

Could you please explain your location and how it applies to your organization? The Factories Act and the Shop & Establishment Act in different states have varying provisions regarding leaves.

J.S. Malik

Sir,

Our establishment is registered under the Factory Act of 1948 and the Punjab Factory Rules, which will be applicable. I am working in Ludhiana.

Regards

Thank you, Charan. Our company is covered under the Factory Act of 1948, not under the Shop & Establishment Act. Punjab Factory Rules shall be applicable. Please reply accordingly.

Dear Mr. Khatri,

Sick leave in factories is given as per certified standing orders to those personnel who are not covered under ESI. These leaves are not carried forward or encashed as requested by you. If there is anything specific written in the Punjab Factory Rules, you can refer to the same. It is a general trend in companies covered under the Factories Act.

Thank you,
J. S. Malik

Dear Khantri,

It was an interesting question. My observations are:

ESI and S&E acts are applicable based on the business, work, and environment of the company, which you need to describe. ESI is applicable when the employee works with external power, and so on.

The ESI act discusses the benefits that employees gain from the company and government in case of illness, not on leave (I guess).

Usually, every establishment allows a minimum of 12 days of SL, which can be extended based on management decisions. No sick or casual leave can be encashed or accumulated.

Regards,
Shiv

Hi Mr. Malik,

I have the same queries. I am in Mumbai.

1. Who is eligible to get SL? (Does it mean only those who are exempted under the ESI Act or all employees?)
2. How much SL leave can be carried forward at the maximum?
3. What is the procedure for SL encashment? Kindly refer me to the section or clause where it is mentioned.

Can I have your contact details?

Dear Megha,

If you are in Mumbai and covered under the Shop and Establishment Act, there is no provision for sick leave in the Bombay Shop and Establishment Act. Therefore, you can create your policy as per your own choice if you wish to provide sick leave.

If you are covered under the Factories Act, sick leave is granted according to the standing orders of the company. This is generally applicable to employees not covered under ESI with no provision for encashment and carry forward.

Thank you,
J S Malik

Sir,

I am working in U.P., and our factory is covered under the Factory Act. I have a small query:

Whether holidays, weekly offs, and national holidays come in between earned leave. In that case, are these holidays part of the leave or treated as holidays not included in earned leave?

Thanks,
Rakesh Tiwari

Dear Khatri,

Could you please explain your location and how it applies to your organization? The Factories Act and Shop & Establishment Acts of different states have different provisions regarding leaves.

J.S. Malik

Dear Holidays, if they fall in between earned leave, will not be counted as leave. Basically, it is clearly mentioned in the Factories Act Section 79 Explanation 2, which states: "The leave admissible under this subsection shall be exclusive of all holidays whether occurring during or at either end of the period of leave."

I think now it will be clear to you that if holidays, weekly offs, national holidays come in between earned leave, they will not be considered a part of the leave and will not be included in the total leave days.

Thank you.
J. S. Malik

Thanks to all for their valuable inputs. Special thanks to Mr. MalikJs. Sir, I need your expert opinion on this too. Is there any mandatory provision to provide sick leave to those who are not covered under the ESI Act, 1948? Can others also take sick leave who are covered under the ESI Act, 1948?

Regards,
R.K Katri

Thanks, sir,

I need your expert opinion on this too. Is there any mandatory provision to provide sick leave to those who are not covered under the ESI Act, 1948? Can others also take sick leave who are covered under the ESI Act, 1948?

Regards,
R.K. Khatri

Dear,

It is not mandatory as such, but this provision is given in certified standing orders. However, in your case, as referred by Mr. Khola, Punjab Factory Rules will apply. Please go through Punjab Factory Rules and follow them regarding sick leave.

Thank you.
J. S. Malik