Navigating Sick and Casual Leave for Small Factories in Haryana: What Are Your Recommendations?

Our company has newly started, and the total worker strength is under 50. Therefore, we have not prepared the standing order. Please advise on the amount of Sick Leave (SL) and Casual Leave (CL) that should be provided to workers. Our factory is covered under the Factory Act of 1948, located in Haryana. Most of the workers are earning more than the ESI limit, which is above 10000.

Dear Shail,

You can have a leave policy as follows:
- EL: as per the Factories Act, 1 leave for 20 days of working
- CL: 7 days in a year
- SL: 10 days in a year
No carry forward, no encashment (applicable to those who are not covered under ESI).

Dear, this is a general practice in industries.

Thanks,
J. S. Malik

Hi Sahil,

If your establishment works 5 days per week, then EL/PL is 1 day for 20 days of service. If it operates 6 days per week, then it is 1 and 1/2 days per 20 days of service. This is according to the Factory Establishment Act.

Dear Malik sir,

Please correct me if I'm wrong.

Regards,
Shiv

Dear Mr. Shiv,

Thank you for your valuable comments, but I am inquiring about CL and SL. As Malik Sir mentioned, I would like to know if it is compulsory or if we have the option to save any days.

Please advise.

Thanks,
Sahil

Dear Sahil,

Your unit is covered under the Punjab Industrial Establishment (National, Festival, Casual, and Sick Leaves) Act, 1965, and thus you are to grant holidays and leaves according to this Act, which is applicable to Haryana State. According to this Act, you are given 7 casual leaves and 14 sick leaves on 50% wages in a calendar year.

Regards,

R.N.Khola

(Labour Law & Legal Consultants)
09810405361

Hi Sahil,

Indian employment acts and laws define earned or paid leaves only, as I mentioned in the previous post. Whereas, there is no law or act that defines casual leave. However, an establishment in India must allow 33 days of leave as a minimum in a calendar year, so paid leave/earned leave will be according to the number of working days per week.

The number of casual leaves can be at the management's decision; some companies entertain 7, while others 12 and so on. However, every company specifies that only 2 casual leaves are permissible in a month. Casual leave and sick leaves are not encashable or accumulated.

Regards,
Shiv

Hi Sahil,

No, it is wrong (I guess). According to the employment acts, there is no Sick Leave Concept. We only have medical leave, which is again at management's discretion. Sick leave, on the other hand, is established and implemented on the basis of humanity.

If an employee takes more than 2 sick leaves continuously, they must provide a medical certificate. If the employee is covered under ESI, it will be considered as Medical Leave. Please verify the acts for clarification and correct me if I'm wrong.

Regards,
Shiv

Dear Sahil,

Both the Acts provide sick leave provisions but do not prohibit each other from granting sick leave, hence the employee may choose one of the Acts for going on leave at a time.

Regards,
R.N. Khola

(Labour Law & Legal Consultants)
09810405361