Understanding the 240-Day Rule for Earned Leave: What Happens if You Fall Short?

What is the criteria for the calculation of 240 days for PL/EL?

If an employee works for 235 days during the calendar year, and in the next year, in January, he or she completes his or her 240 days from the Date of Joining (DOJ), what happens to the PL of the previous year for 235 days?

If an employee quits or has Full and Final settlement after 6 months without completing 240 days, are they eligible for EL as per the law?

M. A. Jadeja

Dear Mr. Jadeja,

Please refer to the Factories Act for a better understanding of your query.

Answer to 1st question: (as per law) If an employee has worked for 235 days in a particular year, then he/she will be entitled to 235/20 = 11.75, i.e., 12 days of AL/PL in the following year (1 day for each 20 days worked).

Answer to 2nd question: (as per law) If the employee has worked for 6 months after confirmation, you will have to see whether that employee has worked for more than 2/3 of the total working days in those 6 months. For example, if the total working days in that 6 months are 150 days and the employee has worked for 105 days during that period, then he/she will be entitled to 105/20 = 5.25 days, i.e., 5 days of AL/PL. If the employee has worked for less than 2/3 (e.g., 90 days) of the working days, then he/she will not be entitled to any AL/PL.

Hope the above explanation satisfies your query.

Regards

Dear Awvik,

You have written about following The Factories Act. In this case, the ratio of granting leaves with wages of one for 20 days applies only when the individual has worked for 240 days in a calendar year. However, if the person has only worked for 235 days in the calendar year, how are they entitled to 12 days of leave? Please refer to Chapter VIII of the Factories Act, 1948, regarding leave with wages and then provide guidance.

Regards,
R.N. Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361

Dear Mr. Khola,

I think you need to review the Factories Act (sec 79) to clarify any doubts you may have regarding leave with wages. As a legal consultant, it is crucial for you to be well-informed on such matters before providing advice to others.

Thanks and regards

Dear,

I may be wrong in understanding your opinion. Different opinions are given by a number of HR group members; then it does not mean that they are not alert. Even then, I have noted your suggestion and accordingly, I withdraw my viewpoint given on this query.

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

Dear Awvik,

Instead of 12 PL/EL, one will be entitled to 11 leaves for 235 days of working, i.e. (235/20 = 11.75), so Eleven.

All senior members, please correct me if I am wrong. Also, kindly confirm if I am right.

Hitesh Dewan
hitesh_dewan@yahoo.com

Dear Awvik,

I want to share one point with you. Correct me if I am wrong. Assume that A joined on 1st Dec '08. So, he must be eligible for 1 day of EL for the next year on a pro-rata basis, as he is satisfying 2/3 of the remaining days in the previous calendar year. Is that the way we should consider?

Regards, Ravindranath

Whether this criterion of 240 days is also applicable to employees of contractors working in factories of the principal employer. Can we, as the principal employer, force the contractor to follow this criterion?

I'm sure about 50 employees have been deployed by the contractor and no paid leave is being granted to them. Even they are being paid for 26 days a month only. Please reply.

I fully agree with your opinion about Section 79. Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed, during the subsequent calendar year, leave with wages for a number of days calculated...

When 240 days are prescribed by the Act, how is a person who worked only 235 days eligible for leave?

Dear Mr. Kutty,

I understand that you have all read Section 79 of the Factories Act, 1948, but the truth of the matter is that you have not understood the implications of the Act. I do have full sympathy for your cause, as not everyone understands the language of the law. Please go through the section carefully before drawing your conclusions on the said section.

Regards