Hi , Factories act states that During the initial year of service no leave is allowed under the Fcatories Act. In the subsequent year an employee will get leave at the rate of one day per 20 days worked in the previous year, that also, if he had actually worked for 240 days in that previous year. It is not like earning one day after every 20 days work and carrying it forward or availing it after every 20 days. The calculation is done after the closure of a calendar year and only those who have actaully worked for 240 days (days of holidays, weekly off , leave due to employment injury, lay off maternity leave days in case of women etc are taken as days worked for this purpose) only are eligible for such leave. It is called annual leave with wages/ earned leave. Therefore, one who works for 230 days in the year 2007 who was laid off for 6 days and was on leave for temporary employment injury for 4 days will be eligible for leave in 2008. However, he will earn leave only for 230 days he had worked.