Understanding Earned Leaves: How Often Can You Apply and How Many Are Allowed?

Hi. Is there any rule about earned leaves that an associate can apply for only once or twice in a year, provided the leaves are segregated as sick leave, casual leave, and earned leave? If yes, then how many earned leaves can an associate get in a year.

Hi, the Factories Act states that during the initial year of service, no leave is allowed under the Factories Act. In the subsequent year, an employee will get leave at the rate of one day per 20 days worked in the previous year, but only if they actually worked for 240 days in that previous year. It is not about earning one day after every 20 days of 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 actually worked for 240 days (days of holidays, weekly off, leave due to employment injury, lay off, maternity leave days in the case of women, etc., are taken as days worked for this purpose) are eligible for such leave. This is referred to as annual leave with wages/earned leave.

Therefore, someone who works for 230 days in the year 2007, 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, they will only earn leave for the 230 days they had worked.

Dear Suruchi,

Mr. Mahesh has very well explained the provisions of the Factories Act, 1948 with regards to the eligibility and grant of E.L. Under this Act, E.L. can be taken thrice during the calendar year. You have not mentioned whether your establishment is covered under the Factories Act or the State Shops Act. First, examine this matter as these types of leaves depend upon the coverage of the unit, and then the matter can be taken up and answered accordingly.

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

Hi,

Thanks, Mahesh, for explaining so nicely. But I think my company is not covered under the Factory Act as we are into medical transcription (healthcare). Do you know what the general rule is for the same?

Hi Mahesh,

Thank you for the good explanation. In our company, there are no sick leaves. Our salary gets deducted directly. Please help me revise the Leave policy.

Regards,
Pavithra

If you are doing medical transcription, I guess your company should fall under the Shops and Establishments Act. Please see the definition of factories under the Factory Act. Shops and establishments have state-wise acts which also include details about leaves. I hope this information will help you.

I am working in a pharmaceutical company that is covered under the Factory Act. In that case, what are the leave rules? Kindly help with this.

Regards