Navigating Factory Leave Policies: Urgent Help Needed on Encashment and Holidays

Dear all,

I am working in a manufacturing industry. Please advise me on the following:

1. Leaves Encashable: Is there a provision for leaves to be encashable as per the Factories Act?
2. Holidays: What is the minimum number of gazetted holidays required as per the Factories Act?
3. Apart from EL / PL, are there any other types of leaves such as Casual, Sick, etc.?
4. In the corporate office, I have established leaves / holidays such as EL / Casual, Maternity, Paternity, Birthday / Anniversary leaves, and 15 gazetted holidays for a healthy and employee-oriented company. Is it necessary to have the same leave / holiday policies in the factory as well?

Please guide me. I am in urgent need of assistance.

Thanks & Regards,
Priyanka Kaw

Hi Priyanka,

I am also working in a manufacturing setup. Although I am not very experienced, I have some knowledge about this. Let me answer your queries:

1. Yes, but casual leave is not encashable.
2. I think it's 12.
3. Only CL, ML, PL are applicable, but in the case of female employees, Maternity leave is applicable.

I hope I have somewhat cleared your doubt. Feel free to email me at venhadesh@gmail.com if you have any queries.

Dear, you must have Certified Standing Orders in your factory. All the provisions of leaves must be added in the Standing Orders.

However, I clarify here that as per the Factory Act, an employee will get 1 PL for every 20 working days. Therefore, if an employee is present for the whole year in the factory, he/she will get 15 PL. Casual leaves are 7, which are not encashable and will lapse if not taken. In addition, 8 or more days are designated as Festival holidays. If the employee is not covered under the ESI Act, then he/she is entitled to a minimum of 10 days of sick leave. Maternity leave is as per the Maternity Benefit Act & ESIC Act. Except for PL, no other leaves are encashable nor can be accrued.

Good Gupta ji.

Dear, you must have Certified Standing Orders in your factory. All the provisions of leaves must be added in the Standing Orders. However, I clarify here that as per the Factory Act, an employee will get 1 PL on every 20 working days. Therefore, if an employee is present throughout the year in the factory, he/she will get 15 PL. Casuals are 7, these are not encashable and will lapse if not taken. If an employee is not covered under the ESI Act, they are entitled to a minimum of 10 days of sick leave. Maternity leave is as per the Maternity Benefit Act & ESIC Act. Except PL, no other leaves are encashable and neither can be accrued.

Dear Priyanka,

As per the Factory Act, 1948, every adult worker who has completed 240 days in the last calendar year is entitled to Earned Leave every 20 working days. This leave can be availed or encashed. The maximum Earned Leave in a year is calculated as follows:

Number of Days in a year = 365 Days
Number of Sundays in a year = 52 Days
Number of Casual Leave in a Year = 7 Days
Number of National Festival Holidays in a Year = 7 Days
Number of Sick Leave in a year = 7/14 Days
Number of Absent in a year = ........ Days
Total Number of Earned Leave = (365 - (Sundays + SL + NFH + SL + Absent))/20

According to the Punjab Industrial Establishment (National Festival Holiday, Casual Leave & Sick Leave) Act, 1965, the maximum entitlement is as follows:
- Maximum 7 Days Casual Leave (CL)
- Maximum 7 Days National Festival Holidays (NFH)
- Maximum Sick Leave of 7/14 Days (SL)
Casual Leave, National Festival Holidays, and Sick Leave lapse at the end of each calendar year, and there is no encashment of these leaves.

In addition to these leaves, you may also provide Maternity and Paternity leaves as well as the ones you mentioned for staff and workers.

Regards,
Rizwan

Dear All, I am working in the automobile industry. Kindly advise me on the following:

a) Number of national holidays entitled as per the Factories Act.
b) Accounting of Sunday: If an employee takes leave on Saturday, followed by Sunday and then avails one more leave on Monday, is Sunday counted as leave?

Regards,
Pravin

Dear Pravin,

This is to inform you that the Factories Act, 1948 does not have any provision relating to the grant of national holidays. National holidays are given to employees/workers as per the State Industrial Establishment (National & Festival Holidays and Casual & Sick Leaves) Act. Therefore, please review your applicable State Act.

For the grant of a weekly off day, please first determine under which Act employees are entitled to have a paid weekly off day and then refer to that Act to see the eligibility of the rest day with wages. If none of the Acts is applicable, then refer to your Leave Rules.

R.N.Khola

Dear All,
I am working in the automobile industry. Kindly advise me on the following:
a) The number of national holidays entitled as per the Factories Act.
b) Accounting of Sunday: If an employee takes leave on Saturday, followed by Sunday and takes one more leave on Monday, is Sunday counted as leave?

Pravin

Dear Rizwan, Thanks for the details. As per the rule of 1 EL for every 20 working days, the maximum number of EL should be 18 (365/20). However, why are 52 Sundays, 7 CL, 7 SL, and 7 NFH added to the total of 365 days, and then divided by 20 to calculate ELs? Aren't these days already included in the total 365 days?

In our company, we are allotted 21 ELs. Could you please confirm how these 21 days align with the basic rule of 1 EL for every 20 working days?

Thank you.

Dear all,

I am working in an institute in a clerical position at a college. Please advise me on the following:

1. Minimum Wage for High-Skilled Workers in Haryana
What is the minimum wage for high-skilled workers in Haryana?

2. Gazetted Holidays
What is the minimum number of gazetted holidays as per the Institute Act?

3. Types of Leave
Apart from Earned Leave (EL) / Privilege Leave (PL), are there any other types of leave such as Casual Leave, Sick Leave, etc.?

Please guide me. I need urgent assistance.

Thanks and regards,
Khanesh Kumar

How many holidays are prescribed as per the Factory Act out of gazetted holidays.

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Dear All,

I want to know about the working hour policy in Delhi under the Factories Act. As per our service rules, it's 45 hours in a week. Please guide me on how to calculate the working hours as per this rule on a yearly basis.

Additionally, we are currently getting 2 Saturdays off, whereas previously, the fifth Saturday was also off, which occurs 4 or 5 times a year. Considering this change, are we now working more hours?

I kindly request a payroll professional to guide me on this matter.

Thanks & Regards