Can We Legally Remove Sick Leave from Our HR Policy? Seeking Advice on Compliance

Dear All,

I am working as an HR Executive with a manufacturing company in Pune, Maharashtra. Our leave structure is as follows:
Privileged Leave: 15 per year
Casual Leave: 5 per year

Management wants to remove sick leave. Kindly let me know, can we remove sick leave? What is the law regarding sick leaves?

Regards,
Ashka

Hi,

As per the Employees' State Insurance Corporation (ESIC) Act, any person who is not covered under ESIC is liable for sick leave as per the norms of the company. Many companies provide sick leave to both covered and uncovered employees. Therefore, the company can only remove the sick leave of those employees who are covered under ESIC.

As per the clause, any employee who is not covered under ESI is eligible for sick leave. We cannot remove sick leave based on an employee's concern.

Sick Leave and Legal Obligations

Sick leave is not compulsory to be provided under the Factories Act. It is considered an all-purpose leave. If an employee is covered by ESI, they are entitled to sickness benefits under the ESI Act.

Regards,
B. Saikumar
Mumbai