Understanding Leave Policies: How Many Types of Leave Are Required by the Factory Act?

Dear Sir/Madam,

Is it necessary to give CL & SL along with PL? How many leaves are mandatory to include in the leave structure among (PL, CL, SL) in the company according to the Factory Act? Please guide.

Mirali Petiwale

Leave rules are usually established by the respective establishment and included in the Standing Orders. However, the Factories Act (as well as the Shops and Establishments Act) also provides for a certain number of leaves applicable to employees in the factories. According to the Factories Act, only one type of leave, i.e., Annual Leave with Wages (Earned Leave/Privilege Leave), is available. Under this Act, an employee who has worked for at least 240 days in the previous year is eligible for leave at the rate of one leave for every 20 days worked in the preceding year.

As mentioned earlier, an establishment is free to provide any additional leave of any nature beyond what is stipulated in the Act.

Regards,
Madhu.T.K

Could you please guide me on the number of sick and casual leaves an organization should provide to their employees according to the Factory Act? Or is it that there are no mandatory sick leave (SL) or casual leave (CL) provisions?

Thank you.

Regards,

Dear Member, this is to inform you that the Factories Act, 1948 does not have any provision relating to the grant of SL & CL. If your unit is covered under this Act, please go through your applicable State Industrial Establishment (National & Festival Holidays and C & S leaves) Act to understand the statutory number of leaves to be granted to the employees during the year. If the Industrial Employment (Standing Orders) Act, 1946 is applicable, then refer to these SOs regarding the grant of SL & CL.

Regards,
R.N. Khola

(M) [Phone Number Removed For Privacy Reasons]

Leave Allocation Under the Factories Act

PL is, as stated above, dependent on the Factories Act, 1948, whereas SL and CL are dependent on organizational policy or standing orders. If the organization is covered under a wage board such as the Cement Wage Board, then as per the wage board regulations, CL and SL should be allocated accordingly.

Regards,
P K Prasad