Any legal binding on companies to give CL and SL to the employees(staff not workers)?

Any legal obligation for companies to provide both CL (Casual Leave) and SL (Sick Leave) to their employees (staff, not workers)?

First, examine which of the laws are applicable to your company regarding the granting of casual and sick leave. Then, review the definition of an employee or worker who is entitled to these leaves. If your staff does not fall under the definition of these beneficiaries, you are not legally obligated to provide these leaves to those employees. In that scenario, you should provide casual and sick leave as per the terms and conditions of employment or the rules applicable to that category of employees in your company.

As per the Factories Act of 1948, the employee who completes 20 days in a month or year will be entitled to one day of leave every 20 days. This leave is known as earning leave. If companies provide additional days of leave, that leave is referred to as casual leave. The decision to grant casual leave is at the discretion of the company and is determined by its specific policies, as outlined in the standing orders.

Dear Ketan,

If the employees working in a company under (Staff or worker) they are eligible for Earned leave both in the Factory Act and the Shop & Establishment Act. However, when it comes to CL & SL, it is purely a management decision on how many they want to give for CL or SL.

Warm Regards, Shashidhara.GK

As per the Factories Act of 1948, anyone who falls under the definition of a worker and has completed 240 working days in the preceding calendar year will be eligible for ONE EARNED LEAVE for every 20 working days.

- Raj.

Dear ketan2303,

You can check with the "Factories Act 1948" and the "Shop & Commercial Establishment Act" which apply directly to your state. Go through the relevant sections that pertain to your industry type. If you still have any doubts, feel free to post your query. :)

Thank you.

If you calculate 20 days as 1 leave, it would be 12 EL for 240 days. How will 21 days be calculated?

Then, get the bare Act on Gujarat Shops & Establishment Act and see the applicability provision. If found applicable, then go through the definition of an employee who is entitled to have CL and SL. If the person employed is not covered under the definition of an employee, then you are not legally bound to grant these leaves.

For the calculation of Earned Leave (EL) under the Factories Act, 1948, we need to refer to Chapter VIII of this Act. However, if the establishment is covered under the Bombay Shops Act, then EL should be granted as follows:

An employee who has worked for not less than two hundred and forty days during a year, regardless of the date of commencement of their service, is entitled to leave, whether consecutive or otherwise, for a period of not less than twenty-one days.

I trust that you recall the provision for 21 days of leave as per the Shops Act.

Hi,

I just wanted to know a few rules on leave. We have just come out with a Leave policy for our organization: 30 PL & 6 SL. We want to announce it with leave rules showing how HR is benefiting the employees.

Could you help me with some guidelines regarding the same?

Regards,
Natasha

Before finalizing the leave policy for your organization, you must go through all the leave-related enactments that are applicable to your unit. Then, you should keep in mind all types of minimum leaves that are required to be granted statutorily. For example, under any law, if you are required to grant seven CL in a year, then in that case, you should not decrease this number from seven to six and add it to another category of leave. A leave policy is necessary if management wishes to increase the leaves under any category. It is not permissible to violate the law. If, as per your brief, you are not granting casual leaves and if any State or Central law mandates that your unit must provide seven CL, how can you establish this leave policy? The leave policy should not contradict the laws applicable to your organization for the granting of different types of leaves.

Opinion/comments submitted as requested.

Dear Hariveer,

Welcome to CiteHR. First, determine which of the central or state Acts is applicable in your case for the grant of earned leaves. Then, review the relevant chapter/provisions to understand its eligibility.

Regards,
R N KHOLA