Understanding Factories Act: How to Handle EL Calculations and Exemptions?

Factories Act - Doubts

I need clarification on the following:

- As per EL norms, those who have worked 240 days in the preceding year are eligible for 15 days per year.

Question 1: If the employee joined midway and did not complete 240 days in the preceding year, how do we calculate the EL and what does the act say about that?

Question 2: What exemptions can we get from the Inspector of Factories as per the Factories Act?

Question 3: What registers can we maintain for the manufacturing industry, and to which act do they relate?

Regards,
Sukumar
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Dear,

As per the Factory Act, if an employee joined mid-term, then he will be entitled to Earned Leave (EL) on a proportional basis, i.e., 1 day for each 20 days of duty performed.

Your assumption about the calculation of Earned Leave (EL) under the Factories Act is not quite correct. Please read the relevant sections of the said Act, and you will find all the answers. There are no exemptions that an Inspector of Factories can grant under the Factories Act. At a personal level, he may choose to look the other way, and you may receive the exemption you are seeking.

Cheers!
Regards,
Vasant Nair

Dear Peers,

Eligibility for PL (Privilege Leave)

The workers are eligible for PL if they work for 240 days in the previous year at the rate of one day for every 20 working days (from 1st Jan to 31st Dec). For the computation of qualifying 240 days, the period of layoff, by agreements/under the provisions of Standing Orders, maternity leave not exceeding 12 weeks, and the period of earned leave enjoyed are to be considered. However, workers will not earn any leave for those days.

For anyone joining after January, the qualifying period would be 2/3 till December. For example, if a workman has worked for 100 days out of 140 company working days, he is eligible for proportionate PL as he has worked for more than 2/3 of 140 days.

Thanks,

Regards,
HC. Subbaramu
HR and Labour Law Consultant
Bangalore

Earned Leave Under the Factories Act

Earned Leave, also known as Privilege Leave or annual leave with wages as per the Factories Act, allows an annual leave with wages in the subsequent calendar year at the rate of one day for every 20 days of work performed if the individual is an adult, and one day for every 15 days of work performed if the individual is a child (Sec.79).

Annual Leave can be carried forward up to 30 days in the case of an adult and up to 40 days in the case of a child. Refused leave can be carried forward to any limit (Sec.79). (The Factories Act indirectly allows for children as well, which is noteworthy.)

The Management's HR Policy could be incorporated in the Industrial Employment (Standing Orders) Act 1946. Workers/employees may be paid on a prorated basis, which could uphold the rights of workers to a certain extent and enhance the image of HR Management.

Regards

Dear Peers,

Thank you very much for your valuable suggestions regarding the questions I faced in the interview. I need information on general exemptions, not specific ones like overtime (OT), creche facilities, ambulance services, etc.

Thank you.

There is no exemption as such. You only have to convince the inspector that you are providing extra benefits to your employees than the act specifies. Hence, it is not possible to act as per the Act provides, so he may grant an exemption from the specific section.

Dear,

We have to calculate whether the employee had worked 2/3 of the total working days in the previous year to become eligible for Earned leave and calculate one day for every 20 days he actually worked.

N Kannabiran

Dear peers,

I read Sec 79 but I couldn't get a clear idea because it doesn't explain what I expected. Please provide me with section 79 if anyone has it.

Regards,
Sukumar

Dear Sugumar,

Employees working 20 days - 01 day EL. What do you want exemption? You see the Factories Act book in various registers to be maintained.

Ravi
HR

In construction companies, is the Gratuity Act applicable to laborers working on the company's payroll? If so, what rules or precautions should be taken care of?

Dear Ravi,

I know the norms of ELPL. But for those who have joined between the year and have not completed 240 days, how could we calculate EL? This is my question.

Reply to this.

Hope yours................

Regards, Sukumar

Dear Sukumar,

I would like to inquire about how to calculate Earned Leave if an employee has not completed 240 days and resigns after working for 200 days. Is this calculation mandatory or not?

Looking forward to your reply.

Regards,
Sukumar