Understanding Leave Rules Under the Factories Act: Can Anyone Clarify?

Dear Friends,

I want to know about the leave rules as per the Factories Act.

Dear Prabha,

Please go through Chapter VIII on annual leave with wages under the Factories Act, 1948.

One day leave is eligible for every twenty working days, provided an employee is on continuous service.

Continuous service is further defined as an employee should work at least 240 days out of 360 days. In the case where an employee joins in the middle of the calendar year, they should be present for 2/3 of the days.

An employee is eligible for earned leave only in the subsequent year following their eligibility as mentioned above.

For instance, if an employee joins the organization on 1.1.2010 and is regular in attendance, then their total working days for the year would be 303 days (365 days - 52 Sundays - 10 mandatory holidays as per festival & national holidays act). Therefore, they are eligible for 303/20 = 15 DAYS EARNED LEAVE for the subsequent year 2011.

Paid leave availed in the year 2010 is considered as working days. Unauthorised absent days are to be deducted from the above-mentioned leave calculation.

For further clarification, you may contact me on +919739906035.

Trust this clarifies the leave eligibility criteria. As suggested by RN Khola, you may refer to the Factories Act for more information.

Best regards,

Ravindra Shenvi

Welcome to CiteHR. This all depends upon the applicability of the State/Central enactments on your establishment relating to the grant of different kinds of leaves.

R.N.KHOLA

I have one query regarding paid leave eligibility. To be eligible for paid leave, attendance of 240 days is required, or 2/3 attendance if one has joined later in the year. Within these 240 days, are the 52 weekly offs included in the count, or should we only consider workdays along with taken valid leaves and public holidays? Requesting a response on this matter.

Actually, out of 365 days, an employee should physically work for 240 man-days towards eligibility for earned leave. This is a standard requirement under many labor laws, including the Factories Act.

Eligibility for Earned Leave

According to the Factories Act, an employee must complete a minimum number of working days to qualify for earned leave. This ensures that employees who contribute significantly to the organization are rewarded with adequate rest periods.

Regards.

Dear Sir,

Please clarify:

1. Whether the paid leave availed in the previous year has to be taken into account only for the purpose of 240 days completion or to calculate the quantum of leave for the present year.
2. Whether an employee who has been working for more than 2 years is eligible for leave if their total man-days fall below 240 days in a previous year.
3. Whether leave encashment has to be made for an employee who has joined and worked only for 5 to 6 months and resigns.

With Regards,

Dear All,

Good evening,

I want to know about the rules regarding leave without pay. How many times can an employee take LWP, and for how many days? What is the protocol for a situation where an employee takes leave without informing the management? What actions can the management take in cases of LWP?

Thank you.

Hi sir,

If the employee is taking one day off, it will also be deducted from their privilege leave balance.

Thank you.

Dear All,

It is not mentioned either in the Factories' Act or in any other Acts regarding the calculation of leave encashment. Some hold the view that for monthly-rated employees, the daily rate should be calculated by dividing the monthly rate by 30 days, while others suggest it should be divided by 26 days. I kindly request someone to clarify the correct and justifiable procedure.

Thank you.

Dear Sirs,

If any worker is continuously absent from April 15, 2018, to May 15, 2018, and is not entitled to earned leave. During these days, May 1, 2018, is Labor Day, and May 2, 2018, is Barafat holiday. In this case, are these holidays paid or not?

Please clarify.

Satish