Understanding Leave Calculation: Do Weekly Offs and Holidays Affect Eligibility?

Dear Forum Members,

Please help me understand a situation where, under labor law, it is stated that for every 20 days of work performed, 1 day of leave should be granted to an employee. Does this mean that weekly offs and NFH (National/Federal Holidays) are to be deducted from the entire year in order to calculate the leave eligibility? That is, the actual working days an employee performed duty. However, for weekly offs and NFH, the employee is being paid.

Please clarify.
Regards

Eligibility for Earned Leave Under the Factories Act

An employee who has worked for at least 240 days during the twelve months will be eligible for earning leave at the rate of one day for every 20 days, according to the Factories Act. This means that an employee who has not worked for 240 days will not be eligible for earned leave in the following year.

To determine eligibility for earned leave, you can consider the days off, paid casual leave days, medical leave days, maternity leave days, paid earned leave days, layoff days, days the employee was on a LEGAL strike, or was on leave due to employment injury or on ESI leave. However, earned leave will only be accrued or granted based on the ACTUAL days worked.

Hence, if someone has worked 220 days in 2010 but was on paid leave for 12 days, on ESI leave for 10 days, and laid off as per the ID Act or settlement for 8 days, they will be eligible for earned leave in 2011. However, their leave will be limited to 11 days, calculated at the rate of one day for 20 days for the actual worked days of 220.

The above calculation also applies to Plantations covered under the Plantations Labour Act. However, under the Shops and Commercial Establishments Act, which is state legislation, the provisions regarding earned leave may differ.

Regards,
Madhu.T.K