Understanding Employee Leave Entitlements: How Many Days Are Legally Allowed Each Year?

How many leaves are available to an employee per year as per law?

Dear Meghana,

You have inquired about the number of leaves permissible per year according to the law, considering you are employed in an MNC. The regulations concerning leaves are clearly outlined for the government sector but not as explicitly for the private sector.

In a government department, an employee is entitled to 14 days of casual leave per year along with 2 restricted holidays. Regarding earned leave, it amounts to 31 days annually, split into two parts: 16 days from January to June and 15 days from July to December. If an individual joins later in the year, the calculation is set at 2.5 days per month for the remaining duration.

Pankaj Misra Deputy Director FTI, Kanpur

Hi,

Can anyone tell me what compulsory leaves should be given to employees (workers, executives, contract labor) as some of them also have ESI? I need your help to design a new leave policy for a manufacturing company in Hyderabad, AP. Additionally, I need to design complete HR policies from scratch.

Kindly revert to [Login to view].

Hi Raj,

Thank you for the information. Could you please tell me which law I need to refer to in order to learn more about leaves?

Meghana

Dear Meghana,

The leave policy is unique to an organization, and it varies. It can be 1.5 days of leave for every month of service, and if Saturdays and Sundays are holidays as per the Shops and Establishment Act. It can also be 12 CL, 12 SL, and 30 PL, along with work on Saturdays. It all depends. Please call.

Regards,
Venkat

Hi Rekha,

The leave policy is unqiue to an organisation and it varies.

As per law employees should get minimum 15 days of earned leave in a year & 12 days of CL/SL in a year. CL & SL are generally pro-rate.

Maternity & Paternity Leave (as per law)

Gazetted / national holidays & restricted Holidays (national holidays are fixed, you may increase the list but can¡¦t decrease)

You may change the names of the leave and call them whatever you want to.

Generally EL¡¦s & SL¡¦s are carried forward to next near & CL¡¦s not. EL¡¦s are calculated only against employees present and deducted for his absence period or leave without pay period.

You can limit the maximum accumulation for the leaves which are carried forward to next year and also give the option of encashment of EL¡¦s.

Generally companies bind their employees as follows:

„X You can¡¦t take more than 3 CL¡¦s consecutively

„X You can¡¦t take less than 3 EL¡¦s

„X For availing more than 3 SL¡¦s you need to get a medical certificate.

„X EL¡¦s & CL¡¦s can¡¦t be clubbed together.

„X SL¡¦s & CL¡¦s can be clubbed together.

„X Sundays & Holidays in between the leave days will be sandwiched & counted as leave period only etc.

Based on management discretion, the above may be changed for the employees of talent pool of the organization.

Try to give them as much flexibility as possible keeping in mind the notorious members also who proceed on leave and keep on extending their leaves, utilize all of them and sends you his / her resignation thereafter.

You may devise some extraordinary leave or special kind of leave for members going that extra mile e.g. 1 day off for blood donation etc.

Do not forget to keep the option of leave without pay to meet some emergencies.

You can¡¦t decrease the number of leaves specified by the Government but increase as much as you want.

Hope this will help you.

Sweety Singh

Hi,

As per Sec. 35(1)(a) of the Bombay Shops and Establishment Act, a workman is entitled to 5 days of leave for every 60 days of work, provided he has worked for not less than 3 months. Similarly, a workman who worked for 240 days in a year is entitled to 21 days of leave under 35(1)(b).

Thank you,
Meghana

Dear,

As per the Factory Act, EL is 1 EL for 20 working days (for men) and different policies apply for female employees as well as child employees/workers.

According to the Shops and Establishment Act, EL is 1 for 12 working days. CL is a maximum of 3 days, while PL has a minimum of 3 days. Sick leave for 1 day does not require medical proof; however, a medical certification is needed thereafter.

Regards,
Vikas

Hi,

It's very interesting. Let me confirm that as per the Shops and Establishment Act (AP), CL and SL are 24 in a year (together), and EL is 15. Correct me if I'm wrong.

Dear All,

It is highly appreciable that you all are concerned for the development of other junior members. In the above-mentioned topic, I would like to add some more.

As per the law, according to the Factory Act, 1948, there should be a minimum of 15 earned leaves and 12 casual leaves for all employees as a minimum of 20 working days are required for 1 earned leave. The same provision will be in the various Shop and Establishment Acts. However, it all depends on the company policy how they bifurcate their leaves into CL, SL, PL, EL.

Whether there is a provision of leaves according to the calendar year or financial year.

Hope this information will help you.

Regards,
Ranjeet
(Jeeni)

Dear all,

It is highly appreciable that you, senior members, are showing concern for other junior members. The above-mentioned topic is very informative. I would like to add something to it.

As per the law, according to the Factory Act, 1948 (which is applicable), there should be at least 15 EL and 12 CL in a year as there is a provision of giving 1 leave in every 20 working days. The leaves may also differ from industry to industry, company to company, as they can be bifurcated into PL and SL as well.

The procedure for giving CL and EL is according to the standing order in the Industrial Employment Act, as we cannot give an employee more than 3 CL in continuity. The Shop and Establishment Act also guides us on leaves, but they may differ from state to state.

I hope this information from a junior member will help others as well.

With Best Wishes,

Yours,
Ranjeet

Dear All,

How many leaves can I allow for my employees? I am currently working with the Bajaj Dealership. What should the leave structure be?

Thank you,
Devansh