Understanding the 240-Day Rule for Annual Leave
240 days are not specifically for annual leave. The Factory Act states that if an adult completes 240 days, they are eligible for 20 days of leave. After 240 days, the company management has to decide their policy regarding leave.
Reference: Chapter VIII of the Factory Act
Annual Leave with Wages
79. Annual leave with wages. (1) Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed, during the subsequent calendar year, leave with wages for a number of days calculated at the rate of:
(i) If an adult, one day for every twenty days of work performed by him during the previous calendar year;
(ii) If a child, one day for every fifteen days of work performed by him during the previous calendar year.
Explanation 1: For the purpose of this sub-section:
(a) Any days of layoff, by agreement or contract or as permissible under the standing orders;
(b) In the case of a female worker, maternity leave for any number of days not exceeding twelve weeks; and
(c) The leave earned in the year prior to that in which the leave is enjoyed;
shall be deemed to be days on which the worker has worked in a factory for the purpose of the computation of the period of 240 days or more, but he shall not earn leave for these days.
With Regards,
Vikas Vyas