Confused About Leave Policies? Seeking Clarity on Statutory Norms and Accurate Guidelines

murtyhr
Dear all,

Is there anyone available to explain the leave policy in accordance with statutory norms? I am becoming confused due to different opinions from various individuals. Please provide me with the policy that is more accurate.

Thanks & Regards,
Murty.
welcomeumesh
Hi,

I don't know much about your organization and industry type, but I am providing information based on both a factory (manufacturing unit/plant) and a shop and commercial establishment.

Shops and Commercial Establishments is a state act, so the rules and regulations may vary in your state.

INDIAN FACTORIES ACT, 1948

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:

- If an adult, one day for every twenty days of work performed by him during the previous calendar year;
- If a child, one day for every fifteen days of work performed by him during the previous calendar year.

This means that any employee is eligible for 20 days of earned leaves in a year, and in addition to that, 10 casual leaves should also be given to employees.

SHOPS AND COMMERCIAL ESTABLISHMENTS ACT

Earned Leave: Every employee, who has been in continuous employment of the same employer for a period of twelve months or more, shall, in addition to any holiday allowed, be entitled to earned leave for not less than fifteen (15) days for every twelve months of such service.

Casual Leave: Every employee, who has been in continuous employment of the same employer for a period of six months or above, shall be entitled to casual leave not less than 10 days in any one calendar year.

Medical Leave: Every employee, who has been in continuous employment of the same employer for a period of six months or above, shall be entitled to sickness leave not less than 10 days in any one calendar year.

If the employee is a security guard or watchman, he will be eligible for 60 days of earned leave (if he's not given any weekly offs).

In the above case, sickness leave is available to employees who are not covered under ESIC (which means drawing a salary more than Rs. 10000).

For employees under both the Factories Act and Shops and Commercial Establishments Act, if they are covered under ESIC, they will benefit from sickness/medical leave and other benefits through ESIC only.

For example, if an employer drawing a salary less than Rs. 10000 a month and covered under ESIC, when he is sick, he visits the nearest ESI dispensary or hospital allotted to him for a medical check-up. For more than one day of leave (in case bed rest or hospitalization is advised by a doctor), the same is paid by ESI.

I hope I am clear. Further, if you have any queries, please ask.

Warm regards,

Umesh Chaudhary
(welcomeumesh@yahoo.com)
rameshtqm
Hi dear,

I have attached the Factory Act for your reference. It is useful to you.
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