Is It Legal for Companies to Skip Providing Paid Leave? Seeking Advice on Leave Policies

I have a query regarding the allotment of PL/Earned Leave. Is there a legal obligation if the company doesn't want to include PL in the leave policy? In my company, management wants to provide only SL and CL; they don't want to offer any PL.

Kindly provide suggestions.

Thanks

The management cannot refuse to give PL. It is as per the Factories Act and statutory rule. Hence, PL has to be given; otherwise, it will create a problem.

Regards,
Alphonse

I want to make you aware of my company's situation. It has been operating for the past 60 years. There is no HR department and no policy in place, so we are in the process of creating a Leave Policy. The management intends to provide 12 CL and 12 SL to employees but no PL. If we create a Leave policy, how many leaves should be included in it?

Thank you.

Giving CL and SL is not statutory, but giving PL is statutory as per the Factories Act. You have to follow the rules and regulations of the Factories Act without fail. Section 79 (Annual Leave with Wages) of the Factories Act

Section 79 addresses Earned Leave. You must provide one day's leave for every 20 days worked in the previous calendar year. Please review the section and implement it. If you need any clarification, please contact me.

Regards,
Alphonse
[Phone Number Removed For Privacy Reasons]

Earned Leave Calculation

Earned Leave, as explained by Mr. Alphose, is calculated as 1.5 days for a month (or 1 day for 20 working days). There is no CL or SL as per the laws. However, 1.5 days per month, totaling 18 days per year, is the basic privilege entitlement. This can be structured as 12 Days PL + 8 CL, 12 Days PL + 4 CL + 4 SL, or other combinations. The nomenclature of leave can vary in different companies. In some companies, there is only Earned Leave of 18 days, while others term it as Annual Leave.

Regards,
Rajusiachen

Dear Alphonse & Rajusiachen, you are saying that allocating PL is statutory as per the Factories Act-1948. It is applicable where manufacturing activities are taking place. What about industries other than factories, such as the service industry, etc.? Can you provide some advice?

Thanks,

C M