Understanding Earned Leave: Does Sunday Count as a Working Day?

Hi, please confirm how to count EL. Is Sunday (weekly holiday) counted as a working day or not?

Eligibility for Earned Leave (EL)

EL shall be granted only on actual working days. In a year, an employee worked for 280 days, plus 53 weekly offs, 12 holidays, 12 casual leaves (CLs), and 8 earned leaves (ELs).

According to the company's leave policy, an employee is eligible for 1 EL for every 20 working days. In the above scenario, the employee only receives 14 ELs for 280 working days.

I believe you are clear.

Regards,
Kamesh

Please confirm how to count EL.

EL Calculation Differences Between Government and Private Organizations

EL calculation will be different for government and private organizations. In a government organization, 2.5 days of EL are given per month, totaling 30 days in a year (15 days credited in January and July for every completed year). On the other hand, a private company usually provides 1 day of EL for every 20 days worked in the previous year, totaling 18 days in a year. However, some companies now offer 30 days as APL (All Purpose Leave).

Counting Sunday as a Working Day

Is Sunday (weekly holiday) counted as a working day or not? Yes, if the employee is paid for 30/31 days in the month, Sunday is considered a working day. However, in some factories or contract labor setups, wages are calculated for 26 days, and Sunday is designated as a rest day (a day of rest is given for every 6 days worked).

Regards

Hi All, Thanks for it, but I want to know if we are Non-ESI, then how many total leaves we get in a full year. We work in Uttarakhand and we are covered under the Factory Act as well. So, can you please tell us how many leaves we get in a full year? EL + CL + SL = ?

Regards,
kamesh

As per the Factory Act of 1948, employees who work for more than 240 days in a calendar year (only physical working days) are eligible for earned leave (EL). It should be calculated on a prorate basis, i.e., 1 day of leave for every 20 physical working days. Please note that those who do not complete 240 physical working days will not be allowed to apply for any earned leave.

There is no provision for casual leave in the labor act; it is a part of the organization's leave policy, and the core management can decide on providing casual leave (CL).

As per the ESI Act, employees are eligible for sick leave (SL). However, since your organization is not covered under ESI, you are not obligated to provide any sick leave to employees. Once again, the decision to provide sick leave to employees in the leave policy should be made by your core management.

Regards,
Dnyaneshwar
[Phone Number Removed For Privacy Reasons]
Regards,

As observed from the details given by you, your establishment is covered under the Factories Act 1948. You have not made it clear whether your company has framed any leave scheme of its own. However, as far as the computation of annual leave (earned leave) under the Factories Act is concerned, as other members have already explained, EL shall be calculated at one day for every twenty days of work performed by a factory worker.

Supposing a worker joined on 1st January and was in service till 31 December and availed 20 days EL during the year, he is deemed to be in service for 365 days. However, for calculating leave earned by a worker during the calendar year, you need to include all weekly offs since they are paid, paid holidays, any days of layoff effected under an agreement, etc., but the period of leave availed during the year shall be excluded. Thus, his earned leave has to be computed for 345 days after subtracting 20 days of leave availed by the worker during the calendar year.

Computing leave at one day for 20 days of work for 345 days, his earned leave will work out to be 17.25 days. However, any fraction of the day less than half a day shall be ignored, and thus the total leave admissible is 17 days for the relevant calendar year.

If any worker joined on any day other than on 1st January of the relevant calendar year and did not put in 240 days of service, his leave shall be calculated as above provided he has worked for two-thirds of the remainder part of the calendar year. This leave can be availed on medical grounds also. Factories Act does not provide for sick leave separately.

The Factories Act does not provide for casual leave. You need to provide for it and sick leave under your standing orders.

Trust this will clarify your leave issue.

Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
[Phone Number Removed For Privacy Reasons]

Subject: Is Sunday Counted as a Working Day

Hi, is Sunday considered a working day?

In the case of continuous working factories, the weekly holiday will be on Sunday or on another day in the week. A weekly holiday is a rest day, not a working day.

When it comes to salary/wage calculation, it depends on the wage policy of the company. If the wage calculation is based on 26 days, Sunday (weekly off) will not be included. However, if the calculation is for 30 days, Sunday will be considered in the wage calculation.

Regards,
D. Gurumurthy
LL/HR & IR Consultant

Thank you all for the clarification. It means that if our salary policy is based on a 30-day calculation, then we are entitled to 18 earned leaves (EL), while other casual leave (CL) and sick leave (SL) entitlements depend on the Standing Order.

Regards,
Gauri Dorbi

Thank you all for the clarification. If our salary policy is based on a 30-day calculation, then we are entitled to 18 Earned Leaves (EL). The allocation of other types of leaves, such as Casual Leave (CL) and Sick Leave (SL), depends on the Standing Order.

Please confirm this information. I am very confused about the actual number of ELs.

Regards,
Gauri Dorbi

One man in our company relies on Sunday as his last working day. Can he be relieved on Sunday, or should he work on Sunday and then be relieved on Monday?

Regards,
Nagaraj

The weekly holiday will be on Sunday or another day in the week for continuously operating factories. The weekly holiday is a rest day, not a working day.

Consideration for Salary/Wage

Regarding salary or wage consideration, it depends on the company's wage policy. If the wage calculation is for 26 days, Sunday (the weekly off) will not be included. If the wage calculation is for 30 days, it will be included in the wage calculation.

Regards