Understanding Earned Leave: Do You Need to Work Every Month to Avail It?

Dear Sir,

I want to know, to avail one day of Earned Leave, does one have to work every month or can one avail earned leave by working 20 days in any month? Are there any legal provisions that require one to work every month?

Thanking You,

MANAS RANJAN PAL
ASTER TELESERVICES PVT. LTD.
SAINIKPURI
SECUNDERABAD-500094

Dear Ranjan Pal,

I did not understand what you are asking exactly. Please tell me specifically what you want.

Regards, J. Mallesh
9346320105

Dear Mallesh,

Firstly, please let us know if your organization is covered under the Factories Act or the Shop & Establishment Act. This information will enable us to provide you with the appropriate answer.

Regards,
Bhushan

Dear Bhushan,

My company is under the Factories Act. Can you help me in making a leave policy with minimum leaves?

Regards,
Sunaina

During the initial year of service, no leave is allowed under the Factories Act. In the subsequent year, an employee will get leave at the rate of one day per 20 days worked in the previous year, but only if they had actually worked for 240 days in that previous year. It is not like earning one day after every 20 days of work and carrying it forward or availing it after every 20 days. The calculation is done after the closure of a calendar year, and only those who have actually worked for 240 days (including days of holidays, weekly off, leave due to employment injury, lay off, maternity leave days in the case of women, etc., are taken as days worked for this purpose) are eligible for such leave. It is called annual leave with wages/earned leave.

Therefore, someone who works for 230 days in the year 2007, was laid off for 6 days, and was on leave due to temporary employment injury for 4 days, will be eligible for leave in 2008. However, they will only earn leave for the 230 days they had worked.

Regards,
Madhu.T.K

Dear Mr. Madhu T.K.,

Your post regarding Earned Leave is very clear and informative. When most of the posts are not complete, yours is complete and based on solid ground. :)

Regards,
Pratap M. Kamble

Dear Mr. Madhu,

We have received valuable information from you. Thank you. Can you help with the following question?

Our company is at the start-up stage. We only have company registration and have not yet registered under the Factories Act. We are in the process of registration. In the meantime, should we proceed with Leave policy approval? Is there any interrelation between the Leave policy, appointment orders to employees, and the Factories Act? Please clarify this for me.

Regards,
Devi

Let the registration of your factory take place first. After that, we will think of rules to be framed with regard to leave and other matters. If you expect to employ 100 or more employees, you may have to frame a standing order in which you can detail the leave rules also. A Standing Order is mandatory for those establishments employing 100 employees. In some states, it is 50 employees and even 20 (I understand that in Assam, an establishment employing 20 or more should have a standing order of its own).

Regards,
Madhu.T.K

Dear Madhu,

As you explained for EL, it means any employee who works for 230 days exactly with 6 days lay off and with 4 days employment injury should be eligible for 12 days of EL for the next year. Is that the way we need to consider, or do we need to consider the number of working days he exactly worked (e.g., if an employee was present for 285 days, then how should we consider it? Do we still need to use only 240 days as the boundary mark)? Please clarify for me.

Regards, Ravindranath

240 days is the minimum number of days required for a worker to be eligible for annual leave with wages under the Factories Act. It does not mean that one who has actually worked for more than 240 days, say 285 days, will also be eligible for leave as if he worked only 240 days. If an employee had worked for 285 days, he will earn 14 leave days at a rate of 20 days for 285 days.

One important thing to note is that layoff days, legal strike days, maternity leave days, paid leave days, and ESI or employment injury leave are considered only to determine eligibility for EL, but the employee will not earn leave for these days. For example, if a worker had actually worked only 160 days in a year but was on leave due to employment injury, or on maternity leave, etc., for 80 days, he will be eligible for EL for the subsequent year but his leave will be restricted to 8 days, i.e., 160 divided by 20.

Regards,

Madhu.T.K

Dear Madhu,

Thank you for your reply. I understand the point you made. I just wanted to clarify whether for the calculation of the number of earned leaves (ELs), the 160 days mentioned should include the weekly offs and festival holidays or exclude them.

Regards, Ravindranath

Dear Mr. Madhu,

The information is very useful. Is it necessary to give CL & SL along with PL? How many leaves are mandatory to include in the leave structure among PL, CL, SL in the company?

Please guide.

Mirali Petiwale

View a similar comment in the following link: https://www.citehr.com/224052-leave-rules.html

Regards,
Madhu.T.K