Understanding Leave Entitlements for Contract Workers in Madurai's LPG Plant: What Are Your Rights?

Dear All, Peace be upon all of you. Thank you for your valuable replies. The contract employees in Madurai are working in a PSU (LPG Plant) under a housekeeping and handling contract, and they are being paid according to the Minimum Wages Act (Day salary).

Leave Entitlements for Contract Workers

What are the leaves applicable for the above-said contract workers? Also, under which act does the leave calculation fall?

Thank you.

Thank you for your prompt response, Pragnaa. Since the contract employees are receiving their salary based on the minimum wages (current working day/month), the Shop & Establishment Act of Tamil Nadu will also be applicable to them.

Clarification on Labor Laws for Contract Employees in PSU

One more clarification: What are the labor laws that will apply to the contract employees who are working under a Public Sector Undertaking (PSU) in Madurai, Tamil Nadu?

Regards.

Application of Social Welfare Legislation to Contractual Workers

All the social welfare legislation applicable to your direct workers shall also be applicable to contractual workers. There is no difference in terms of ESI, PF, bonus, gratuity, etc., whether one is a direct worker or a worker hired through a contractor.

Regards

Please note the applicability of major allied Acts:

1. National & Festival Holidays Act
2. EPF / ESI Act
3. Employees Compensation Act
4. Labour Welfare Fund Act
5. Professional Tax Act
6. Maternity Benefit Act
7. Minimum Wages Act
8. Shops & Establishment Act

Regards,
Pragnaa HRCS

The said workplace is registered under the Factories Act. So, it will be applicable under the Factories Act as well, right?

Thank you again for your help.

Dear Meeran, It is under the Factory Act, 1948, Section 79. Please follow the instructions below:

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.

Thanks & Regards,
Abhijit Barua
[Phone Number Removed For Privacy Reasons]

The Contract Labour Act of 1970 is an independent act that governs the terms and conditions of employment for contract laborers. However, there is no provision for leave and holidays in the Contract Labour Act. In such cases, the leave rules applicable to these laborers will be determined by the act under which the contractor has registered its firm. It might be registered under the Shops and Establishments Act, in which case, the leave rules of the Shops and Establishments Act will be applicable to these employees.

Thanks,
Sunil Nipurte

Your establishment, if it is a factory as defined under the Factories Act, the workmen employed therein, whether they are regular employees or are engaged through a contractor, are covered by the provisions of the Factories Act. According to the provisions of the Factories Act, no adult worker could be required to work on the first day of the week (Section 52). That is, they have to be given a weekly holiday. Apart from this provision, every adult worker is entitled to annual leave with wages according to the scale prescribed under Section 79 of the Factories Act. You say that the contract workers are paid according to the provisions of the Minimum Wages Act. Your post is not clear as to what is the employment under which you have brought them under the Minimum Wages Act. Please see the notification issued under the Minimum Wages Act for this employment. If this notification says that workmen employed in such employment are to be given a weekly holiday with wages, then you will have to pay the wages for the weekly holidays allowed under the Factories Act. If your establishment is covered by the ESI Act, the contract employees will also get the benefit of such coverage.

Regards.

Leave Calculation Under the Shop & Establishment Act

The Shop & Establishment Act is applicable for leave calculation. According to the Act, employees are entitled to 12 days of Casual Leave (CL), 12 days of Sick Leave (SL), and 12 days of Privilege Leave (PL) upon completion of one year of service.

If anyone has the official notification regarding the above rules, kindly share it.

Regards,
Rajesh

The query of Mr. Anwar is with reference to employees working in a factory. Do you suggest that in their cases also the leave calculation has to be made under the Shops and Establishments Act?

With regards,
Rajesh

Dear all, excellent discussion you all had. Can anyone please specify how CL, SL, and PL are divided among the leaves available under the Factories Act and the Shop and Establishment Act? The CL, PL, SL are not mentioned in either of these acts.

You mentioned that the contract employees in Madurai are working at the PSU (LPG Plant) in housekeeping and handling roles, and they are being paid according to the minimum wages act (daily salary). Right?

Factory Definition and Employee Coverage

LPG Plant refers to a factory, falling under the factory definition. This implies that contractual employees are covered under the Factory Act.

Regards