How Many Casual Leaves Should a Company Offer? Seeking Legal Guidelines and Best Practices

Minimum Number of Casual Leaves

What is the minimum number of casual leaves that a company should have? I have to modify our Leave Policy; currently, our company provides 5 CLs per annum. Please let me know if there is any minimum number of CLs specified by the law.

Please mention details of other leaves as well, such as EL, Medical Leaves, etc. Also, specify the type of industry you work in. Our organization provides 15 CL per year. Generally, CL cannot be taken for more than 2 days at a time.

Thank you.
Regards

May I know what you mean by "statutory 15 but minimum 7"? Where is it written as statutory 15? Can you please explain?

Thanks and regards,
Keshav Korgaonkar

Regards

Hi Snehal, ours is a manufacturing industry. PL/EL are 21 days in a year. There are no medical leaves allotted. As per our policy, CL can be taken for a maximum of 3 days consecutively.

Regards,

In the Sugar Wages Board, there is a provision for 6 casual leave days in a year, i.e., 0.5 or 1/2 day of leave for every month. The workmen are entitled to enjoy their 0.5 or 1/2 day leave after a minimum of 15 days of working (including holidays and rest days).

Regards,
Mithilesh

I have seen some establishments give 5 casual leaves in a year, while some give 7. I have even seen some establishments giving no casual leave but providing 30 leaves in a year without specifying the type of leave.

Question to HR Members

How do different establishments allocate different amounts of leave? What is the law?

The discussion in this thread may be enlightening to all of us. However, my appeal to all is, while discussing, please be sure before posting.

Thanks and regards,
Keshav Korgaonkar
www.shantadrugaent.com

Hi, after seeing all these threads on the leave policy, I realized that none of us knows what the actual leave policy is as per the law in India.

Regards,
Basha

As per the Factory Act, the minimum number of leaves in a year should be as follows:
- CL = 7
- EL = 15
- Total number of leaves EL/CL = 22

It's important to maintain and pay these leaves to the employees as per the calendar year. Accordingly, you are required to follow the Leave Act and adhere to the rules regarding leaves.

Thanks,
Kiran Arya
Executive-HR

The number of casual leave days to be given is as per the Standing Orders applicable to you. Presuming that you do not have your own Certified Standing Orders, the Model Standing Orders would be applicable. In most states, the minimum CL is 7 days but can go up to 10/12 days.

Regards,
KK

Discussion on Minimum Casual Leave in India

We are discussing here what should be the quantum of minimum casual leave as per the law prevailing in India. To the best of my knowledge, there is no law in India that broadly deals with the issue.

Generally, as per law in India (I would like to clarify that we are not discussing here any individual company, industry, or establishment), leave matters are governed either by The Factories Act, 1948 or the Shop and Commercial Act of the respective state.

So far as The Factories Act is concerned, the provisions of this Act do not describe any specific type of leave like Earned Leave (EL), Privilege Leave (PL), Sick Leave (SL), or Casual Leave (CL). It only mandates that 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.

The Shop and Commercial Act of the respective state, however, defines the classification of leaves. For example, as per the U.P. Shop and Commercial Act, it provides that every employee who has been in continuous employment of the same employer for a period of 12 months shall be entitled to 15 days Earned Leave, 15 days Sick Leave, and 10 days Casual Leave.

There may be some difference in the quantum of leave from state to state Act.

So far as The Industrial Employment (Standing Orders) Act, 1946 is concerned, it does not deal with the leave matter or classification thereof.

Now, in view of the above, it is very clear that there is no provision in The Factories Act for casual leave. Only in the Shop and Commercial Act is there a provision for Minimum Casual Leave as stated above, which may vary from state to state and can be confirmed by consulting the state provisions. The rest is at the discretion of the employer to decide the quantum of various types of leave, and it can be challenged in any court of law unless there are some special awards, board's decisions of the industry concerned, or agreements, etc.

Regards,
Pkjain

As stated by Shri Jain, the Industrial Employment (Standing Orders) Act does not deal with casual leave to be provided. However, the Model Standing Order provided therein specifies it.

Regards,
KK

Industrial Employment (Standing Orders) Central Rules, 1946

Rule 10 under the Industrial Employment (Standing Orders) Central Rules, 1946, states:

A workman may be granted casual leave of absence with or without pay not exceeding 10 days in the aggregate in a calendar year. Such leave shall not be for more than three days at a time except in the case of sickness. This leave is intended to meet special circumstances that cannot be foreseen. Generally, the prior permission of the head of the department in the establishment should be obtained before taking such leave. However, if this is not possible, the head of the department should be informed in writing as soon as practicable about the absence and the probable duration of the absence.

Bombay Industrial Employment (Standing Orders) Rules, 1959

Rule 16 under the Bombay Industrial Employment (Standing Orders) Rules, 1959, reads:

1. Every workman is entitled to casual leave.
2. Casual leave is non-cumulative, and no other types of leave may be combined with casual leave.
3. Unless for emergent reasons, casual leave is limited to three days at a time. It is meant to address special or unforeseen circumstances for which specific rules cannot be made.
4. Holidays declared by the establishment and weekly holidays may be added before or after casual leave.
5. Normally, permission from the Manager or the head of the department should be obtained before taking such leave.

Please discuss the above in detail. Your insights could provide valuable input to the legislative body.

Before proceeding with further discussion, it should be noted that the Standing Orders Act is applicable only in industrial establishments that employ 100 or more workers. The primary purpose of the Act is to inform workers about the terms of their employment and to define misconduct and disciplinary actions that can be taken if any worker commits misconduct.

Leave and Holidays Under the Standing Orders Act

Rule 9 of the Industrial Employment (Standing Orders) Rules clearly states that leave and holidays for workers will be granted as specified in Chapter VIII of the Factories Act. It also outlines the procedure for applying for and granting leaves.

Understanding Rules 9 and 10

Rule 10 should be interpreted in conjunction with Rule 9, and a comprehensive understanding of both rules will clarify the situation. Under provision 10 of the Rules, a worker may be granted casual leave of absence with or without pay, not exceeding 10 days in a calendar year. It further states that such leave should not exceed three days at a time, unless in cases of sickness or foreseeable special circumstances.

Consequently, if the conditions for granting casual leave of absence are not met, it will be considered misconduct, and disciplinary action may be taken against the worker.

Casual Leave Provisions in Central and Bombay Rules

Rule 10 of the central Rules or Rule 16 of the Bombay Rules does not specify the amount of casual leave or any other type of leave to be provided. It only directs that in cases of casual absences beyond the worker's control, no disciplinary action can be taken. In the central Rules, casual leave is limited to 10 days in a calendar year, while the Bombay Rules do not specify the number of days, as detailed in Mr. Keshav ji's post.

I have reviewed numerous Standing Orders of various companies certified by the relevant government that do not specify any amount of casual leave.

Thank you to all.

Regards,
pkjain