Understanding Statutory Leave: How Many Days Should a Factory Employee Get Annually?

My query is related to statutory leave for an employee per annum. My organization has a factory license with a limit of 100 employees. Currently, the company provides 12 CL (Casual Leave) and 12 medical leaves (2 leaves per month) and is planning to amend this leave policy. I would like to know how many leaves should be provided by an establishment having a factory license.

Kindly advise.

Regards,
Sree

Hi Sree, the leave policy is an internal policy of the employee and may vary between companies. Leave is divided into three parts:

1. CL (Casual Leave) - 7 days
2. SL (Sick Leave) - 7 days
3. PL/EL (Earned Leave/Privilege Leave) - 18 days

Thank you.

As per the Factories Act, PL/EL should be provided under the following conditions:

1. An employee should work for 240 days in a year.
2. Current year leave can only be availed in the next year.
3. If an employee joins in the middle of the calendar year, 75% of working days will be calculated.
4. EL is calculated within the calendar period.

Regards,
V. Subbarao

If you want to know the statutory aspect of leave, then:

1. The Factories Act clearly states a ratio of 1 day of leave for every 20 days of working.
2. The eligibility for getting the leave is an employee having put in not less than 240 days of working in a year. Employees joining in the middle of the year will be eligible if they have worked two-thirds of the total number of days remaining in the year.
3. The year for this purpose is the calendar year.
4. There is no provision for CL (Casual Leave) and SL (Sick Leave) in the Factories Act.

Regards,
Preetam Deshpande

To add further, 240 days will include all other paid leaves for the said purpose, but for calculating 20 work days, it will not be counted simply because leave cannot be calculated on leave.