Are We Really Getting More Leave? Understanding Leave Entitlements in a Factory Setting

Hi everybody, I have been working for a private limited company that provides leaves according to the Factory Act, as per HR. The factory and office are on the same premises. We are entitled to 20 days of leave (13 EL + 7 SL). The HR informs the staff that they are receiving more leaves.

Can anybody comment on this?

Dear Madhu, Since you are working in a factory, as per the Factories Act 1948, one day of annual leave is to be given for every twenty days worked (Section 79). As there are nearly 300 working days in a year, the number of earned leave cannot be less than 15. Being a factory, the ESI Act should be applicable, so why Sick Leave (SL)? It is not clear whether HR is combining both Earned Leave (EL) and Sick Leave (SL) and stating that 20 days of leave are not warranted under the Factories Act. Please clarify the position.

Regards, KK

Dear Mr. Nair, the leaves are not clubbed; it is as I mentioned above. However, the ESIC is not covered as the salary is above the limit (30% of the employees are drawing more than Rs. 15K salary). I have one more doubt: as the Factory Act is applicable in the case of leave, can we ask for the OT? We are in the staff category, and we never get the OT. Please advise.

You would come within the definition of 'worker' as you are employed directly in a manufacturing process being carried out on the premises. Hence, you are entitled to the benefits under the Factories Act, including overtime (OT).

Regards,
KK