What Are the Leave Rules for Contract Employees? Seeking Guidance and Official References

Could anyone guide me on what the rules are for leave for contract employees? I also request you to share the circular, section, and rule number related to this.

Thanks & Regards,
Pankaj Kr. Das

Understanding Leave Rules for Contract Employees

All workmen/employees engaged through any contractor are workers under the relevant provisions of labor legislation. They are governed by the same rules as are applicable to other workers/employees in the respective law.

For example, a worker in the Factories Act includes contract workers as well, and they are eligible for one day of paid leave for every 20 days worked. They must also have completed 240 days or two-thirds of the working days.

Similarly, the provisions in the Shops and Establishments Act are applicable in establishments where contract employees are engaged.

National and Festival Holidays are also applicable to them.

If an organization is extending more benefits, then those benefits need not be extended.

Contract workers are eligible for all statutory benefits. The only difference between a contract worker and a regular employee is that the benefits over and above the statutory benefits extended to regular employees are not applicable to these workers.

Even this interpretation is not 100% correct as there are many employments that are banned by concerned State Governments from engaging contract workers.

Regards

Thank you for your guidance. I have another query – could you please suggest and share any circular or rule related to this?

Right to Appeal for Permanent Employment

"A contract employee has the right to appeal for a permanent job with the principal employer after a certain period of continuous service as a contract employee under the principal employer."

Thank you.

Good evening to all, the above case pertains to factory workers. What will be the leave rules (PL/EL/SL/CL) for contract employees engaged in any office establishment? Please advise.

With regards,
Akash

Guidance on Leave Rules for Contract Employees

Please check the Gujarat State Shops & Establishment Act/Rules for your guidance. (Though there is no separate Gujarat Act, the Bombay Shops & Estt. Act 1948 applies to Gujarat as well.) The Gujarat Government indicates that establishments not covered under the Factories Act have to be registered under the Shops & Establishments Act. The gist of the act is attached for your reference.

Regards,
Kumar.S.

I am working in a central corporation that has turned into a wholly-owned Government of India Ltd. company. For the last couple of years, we have started recruiting contract-rated staff to do the same job as permanent staff. However, these contract staff only receive 8 days of holiday for religious/national festivals, whereas permanent staff receive 15 such holidays. Is this legally correct?

Thank you.

Dear Mr. Sivasankaran,

I am working in a central corporation that has turned into a wholly-owned Government of India Ltd. company. For the last couple of years, we have started recruiting contract-rated staff to do the same job as permanent staff. However, such contract staff only receive 8 days of holiday for religious/national festivals, whereas permanent staff get 15 such holidays. Is it legally correct?

Holiday Regulations by State

Which state is that? Festival holidays are usually 5, and national holidays vary, with some states having 3 and some 4. Sometimes, a national holiday might fall on a Sunday. In such cases, you need to make a payment. To my knowledge, the maximum holiday allowed is in Kerala, and if I am correct, it is 12 or 13. In many states, it is 9. Originally, the Act started with 8 (5 National Festival Holidays and 3 National Holidays). Some states later added May Day, making it 4.

Please tell me the state, and you will receive the correct response.

Is it mandatory to pay contract workers on 26th Jan, 1st May, 15th Aug, and Diwali? I am from Maharashtra.

If you are engaging manpower on the festival holiday, you have to pay one additional wage; otherwise, you have to give him comp. off. Preferably, one should pay if engaged.

If we have taken employees on contract for 2 years, then statutory compliance is important. Please suggest.

Hi Team,

Good evening to all. What are the leave rules for SL and CL for contract employees? Is a contract employee eligible for CL and SL leave? Kindly guide.

Rama
Maharashtra