How Do You Calculate Annual Leave Under the Factories Act: Are Holidays Included or Excluded?

Understanding Leave Calculation Under the Factories Act

Please note, as per the Factories Act, Sec. 79: "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 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.

Question on Leave Calculation

When considering the above, are the twenty days excluding WEEKLY OFFs, NATIONAL AND FESTIVAL HOLIDAYS, AND OTHER LEAVE DAYS (Approved CLs, SLs, etc.) or including them? In some industries, they are excluding, and some are including these for the calculation of 20 days of working day 1 EL/PL/Annual Leave.

Which Version is True?

Regards,
PBS KUMAR

Dear Expert Friends, I have not received any response to my query. It is a confusing topic when calculating annual leaves as per the Factories Act. Kindly share your comments or views.

Regards, PBS KUMAR

For the purpose of calculating leaves, there are two parts, and the provisions are very clear in the Factories Act (refer to section 79(1)(ii) of the act).

Calculation of 240 Days

In this, you will have to count leaves (of all types), holidays, etc., to arrive at 240 days.

For Leave Crediting

The actual number of days worked.

Regarding some companies considering leaves, holidays, etc., for the purpose of calculating leave crediting, it is based on the policy of the company.

Regards,
Preetam Deshpande