Is My Company's Leave Policy Legal? Seeking Advice on Possible Legal Action

Hello, I am working in a company where the company only provides earned leaves (EL) to the workers and employees. Some employees receive only 15 leaves, while others receive 45, and no casual leave (CL) or sick leave (SL) is offered. Our company is a manufacturing firm registered under the Factories Act of 1948.

Some of us have been with the company for the past 5 to 6 years and do not receive CLs and SLs; they are only granted 15 ELs per year.

Legal Concerns Regarding Leave Policies

Is this the right practice by the company, or can we take legal action against the company? Kindly provide details on the procedure for taking legal action.

Thanks,
Shams

Hi Shams,

A factory is governed by various labor laws. Regarding leave entitlement, it is governed by two laws: the Factory Act and Standing Orders.

Leave Entitlement Under the Factory Act

As per the Factory Act, employees are entitled to avail of one leave for every 20 working days after completing 240 days of work. If employees leave, are terminated, or pass away, they can avail of this leave.

Casual Leave (CL) and Sick Leave (SL) Under Standing Orders

Regarding CL and SL, these are governed by Standing Orders. If your factory has certified Standing Orders, then you are entitled to avail of CL and SL as mentioned in the Standing Orders.

Additionally, organizations have their own leave policies that they follow accordingly. Leave is also governed by the Shop and Establishment Act.

Thanks,
Manish

Hi Manish, my company has a certified standing order, which clearly states that an employee is entitled to seven days of casual leave in a calendar year. Now, can you advise me on how to file a case against them for not providing casual leaves to employees and workers? I am looking forward to your response.

Regards, Shams

As you mentioned that you have certified standing orders, the probability is high that there is a union too. Why don't you ask your union leaders to take up the matter with the management or the labor authorities as they find appropriate.

Regards,
Preetam Deshpande