What Happens If You Take More Annual Leave Than Allowed in India? Let's Discuss!

Consequences of Exceeding Annual Leave in India

When an employee exceeds their allocated annual leave entitlement, it may result in various consequences as per the labor laws in India. Employers typically have policies in place to address such situations, which may include deductions from future leave balances, adjustments in salary, or other disciplinary actions as deemed appropriate.

It is essential for both employers and employees to be aware of the company's leave policies and labor laws to ensure compliance and fair treatment in such circumstances. Seeking guidance from HR or legal professionals can help in understanding the specific implications and steps to be taken in case of exceeding annual leave limits.

Firstly, I will say a worker cannot "take" leave unless it is allowed. If a worker has asked for leave for a certain number of days, then depending upon the necessity of the company and the reason stated in the leave application by the worker, the management has to decide whether to grant, reject, or partially grant his leave for a certain period. However, in cases where there is no balance of earned leave or it is short of the leave requested, the worker will lose his pay for the shortfall in leave balance.

You will find the leave sanction/rejection procedure in the Model Standing Orders prescribed under the Industrial Employment Standing Orders Act or in the Certified Standing Orders if you have them.

Apart from what Mr. Kulkarni has stated, if the worker has not reported to duty after the expiry of the leave, you can send a letter asking him to report immediately to the company. Failure to do so will be treated as absconding. Send three reminders and terminate if not reporting even after.

Apart from the above suggestions, I would like to add:

1. Check whether all the leaves the employee in question utilized are approved.

2. If approved, that means he/she is allowed to take them. Check with the concerned approving authority how they managed it when no leaves are in balance. Determine whether additional leaves are leave without pay or adjusted against the new set of leaves which will be added from January 2014. If adjusted, then HR/Time office should have been a part of this decision.

3. If all additional leaves are without pay, there is no need to worry.

4. If this employee is absconding/absent, take disciplinary action appropriately.

Regards,
Suresh

As per the labor act, he can avail himself of the statutory leave unless the manager grants it. If he has used up all his leave entitlement, he should be asked to take a loss of pay (if his cause is genuine). Otherwise, issue a notice for his irregular attendance.

Cheers,
Hari