Confused About Leave Policies and Labor Law? Seeking Guidance on What to Do Next

Good morning. I would like to inquire about the leave policy according to labor law. I have studied different types of leave policies, and each policy has some new rules, so I am very confused to see that. Please suggest to me what I should do in such a case. I will await your valuable reply.

Thank you

Understanding Company Leave Policies

All policies, including leave policies, differ from company to company. With regards to your query, firstly check whether your company falls under the Factories Act or the S&E Act. Accordingly, refer to the Act of your state for minimum leaves. You can extend more leaves from the standard minimum leaves mentioned under the Act.

Policies available in the forum are for reference and should be drafted according to the needs of your company. In a nutshell, the policy of one company will not be the Bible of another company.

I agree with your answer, but if I read the S&C Act, we find that EL is given on 20 working days and how it is to be paid is mentioned in the rule. However, in the case of SL and CL, it is just mentioned that we give 7 leaves for SL and 7 leaves for CL, but the rule is not clear. What should be done in this case? Can we carry forward CL and SL to the next year? Please suggest.

Thank you.

Regards,
Abhishek Singh

Understanding Leave Policies: A Guide

If in the S&E Act, for every 20 working days, 1 Earned Leave (EL) has to be provided, then for 365 days, 18 EL days are to be provided as a minimum for a year. So, draft a policy accordingly.

With regards to Sick Leave (SL) and Casual Leave (CL), if 7 days are provided, you can allocate them on a prorated basis for every month. The basic rule is that leaves are counted on the Calendar Year. SL/CL lapse automatically after the completion of the Calendar Year; only EL/PL are carried forward.

To draft a policy, you can refer to the Leave Policy discussed earlier in the forum. One of the links is mentioned herein below: https://www.citehr.com/471430-draft-leave-policy.html

Regards

The leave policy is governed by either the respective State's Shop and Establishment Act (different states have different entitlements) or by the Factory Act/Rules. The Factory Act provides entitlements for Earned Leave (EL) but does not mention Casual or Sick leave, whereas Shop and Establishment Acts specify EL, CL, and SL.

Different states have different rules regarding the number of holidays. Therefore, I suggest doing a bit of research to understand the proper entitlements.

Regards,
Col. Suresh Rathi

Earned Leave (EL):
• 1 day of EL can be granted for every 20 worked days, not in working or calendar days, subject to having a minimum of 240 worked days. In case of not having 240 worked days, you may consider the EL enjoyed in the preceding year only for eligibility.

Casual Leave (CL):
• You may grant 10 days of CL as referred to in the Model Standing Orders Act.

Regards

According to the Factory Act of 1948, if a person works for 240 days in a calendar year, they are entitled to Earned Leave. One day of Earned Leave (EL) can be granted for every 20 days worked.

The Factory Act provides entitlements for Earned Leave but does not mention Casual or Sick leave. All policies, including the Leave policy (SL/CL), vary from company to company.

Regards,
Pankaj Bhanuse (Nagpur)

The leave rules shall be followed as per the Act applicable to that establishment.

The computation is good but leaves out certain salient features. For instance, for Delhi, a person should have worked at least 60 days out of 4 months to be entitled to EL. May I suggest that you include maternity leave as well? Despite this, your computation does provide an excellent comparison.

Regards,
Col. Suresh Rathi

Good morning. First, I would like to thank you all for your valuable replies. My company is located in Haryana, and here the Punjab Shop & Commercial Establishment Act applies. Please suggest to me in accordance with this act.

Thank you.

Regards,
Abhishek Singh

Please review your leave policy accordingly with reference to the Punjab Shops and Establishments Act, Section 14:

- PL: one day for every 20 days worked
- SL: 7 days
- CL: 7 days

Thank you.

Understanding Leave Entitlements

Every 20 days of work, you will receive 1 PL. The CL rule is not clear; it depends on the company's policies. It could be 10 or 7, or it may be calculated based on PL. For example, if an employee receives 13 PL, we can create a formula such as, "For every 15 PL an employee receives, they get 10 CL." In this case, what would be the CL entitlement for 13 PL?

As many of the members suggested, please refer to the act that corresponds to where your company fits in and proceed accordingly. If it is S&E, then it's simple:

- 12 CL
- 12 EL
- 12 SL
- ML & PL

You could customize it based on your organization.

Regards,

Kindly help me with the following points to create policies and implications in compliance with the law in Gujarat. I urgently need your assistance regarding contractors' employers.

Leave Policies Under Gujarat Law

1. How many leaves are applicable according to the Shops & Establishment Act and the Contract Labour Act?
2. What is the maximum number of leaves that can be accumulated?
3. Can lapsed leaves be encashed?

Your prompt response is greatly appreciated. Thank you.

Regards,

Kindly help me with the following points to create policies and implications in accordance with the laws in Gujarat. I urgently need your reply regarding the following queries for Contractor Employers:

Leave Policies According to Laws in Gujarat

1. How many leaves are applicable according to the Shops & Establishment Act and the Contract Labour Act?
2. What is the maximum number of leaves that can be accumulated?
3. Can lapsed leaves be encashed?

For more information, please refer to https://www.citehr.com/483186-leave-...#ixzz2sLsSOxGA.

Thank you.

Hi! As per my knowledge, 21 paid (earned) leaves and 4 national holidays are mandatory as per model standing orders.

Leave Policy Overview

1 EL/PL for every 20 physical presences. You can accumulate this up to 90 days. Sick leave or medical leave is 8 days, which you can accumulate up to 90 days. CL is 7 days and lapses within the calendar year.

Regards,
Biju.

Sir,

I kindly request you to confirm the leave policies for private limited companies regarding PL, SL, and CL.

Thank you.

Please type "Leave policy" on the tab at the top of this page (press "Enter" to search). You will find plenty of leave policies there as drafts. Please amend according to your needs.