Confused About Leave Entitlements? Navigating Factory vs. Shop Act Rules in UP

As per the rule of the Uttar Pradesh Factories Act 1948 and the Standing Order of our Factory, we are providing leaves as follows:

Leave Entitlement in Our Factory

- Paid Leave (National & Festival Holiday): 9 Days
- Casual Leave: 6 Days
- Earned Leave: As accrued by employees

Our factory is covered under ESIC & EPF. Employees exempt from ESIC (Salary above ₹15,000) are getting 10 days of Medical Leave in lieu of ESIC.

Leave Entitlement in Other Concerns

For our other concerns covered under the Shop & Commercial Establishments of Uttar Pradesh, where there is no ESIC coverage, the employees receive the following benefits:
- National/Festival Leave: 9 Days
- Casual Leave: 10 Days
- Medical Leave: 15 Days

Now, the question arises that employees exempt from ESIC under the U.P. Factories Act are claiming 15 days of Medical Leave as per the Shop Act Rule. There is a big confusion. Please help me understand what to do in this case.

Assuming that the establishment falls under the provisions of the Factories Act and UP Factory Rules, let us make it very clear that:

1. The Factories Act and UP Rules do not provide for any national and/or festival holidays.
2. The Factories Act and UP Rules do not provide for any CL or SL.

Now, turning to Standing Orders, you may need to share the contents of the standing order applicable to your establishment to provide any legal response to the members.

Regarding granting medical leave as per the provisions of the Shops and Establishment Act, if the establishment is covered under the Factories Act, the Shops and Establishment Act will not be applicable and vice versa.

Another aspect to consider is whether the National Festivals and Holidays Act is applicable to UP and, if so, what the provisions of the act state. Please note that not all states have adopted the National Festivals and Holidays Act.

I hope this clarifies your doubts.

Regards,
Preetam Deshpande