Navigating Leave Entitlements Under the Factory Act of 1948: How to Avoid Future Legal Issues

Leave Entitlements Under the Factory Act of 1948

According to the Factory Act of 1948, how many Earned Leave (EL)/Privilege Leave (PL), Casual Leave, Sick Leave, Maternity Leave, Paternity Leave, and any other leave should we provide to our employees to avoid any litigation or notice in the future?

Understanding the Model Standing Order Act for Punjab

Additionally, could you please explain the Model Standing Order Act for Punjab and how it functions?

Regards,
Rik

Please refer to Chapter VIII of the Factories Act. It clearly states that any employee who has worked for 240 days in a calendar year can avail:

• 1 day leave if the employee has worked for 20 days if he is an adult
• 1 day leave if the employee has worked for 15 days if he is an adolescent

For maternity leaves, you have to refer to the Maternity Benefit Act, which states that 84 days of leave should be granted to a lady, and she must have worked for 80 days in 12 months.

For EL/PL, please refer to the Shops and Establishment Act.

Request for Clarification

Please correct me if I am wrong and suggest your views on EL/PL and S/L. There is no clear explanation of these in the acts.

Thanks and Regards,
Waseem Shaikh

Thanks, Mr. Waseem, for the information on maternity leave benefits. The minimum service required is 160 days from the commencement of the due date of delivery. Please clarify this, as per the Punjab Shops and Establishment Act.

For EL, we will have to count those 20 days each from the previous 240 days or current year working days.

For example: An employee completed his 240 days on 1 Jan 2013. Now, will his EL count be based on those 240 days, and can he avail leave from 2 Jan 2013?

Thanks and Regards.

The calculation is done after the closure of a calendar year, and only those who have actually worked for 240 days (days of holidays, weekly off, leave due to employment injury, lay off, maternity leave days in case of women, etc., are taken as days worked for this purpose) are eligible for such leave. It is called annual leave with wages/earned leave.

Therefore, someone who works for 230 days in the year 2007, was laid off for 6 days, and was on leave for temporary employment injury for 4 days, will be eligible for leave in 2008. However, they will earn leave only for the 230 days they had worked.

Thank you, Mr. Waseem. It would be really great if you could explain more about leave policies, i.e., does paternity leave fall under any act?

City Compensatory Allowance in Punjab

And one more thing... Is CCA (City Compensatory Allowance) applicable in Punjab in private sectors?