Which type of industry you are working for: Is it covered in Factories act or Shop and establishments act? below is the information from two acts consider whichever is applicable to your industry;
As per factories act CHAPTER VIII-
Section 79-Annual leave with wages.
(1) Every worker who has worked for
a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of--
(i) if an adult, one day for every twenty days of work performed by him during the previous calendar year;
as per Bombay Shops and Establishments Act, 1948 section 35 ,
Chapter:
Leave with Pay and Payment of Wages
Section35:Leave[(1) (a) Subject to the provisions of clause (b), every employee who has been employed for not less than three
months in any year, shall for every 60 days on which he has worked during the year be allowed leave, consecutive
or otherwise, for a period of not more than five days.
(b) every employee who has worked for not l
ess than two hundred and forty days during a year [irrespective of the
date of commencement of his service,] shall be allowed leave, consecutive or otherwise, for a period of not less
than twenty-one days :Provided that such leave may be accumulated up to a maximum period of forty-two days.
Explanation : The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days
during the period of such leave, on which a shop, or commercial establishment remains closed under sub-section
(1) of section 18, or on which he is entitled to a holiday under sub-section (1) of section 24 or section 31.]
(2) If an employee entitled to leave under sub-section (1) [or (1-A)] is discharged by his employer before he has
been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment
before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect
of the leave.
(3) If an employee entitled to leave under sub-section (1) [or (1-A)] is refused the leave, he may give intimation to
the Inspector or any other officer authorised in this behalf by the [State] Government regarding such refusal. The
Inspector shall enter such intimation in a register kept in such for
m as may be prescribed. [The employee shall also
send a copy of such intimation to his employer and , thereupon, the employee shall be entitled to carry forward the
unavailed leave without any limit.]
(4) Notwithstanding anything contained in this section, every employee, irrespective of his period of employment ,
shall be entitled to additional holiday on the 26th January, [1st May, 15th August and 2nd October every year. For
holiday on these days, he shall be paid wages at a rate equivalent to the daily
average of his wages (excluding overtime), which he earns during the month in which such compulsory holiday falls.
Provided that the employer may require any employee to work in the establishment on all or any of these days,
subject to the conditions that for such work the employee shall be paid double the amount of the daily average
wages and also leave on any other day in lieu of the compulsory holiday.]