Navigating Earned Leave: What Are the Rules for Private Company Employees in India?

Dear all,

Could anyone help me? Are there any rules for private company employees to take earned leave? For example, if an employee takes 2 or 3 consecutive days of earned leave, what is the maximum number of days they can take? How long before should they inform? Is there any labor law governing this?

Thank you.

Understanding Leave Policies for Different Establishments

You have not mentioned the nature of your establishment. If it is a factory, the Factories Act applies, and if it is a commercial establishment, the Shops and Establishment Act contains the provisions for earned leave. These provisions outline the criteria for eligibility, accrual of maximum leave, and calculation of leave. However, the company can establish a policy that outlines procedures for taking such leave and has the flexibility to include more favorable terms in the policy.

In a specific situation, an employee can use earned leave continuously as long as it does not exceed the maximum number of days of earned leave credited to their account, based on the purpose and circumstances. For instance, if an employee takes earned leave due to illness, they can return to work only when medically fit, and it is not appropriate to limit the leave duration to a specific number of days when fitness depends on a medical condition beyond the employer's control.

Regards, B. Saikumar
HR & Labour Law Advisor

In the Factory Act, there is no regulation on different types of leaves; only that workers will get one day's leave for every 20 days worked in the previous year. However, if you have more than 50 employees at the plant, then standing orders apply. So, see the model standing orders that apply to you and follow the rules described in it.