Are Hospital Leave Policies Under the Essential Services Act Fair? Seeking Advice for Improvement

Hi! I am currently working in a small private hospital in Bangalore. The question I have is regarding leave policy and deduction as a result of it. Currently, there is no leave given to any of the staff (medical & non-medical) except for one weekly off (usually Sunday). Even festivals and national holidays are working days unless they fall on our weekly off.

If anyone takes leave for any reason, then pay is deducted and is calculated as follows: Net salary / number of days in the month * number of days off. When I checked with the owners, they cite the Essential Services Act as the reason.

Question About Leave Practices Under the Essential Services Act

My question is, are these practices okay given that hospitals come under the Essential Services Act, or is there room for improvement? Being a manager here, I am really stuck between unhappy employees and owners. I am looking for measures that we can implement to benefit all. Kindly suggest the same.

Regards

Understanding the Essential Services Maintenance Act and Leave Policies

The Essential Services Maintenance Act, 1968, is central legislation that empowers the states to have their own Acts on the subject matter. You have the Karnataka Essential Services Maintenance Act 1994, which, although lapsed, has been recently revived. Services in the health sector come under the Act. The objective of the Act is to maintain certain essential services and the normal life of the community, not to curb the legal rights relating to conditions of service of the employees of such essential services. Therefore, your owners' view is incorrect regarding the grant of leave and holidays to your hospital employees.

Your hospital is an establishment under the Karnataka Shops and Establishments Act and would be covered by the Minimum Wages Act, 1948, and the State National and Festival Holidays Act. Thus, you are legally bound to grant them leave benefits under these Acts. Sanctioning leave to the employees is entirely different from granting statutory leave benefits to them.

Regards

Understanding the Essential Services Maintenance Act (ESMA)

ESMA was enacted to prohibit the refusal to work in certain essential services connected with the production, generation, storage, transmission, supply, or distribution of water or electricity, transport services for the carriage of passengers or goods by motor vehicles, and any other service or employment or class thereof with respect to which the State Legislature has the power to make laws. This act is intended to ensure the continuity of essential services such as hospitals and fire services and is not meant to restrict the normal leave applicable to employees under relevant State Acts.

Leave Policies Under ESMA

Leave is to be granted as per the Shops and Establishment Act of the state. Unfortunately, some owners may be ill-informed or ignorant of the law. It is advisable to read up on the Acts applicable to your hospital and ESMA and provide a written briefing about the minimum standards and privileges for employees.

Regards