Is Our Company's Leave Policy Meeting Legal Standards and Employee Needs?

Hi all,

I am working with an IT/KPO type of company. Our leave structure includes Saturday and Sunday off, 4 sick leaves per year, 12 leaves per year, and 10 holidays. I am wondering if the current leave allocation is adequate. Are there any acts or laws that specify the minimum number of leaves that should be provided to employees?

Thank you.

Dear Rachna,

I am also working in a software company, and you are getting more leaves than us. We receive 10 earned leaves and 10 festival leaves in one year. I have noticed that many software companies provide only 8 earned leaves and 8 festival leaves, and the employees of these companies are content. Therefore, I believe that these amounts are sufficient for a software company. I think the Factory Act of 1948 does not apply to software companies. According to the Factory Act, the following leaves are mandated:

1) One weekly off within 7 days.
2) Earned Leave - Maximum 15 (in one year)
3) Sick Leave - Minimum 7 (in one year)
4) Casual leave - Minimum 7 (in one year)

Thanks

Hi Rachna,

You need not worry. Even we are getting fewer leaves than your company is providing. Our leave structure is as follows:

1. Sundays off
2. Second Saturday off
3. 12 casual leaves in a year (1 casual leave per year - maximum of 6 leaves can be accumulated and taken at a stretch)
4. No sick leaves
5. 10 public holidays

I hope this information helps to address your query.

Thanks and Regards,
Indrani Chakraborty

Dear Friend,

The Factory Act does not mention anything about casual leave or sick leave. If you have read this anywhere, please provide me with the reference.

Regards,
Kamlesh K

Hi folks,

As per the Factories Act of 1948, please keep in mind the following guidelines:

- An employee should have worked for 240 days to be eligible for Paid Leave (PL) for the next year.
- New joiners in the middle of the year will be eligible for PL for the following year.
- For young persons (under 18 years), it is one day of PL for every 15 days worked, and for adults (above 18 years), it is one day of PL for every 20 days worked.
- There are no specific provisions for Casual Leave (CL) and Sick Leave (SL) in the Factories Act.

Regards,
R. Sudhakar

Dear Rachna,

For your company, The Shops and Establishments Act, 1954 will come into force. According to that, the leave rules are as follows:

- Earned Leave: 15 days in a year
- Casual and Sick Leave: 12 days in a year

There is no differentiation between Casual Leave (CL) and Sick Leave (SL). You must apply these rules for your company as it is mandatory.

For further assistance, I am here.

Vineet

Yes, Vineet, you are right. However, the Shops and Establishment Act is a state act, and it varies from state to state. Therefore, it's not necessary that the same will be applicable to her. Rachna, please check the Shops and Establishment Act of your region to get more details. For all software companies, the Shops and Establishment Act is applicable, not the Factories Act.

Regards,
Nilendra

Exactly Nil, you are absolutely right, I haven't seen that she belongs to Mumbai.

Dear, why have you seen the Mumbai Shop and Establishment Act, you can get the correct information.

Vineet

What act is applicable to the cosmetic industry? Where can I get more information on the mandatory leave structure?

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I am grateful to Mr. Vineet Mittal and Mr. Nilendra Chand for their views on statutory provisions regarding leave.

What will be the position in the case of a company having its factory in the outskirts of Chennai, whereas the registered office/head office is situated in Chennai? For factory employees, leave rules apply as per the Factories Act. For head office employees, which Act applies - Factories Act or Shops & Establishments Act? Under the company's rules, employees can be transferred anywhere. Kindly advise.

Dear All,

Lots of companies are following the leave rules like this:
1. 21 PL
2. 7 CL
3. 7 SL

A person should work for 240 days in a calendar year to be eligible for this. Other companies are also providing more than 35 leaves in other ways, such as 30 PL and 7 CL.