Struggling with Leave Policies in Madhya Pradesh: Are My Company's Rules Legal?

I am working in the manufacturing industry in Madhya Pradesh. I prepared leave and encashment rules, on which my seniors told me that they will not provide the facility of leave accumulation and will also not do leave encashment. I tried to find out the rule in the Factory Act and M.P. Factory Act which states that leave accumulation and encashment are mandatory, but I couldn't. Also, they are adamant about giving leaves at the rate of two per month as total leaves, which are not divided into sick/medical, casual, and earned leave. Please guide me. Can anyone help me with the rules according to the M.P. Factory Act?

The substantive provision regarding Annual Leave is provided in Sections 79-82 of the Factories Act 1948, which provides for the accumulation of leave as well as encashment. The senior management of the company can refuse to comply with the mandatory requirement only at its peril. The MP Factory Rules 1962 provide the format and other conditions.

In addition to the Factories Act, the provision of Casual Leave (7 days/year) is provided in Standard Standing Orders. Please consult them, the soft copy is available.

Thank you for your response. However, based on my information, the Factory Act does not apply in Madhya Pradesh. Instead, the M.P. Factory Act is in effect in our state. Please provide suggestions accordingly. Feel free to correct me if I am mistaken.

Regards,
Ria

To clarify the doubt, the Factories Act is a central legislation and is applied uniformly throughout the country by the respective state governments. There are state rules which elaborate on how the Act is to be applied. So there is no MP Factories Act, but there are MP Factory Rules. You may consult the Act/Rules accordingly; both are available on the internet.