Can Employers Force You to Use Your Earned Leave? Understanding the Rules and Acts

Can employers ask employees to compulsorily utilize their earned leave in a specific period? If yes, please let me know under which act or rule.

Employer Leave Instructions

There is no rule or legal provision allowing an employer to instruct an industrial employee to be on leave, yet many employers do it. In government service, there is a provision to send an employee on leave, but the employee's leave balance is not affected.

Earned Leave Accumulation and Utilization

As per the Factories Act, earned leave (EL) can be accumulated for up to 30 days for male employees and up to 40 days for female employees. EL can be availed for a minimum of 3 days at a time and not more than 3 occasions during the calendar year. If an employee applies for EL and management refuses to sanction it, the employee should be allowed to carry forward such EL to the next year.

Leave policies vary from company to company. Most companies offer EL encashment every year to prevent a financial burden in the long run. Management has the authority to formulate its own leave policy.

Please refer to the Maharashtra Factories Rules for more information.

Regards, Jagadeesh

Employee Leave Utilization

Availing earned leave (EL) is the choice of the employee. If an employee fails to avail it periodically, excess leave will expire automatically beyond the limit of accumulation. Therefore, the employer cannot compel employees in this regard.

Hello, your query relates to voluntary employer action to administer Earned Leaves (EL) for an employee.

The answer is no. An employer cannot force or direct an employee to utilize their ELs. It is entirely the employee's choice to avail or not avail any part of their leave balances.

However, an employer may encourage employees to take time off for their personal well-being, such as vacations, etc.

In no case should an employee be forced to exhaust their leave balances, in part or in full. Additionally, when the employee departs from the organization, any unexhausted leave balance should be compensated for in their full and final settlement.

Thank you.