Dear Rajesh,
It appears from your last post that your organization is a factory. My observations are as follows:
1. Annual Leave with Wages
As per the Factories Act under Sec-79 - Annual Leave with Wages Chapter, there is no provision for an hourly count of leave. Therefore, it has no legal acceptance as per the Factories Act. It has to be counted in days, and the leave record as per State Factory Rule should be maintained in days.
2. Working Hours and Rest Period
The organization's working hours are 5 * 9 = 45 hours instead of 47.5 hours. There is a rest period of 0.5 hours after working 5 hours at a stretch as per the Factories Act, and 0.5 * 5 = 2.5 hours is the rest period. Therefore, the total hours including rest is 45 + 2.5 = 47.5 hours per week.
3. Annual Leave Entitlement
The organization allows 22 days of annual leave per year, whether after fulfilling the eligibility criteria of 240 days (in this case, it should be less as it is a 5-day week) as per the Factories Act - this is not clear.
4. Hourly Leave Without Pay (LWP) or Overtime (OT) Calculation
Hourly Leave Without Pay (LWP) or Overtime (OT) calculation is required, which may be obtained by dividing the daily rate by 9 (in this case), but leave entitlement under any circumstances will not be on an hourly basis.
Therefore, the organization should not continue with a practice that is not legally accepted. Moreover, leave records as per the Factories Act will not allow an hourly basis; rather, it should be on a daily basis.
Thanks and regards,
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To strive towards excellence with effort and integrity