Are Factory Employees Eligible for Better Leave Benefits Under the Maharashtra Shops & Establishments Act?

Dear All, As per the Factory Act, one day of Privileged Leave is granted for every 20 days worked. Additionally, under the Shops & Establishments Act, there are provisions for Privileged Leave (PL), Casual Leave (CL), and Sick Leave (SL). It is stipulated in the Factory Act that if the contract provides better benefits regarding leave, those benefits should be followed, considering other relevant state laws. For instance, as per the Maharashtra Shops & Establishments Act, employees are entitled to 18 days of PL and 8 days of CL.

My query is, "Are factory employees also entitled to leaves as per the Maharashtra Shops & Establishments Act, which offers more favorable leave benefits compared to the Factory Act provisions, or are they restricted to availing leaves in accordance with the Factory Act only?"

Regards

Leave Benefits Under Different Acts

There are no special or separate laws exclusively on leave benefits other than the erstwhile Weekly Holidays Act and the present State National and Festival Holidays Acts. On the other hand, leave benefits are conferred by various establishment-specific laws like the Factories Act, 1948, and others, depending on the nature of the work of the establishments and the employees therein.

Most manufacturing activities are done around the clock and all 365 days of the year. Apart from this, there are continuous process industries based on their end products and service industries like transport and communications. That's the reason for the difference in leave benefits. However, the right to claim more or better leave benefits is not curtailed. Under the provisions of the Industrial Disputes Act, 1947, trade unions are permitted to negotiate better employment benefits, including leave, through collective bargaining.

My query is simple: As per the Factory Act, the Earned Leave = Worked Days/20. As per the Maharashtra S & E Act, 2017: PL: 18 and CL: 8, Total: 26 Days. As per my understanding, a factory is also an establishment. In this case, are the leave benefits better as per the later provision applicable or exclusively as per the former?

Thanks & Regards,

Some portions of the factory may be establishments (Administrative office, accounts, Sales office, etc.) but not the manufacturing plant.

Better Leave Provisions

There is no harm in providing better leave provisions other than what is minimally stipulated in the specific statute (Factories Act). Mr. Umakanthan M very clearly explained the reasons for different types of leave in a factory.

If the organization feels that even if the number of workmen available will be less in a year for enjoying more leave, the organization will be able to fulfill the productivity and quality norms of the products produced in the factory, then it can go ahead. It is also essential to remember that in case of extra pressure for production, the availability of manpower will be less due to more leave of the workmen. Manpower planning with leave cover and off cover will be complicated, and more manpower will be required.

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

My dear friend, the essence of my previous reply is that the same service conditions, such as leave, applicable to one type of establishment, cannot be applied to another type of establishment covered by a separate establishment-specific labor law, under which the relevant provisions are different.

In this context, I would like to suggest that the misplaced influence of the contents of the saving clause provided under section 78(1) of the Factories Act, 1948 be avoided. This is because "any other law" refers to a similar law applicable to the same establishment only.

Dear All,

Forget about providing better leave; establishments are not even providing basic rightful leaves to the workmen. All these laws and provisions are only good on paper! Has there been any effort in the form of a survey carried out by the Labour Department to analyze and understand the effectiveness of Chapter VIII? That is, to check and ensure legal benefits have been given to the workmen in the past 76 years?

I was just trying to get insights from the learned members on the validity of the Shops & Establishments Act as a better provision by law, with reference to the below aspect of Chapter VIII of the Factory Act.

Chapter VIII Annual Leave with Wages

78. Application of Chapter—(1) The provisions of this Chapter shall not operate to the prejudice of any right to which a worker may be entitled under any other law or under the terms of any award, agreement (including settlement), or contract of service: Provided that if such award, agreement (including settlement) or contract of service provides for a longer annual leave with wages than provided in this Chapter, the quantum of leave to which the worker shall be entitled shall be in accordance with such award, agreement, or contract of service. However, in relation to matters not provided for in such award, agreement, or contract of service or matters which are provided for less favorably therein, the provisions of sections 79 to 82, so far as may be, shall apply. (2) The provisions of this Chapter shall not apply to workers in any factory of any railway administered by the Government, who are governed by leave rules approved by the Central Government.

Thanks & Regards,