Seeking Advice on Crafting a Leave Policy for a Factory in Chandigarh: Any Standard Formats?

Dear Sir, We are a manufacturing unit under the Factory Act of Chandigarh. Therefore, we are providing 12+10=22 (10 Calendar Holidays in a Year) PL (Privilege Leave/Leave Encashment) in cash, or the employee can choose to avail it in the same month without further extension.

I am now looking to establish a policy for this matter. Please provide your valuable suggestions or share if there is a standard format available.

Thank you in advance.

Regards, RK Chauhan

Dear Sir, Waiting for your valuable suggestions.

We are a manufacturing unit under the Factory Act of Chandigarh. Therefore, we pay 12+10=22 (10 calendar holidays in a year) PL (Privilege Leave/Leave Encashment) in cash, or he/she can avail it in the same month and will not extend it further. I want to establish a policy for this.

Thanks in advance.

Regards, R.K. Chauhan

Factories Act and Leave Calculation in India

The Factories Act is a central act, and therefore, leave calculation (Annual Leave) is common across all states in India. It stipulates that 1 day of leave is earned for every 20 days of work. For detailed clarification, please refer to Chapter VIII - Annual Leave with Wages, Section 79 of the Factories Act.

Over and above this, companies may offer additional leave types such as festival leave and casual leave, either through company policy, Standing Orders (certified/model), or the surrounding industry culture. Usually, if employees are covered under ESIC, then sick leave is governed by ESIC rules and regulations.

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S K Bandyopadhyay (WB, Howrah)
CEO - USD HR Solutions
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