Is It Fair for Management to Cut Sick Leaves and Require Hospitalization Proof? How Should We Respond?

I know in the past a lot of discussions have happened related to the number of leaves in a factory. I have gone through the Factories Act and also the Maharashtra Factories Act, but nowhere is it mentioned about Casual, Sick, and Privilege leaves. It just states that a worker becomes eligible for leave after working at least 240 days in a year. Leave will be credited the next year, i.e., for every 20 days worked, 1 leave will be credited.

Management's Decision on Sick Leaves

Now, my management has decided to reduce the number of sick leaves this year. Is this the right practice? Our factory is located in one city, and the head office is in another city. Also, the management has specified that sick leaves would be considered only on hospitalization. Please advise on how to handle this situation.

Leave Provisions in Manufacturing Setups

In the case of employees working in a manufacturing setup or factories, the only leave available is Earned Leave or Privileged Leave, which is referred to as Annual Leave with Wages in the Act. There is no provision for granting sick leave and casual leave. However, if the employees have been receiving Casual Leave (CL) and Sick Leave (SL), then it should be part of the service conditions, and the management cannot reduce or scrap it without giving notice under Section 9A of the Industrial Disputes Act. Therefore, you can raise a dispute, stating that a change in the service conditions cannot be enforced without taking the workers into confidence.

Leave Provisions in Head Offices

Employees in your head office, which is covered by the Shops and Commercial Establishment Act, shall receive CL and SL because the Shops Act provides for these types of leaves.

In addition to what Madhu said, check the standing orders. They mostly contain details of SL and CL required. If it is there, please follow those. If you want to reduce the SL, then the standing orders have to be amended.

Again, whether SL will be only for hospitalization will also be specified in the standing orders. If the employees are under ESIC, then those rules will apply.

I got the information that although our Head Office is located in another city, we are registered under the Factories Act, so the Shops and Establishment Act will not be applicable to us. I also learned that standing orders are not applicable to us as there are fewer than 100 employees in our company. Experts, I appreciate your responses. Please clarify what needs to be done. As far as ESIC is concerned, we are already following all the rules. What about non-ESIC employees?

Due to changes in the rules, there is a lot of dissatisfaction among employees.

I think that was clarified by me in my previous post itself that you cannot get leaves at par with your head office because the head office is covered by the Shops Act where there are provisions for CL and SL in addition to PL.

Standing Orders and State Amendments

Regarding standing orders, many states have separately made rules prescribing it mandatory for establishments with 50 workers. Please go through your state amendment.

Employee Rights and Privileges

As already pointed out, a privilege or anything that is enjoyed over and above what is allowed under the law is not a right of employees. But at the same time, no employer shall take away any privilege being enjoyed by the employees without taking them into confidence. At the same time, if that privilege is a right conferred to them by means of a settlement or clause under the certified standing order or simply service conditions, whether implied or express, then they can challenge it. The aggrieved employees can challenge the decision of the management.

ESI Coverage and Benefits

Employees covered by ESI will get many benefits, but these benefits cannot be extended by the employer to employees not covered by ESI. The reason is that employees covered under ESI are those who are getting lower salaries, say less than Rs 21,000 per month. In respect of employees getting above this limit, it is expected that they will be able to find better ways to get their medical expenses met either by taking some mediclaim or insurance policies.