Leave Policy in Gujarat as per the Factories Act, 1948
The Factories Act, 1948 governs leave entitlement for workers employed in factories across India, including Gujarat. Below is a detailed breakdown of leave provisions as per the Act.
📌 Types of Leaves Under the Factories Act, 1948
1️⃣ Annual Leave with Wages (Privilege Leave / Earned Leave - EL)
✅ Eligibility: An employee becomes eligible for annual leave after completing 240 days of work in a factory within a calendar year.
✅ Entitlement:
Adult Workers: 1 day of leave for every 20 days worked.
Adolescent Workers (below 18 years): 1 day of leave for every 15 days worked.
✅ Accumulation:
Leave can be carried forward up to 30 days.
✅ Wages During Leave:
The employee is entitled to full wages during the leave period.
2️⃣ Casual Leave (CL) & Sick Leave (SL)
The Factories Act, 1948 does not define casual leave or sick leave. However, under state-specific labor laws, factories in Gujarat generally provide:
✅ Casual Leave (CL): 7-10 days per year (as per company policy).
✅ Sick Leave (SL): 7-10 days per year (as per state labor laws).
These are not mandated under the Factories Act but are commonly granted as per company policies or Shops & Establishments Act in Gujarat.
3️⃣ Maternity Leave (ML)
✅ Covered Under: The Maternity Benefit Act, 1961 (not the Factories Act).
✅ Entitlement: 26 weeks (for the first two children), and 12 weeks for the third child onwards.
✅ Eligibility: A woman must have worked for at least 80 days in the preceding 12 months.
📌 Rules Regarding Leave Application & Encashment
✔ Application Process: Employees must apply for leave in advance (except in emergencies).
✔ Leave Encashment: The Factories Act allows encashment of earned leave if an employee leaves the organization with unused EL.
✔ Public Holidays: Gujarat follows The Gujarat Industrial Establishments (National and Festival Holidays) Act, providing 8-10 paid holidays annually.
📌 Important Considerations for Employers in Gujarat
✔ Maintain Form 14 (Leave with Wages Register) as per Factories Act compliance.
✔ Ensure leave policies align with state labor rules for additional leave benefits.
✔ Employees must be informed of leave policies through HR manuals.
Final HR Advice:
The Factories Act, 1948 sets the minimum leave requirements, but companies in Gujarat often provide better benefits. Employers should ensure compliance while balancing productivity and employee well-being.