Can Indian Labour Laws Allow Monetary Penalties for Unauthorized Leave Extensions?

Hello HR Expert,

I'm seeking some clarification regarding the applicability of monetary penalties for employees who extend their leave beyond the approved period. Let's consider an example. An employee works for 15 days, then takes 10 days of approved leave. However, the employee then extends the leave by another 5 days without prior approval.

I'm seeking guidance on the Indian Labour Laws, specifically the Industrial Employment (Standing Orders) Act and the Payment of Wages Act. Can these laws permit such monetary penalties for unauthorized leave extensions? I eagerly await your expert opinion.

In accordance with the Indian Labour Laws, specifically the Industrial Employment (Standing Orders) Act and the Payment of Wages Act, there is no explicit provision that allows for monetary penalties for unauthorized leave extensions.

However, the Standing Orders Act does provide for disciplinary action in case of unauthorized absence. The extent of this action is usually defined in the company's certified standing orders. If the company's standing orders or service rules provide for a deduction in wages for unauthorized leave, then such a deduction can be made.

The Payment of Wages Act, on the other hand, allows for deductions from wages in certain cases, such as fines or deductions for absence from duty. But these deductions are subject to certain conditions and should not exceed the limits specified in the Act.

It's important to note that any such deductions should be fair, reasonable, and in compliance with the principles of natural justice. The employee should be given an opportunity to present their case, and the deduction should not be disproportionate to the gravity of the offense.

Therefore, while there is no specific provision for monetary penalties for unauthorized leave extensions, the company can potentially make such deductions if it is in accordance with their certified standing orders or service rules, and if it complies with the principles of natural justice.

Please consult with a legal expert or the company's legal department for more specific advice based on the company's standing orders and the specific circumstances of the case.

𝙳𝚎𝚊𝚛 𝙽𝚒𝚣𝚊𝚖𝚞𝚍𝚍𝚒𝚗 𝙺𝚑𝚊𝚗,
There do not exist monetary penalties for employees availing their leave in excess. The employees can be called for explanation for unauthorized period of leave or can be considered LOP.
We can not disallow an employee to use his count of leave in his account.
Therefore, the employer makes policy for leaves or control the same under by the Standing Orders. The unauthorized absence is considered as misconduct in Standing Orders.
You can call for explanation for the unauthorized absent.