Understanding Annual Leave: Is There a Legal Provision for Working Days?

Hi Group,

Sub: Leave (Annual Leave Days)

I just wanted to check as per the attached file, can anybody tell me if there is any provision on the legal side?

Thank you,
Manish

Dear Manish,

I presume your mention of level 3 and 4 pertains to the company for which the leave is applicable - Am I right? It is a policy decision and varies from company to company.

Regards, L. Kumar

Dear Mr. Kumar,

Yes, the level is for internal part, but I was more concerned to know about the legal aspect. Is there any provision for leave based on working days?

Thanks

Dear Manish,

Crediting leave to an employee's account is in no way connected to the number of days worked at the organization.

L. Kumar

Dear Manish,

A company can provide at least 12 PL, 7 CL, and 7 SL, which are mandatory. Anything above this is also acceptable. Again, the carried forward system can also vary, as can the encashment.

Regards

Leave is a subject of respective concerns. Only the Factories Act makes it mandatory to allow leave with wages. According to the Factories Act, any worker who had worked for 240 days in the preceding year shall get leave at the rate of 1 leave per 20 days. In order to calculate the number of days worked, the layoff days, leave with wages days availed, maternity leave days, leave due to disablement, etc., will be added up. But one can avail leave for the actual days worked only.

Any other leave shall be decided by the respective company. In fact, the leave eligibility and rules relating to encashment will be given in the certified standing order of the company.

Regards,

Madhu.T.K

Yes, Manish. As per the law, there is a provision to give a minimum of 12 leaves and a maximum depending on the company policy. Actually, Level 3 and Level 4 employees can also avail leaves of up to 24 or more annually if the service is 10-20 years and above.

With regards,
Valbooj

Hi Madhu,

We don't come under the Factories Act. We come under the Shops & Establishment Act. Could you please help by referring to any sites/books that clearly state the leave rules for companies under the Shops and Establishment Act? We also don't have standing orders registered. How should we go about it? Is it mandatory?

Thanks,

JK

There is no Central Act for shops and establishments, but the respective state will have a separate Act. Under the Kerala Shops & Establishments Act, it is 12 days. In addition to these 12 days, sick leave shall also be given.

This is statutory, but if any organization pays more than what is stated in the labor enactments, the higher quantum should be followed.

Drafting and certification of Standing Orders is mandatory for those establishments employing not less than 100 employees subject to state ruling. In certain states, there are rulings by the appropriate Government which makes it obligatory for the firms employing a lesser number of employees (50 employees) to have standing orders of their own.

A standing order is supposed to contain everything relating to the functional relationship between the employee and the employer. Once the standing order is certified, it becomes a binding document because the drafting of standing order is done in consultation with the workers, and the concerned authority (Officer not below the rank of Asst. Labour Commissioner) will certify the standing orders only if he finds that the provisions are acceptable to both parties. Therefore, it is always desirable to get standing orders drafted and certified.

Regards,

Madhu.T.K