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According to the Factories Act, 1948, 12 days of earned leave are received for one year on completion of 240 days. I have noticed that many companies provide 18 days of earned leave and 10 days of CL/SL to employees. Please explain the basis for providing 18 days of earned leave and 10 days of CL/SL.
From India, Mumbai
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First of all, there is no restriction under the Factories Act to earn leave for 12 days against working for 240 days. The 240 days is the eligibility criterion for earning leave, which will include annual leave enjoyed, layoff, etc., as extra to fulfill the condition of 240 days. For example, an employee under the Factories Act who has enjoyed 20 days of annual leave and worked for 220 days in a particular year. The concerned employee will be eligible for annual/earned leave (220 + 20 = 240 days), but the leave earning will be 220/20 = 11 days.

On the other hand, in any organization, there are usually 365 - 52 (weekly off) - say 12 days festival paid leave = 301 available working days. If an employee has worked for 280 days, the employee will be eligible for 280/20 = 14 days of earned leave and so on.

Under the Factories Act, there is no provision for casual or sick leave. However, as a part of the leave policy, union(s) negotiation, standing order, etc., there are organizations where casual leave, sick leave, etc., are provided to employees. Similarly, by way of Memorandum of Settlement (MOS) with union(s), there are organizations that provide one day of leave against 15 days of work or other norms. In those cases, the earned leave is more.

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

From India, New Delhi
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