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Hi, my name is Karthik Narayanan. I have been an HR manager for all these years. I am used to labor inspections. I am told that while counting the number of EL availed by employees, the intervening festival holidays, weekly holidays, and government holidays should not be taken into account. Is this correct?

Every organization has its own leave rules. There is no uniformity, no hard and fast rules indeed. I want to know the exact leave rules as per the Shop and Establishment Act (Tamil Nadu). To my knowledge, an employee will be eligible for earned leave upon completing 240 days of service. Earned leave can be availed only thrice in a year. Any balance leaves will be carried forward to the next year. A maximum of 30 days of EL can be accumulated in a span of 3 years. These are general rules. My doubt pertains to whether intervening holidays should be counted or not while availing EL. I even tried benchmarking in this regard but I am surprised that there is no uniformity. Kindly clarify my doubt.

From India, Madras
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Per TN Shops and Establishments Act, 12 days of earned leave are to be credited to employees after completing 12 months of continuous service. An employee can avail of these 12 days in the following year, i.e., after completing 12 months of continuous service. For example, if an employee joins on 1.1.2008, they will receive 12 days of earned leave on 1.1.2009, which they can enjoy during 2009. On 1.1.2010, they will receive another 12 days if they continue in service. Employees are allowed to accumulate up to 24 days.
From India, Madras
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I think Section 79 of the Factories Act 1948 will be of some help to you. This is the standard that all companies in India should be following. However, this act will not be applicable in case the industry or the company proposes/implements anything better than this.

79. ANNUAL LEAVE WITH WAGES - (1) Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of: (i) if an adult, one day for every twenty days of work performed by him during the previous calendar year; (ii) if a child, one day for every fifteen days of work performed by him during the previous calendar year.

Explanation 1: For the purpose of this subsection - (a) any days of layoff, by agreement or contract or as permissible under the standing orders; (b) in the case of a female worker, maternity leave for any number of days not exceeding twelve weeks; and (c) the leave earned in the year prior to that in which the leave is enjoyed; shall be deemed to be days on which the worker has worked in a factory for the purpose of computation of the period of 240 days or more, but he shall not earn leave for these days. Explanation 2: The leave admissible under this subsection shall be exclusive of all holidays whether occurring during or at either end of the period of leave.

(2) A worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages at the rate laid down in clause (i) or, as the case may be, clause (ii) of subsection (1) if he has worked for two-thirds of the total number of days in the remainder of the calendar year.

(3) If a worker is discharged or dismissed from service or quits his employment or is superannuated or dies while in service, during the course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his discharge, dismissal, quitting of employment, superannuation, or death calculated at the rates specified in subsection (1), even if he had not worked for the entire period specified in subsection (1) or subsection (2) making him eligible to avail of such leave, and such payment shall be made: (i) where the worker is discharged or dismissed or quits employment, before the expiry of the second working day from the date of such discharge, dismissal, or quitting, and (ii) where the worker is superannuated or dies while in service, before the expiry of two months from the date of such superannuation or death.

(4) In calculating leave under this section, a fraction of leave of half a day or more shall be treated as one full day's leave, and a fraction of less than half a day shall be omitted.

(5) If a worker does not in any one calendar year take the whole of the leave allowed to him under subsection (1) or subsection (2), as the case may be, any leave not taken by him shall be added to the leave to be allowed to him in the succeeding calendar year: Provided that the total number of days of leave that may be carried forward to a succeeding year shall not exceed thirty in the case of an adult or forty in the case of a child: Provided further that a worker who has applied for leave with wages but has not been given such leave in accordance with any scheme laid down in subsections (8) and (9) or in contravention of subsection (10) shall be entitled to carry forward the leave refused without any limit.

(6) A worker may at any time apply in writing to the manager of a factory not less than fifteen days before the date on which he wishes his leave to begin, to take all the leave or any portion thereof allowable to him during the calendar year: Provided that the application shall be made not less than thirty days before the date on which the worker wishes his leave to begin if he is employed in a public utility service as defined in clause (n) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947): Provided further that the number of times in which leave may be taken during any year shall not exceed three.

(7) If a worker wants to avail himself of the leave with wages due to him to cover a period of illness, he shall be granted such leave even if the application for leave is not made within the time specified in subsection (6); and in such a case, wages as admissible under section 81 shall be paid not later than fifteen days, or in the case of a public utility service not later than thirty days from the date of the application for leave.

(8) For the purpose of ensuring the continuity of work, the occupier or manager of the factory, in agreement with the Works Committee of the factory constituted under section 3 of the Industrial Disputes Act, 1947 (14 of 1947), or a similar Committee constituted under any other Act or if there is no such Works Committee or a similar Committee in the factory, in agreement with the representatives of the workers therein chosen in the prescribed manner, may lodge with the Chief Inspector a scheme in writing whereby the grant of leave allowable under this section may be regulated.

(9) A scheme lodged under subsection (8) shall be displayed at some conspicuous and convenient places in the factory and shall be in force for a period of twelve months from the date on which it comes into force, and may thereafter be renewed with or without modification for a further period of twelve months at a time, by the manager in agreement with the Works Committee or a similar Committee, or as the case may be, in agreement with the representatives of the workers as specified in subsection (8), and a notice of renewal shall be sent to the Chief Inspector before it is renewed.

(10) An application for leave which does not contravene the provisions of subsection (6) shall not be refused unless refusal is in accordance with the scheme for the time being in operation under subsections (8) and (9).

(11) If the employment of a worker who is entitled to leave under subsection (1) or subsection (2), as the case may be, is terminated by the occupier before he has taken the entire leave to which he is entitled, or if having applied for and having not been granted such leave, the worker quits his employment before he has taken the leave, the occupier of the factory shall pay him the amount payable under section 80 in respect of the leave not taken, and such payment shall be made, where the employment of the worker is terminated by the occupier, before the expiry of the second working day after such termination, and where a worker who quits his employment, on or before the next payday.

(12) The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.

From India, Mumbai
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Sanjeev has done a good job by producing Section 79 of the Factories Act, which is related to Earned Leave. The crux, as per the Factories Act, is that earned leaves are given only after the completion of 240 days of working in a calendar year. It is given as 1 leave for every 20 working days for the calendar year. For the purpose of working days, it includes only the working days of the employees and excludes any festival holidays, leave without pay, or any kind of absence from work. The holiday days are counted only for the purpose of the continuity of the employee's job.
From India, Delhi
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According to the Factory Act, earned leave is given only after completion of 240 days of working in a calendar year. However, if any employee leaves the job after 162 days, then he can take his earned leave. As far as I know, the formula 240*2/3 will be applied if he leaves the company after 162 days. Please reply to my query urgently.
From India, Faridabad
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Mr. Rajeeb what do you mean by 240 working days? IS it include holidays, let 30 days or exclude holiday 26 days? Pls inform. I wants to know 240 days are include or exclude holidays?
From Bangladesh
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Hi,

Is there any rule about earned leaves that an associate can apply for only once or twice in a year? Provided that the leaves are segregated as sick leaves, casual leaves, and earned leaves. If yes, then how many earned leaves will an associate get in a year.


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Hi, this is Priya. I'm working in an IT company as an HR associate.

I was calculating the leave balance for an employee. For example, an employee has taken alternate days off for 7 days in a month for MBA studies. Do I need to deduct the leave from CL or EL? Please explain.

From India, Madras
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Hi, this is Priya. I'm working in an IT company as an HR associate.

I was calculating leave balance for an employee. For example, an employee has taken alternate days off for 7 days in a month for MBA studies. Do I need to deduct leave from CL or EL?

Please explain.

From India, Madras
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Hi all,

I am working in a private limited company (print media) since 01.01.2009. I have completed one year of service. I have used 12 casual leaves and 12 sick leaves this year. My question is, how many earned leaves will I get? How can I calculate earned leaves in the newspaper field?

Thank you, sir.
SRINIVAS

From India, Warangal
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you need to deduct from Earned leave As per act CL-12 & SL-12 Per Anum but per month only one CL & one SL Regards Charvaka Reddy
From India, Hyderabad
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HI,
if we go through the above post ,according to shop and establishment act - a company can just credit 12 EL in a year but what about carrying forward of these ELs…………….. what is the maximum that an employee can accumulate in his service ………….. can these leaves be encashed after a set period of employment with particular company…………………….how many can be encashed…………………
Thanks
Shweta

From India, Faridabad
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Dear SRINIVAS,

See the below rules of EL. In short, you can get one EL after 20 working days.

Annual leave with wages.— (1) Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of—

(i) if an adult, one day for every twenty days of work performed by him during the previous calendar year;

(ii) if a child, one day for every fifteen days of work performed by him during the previous calendar year.

Explanation 1.—For the purpose of this sub-section:

(a) any days of lay off, by agreement or contract or as permissible under the standing orders;

(b) in the case of a female worker, maternity leave for any number of days not exceeding twelve weeks; and

(c) the leave earned in the year prior to that in which the leave is enjoyed;

shall be deemed to be days on which the worker has worked in a factory for the purpose of computation of the period of 240 days or more, but he shall not earn leave for these days.

Explanation 2.—The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave.

(2) A worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages at the rate laid down in clause (i) or, as the case may be, clause (ii) of sub-section (1) if he has worked for two-thirds of the total number of days in the remainder of the calendar year.

(3) If a worker is discharged or dismissed from service or quits his employment or is superannuated or dies while in service, during the course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his discharge, dismissal, quitting of employment, superannuation, or death calculated at the rates specified in sub-section (1), even if he had not worked for the entire period specified in sub-section (1) or sub-section (2) making him eligible to avail of such leave, and such payment shall be made—

(i) where the worker is discharged or dismissed or quits employment, before the expiry of the second working day from the date of such discharge, dismissal, or quitting; and

(ii) where the worker is superannuated or dies while in service, before the expiry of two months from the date of such superannuation or death.

(4) In calculating leave under this section, a fraction of leave of half a day or more shall be treated as one full day's leave, and a fraction of less than half a day shall be omitted.

(5) If a worker does not in any one calendar year take the whole of the leave allowed to him under sub-section (1) or sub-section (2), as the case may be, any leave not taken by him shall be added to the leave to be allowed to him in the succeeding calendar year:

Provided that the total number of days of leave that may be carried forward to a succeeding year shall not exceed thirty in the case of an adult or forty in the case of a child:

Provided further that a worker who has applied for leave with wages but has not been given such leave in accordance with any scheme laid down in sub-sections (8) and (9) or in contravention of sub-section (10) shall be entitled to carry forward the leave refused without any limit.

(6) A worker may at any time apply in writing to the manager of a factory not less than fifteen days before the date on which he wishes his leave to begin, to take all the leave or any portion thereof allowable to him during the calendar year: Provided that the application shall be made not less than thirty days before the date on which the worker wishes his leave to begin if he is employed in a public utility service as defined in clause (n) of section 2 of the Industrial Disputes Act, 1947.

Provided further that the number of times in which leave may be taken during any year shall not exceed three.

(7) If a worker wants to avail himself of the leave with wages due to him to cover a period of illness, he shall be granted such leave even if the application for leave is not made within the time specified in sub-section (6); and in such a case, wages as admissible under section 81 shall be paid not later than fifteen days, or in the case of a public utility service not later than thirty days from the date of the application for leave.

(8) For the purpose of ensuring the continuity of work, the occupier or manager of the factory, in agreement with the Works Committee of the factory constituted under section 3 of the Industrial Disputes Act, 1947, or a similar Committee constituted under any other Act or if there is no such Works Committee or a similar Committee in the factory, in agreement with the representatives of the workers therein chosen in the prescribed manner, may lodge with the Chief Inspector a scheme in writing whereby the grant of leave allowable under this section may be regulated.

(9) A scheme lodged under sub-section (8) shall be displayed at some conspicuous and convenient places in the factory and shall be in force for a period of twelve months from the date on which it comes into force, and may thereafter be renewed with or without modification for a further period of twelve months at a time, by the manager in agreement with the Works Committee or a similar Committee, or as the case may be, in agreement with the representatives of the workers as specified in sub-section (8), and a notice of renewal shall be sent to the Chief Inspector before it is renewed.

(10) An application for leave which does not contravene the provisions of sub-section (6) shall not be refused unless refusal is in accordance with the scheme for the time being in operation under sub-sections (8) and (9).

(11) If the employment of a worker who is entitled to leave under sub-section (1) or sub-section (2), as the case may be, is terminated by the occupier before he has taken the entire leave to which he is entitled, or if having applied for and not been granted such leave, the worker quits his employment before he has taken the leave, the occupier of the factory shall pay him the amount payable under section 80 in respect of the leave not taken, and such payment shall be made, where the employment of the worker is terminated by the occupier, before the expiry of the second working day after such termination, and where a worker who quits his employment, on or before the next pay day.

(12) The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.

[COLOR="Blue"]Amit Insha[/COLOR]

From India, Delhi
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Dear Kartick,

Please purchase a book of the Tamil Nadu Shops & Establishment bare act from a book vendor. Additionally, Tamil Nadu also has its own Tamil Nadu National Holidays & Festivals Act. I suggest you purchase this as well.

Exact regulatory guidelines will be given in these two acts on the number of Earned leaves, Sick Leave, Casual Leave, and Holidays to be given to an employee.

Per information currently available on the citehr site and Google sources, Tamil Nadu provides 12 EL, 12 CL, and 12 SL along with 3 National and 5 Festival holidays. EL can only be availed after completion of 12 months of continuous service and can be accumulated up to 24 days.

Every state has its own regulations on how many leaves an employee is eligible for, leading to a lack of uniformity in the number of leaves that may be granted to an employee.

Holidays that fall within the Earned leave period are generally considered as part of Earned leave and not treated separately as Holidays. This is specifically mentioned in the Bombay Shops & Establishment Act, Chapter VII, Clause 35, b....

"....The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days during the period of such leave on which a shop or commercial establishment remains closed under sub-section (1) of section 18, or on which he is entitled to a holiday under sub-section (1) of section 24 or section 31....."

I am unsure if the Tamil Nadu Shops & Establishment Act specifies this, hence, you need to procure the Bare Act.

Regards,

Rose S

From India, Mumbai
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Dear shriram priya, 7 Days leave you have to deduct from Employee EL. Regards Charvaka Reddy
From India, Hyderabad
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Dear All, Earned leaves employee can avail three times in a year.please check AP SHOPS & Establishment ACT 1988 Regards Charvaka Reddy
From India, Hyderabad
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Dear Shwetha, please let me know your comapany name & state.so that i can help you. Charvaka Reddy
From India, Hyderabad
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Dear All,

As per the AP SHOPS & ESTABLISHMENT ACT, an employee will have 12 CL & 12 SL. If the employee works continuously for 240 days, he/she will be eligible for earned leaves, i.e., 15 days per annum. CL will lapse at the end of the financial year, while SL will carry forward to the next year.

Leave encashment calculation = Gross salary/30 * number of paid leaves or basic salary/26 * number of paid leaves.

Regards,
Charvaka Reddy

From India, Hyderabad
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Dear Shweta,

If your unit is situated in Haryana and you are covered by the Shops Act, then go through section 14 of the Punjab Shops and Commercial Establishment Act, 1958, as applicable to the State of Haryana. If the number of employees is less than ten, then you are to grant maternity benefits as per section 31 of this Act. If the strength is ten or more, then in that case, adhere to the Maternity Benefit Act, 1961. If your management is interested in giving additional leaves under any of the heads, then you are to make rules/policy; otherwise, grant leaves as per the applicable Act and Rules.

With Regards,
R.N.Khola

Hi All,

Can anyone please forward me the details for the leave policy as per the Shop Establishment Act?

Thanks,
Shweta

From India, Delhi
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Dear,

Encashment of earned leaves is made at the time of making full and final payment to any employee/worker as per the provisions contained in the State Shops Act/Factories Act, 1948/Certified Standing Orders, whichever is applicable in your case.

With Regards,
R.N. Khola


From India, Delhi
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Hi,

Could you please let me know the following things:

There are 3 types of leaves usually provided by the company - EL, CL, & SL. Is there any law that mandates CL apart from EL?

Is an employee eligible to accumulate earned leave during her maternity leave period? If yes, please send me the link and the act.

Regarding sick leave, how many days is an employee eligible for sick leave, and what responsibilities does the company have regarding sick leaves?

Your kind clarification on the above is highly appreciated.

Thank you,
Amjad


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Dear Sir,

I am working in a manufacturing unit in Noida (Uttar Pradesh) and I have some confusion about EL. My questions are:

1. After how many days can an employee avail EL from the date of joining? Do we calculate EL after completing 240 days?

2. If an employee joins the company in August 2010 and does not work 240 days in the same year, are they eligible to get EL for the year 2011?

3. In the scenario of question 2, how many EL days will be carried forward to the next year in January 2011 if the employee is not absent in 2010?

4. If an employee joins the company and leaves within 240 days, are they eligible to receive EL as cash?

5. If an employee completes 240 days in June 2011, can we record the EL in the Leave register in June or July?

Kindly send the updates to my email address - adishankartiwari@gmail.com if possible.

Thanks & Regards,
Adi Tiwari.

From India, New Delhi
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Hi, I am Vaishnavi working in a medical manufacturing company. I have doubts regarding the following scenario: if an employee has carried forward leave of 10 days, how long can he utilize these leave days? Is it within 90 days or can he use them throughout the entire year? Regards, Vaishnavi
From India, Madras
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My query is: According to the Factory Act, earned leave is given only after the completion of 240 days of working in a calendar year. However, if an employee leaves the job after 162 days, are they still eligible to take their earned leave or not?
From India, New Delhi
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Hi All,

Please clarify the EL issue: One employee has taken 3 days of EL on Friday, Saturday, and Monday. Please confirm if Sunday should be counted as EL or a weekly off. Also, please confirm the minimum and maximum EL eligibility in a month.

Please explain.

From India, New%20Delhi
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Dear All,

My company employee completed one year from 1st Jan 2016 to Dec 2016. Here are his working days for each month:

- Jan = 31
- Feb = 28
- March = 31
- April = 30
- May = 31
- June = 30
- July = 31
- Aug = 31
- Sep = 30
- Oct = 31
- Nov = 30
- Dec = 31

Total Working Days = 365

His Gross Salary = $17,000/-

Please help us. Kindly suggest how to allocate paid leave to the employee for this year.

From India, Baddi
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Earned Leave Credit Systems

Please let me know about the Earned Leave credit systems. I am working with a hotel in Uttarakhand, and my joining date is January 1, 2015. I asked the management for my earned leave salary for the period of January 2015 to December 2015 in April 2016, but they refused my application. The reason given was that I had not earned my earned leave salary because the labor law states that it is only applicable to employees whose leave salary is earned after the completion of one year. Therefore, I will start earning leave salary from January 2016. This means that, according to them, my leave salary will be payable in January 2017 for the period of January 2016 to December 2016.

My question is whether they are right or wrong. If they are wrong, please send a copy of the rules.

Regards, Naveen

From India, Dehradun
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Hi,

I have a query regarding EL. If an employee avails earned leave from 22 Jan '18 to 27 Jan '18, will the National Holiday (26 Jan) be treated as a holiday or included as leave? Please clarify.

From India, undefined
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