Hi All,

I am working in a construction company. Till date, there was no provision for any leaves or holidays. The company deducts the salary for the number of days absent from the employee's total salary. As an HR professional, I proposed to have a minimum of 21 days leave. However, now the management is saying that they will include all national holidays within these 21 days, and whatever is left will be considered as leave. I would like to know if there is any difference between leaves and holidays, and if it is stated in any act that the company should provide leaves and holidays separately. Please reply urgently. This system is not beneficial to the employees.

Regards,
Deepali

From China
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I strongly agree with you because leaves and holidays are different. A leave is a right of the employee, but holidays are fixed by companies. Here, some holidays are provided and must be followed by the company, like Republic Day, Independence Day, Ramjan, October 2nd, Christmas, Vijayadasami, and Deepavali. The Supreme Court has reduced the national holidays from 21 to 16.
From India, Hyderabad
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An organization generally has anywhere from 10-12 holidays throughout the year. Apart from this, there are different types of leaves assigned - paid, casual, sick, paternity, and bereavement leave. It is the right of every employee to get leaves apart from the mandatory holidays.

Regards,
Nikita

From India, Pune
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Dear Deepali,

Just split those 21 days into Earned Leaves and Sick Leaves (As per the factories act) and the rest of the leaves as casual leave (These may vary from 0 to 15 as per the organization's policy). There will be no legal conflict. I had already discussed these things in some other post.

"It is better to keep in mind that 'Leaves are not a matter of RIGHT'."

I suggest a practice that is followed by PSUs:

1. National Holidays: Enforceable by law (i.e., 26 Jan, 15 Aug, and 2nd Oct)
2. Gazetted Holidays: Includes major festivals limited to 12 numbers. Decided by collective employee representatives/groups. The list may vary from unit to unit.
3. Restricted Holidays: Includes all minor festivals. The list may reach up to 30 or more. Any employee is free to opt for any two days out of the list. Leave application/notice may be submitted three days earlier.

Upon this pattern, you can make two lists of Notified and optional holidays. Employees will have the option to choose from the options.

Surely, we need to develop an approach to balance between communitarianism value system and individualistic value system by leading from communitarianism to the individualistic value system or vice versa. In some way, you will feel there is a valid need to address the sensitivity of an individual person as well.

Deciding leaves and holidays for an organization is not a job to be finished anyhow. There must be some rationalization.

There will be a policy "at least how many days the office will function in a year. For example, 280 days. (Many industrial plants run throughout the year. This part is not addressed here.)

At least, what percentage of the employee population is needed to run the office effectively? For example, if the office population is 100 and 80% are needed to run the office effectively. (Assuming critical positioning exercises have been done. There are clear instructions on who will look after the critical position if the position holder is not present.)

Assume that during some festival of a particular community, a holiday is not declared. 30% of the population is absent by taking casual/sick leave. Productivity of the office goes to the bottom. Those who are present are also not working properly and trying to leave the office early in the evening. Even after that, all those dissatisfactions with grunting and hissing are present.

Q. Is it beneficial to remain the office functional that day?

It may be better to plan this way:

Keep in mind a minimum number of functional days, e.g., 280 days; remaining days in a year = 85.

Statutory holiday, e.g., Sundays, approximately 52. Remaining days 85-52 = 33.

Leaves to address personal needs, casual leaves = 12 (100% consumption at an extreme condition).

Again, remaining days = 33-12 = 21.

Coming to holidays addressing common social needs (GH) = restricted to 12+-2. (For example, if all your client offices are closed on Christmas day, and you choose to keep it functional that day because you have no Christian employees, what will be the productivity of your office? By closing it, at least you can save some electricity bills and can earn a smile on employees' faces. Need not to say if the attitude is different, you are standing with other happiness and serving a national cause.)

Holidays addressing demography-specific social needs (RH) = restricted to 2+-1. (Where less than 20% of the population is supposed to use it at a single event. Make the list comprehensive enough. For example, if there are only 10 festivals in the RH list, it may likely be consumed at 20% at each holiday, which will defeat the purpose in the end. If it has more than 30 festivals, it is more likely that 2-3% absenteeism will be there, which is manageable. There will be no need to restrict a Muslim from taking a leave at Mahashivratri and a Hindu on Easter. Of course, no one can stop. Surely, competent authority holds the power to grant the sanction on the ground of inadequate manpower or some other type of emergency. But if he does so, it is itself an indicator of mismanagement, bad planning, and organizing.)

Remaining days 21-14 = 7.

There are still 7 days in hand to handle any emergency; otherwise, it is ensured that the office will remain functional for more than 280 days.

Please refer to the list where the last 13 are chosen as GH and the rest as RH by employee representative groups. (List of festivals is provided to them along with guidelines to select GH days.)

LIST OF HOLIDAYS FOR THE YEAR 2008

[The list of holidays has been formatted and is not included here for brevity.]

I hope this information is helpful and clear. Let me know if you need further clarification or assistance.

Best regards,
[Your Name]

From India, New Delhi
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Dear Deepali,

Foremost, I would like to mention that leave is not a matter of right for any employee.

No labor law enforces holidays on any industry other than national holidays. (As per industrial practice in neighboring areas, employers normally observe 10 or 12 days as holidays, which include national holidays too.)

Any holiday being observed under The Negotiable Instrument Act is not applicable to the private sector.

As far as leave is concerned, in my view, your organization will be covered under:
The Factory Act -1948 (At Site),
and
Under Shop & Establishment Act (At Office).

You have to give all three types of leaves:
1. Earned Leave (15 annually for office employees and for site personnel one every 20 days of working) or your management may fix it at least 15 for both office and site staff.

Casual Leave - It is again a matter of industrial practice; no section of the Factory Act speaks about casual or sick leaves.

As a practice, at least 7 casual leaves and 7 sick leaves are permitted in every industry in India.

Under the Shop Establishment Act, casual and sick leaves are permitted and provided as per state rules.

Thanks,
Mohd. Arif Khan


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Thank you, everybody, for giving me an early reply.

I have checked again the Shop & Establishment Act; however, there is no clear-cut notification that a company has to give the National holidays 14 to 16 days over and above the 21 days of Paid leaves. My management is still saying that we will announce 25 days total leave (inclusive of 4 mandatory national holidays) and no other holidays will be granted. If the leave is balanced, then the staff will be allowed to take leave on particular festivals, or else it will be considered Leave without Pay. Please give me the exact reference of the section as per the Shop and Establishment Act that I can show to my management as proof of evidence.

Regards, Deepali

From China
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Hi Deepali,

Holidays are that leaves which are compulsary as per the Punjab Industrial Establishment National & Festival Holiday Act.

Section 3 of this Act is reproduced as under.

3. National and festival holidays. – (1) Ever worker shall, in each calendar year, be allowed in such manner an don such conditions as may be prescribed—
(a) three national holidays of one whole day each on the
26 January,
15 August
and 2 October; and
(b) four [five – for Haryana] other holidays on any of the festivals specified in the
Schedule appended to this Act;
Provided that for purposes of clause (b), where at least ten per centum of the workers of
an industrial establishment so desire, they may, in lieu of the festival holidays, avail of
two half holidays on any of the festival days of their choice specified in such Schedule
after settlement in this behalf has been made between the employer and the representative
of the workers in such manner as may be prescribed.
(2) The Government may, by notification, add to the Schedule appended to this Act any
festival and thereupon the Schedule shall be deemed to be amended accordingly.

It makes 7 / 8 days of National & Festival Holidays for the employees.

The provison for Casual / Sick Leave under this Act which Section 4 Says

4. Casual and sick leave. – Every worker shall, in each calendar year, be allowed by the employer casual leave for seven days and six leave for fourteen days in such manner and on such conditions as may be prescribed.
Explanation. – For purposes of this section, such conditions may provide that one kind of leave shall not be linked with another kind of leave, whether due under this Act, or under any other law for the time being in force.

Earned Leaves

Section 79 provides the Provison of Earned leaves is under Factories Act,

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 formed 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 calender 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, fraction of leave of half a day or more shall be treated as one full day's leave, and 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 (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 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 (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 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 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 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.

To summarise

National Holiday & Festival Act provides minimum 7 holidays under the Act, aprt from Casul, Sick & Earned leaves for the employees.

From India, Delhi
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dear in pakistan , we usually cosider holidays are Public holiays/gazzeted holidays while as leave is the time whem your official working day and you are on leave /absent
From Pakistan
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Holidays are fixed, whereas leaves represent days that can be availed by the employee according to his/her needs. Aravind Singh has rightly explained the matter in detail. However, I cannot agree with Prasadmbahr, who views leave as an inherent right of the employee. In reality, no leave is an automatic entitlement for any employee.

Decisions regarding the allocation of holidays and determining the number of leaves for which employees are eligible should be made carefully, ideally in consultation with employees. These policies should also be clearly outlined in the company's Standing Orders. It is advisable to differentiate between holidays and leaves because, in the event of an emergency, one cannot simply postpone it to a holiday. In such situations, an employee can utilize their leave. It's important to note that merely accruing a certain number of leave credits does not automatically grant the right to take them; leave can be taken subject to the organization's operational requirements.

Regards, Madhu.T.K

From India, Kannur
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Dear Deepti,

Though leaves are not rights of employees/workers, a total of 21 leaves in a calendar year have to be implemented in your company apart from national holidays and major festivals like Diwali, Vijayadashmi, and Eid. Out of these, 10 are Sick Leave (SL), 10 are Casual Leave, and upon completion of one year of employment, Privilege Leave is to be facilitated for the employee.

In a calendar year, the following leaves have to be allowed:
- New Year's Day: 01-Jan
- Republic Day: 26-Jan
- Gudhi Padwa: 06 Apr
- Maharashtra Day (State Day): 01 May
- Independence Day: 15 Aug
- Diwali
- Vijayadashmi
- and some major festivals state-wise.

Regards,
Brijesh

From India, Pune
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Hi Friends,

I am working in a small organization as an instructor. I have a problem understanding the difference between Casual Leave (CL) and Annual Leave (AL). When should we use CL and AL?

Please, answer.

Rafi-wgl

From India, Hyderabad
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As much has already been discussed at length about leaves and holidays in the above posts, I don't have to define or state what's the correct practice. However, if you mix your leave with a national or proposed holiday, that holiday may be counted as leave (although I'm not entirely sure of that!).

For example, if Saturday is a working day at your office and you take two leaves - one on Saturday and one on Monday (with Sunday being a natural holiday) - then in such a scenario, it may be counted as three leaves.

Regards,
Faisal Mustafa Khan


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Dear Deepali,

The same is the case for me also. On two or three occasions, I have raised this issue with my management, but there has been no development. The reason can be stated as the construction industry being different from others. However, I think that the following guidelines can be taken into account:

- Minimum Casual leave in a year: 6 DAYS
- Privilege leave: 1.75 DAYS for every completed month
- Sundays: Extra wages (allow 2 Sundays compulsory off)


From India, Mumbai
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Hi,

National holidays like 26th Jan, 1st May (International Labour Day, and in Maharashtra, it is Maharashtra Day), 15th August, and 2nd October cannot be included in leave. If anyone works on a national holiday, they have to be paid double salary. Please convince your employer; otherwise, in the future, they may face problems with government authorities.

Thanks,

Pramod
9833722600
Pramod Pandey

From India, Mumbai
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Hi,

Holidays and leaves are different. As per the Shops and Establishment Act, holidays should be 10-13 days, and leaves consist of 12 sick leaves, 12 casual leaves, and 15 earned days for employees who have completed 240 working days. Employees are eligible for earned leaves from the date of joining but can only utilize them after completing 240 working days. Until earned, they will be in their credit.

Bye,
Usha


From India, Hyderabad
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I just saw the opinions of all the members. I am working for a small BPO in the US healthcare industry. My organization does not allow any leave or holiday (including national holidays) to its employees. Loss of man-hour is given as the reason. I am told there is no law that empowers the employees in such a situation to claim leave or holiday. Even one of the postings here mentions this. Can anybody shed some more light on it? It is extremely rare to find an organization that does not allow any leave or holiday (except Sunday in my case) to its employees. I feel that whether the law of the land allows it or not, there are so many other factors that are influenced by such harsh rules. I hope to find some genuine input from our learned members. Thank you all.

Ashutosh


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Basically, National Holidays (Jan 26, Aug 15, and Oct 02) are mandatory holidays. In addition to these, a company shall allow Festival Holidays according to the local area. As posted earlier, these are fixed days, and one cannot postpone emergency work to a future holiday. This necessitates allowing leaves to employees.

There is a provision in the Factories Act to provide for one day leave every 20 days worked. The Shops and Establishments Act (which is a State Act and hence the rules differ from state to state) also provides for leave with wages. BPOs do not follow these due to negligence of the concerned government authorities.

When these BPOs feel and argue that they are exempted from the operation of labor laws, no specific communication can be found in this regard. These are really centers of profit. If any leniency could be shown, it should be a non-profit venture, but unfortunately, these are centers of minting or mounting profit and money at the cost of Indian labor. Therefore, they are not supposed to complain about the loss of man-hours and reject even the National Holidays. A company should have its policy that reflects the leave, holidays, weekly off, etc., applicable to the employees. We, the citehr members, can advise and suggest, but we cannot rule. The authority to issue orders to such BPOs and other organizations that deter the rights of employees lies with the appropriate government. Therefore, the initiative should come from the government.

Let's hope the government will see to it.

Regards,

Madhu.T.K

From India, Kannur
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Dear Usha,

Thank you for the reply. In your post, you mentioned the Shop and Establishment Act, stating that the organization should declare 10-13 holidays. However, there is no specific mention of this in the act. The act does specify 21 days of mandatory leave and 4 national holidays, but it does not mention any additional holidays. Could you please provide me with the exact section and amendment you are referring to? It would be greatly appreciated if you could share the specific section number.

Thank you.

Regards,
Deepali

From China
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The HR of the company must be an idiot or have no management or knowledge. If they continue to do this, tell them that their company may stop working if the Registrar or court takes action. Also, if they count 15th August as leave, it violates all laws of India, including the Constitution and the Indian Penal Code. For that, they may even go to jail, and their company, firm, or whatever it is, will wind up.
From India, Delhi
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Dear Arvind,
I have a query,if you could help me resolve
Our organisation has 7 casual, 7 medical and 20 priveleged leave.
The casual and medical leave can be availed only after completion of six months period and priveleged leave can be availed after completion of one year of service, and is calculated on prorata service completed in the previous year of service.The leaves are as per financial year i.e April to March.
The query that i have is -
A person who has joined in Apri08 and has completed his probation in September 08, whether he can avail all his 7 casual from October'08 or it is calculated on pro-rata basis for the months he has served.
Regards
Aanchal

From India, Mumbai
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Dear Deepali,

There is a huge difference in leaves and holidays. Holiday is a matter of right, whereas leave is not. A holiday has to be prepared and declared at the beginning of the year. Once declared, it cannot be changed. Prior permission is required to avail leave, whereas no approval is required for a holiday.

Hi All,

I am working in a construction company. Till date, there was no provision for any leaves or holidays. The company deducts the salary for the number of days absent from the employee's total salary. As an HR professional, I proposed to have a minimum of 21 days leave. However, now the management is saying that they will include all the national holidays in this 21 days, and whatever is left will be considered as leave. I would like to know if there is any difference between leaves and holidays and if it is written or stated in any act that a company should give leaves and holidays separately. Please reply urgently. This system is not beneficial to the employees.

Regards,
Deepali

From India, Surat
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leave is a facility given by employer it is not right beacaues employee can demand for leave but employer can sanction it.In regard to holiday it cmpulsory given by employer without demand.
From India, Mumbai
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Hi All,
Any type of Leave is a privilege given by the Organisation/Company to the employee – Holiday is a limited right of freedom given by the Constitution of India [(Apart from the Constitutional National Holiday of 26 Jan (Republic Day), 15 Aug (Independence Day) and 02 Oct (Mahatma Gandhi Jayanthi)]. Working on these National Holiday is an offence and employer has to take the permission from Local Office stating that day of people working in shift/normal working will be compensated on some other day.
Shirish (shirish_kv2002@yahoo.com)

From India, Hyderabad
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Can any one suggest me that SAP HR ,oracle HR which is the best one to learn? Edit/Delete Message
From India, Ahmadabad
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Please refer to the BOCW Act of 1996 and the rules framed thereunder. Since you are in the construction sector, the aforementioned act is applicable, and you must grant leave according to the BOCW Act of 1996.

If any establishment is covered under the Factory Act of 1948, leave should be granted as per the provisions of the Factory Act of 1948.

Thank you.

From India, undefined
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