Hi, our office, a design firm, has recently shifted to the industrial area of NOIDA. I wanted to formulate/revisit our leave rules. Could anyone please guide me on the following:
1. What should be the total number of leaves available to an employee?
2. Under what categories and in what numbers should the leaves be given? (CL/SL/EL, etc.)
3. Under which specific Act are we covered? (Factories Act or Shop & Est Act)
4. For records, where can I access the Act?
Looking forward to your support. Thanks.
From India, New Delhi
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1. What should be the total number of leaves available to an employee?
2. Under what categories and in what numbers should the leaves be given? (CL/SL/EL, etc.)
3. Under which specific Act are we covered? (Factories Act or Shop & Est Act)
4. For records, where can I access the Act?
Looking forward to your support. Thanks.
From India, New Delhi
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Dear Subin,
If you are providing services, your firm will be covered under the Uttar Pradesh Dukan Avam Vanijaya Adhistan Adhiniyam (U.P. Shop and Establishment Act). According to this act:
1. Privilege - 15 days
2. Casual - 10 days
3. Sick - 15 days
Thank you,
JS Malik
From India, Delhi
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174If you are providing services, your firm will be covered under the Uttar Pradesh Dukan Avam Vanijaya Adhistan Adhiniyam (U.P. Shop and Establishment Act). According to this act:
1. Privilege - 15 days
2. Casual - 10 days
3. Sick - 15 days
Thank you,
JS Malik
From India, Delhi
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Dear Malik,
Thank you so much for your prompt response. I just wanted to confirm once again that despite being a design firm located in the factory area, we are not covered under the Factory's Act but under the UP Shops & Establishments Act.
Secondly, in Delhi, we were providing 30 days of leave under various categories. Is it, therefore, mandatory to provide 40 days, as mentioned, in UP?
Thanks
From India, New Delhi
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Thank you so much for your prompt response. I just wanted to confirm once again that despite being a design firm located in the factory area, we are not covered under the Factory's Act but under the UP Shops & Establishments Act.
Secondly, in Delhi, we were providing 30 days of leave under various categories. Is it, therefore, mandatory to provide 40 days, as mentioned, in UP?
Thanks
From India, New Delhi
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Dear,
It is the nature of the business that decides whether it should be covered under the Factories Act or the Shops Act. Secondly, I have provided what the act says. Now, you decide what you want to do. You are free, even to not give a single leave.
From India, Delhi
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It is the nature of the business that decides whether it should be covered under the Factories Act or the Shops Act. Secondly, I have provided what the act says. Now, you decide what you want to do. You are free, even to not give a single leave.
From India, Delhi
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Dear Mr. Subin,
Good Morning!
The Factory Act of 1948 applies to an establishment/factory in which ten (10) or more workers are employed on any day of the preceding twelve months and are engaged in a manufacturing process carried out with the aid of power, or twenty or more workers are employed in a manufacturing process carried out without the aid of power. Otherwise, if it is a commercial establishment, the U.P. Shop & Commercial Establishment Act would apply.
As per the Factory Act, an employee is entitled to one day of Earned Leave (EL) for every 20 working days (meaning if the employee is physically present for 20 days in the factory), 7 days of casual leave, and 10 days of sick leave. Sick leave is applicable to employees not covered under the ESIC Act; if the ESIC Act applies to your establishment/factory, there is no need to provide sick leave to employees covered by this Act.
Under the Shop Act, you are required to provide the leaves as Mr. Malik mentioned. However, I do not agree with Mr. Malik's suggestion that you are free not to provide any leave. In my opinion, if the provisions of the Act apply, one should follow them as they are bound by the provisions of that Act. Please be informed accordingly.
For any further clarification on any other matter, feel free to email me at
.
V. K. Gupta
From India, Delhi
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Good Morning!
The Factory Act of 1948 applies to an establishment/factory in which ten (10) or more workers are employed on any day of the preceding twelve months and are engaged in a manufacturing process carried out with the aid of power, or twenty or more workers are employed in a manufacturing process carried out without the aid of power. Otherwise, if it is a commercial establishment, the U.P. Shop & Commercial Establishment Act would apply.
As per the Factory Act, an employee is entitled to one day of Earned Leave (EL) for every 20 working days (meaning if the employee is physically present for 20 days in the factory), 7 days of casual leave, and 10 days of sick leave. Sick leave is applicable to employees not covered under the ESIC Act; if the ESIC Act applies to your establishment/factory, there is no need to provide sick leave to employees covered by this Act.
Under the Shop Act, you are required to provide the leaves as Mr. Malik mentioned. However, I do not agree with Mr. Malik's suggestion that you are free not to provide any leave. In my opinion, if the provisions of the Act apply, one should follow them as they are bound by the provisions of that Act. Please be informed accordingly.
For any further clarification on any other matter, feel free to email me at
V. K. Gupta
From India, Delhi
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Dear All,
My query is that I have 62 employees, (24 employees i.e. 7 Staff and 17 workers are permanent i.e. on my payroll). The remaining 38 are contracted through two contractors of 19 employees each. Since PF applies to more than 20 employees of a company and since the contractor's company hires these employees and contracts them to me, as the principal employer, do I have to contribute towards their PF since I am registered?
Awaiting a reply. Thank you in anticipation.
Regards,
CSRS P Ltd.
From India, Delhi
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My query is that I have 62 employees, (24 employees i.e. 7 Staff and 17 workers are permanent i.e. on my payroll). The remaining 38 are contracted through two contractors of 19 employees each. Since PF applies to more than 20 employees of a company and since the contractor's company hires these employees and contracts them to me, as the principal employer, do I have to contribute towards their PF since I am registered?
Awaiting a reply. Thank you in anticipation.
Regards,
CSRS P Ltd.
From India, Delhi
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Dear all,
I am working in an MNC plant in Germany. I would like to know if a person (operator) informs about his leave on the phone (the actual rule is to fill the leave card before 3 days) from his home.
My question is, can we consider his/her leave?
Regards,
Raj
From India, Pune
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I am working in an MNC plant in Germany. I would like to know if a person (operator) informs about his leave on the phone (the actual rule is to fill the leave card before 3 days) from his home.
My question is, can we consider his/her leave?
Regards,
Raj
From India, Pune
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Clarification on Leave Policy
In any organization, to avail of SL/CL, a three-day prior sanction is not required. In an emergency, an SL/CL employee can avail of leave, and after resuming duties, the leave can be regularized. As far as PL/EL is concerned, a prior application is required.
I hope this clarification is enough for you.
Regards,
Bhooshi Y K
HR & IR Professional
From India, Hyderabad
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In any organization, to avail of SL/CL, a three-day prior sanction is not required. In an emergency, an SL/CL employee can avail of leave, and after resuming duties, the leave can be regularized. As far as PL/EL is concerned, a prior application is required.
I hope this clarification is enough for you.
Regards,
Bhooshi Y K
HR & IR Professional
From India, Hyderabad
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(Fact Checked)-The information provided in the user reply is partially incorrect. (1 Acknowledge point)
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LEAVE RULES.doc
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(Fact Checked)-The principal employer is liable to contribute towards PF for all contract employees, as per the EPF Act, regardless of the number of employees provided by contractors. (1 Acknowledge point)