Kindly share with me any Leave Policy as per the Factories Act. We want to define the Leave Policy as per the act for this year. Earlier, we had a policy, but to my knowledge, it does not comply with the Factory Act. We currently have 7 CL, 7 SL, and 8 PL as per the previous policy.
Additionally, please inform me if it is possible to accumulate and carry forward leave days to the next year. Kindly do the needful.
Regards
From India, New Delhi
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9Additionally, please inform me if it is possible to accumulate and carry forward leave days to the next year. Kindly do the needful.
Regards
From India, New Delhi
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Dear Mr. Vinayak Sonawane,
Leave Entitlement as per the Factories Act of 1948
As per the Factories Act of 1948, the leave entitlement can be given in two different cases:
1) Employees (Regular)
- The employees are eligible for a 30-day PL/EL (intervening holidays and weekly offs are also counted in that period as leave).
- For companies with a 5-day workweek, the leave is allowed for 21 days.
- CL is allocated from 7 to 10 days, referring to the Standing Orders.
- Sick Leave is at the discretion of the management.
2) Workers in the Factory
- One leave for every 20 days worked is considered in the EL as per the Factories Act.
- CL & SL are more or less similar to that of the regular employees.
- PL can be carried forward.
Regards
From India, Visakhapatnam
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Leave Entitlement as per the Factories Act of 1948
As per the Factories Act of 1948, the leave entitlement can be given in two different cases:
1) Employees (Regular)
- The employees are eligible for a 30-day PL/EL (intervening holidays and weekly offs are also counted in that period as leave).
- For companies with a 5-day workweek, the leave is allowed for 21 days.
- CL is allocated from 7 to 10 days, referring to the Standing Orders.
- Sick Leave is at the discretion of the management.
2) Workers in the Factory
- One leave for every 20 days worked is considered in the EL as per the Factories Act.
- CL & SL are more or less similar to that of the regular employees.
- PL can be carried forward.
Regards
From India, Visakhapatnam
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Hi Sharmila, Can you tell me leave policy as per Shop establishment act. Regards, Monali Shinde.
From India, Pune
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From India, Pune
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Dear Ms. Monali Shinde,
Please refer to the discussions in this forum just a couple of days back. Attached is the link for your knowledge and insight on leaves under the Shops & Establishments Act.
CiteHR Attribution: https://www.citehr.com/447481-leave.html
From India, Visakhapatnam
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Please refer to the discussions in this forum just a couple of days back. Attached is the link for your knowledge and insight on leaves under the Shops & Establishments Act.
CiteHR Attribution: https://www.citehr.com/447481-leave.html
From India, Visakhapatnam
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Annual Leave with Wages under the Factories Act, 1948
The Chapter VIII of the Factories Act, 1948 deals with annual leave with wages, providing one full day leave for every twenty working days. Hence, the Privilege Leave/Earn Leave is calculated only upon working days. I have reproduced the relevant section of the Factories Act for better understanding.
Leave with Wages
78. Application of Chapter - (1) The provisions of this Chapter shall not operate to the prejudice of any right to which a worker may be entitled under any other law or under the terms of any award, agreement (including settlement), or contract of service:
Provided that if such award, agreement (including settlement), or contract of service provides for a longer annual leave with wages than provided in this Chapter, the quantum of leave, which the worker shall be entitled to, shall be in accordance with such award, agreement, or contract of service. However, in relation to matters not provided for in such award, agreement, or contract of service, or matters which are provided for less favorably therein, the provisions of sections 79 to 82, so far as may be, shall apply.
(2) The provisions of this Chapter shall not apply to workers in any factory of any railway administered by the Government, who are governed by leave rules approved by the Central Government.
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:
- If an adult, one day for every twenty days of work performed by him during the previous calendar year;
- 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 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 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:
- 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
- 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: (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)
(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.
As far as the question of other leaves belongs, you have to provide the same in accordance with the State Rules as defined in the State Industrial Establishment NH and FH Act.
You can frame your own leave policy in accordance with the rules stipulated in the concerned Act.
Regards,
R B Yadav
Advocate
From India, Gurugram
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The Chapter VIII of the Factories Act, 1948 deals with annual leave with wages, providing one full day leave for every twenty working days. Hence, the Privilege Leave/Earn Leave is calculated only upon working days. I have reproduced the relevant section of the Factories Act for better understanding.
Leave with Wages
78. Application of Chapter - (1) The provisions of this Chapter shall not operate to the prejudice of any right to which a worker may be entitled under any other law or under the terms of any award, agreement (including settlement), or contract of service:
Provided that if such award, agreement (including settlement), or contract of service provides for a longer annual leave with wages than provided in this Chapter, the quantum of leave, which the worker shall be entitled to, shall be in accordance with such award, agreement, or contract of service. However, in relation to matters not provided for in such award, agreement, or contract of service, or matters which are provided for less favorably therein, the provisions of sections 79 to 82, so far as may be, shall apply.
(2) The provisions of this Chapter shall not apply to workers in any factory of any railway administered by the Government, who are governed by leave rules approved by the Central Government.
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:
- If an adult, one day for every twenty days of work performed by him during the previous calendar year;
- 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 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 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:
- 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
- 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: (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)
(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.
As far as the question of other leaves belongs, you have to provide the same in accordance with the State Rules as defined in the State Industrial Establishment NH and FH Act.
You can frame your own leave policy in accordance with the rules stipulated in the concerned Act.
Regards,
R B Yadav
Advocate
From India, Gurugram
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(Fact Checked)-The user's reply is factually correct regarding the provisions of annual leave with wages under Chapter VIII of the Factories Act, 1948. No amendments needed. Thank you for the detailed explanation. (1 Acknowledge point)
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what if an employee has not completed 240 days or more will he get PL
From India, Pune
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From India, Pune
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Hi,
My organization is an IT company registered under the Factories Act, 1948. I am desirous to know what the minimum earned leaves are for employees not falling within the category of "workmen".
Any help will be appreciated.
Thanks & Regards,
Aayushi
From India, Faridabad
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My organization is an IT company registered under the Factories Act, 1948. I am desirous to know what the minimum earned leaves are for employees not falling within the category of "workmen".
Any help will be appreciated.
Thanks & Regards,
Aayushi
From India, Faridabad
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FACTORIES ACT-leave rules.doc
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