Hi everybody, I have been working for a private limited company that provides leaves according to the Factory Act, as per HR. The factory and office are on the same premises. We are entitled to 20 days of leave (13 EL + 7 SL). The HR informs the staff that they are receiving more leaves.
Can anybody comment on this?
From India, Mumbai
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1Can anybody comment on this?
From India, Mumbai
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Dear Madhu, Since you are working in a factory, as per the Factories Act 1948, one day of annual leave is to be given for every twenty days worked (Section 79). As there are nearly 300 working days in a year, the number of earned leave cannot be less than 15. Being a factory, the ESI Act should be applicable, so why Sick Leave (SL)? It is not clear whether HR is combining both Earned Leave (EL) and Sick Leave (SL) and stating that 20 days of leave are not warranted under the Factories Act. Please clarify the position.
Regards, KK
From India, Bhopal
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Regards, KK
From India, Bhopal
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Dear Mr. Nair, the leaves are not clubbed; it is as I mentioned above. However, the ESIC is not covered as the salary is above the limit (30% of the employees are drawing more than Rs. 15K salary). I have one more doubt: as the Factory Act is applicable in the case of leave, can we ask for the OT? We are in the staff category, and we never get the OT. Please advise.
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-The Factory Act does not mandate OT for staff, only for workers. Your understanding about ESIC criteria is correct. Keep up the good work! (1 Acknowledge point)
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You would come within the definition of 'worker' as you are employed directly in a manufacturing process being carried out on the premises. Hence, you are entitled to the benefits under the Factories Act, including overtime (OT).
Regards,
KK
From India, Bhopal
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Regards,
KK
From India, Bhopal
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(Fact Checked)-[response] (1 Acknowledge point)
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(Fact Checked)-The Factories Act, 1948 mandates earned leave entitlement at the rate of one day for every 20 days worked. For a year with 300 working days, EL entitlement should be 15 days. The inclusion of SL is not a requirement under this act but could be part of the company's policy. The HR's communication regarding more leaves may be based on their internal policies rather than the statutory minimum under the Factories Act. (1 Acknowledge point)