Hi, we have a small factory in Pune not covered under the Factories Act (we have less than 20 employees - with power). I wanted to know what rules, if any, or if not, would be applicable to us regarding:
1. Leave to be given to employees - paid/unpaid/sick, etc., how many to be given, and when, and when would leave encashment be applicable if it does. If not covered under the Factories Act, do I have to give leave.
2. Working hours
I had further questions:
1. Is the starting date for the calculation of gratuity to be taken from the date of joining or the date of confirmation after probation?
2. How long can a probation period be?
Would appreciate your reply. Thanks.
From India, Mumbai
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1. Leave to be given to employees - paid/unpaid/sick, etc., how many to be given, and when, and when would leave encashment be applicable if it does. If not covered under the Factories Act, do I have to give leave.
2. Working hours
I had further questions:
1. Is the starting date for the calculation of gratuity to be taken from the date of joining or the date of confirmation after probation?
2. How long can a probation period be?
Would appreciate your reply. Thanks.
From India, Mumbai
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For coverage of provisions of the Factories Act, the parameter is not 20 workers but 10 workers. Following Section 85 of the Factories Act, the State government shall declare a particular industry as a factory to which the Factories Act shall apply notwithstanding whether the number of employees is 20 (in the case of factories running without power) or 10 (in the case of factories running with power), as the case may be. Therefore, the primary test is not the number of workers, but the official notification in this regard.
Even if your establishment does not come under the Factories Act, nothing will prevent you from adopting the rules relating to leaves and working hours from the Factories Act. Accordingly, you can make your workers work for a maximum of 9 hours per day in such a way that the total working hours shall not be more than 48 hours. For workers regularly employed on a six-day basis per week, you may have to fix it as 8 hours excluding lunch and tea breaks. Regarding leaves, since the Factories Act has no provision for the granting of paid leave during the first year of service, you need not give it to employees in their first year and from the next year onwards, start giving leave at the rate of 1 day for every 20 days worked in the preceding year. It is advisable to make it from January to December as a year for the calculation of leaves.
For the calculation of service for any purpose, including gratuity, the date of joining as a probationer or trainee will be counted as service. This will not apply to those who are engaged as an apprentice under the Apprentice Act.
You can have any term as probation depending on the training requirement or technical knowledge that one should possess before he is able to do the work independently. The probation shall also vary depending on the responsibilities that an employee under a particular grade is expected to bear. But it should be realistic and should not be to deter the rights of employees under various labor laws. The practice of fixing a lengthy probation period for jobs where the supply of labor is high and fixing a very short period where the supply of manpower is very limited or there is a scarcity of resources should be avoided.
Madhu.T.K
From India, Kannur
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4490Even if your establishment does not come under the Factories Act, nothing will prevent you from adopting the rules relating to leaves and working hours from the Factories Act. Accordingly, you can make your workers work for a maximum of 9 hours per day in such a way that the total working hours shall not be more than 48 hours. For workers regularly employed on a six-day basis per week, you may have to fix it as 8 hours excluding lunch and tea breaks. Regarding leaves, since the Factories Act has no provision for the granting of paid leave during the first year of service, you need not give it to employees in their first year and from the next year onwards, start giving leave at the rate of 1 day for every 20 days worked in the preceding year. It is advisable to make it from January to December as a year for the calculation of leaves.
For the calculation of service for any purpose, including gratuity, the date of joining as a probationer or trainee will be counted as service. This will not apply to those who are engaged as an apprentice under the Apprentice Act.
You can have any term as probation depending on the training requirement or technical knowledge that one should possess before he is able to do the work independently. The probation shall also vary depending on the responsibilities that an employee under a particular grade is expected to bear. But it should be realistic and should not be to deter the rights of employees under various labor laws. The practice of fixing a lengthy probation period for jobs where the supply of labor is high and fixing a very short period where the supply of manpower is very limited or there is a scarcity of resources should be avoided.
Madhu.T.K
From India, Kannur
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FACTORIES ACT-leave rules.doc
Factories Act-Sec.79-Leav e.pdf