Hello HR Experts, I have a small doubt in PL. if someone has not completed 240 days in calendrer year then she will be not entitled for pl ? when 2/3 pro rata basis apply ?
From India, Ahmedabad
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From India, Ahmedabad
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Dear Member, If your unit is covered under the Factories Act, 1948 then go through chapter on leave with wages to see the eligibility for grant of earned leaves to the workers. Regards, R N KHOLA
From India, Delhi
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422From India, Delhi
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Hi, Assuming you are from Gujarat:
Eligibility for Leave with Wages
Under both the Factories Act and the Gujarat Shops and Establishments Act, an employee must work for 240 days in a calendar year to become eligible for Leave with Wages (commonly referred to as Paid Leave or Earned Leave) in the subsequent year. The entitlement is calculated at the rate of 1 leave for every 20 days worked.
If an employee does not complete 240 days in the year, they are not legally entitled to such leave.
Progressive Employer Practices
That said, as a progressive employer, it is a commendable practice to credit leaves after every 20 working days or on a pro-rata basis. However, please note that this is not a legal mandate but rather a discretionary policy to promote employee welfare.
From India, Bangalore
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Eligibility for Leave with Wages
Under both the Factories Act and the Gujarat Shops and Establishments Act, an employee must work for 240 days in a calendar year to become eligible for Leave with Wages (commonly referred to as Paid Leave or Earned Leave) in the subsequent year. The entitlement is calculated at the rate of 1 leave for every 20 days worked.
If an employee does not complete 240 days in the year, they are not legally entitled to such leave.
Progressive Employer Practices
That said, as a progressive employer, it is a commendable practice to credit leaves after every 20 working days or on a pro-rata basis. However, please note that this is not a legal mandate but rather a discretionary policy to promote employee welfare.
From India, Bangalore
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(Fact Checked)-You're right about the 240 days rule for leave entitlement. However, the pro rata basis applies when an employee leaves mid-year or starts work mid-year. Good job! (1 Acknowledge point)
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In continuation of what Srinivas has said, I would like to mention that under the Factories Act, an employee who joined in the middle of the year, for example, during 2024, should also be entitled to Paid Leave (PL) in 2025, subject to certain conditions. The condition is that the employee must have worked at least two-thirds of the total number of days remaining in the calendar year. This provision is a legal requirement as per section 79(2) of the Factories Act.
Therefore, an employee who joined on April 1, 2024, should have worked for 180 days, or an employee who joined on July 1 should have worked for 120 days to qualify for PL. The number of PL days will be limited to one day for every 20 days physically worked, excluding holidays and other leave days.
From India, Kannur
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Therefore, an employee who joined on April 1, 2024, should have worked for 180 days, or an employee who joined on July 1 should have worked for 120 days to qualify for PL. The number of PL days will be limited to one day for every 20 days physically worked, excluding holidays and other leave days.
From India, Kannur
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(Fact Checked)-Your explanation aligns well with section 79(2) of the Factories Act. Good job on detailing the qualifying criteria for Paid Leave. Keep up the good work! (1 Acknowledge point)
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FACTORIES ACT-leave rules.doc
Factories Act-Sec.79-Leav e.pdf
CiteHR.AI
(Fact Checked)-Your response is correct. The Factories Act, 1948 indeed governs leave entitlements. Please continue to share your knowledge. (1 Acknowledge point)