Earned & Casual Leave in India

Q 1: How many leaves should be applicable in a company?

Numbers of leaves entitlement in a company depends upon state you are in. Every state has different leave entitlement and leave policies which should be seen before one defines leave policy of your company. Leave policy of a company cannot be less than that mentioned by the State’s shop and establishment act.

Generally all State Legislations has common provision for major matters. They provide at least seven holidays for national and other festivals. Republic day, Independence Day and Mahatma Gandhi’s birthday are compulsory holidays. Employer and Employees had given right to decide remaining national and festival holidays.

Similarly minimum seven days casual leave and 14 days sick leave is provided to employees.

Earned leaves/ Privilege leaves : These are the leaves which are earned in the previous year and enjoyed in the preceding years. These are also known as privilege leave this can be carry forward for the quatum upto the total of three years and vary from state to state as per the shop & establishment act. These are encashable on basic salary to the employee. the condition for taking these leaves usually differ from company to company but normally in advance atleast 15 days. this can be clubbed with sick leave if sick leave is not balance with the employee. 

Casual Leave: These leave are granted for certain unforeseen situation or were you are require to go for one or two days leaves. In case of casual leave normally company's strict maximum to 3 days in a month. In these case either the person has to take the permission in advance or has to be regulated on joining. this leave is normally never clubbed with Privilege leave, but it can be clubbed with sick leave if there is is no sick leave balance. Again quantum var from state to state as per shop & establishment act, normally this leave is not encashable or never carried forward. these days to attract people or to reduce absenteeism at the end of the year the balance Casual leave in converted to PL in the leave account.

Leave without pay: If person do have any leave to his balance and the situation warrants him to take the leave, the leave is granted by the Company as loss of pay or which may be adjusted against the future leave or as a special case the special paid leave based on the person contribution to the Company at management discretion. 

Compensatory off: These leave are granted if the person come on work during the holidays, normally compensated as leave to be taken or as an encashable option.

Leaves can be broadly divided based on its applicability to establishments covered under theFactories Act and the Shops and Establishments Act. Leave is calculated for the calendar year January to December.

 

LEAVE IN ESTABLISHMENTS COVERED UNDER THE FACTORIES ACT

Leaves as per Factories Act applies to all Management Staff, Executives, Supervisors, workers and contract workers as all of them fall under the definition of ‘worker’ under the Factories Act.

Type of Leave

Privileged / Earned

Casual

Sick

Maternity

Quantum per year

1 day leave for every 20 days worked in the previous year (Eg. 300 days worked = 15 days leave)

Nil

Nil

As per ESI Act OR Maternity Benefits Act

Entitlement

On working 240 days in the first  previous year

NA

NA

NA

Utilization

To apply for leave 15 days prior. Leave not to be availed more than 3 times a year

NA

NA

NA

Carry Forward

Not more than 30 days

NA

NA

NA

 

Other provisions

  1. If the Employee has quit or has been terminated, his earned leave balance should be paid to the employee and in case of death, to the nominee, within 2 days.
  2. Any worker who has applied for leave and has not been granted the same, such refused leave shall be carried forward without any limit.
  3. Leave can be calculated on Basic wages and DA.
  4. Leave book & Leave Register to be maintained for each worker

LEAVE IN ESTABLISHMENTS COVERED UNDERTHE SHOPS AND ESTABLIHMENTS ACT

Shops and Establishments Act provides for provisions of leave for the employees. The said Act is framed by each State on its own and therefore would be different in its provisions. Therefore, a table has been designed to collate provisions of leave as applicable to each State separately.

ANDHRA PRADESH SHOPS AND ESTABLISHMENTS ACT, 1988

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

15 days

Not exceeding 12 days

Not exceeding 12 days

Wages for 6 weeks preceding delivery and 6 weeks after delivery of the period of leave

Entitlement

On working 240 days in a year

During 12 months of service and subsequent 12 months

During 12 months of service and subsequent 12 months

For every woman who has completed 6 months or more service

Accumulation

45 days in 3 years

Not allowed

Not allowed

Not allowed


ASSAM SHOPS AND ESTABLISHMENTS ACT, 1971

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

16 days after 12 months continuous employment

12 days for 12 months service

12 days for 12 months service

Provisions of Maternity Benefits Act, 1961 to apply

Entitlement

On working 240 days in a year

During 12 months of continuous employment

During 12 months of continuous employment

Accumulation

Maximum of 30 days

Not allowed

Not allowed


BIHAR SHOPS AND ESTABLISHMENTS ACT, 1953

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

1 day leave for every 20 days worked in the year

12 days

12 days

Provisions of Maternity Benefits Act, 1961 to apply

Entitlement

6 days after working for 120 days in 4 months.

Entitlement is Minimum 80 days

During the year

During the year

Accumulation

Maximum of 45 days. If employee has 45 days of leave to his credit and is refused leave then such period of refused leave is to be encashed

Not allowed

Not allowed

Computation

All holidays falling at the end of middle of the leave period shall not be computed.


BOMBAY SHOPS AND ESTABLISHMENTS ACT, 1948

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

21 days on working 240 days in a year

Nil

Nil

Provisions of Maternity Benefits Act, 1961 to apply

Entitlement

5 days after 3 months on completion of 60 days working in that period

Nil

Nil

Accumulation

42 days

Nil

Nil

Computation

Suffixed or prefixed holidays to the leave period shall not be accounted as leave. Holidays or Sundays falling between the period of leave shall be treated as leave


DELHI SHOPS AND ESTABLISHMENTS ACT, 1954

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

15 days

12 days casual-cum-sick leave

No provisions

Entitlement

5 days after 3 months on completion of 60 days working in that period

Not less than 1 day for every completed period of 1 month (casual-cum-sick leave)

Accumulation

45 days maximum of 3 years

Not allowed

Not allowed


J&K SHOPS AND ESTABLISHMENTS ACT, 1966

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

15 days

14 days every year

Nil

Provisions of Maternity Benefits Act, 1961 to apply

Entitlement

On working 240 days in a year

During the year

Nil

Accumulation

Maximum of 3 months

Not allowed

Nil

Computation

Suffixed or prefixed holidays and Sundays to the leave period shall not be accounted as leave. Holidays or Sundays falling between the period of leave shall be treated as leave


KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1961

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

20 days (1 leave for every 20 days) on working 240 days in a year

-

12 days on Medical grounds

Provisions of Maternity Benefits Act, 1961 to apply

Entitlement

On working 240 days in a year. On joining mid year, he will be entitled to 2/3rdof the remaining period during the year

-

-

Accumulation

Maximum of 30 days

Not allowed

Not allowed


KERALA SHOPS AND ESTABLISHMENTS ACT, 1960

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

12 days after 12 months continuous service

12 days

12 days (plus sterilization operation – 6 days for men and 14 days for women)

Provisions of Maternity Benefits Act, 1961 to apply

Entitlement

All holidays and Sundays falling at the end or in between the period of leave shall not be counted as leave

-

-

Accumulation

24 days in 2 years

Not allowed

Not allowed


MADHYA PRADESH SHOPS AND ESTABLISHMENTS ACT, 1948

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

30 after 12 months continuous employment

14 days

Nil

Provisions of Maternity Benefits Act, 1961 to apply

Entitlement

5 days after 3months employment on completion of of 60 days working in that period

During the year

Nil

Accumulation

90 days in 3 years

Not allowed

Not allowed

Annexation

No annexing of casual leave allowed with privileged leave. Suffixed or prefixed holidays and Sundays to the leave period shall not be accounted as leave. Holidays or Sundays falling between the period of leave shall be treated as leave


ORISSA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1956

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

20 days (1 leave for every 20 days) on working 240 days in a year

-

15 days on medical grounds

Every woman who has put in continuous employment of 6 months or more shall be entitled for 6 weeks of leave preceding delivery and 6 weeks after delivery

Entitlement

On working 240 days in a year. On joining mid year, he will be entitled to 2/3rdof the remaining period during the year

-

-

Accumulation

30 days in case employee has 30 days privileged leave to his credit and if its refused then it can be allowed to be extended

Not allowed

Not allowed

Computation

Holidays or Sundays suffixed or prefixed or falling in between the period of leave shall not be treated as leave


PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1958

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

1 leave for every 20 days worked

7 days

7 days

Every woman who has put in continuous employment of 6 months or more shall be entitled for 6 weeks of leave preceding delivery and 6 weeks after delivery

Entitlement

After 20 days of continuous employment

During the year

During the year

Accumulation

30 days

Not allowed

Not allowed

Annexation

Suffixed or prefixed holidays and Sundays to the leave period shall not be accounted as leave. Holidays or Sundays falling between the period of leave shall be treated as leave

Haryana State to refer to Punjab Shops and Establishments Act.


RAJASTHAN SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1958

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

1 days leave for every 120 days worked on working 240 days in a year. If employee has joined at some other time and has worked atleast 2/3rd of the year and then he too shall be eligible.

-

-

Every woman who has put in continuous employment of 6 months or more shall be entitled for wages at 7/12 the rate of wages drawn for 6 weeks of leave preceding delivery and 6 weeks after delivery

Accumulation

30 days

-

-


TAMILNADU SHOPS AND ESTABLISHMENTS ACT, 1947

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

12 days

12 days

12 days

Provisions of Maternity Benefits Act, 1961 to apply

Accumulation

24 days

Not allowed

Not allowed


Uttar Pradesh SHOPS AND ESTABLISHMENTS ACT, 1962

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

15 days after every 12 months continuous employment

10 days

15 days

Every woman who has put in continuous employment of 6 months or more shall be entitled for 6 weeks of leave preceding delivery and 6 weeks after delivery as per Maternity Benefit Act

Entitlement

On completion of one year continuous service

After 6 months of continuous service

After 6 months of continuous service

Accumulation

45 days in 3 years. If employee has 45 days of leave to his credit and is refused leave then such period of refused leave is to be paid.

Not allowed

Not allowed


WEST BENGAL SHOPS AND ESTABLISHMENTS ACT, 1963

Type of Leave

Privileged Leave/ Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per year

14 days for every completed year

10 days. It cannot be taken for more than 3 days at a stretch

14 days in very year on half pay.

Every woman who has put in continuous employment of 6 months or more shall be entitled for 6 weeks of leave preceding delivery and 6 weeks after delivery

Entitlement

On completion of one year continuous service

During the year

During the year

Accumulation

24 days in 2 years

 

Q 2: What is Encashment of leave?


Under Factory Act there is no mention of leave encashment while in service even with consent of Management. An employee can take leave encashment while quitting services, superannuation, discharge, dismissal or death. Leave encashment should be as per average daily wage of employee. There are some companies which pay leave encashment on basic and DA, which is not correct.

Q 3:  Can employee take leave during notice period?


Yes, employee has right to take leave during notice period.

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