Leave as a topic is of a great interest for any employee other than HR personnel.
Leave is different from holidays and days-off, since it aims to fulfil different objectives of work life sphere. However, there is always confusion how much leave one can avail, what is one legally entitled to, the consequence of leave on wages/salary etc. What is the general leave policy? How many days Earned Leave (EL), Casual Leave (CL) and Sick Leave is one entitled to in an year? These questions are often asked by employees/workers working in any organisation . Most of us, sometime or the other has faced strenuous grievance of employees relating to leave policy in the organisation. Many of us may have anecdotes where Employees have harassed us with matters relating to leave policy and the ways how to apply or avail it. Therefore in order to handle grievance of employees in an efficient manner, it becomes important for HR to have a complete knowledge of the leave policy. Here I have tried to compile the legal aspect of leave provided by Indian law.
Many companies and organizations categorise leaves in different categories like casual leave, sick leave, earned leave, maternity leave, special leaves, loss of pay leave, compensatory leave etc. Few MNC’s have come up with many other innovative leave and attractive jargons for organisations. In most industrial establishments where there are employment contracts, where trade unions are involved in deciding employment contracts, leave rules are formulated in consultation with the unions (e.g Tata Steel, RIL). Such elaborate consultation is specified in The Industrial Employment Standing Orders Act which is formed for enforcement of different conditions of services.
For those unfamiliar to Labour Laws, the Act specifies the broad framework and the notified rules under each legislation, detail the implementation or applicability of these leave policies.
CASUAL LEAVE (Popularly known as CL): Casual leave is generally understood as the leave that is not earned while on duty. Prior intimation is needed to be given to the employer if an employee needs to avail casual leave. A leave can be treated as casual leave only if it has been sanctioned /granted by the employer.
The quantum of casual leave too, is like sick leave and is fixed by the company/organization in accordance with the State’s Shops and Establishment Act or any other law applicable to it, except where it has been specifically provided by law.
Sales Promotion Employees (Conditions of Service) Act, 1976 [Rule 15]
This Rule entitles an employee under the Act to avail casual leave to the maximum of 15 days in a calendar year.
Working Journalist and Other News Paper Employee’s (Conditions of Service) and Miscellaneous Provisions Act, 1955 [Section 7]
Under the Act an employee is entitled to 15 days of casual leave in a calendar year.
Apprentices Act, 1961 & Apprenticeship Rules, 1992 [Rule 13]
The Act entails an employee to avail a maximum of 12 days of casual leave in a year.
* Except for the workers covered under the Acts mentioned above, casual leaves are available as per the company policy. For establishments which are not covered under the ESI Act, the workers get sick leave as per company policy or standing orders.
SICK LEAVE/ MEDICAL LEAVE: Sick leave is the leave that an employee can avail in case of sickness of self or relative (as specified under law). Sick leave provides pay to employees when they are out of work due to illness. Most of the times the quantum of such leave is fixed by the company/organization in accordance with the State’s Shops and Establishment Act or any other law applicable to it, but then some legislations do contain specific provisions in this respect. Sick leaves accumulated in a year can be carried forward and availed in the next year. The quantum of leaves that can be carried forward should commensurate to the one provided under the applicable law.
Apprentices Act, 1961 [Section 15 (Rule 13)]
Any person appointed as an apprentice under the Act can avail medical leave for a maximum period of 15 days in a year and in case of accumulated leave up to 40 days in a year.
Plantation Labour Act, 1951 [Section 32]
Employees covered under this Act are entitled to sick leave in accordance with the company policies.
Working Journalist and Other News Paper Employee’s (Conditions of Service) and Miscellaneous Provisions Act, 1955 [Section 7 (Rule 28)]
These employees are eligible for one month medical leave for every 18 months of service rendered at half the wages.
Sales Promotion Employees (Conditions of Service) Act, 1976 [Section 4]
Any person covered under the Act can avail sick leave of not less than one-eighteenth of the service period at half the wages. This leave gets sanctioned only when medical certificate is presented.
PRIVILEGED LEAVE: Privileged leave is also known as “Earned leave”. As the name suggests, this leave is earned by the employees while they serve the organisation. These leaves are earned during the year and can be availed during the same subsequent year.
Factories Act, 1948 [Section 79]
As per the provisions of Factories Act, 1948, any worker covered under the Act who has worked for at least 240 days in a calendar year becomes eligible for earned leave which he can enjoy in the subsequent year.
- In case of an adult, he/she becomes eligible for a day leave for every 20 days worked in previous year.
- In case of child, (i.e. a person who has not completed his/her fifteenth year of age) they become entitled to one day leave for every 15 days worked during previous year.
These earned leaves can be carried forward to an extent of 30 days in case of adult and not more than 40 days in case of child.
Mines Act, 1952 [Section 52]
Every person employed in a mine who has completed a calendar year’s service shall be allowed during the subsequent calendar year leave with wages.
- In the case of a person employed below ground, leave is calculated at the rate of one day for every 15 days of work performed by him/her.
- In other cases, leave is available at the rate of one day for every 20 days of work performed by him/her.
Bidi and Cigar Workers (Conditions of Employment) Act, 1966 [Section 26]
- An adult worker becomes entitled to annual leave for one day for every 20 days of work performed by him/her during the previous calendar year. Adult workers can carry forward these leaves to the extent of 30 days.
- In case of a young person he/she becomes entitled to annual leave with wages for one day for every 15 days of work performed by him/her during the previous calendar year, and the same can be carried forward to an extent of 40 days.
Sales Promotion Employees (Conditions of Service) Act, 1976 [Section 4]
As per the Act, employees covered under this Act become eligible for leave with full wages for not less than one month for every 11 months spent on duty. These earned leaves can be encashed on voluntary relinquishment or termination other than by way of punishment.
Working Journalist and Other Newspaper Employee’s (Conditions of Service) and Miscellaneous Provisions Act, 1955 [Section 7]
Employees under the Act become eligible to earned leave with full wages for not less than one month for every 11 months spent on duty. These leaves if accumulated can be carried forward to next year to an extent of 90 days.
Plantation Labour Act, 1951 [Section 30 & 31]
- An adult worker is entitled to one day of paid leave for every 20 days of work.
- A child or adolescent worker is entitled to one day of paid leave for every 15 days worked. These leaves can be carried forward to an extent of 30 days.
Domestic Workers (Registration Social Security and Welfare) Act, 2008 [Section 22]
A domestic worker living in the house is entitled to annual leave with wages for at least 15 days during the year.
NATIONAL AND FESTIVAL HOLIDAYS: Republic Day (January 26), Independence Day (August 15) and Gandhi Jayanti (October 2) are the three national holidays observed in India. On these days all institutions, irrespective of under which law they are covered, or whether they are public or private organizations or MNCs should necessarily remain closed.
The festival holiday are decided based on the local festival of that locality and are granted to the employee’s in accordance with the company policies.
MATERNITY LEAVE: The Central Government passed the Maternity Benefit Act in 1961 which extends to the whole of India and applies to every establishment belonging to the government and to every establishment which may be industrial, commercial, agricultural or otherwise.
Working Journalist and Other News Paper Employee’s (Conditions of Service) and Miscellaneous Provisions Act, 1955 [Rule 29]
A female employee who has completed one year of continuous service is entitled to three months of maternity leave.
Maternity Benefit Act, 1961 [Section 4]
The Act provides 12 weeks as the maximum period for which any working woman shall be entitled to maternity benefit. She can avail this benefit as 6 weeks upto and including the day of her delivery and 6 weeks immediately following the day of her delivery.
[Section 9]
In case of miscarriage or medical termination of pregnancy, a female employee can avail maximum 6 weeks leave with average pay from the date of miscarriage or termination of pregnancy.
[Section 10]
Also additional leave with pay for up to 1 month can be availed on production of proof, revealing illness due to pregnancy, delivery, miscarriage, or premature birth.
[Section 13]
Where a female employees needs to undergo tubectomy operation she can avail leave with wages at the rate of maternity benefit for up to two weeks immediately following the day of her operation.
Plantation Labour Act, 1951 [Section 32]
Female employees covered under the Act are eligible for maternity leave in accordance with the Maternity Benefits Act, 1961.
Factories Act, 1948 [Section 79]
The Act makes provision for maternity leave with wages for expecting mothers for a maximum period of 12 weeks.
STUDY LEAVE/SABBATICAL LEAVE: Study leave/sabbatical leave is granted to an employee to pursue higher studies with a guarantee to resume them in job on completion of the leave. Such leaves are granted to an employee in accordance with company policies and may be paid or unpaid sabbatical leave. The sabbatical leave would be exclusively for scientific or academic work at any relevant institution in India or abroad. The facility of sabbatical leave may be extended to include work on other activities of the innovation chain with industry, consultancy organizations, financial institutions, project engineering firms, technology marketing/transfer agencies, etc.
Working Journalist and Other News Paper Employee’s (Conditions of Service) and Miscellaneous Provisions Act, 1955 [Rule 33]
The Rule provides for grant of study leave with or without wages at discretion of the employer.
Sales Promotion Employees (Conditions of Service) Act, 1976
Any employee covered under the Act may be granted study leave with or without wages in accordance with the company policies.
INNOVATIVE LEAVE: HR Dept in various organisations have come up with many innovative leave in order to retain employees as well as maintain work life balance. Some of the examples of these leaves adopted by different companies to provide benefit to their employees are as follows:
Bereavement Leave: This leave is a grant paid time off from work to employees for the death of a relative. Employees are eligible for up to 7 days leave, if necessary, in the event of the death of an immediate family member (defined as parents, grandparents, siblings, spouse, children and in-laws). This leave is generally provided for the demise of close relative, and depends on the policies framed by the organisation. This leave is not legally entitled but is an innovative approach of HR policies in some of the private firms.
Birthday Leave: This one is picking up very rapidly in most of the corporate offices in India, a half day or full day leave will be provided to the employee for the celebration of Birthday.
Employee Volunteering Leave: With CSR becoming an integral part of companies, the HR Dept encourages employees to participate in community services. An employee volunteering leave is a leave that is granted to an employee to participate in volunteer for a charity. Bharti Airtel provides one day paid leave to its employee for volunteering work.
There are many other types of leave policy that are followed across the country which I might have missed. Anyway, I hope this small piece of article was some way or the other helpful to you. I am not adding any bibliography; however I would like to thank P.L. Malik, Google and MS Word.
Compiled by Sumit Soren.
