Leave Policy for different sectors in India

last modified Sep 12, 2012 What is the general leave policy in India? How many days Earned Leave (EL), Casual Leave (CL) and Sick Leave is one entitled to per year? These questions are often asked by employees/workers working in any organisation or office. Leave is different from holidays and days-off, since it aims to fulfil different objectives of work life sphere. However, there is always a confusion how much leave can one avail, what is one legally entitled to, the consequence of the same on wages/salary etc.

Employment laws set the umbrella framework for deciding different dimensions of leave, like category or types, eligibility, duration etc. 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. In case of employment contacts, where trade unions are involved in deciding employment contacts, leave rules are formulated in consultation with the unions. Such elaborate consultation is specified in The Industrial Employment Standing Orders Act which is formed for enforcement of different conditions of services.

In India, three types of leaves are generally followed namely earned leave, sick leave and casual leave. Different provisions exist under different laws, for different categories of leaves.

Details of each category are elaborated hereunder. While the Act specifies the broad framework, the notified rules under 1. 2. 3. 4. MATERNITY 5. 6. NATIONAL 7. 8. 9. 10. 11. LEAVE FOR 12. INNOVATIVE LEAVE STUDY LEAVE GENERAL/BYE ELECTION FOR AND QUARANTINE EXTRAORDINARY LEAVE/SABBATICAL NOT PARLIAMENT AND STATE PATERNAL FESTIVAL SICK each legislation detail the implementation EARNED CASUAL LEAVE/MEDICAL or applicability of these leave policies. LEAVE LEAVE LEAVE LEAVE LEAVE HOLIDAYS LEAVE LEAVE LEAVE DUE ASSEMBLIES

EARNED LEAVE: Earned leave is also known as privileged 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 Factories Act, 1948 Section year. 79
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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 Mines Act, of 1952 Section child. 52
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Every person employed in a mine who has completed a calendar years 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
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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
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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 Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 Section 7
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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
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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
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A domestic worker living in the house is entitled to annual leave with wages for at least 15 days during the year.

CASUAL LEAVE:

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 States Shops and Establishment Act or any other law applicable to it, except where it has been specifically provided by Sales Promotion Employees (Conditions of Service) Act, 1976 Rule law. 15
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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 Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 Section Under the Act an employee Act, is entitled 1961& to 15 days of casual leave in a calendar 7
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year. 1992 13
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Apprentices Rule The Act entails an

Apprenticeship

Rules,

employee

to

avail

maximum

of

12

days

of

casual

leave

in

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 States 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.
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Apprentices

Act,

1961 -

Section

15

(Rule

13)

12

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 Labour of accumulated Act, leave up 1951 to 40 days Section in a year. 32
13

Plantation

Employees covered under this Act are entitled to sick leave in accordance with the company policies. Working Journalist and Other News Paper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 Section 7 (Rule 28)
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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
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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.

Except for the workers covered under the Acts mentioned above, casual leaves are available as per the company policy. Next, for establishments not covered under the ESI Act, then workers get sick leave as per company policy or standing orders.

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 Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 Rule 29
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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
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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 Section the day of her delivery. 9
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In case of miscarriage or medical termination of pregnancy, a female employee can avail maximum 6 weeks leave with Section average pay from the date of miscarriage or termination of pregnancy. 10
19

Also additional leave with pay for upto 1 month can be availed on production of proof, revealing illness due to pregnancy, Section delivery, miscarriage, or premature birth. 13
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Where a female employees needs to undergo tubectomy operation she can avail leave with wages at the rate of maternity Plantation benefit for upto Labour two weeks Act, immediately following 1951 the day of her operation. 32
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Section

Female employees covered under the Act are eligible for maternity leave in accordance with the Maternity Benefits Act, Factories Act, 1948 Section 1961. 79
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The Act makes provision for maternity leave with wages for expecting mothers for a maximum period of 12 weeks.

PARENTAL LEAVE FOR GOVERNMENT EMPLOYEES Maternity Leave

Central Government employees (those directly under GOI) are governed by the Central Civil Service (Leave) Rules, 1972. Under the rules, female employees are entitled to maternity leave for a period of 180 days for their first two live born Child Care children. Leave
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A female Central Government employee having minor children below the age of 18 years can avail child care leave for a maximum period of two years (i.e. 730 days). This can be availed during their entire service, for taking care of upto two children whether for rearing or to look after any of their needs like examination, sickness etc. In totality, including the paid leave period, women employees can avail child care leave for a period of three years. All the benefits here will be admissible only in respect of their two eldest surviving children. The nature of this leave has to Paternity be the same as that of earned leave. Leave
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The Central Government in 1999 by notification under Central Civil Services (Leave) Rule 551 (A) made provisions for paternity leave for a male Central Government employee (including an apprentice and probationer) with less than two surviving children for a period of 15 days to take care of his wife and new born child. He can avail this leave 15 days before or within 6 months from the date of delivery of child. If such leave is not availed within the period, it shall be treated as lapsed.

For Paternity leave he shall be paid leave salary equal to the pay last drawn immediately before proceeding on leave. Following Central Governments move, many State governments have also implemented similar provisions for its employees. Child Adoption Leave
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Adoptive mothers who are Central Government employees become eligible to 180 days of maternity leave but, this is applicable only if they have less than two surviving children at the time of adoption and if she adopts a child who is below one year of age.

Also now male Central Government employees too are eligible for 15 days of paternity leave on adopting a child pursuant to same conditions as applicable to female employees.

NATIONAL AND FESTIVAL HOLIDAYS

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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 employees in accordance The Shops with And the company Establishments policies. Act

The Act applies to small establishments not covered under any other Act, like shops, factories or other establishments employing less than 10 employees.

No Central legislation exists on the subject as they are subject to State legislature. Almost all States have framed their own laws on the subject.

QUARANTINE LEAVE This leave is usually granted to a concerned employee by reason of presence of an infectious disease in the family or household of the employee, if such disease is considered to be hazardous to the health of other people. Working Journalist and Other News Paper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 Rule 30
28

Maximum 30 days of quarantine leave can be availed by the employees covered under this Act. Sales Promotion Employees (Conditions of Service) Act, 1976 Rule 16
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An employee covered under this Act can avail maximum 30 days of quarantine leave on recommendations by authorized Medical Attendant or Public Health Officer.

EXTRAORDINARY LEAVE Working Journalist and Other News Paper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955

Rule

31

30

Extraordinary leave without wages may be granted to employees covered under this Act, by the newspaper establishment Sales Promotion in Employees which (Conditions he of is Service) Act, employed. 1976

A sales promotion employee may be granted extraordinary leave without wages at the discretion of the employer in special Apprentices Act, 1961 Section circumstances. 15
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An apprentice can avail extraordinary leave upto a maximum period of 10 days in a year.

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 Employees (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.

LEAVE NOT DUE Where an employee has no leave to his credit and he/she still requires leave, such leave may be granted at the discretion of the employer.

Working Journalist and Other News Paper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 Rule 32
33

A working journalist who has no leave to his credit may be granted leave at the discretion of the newspaper

establishment Sales

in

which Employees

such

working of

journalist Service)

is Act,

employed. 1976

Promotion

(Conditions

A sales promotion employee, who has no leave to his credit, may be granted leave not due at the discretion of the employer.

LEAVE FOR GENERAL/BYE ELECTION FOR PARLIAMENT AND STATE ASSEMBLIES

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During the general elections in the country or the state where the employee is residing he is eligible for leave on the polling day. For general elections of Lok Sabha and Vidhan Sabha or any of the bye election one day leave is been declared to all employees for the polling day. (Sec.3A of Karnataka Industrial Establishments (National and Festival Holidays) Under Industries Association Act, 1963 Section Act, 3 (A) also there is a provision for such 1963)
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leave.

For Central Government employees provision for such leave differs for each election details of which can be checked as under given table
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II.

Bye-Elections

II. (a) Holiday/Closure of offices State Government normally declares a local holiday in that particular area/constituency on the polling day (s) if the election is held on day (s) other than Sunday/or other closed holidays. Central Government offices may also follow the State practice in such cases. (b) Grant of Special Casual Leave-

(i) Lok Sabha

Permissible on the same grounds/circumstances as in the case of general elections [of I(b) above.] (ii) State Assemblies (a) Holiday/closure of offices- In bye-election to State Assemblies, Central Government offices should not be closed. It would be sufficient if only those Central Government employees who may be placed on election duty are permitted to absent themselves from office on the polling day (s). All other employees should be given facility to excise their franchise either by way of coming late to office or by being allowed to leave office early or a short absence on that day, subject to the exigencies of the services.

(b) Grant of Special Casual Leave- Permissible on the grounds/circumstances as in the case of general elections. (of I(b) above.) III.Panchayat/Corporation. /Municipalities or other- local bodies III. The Central Government-offices shall not be closed. The Government employees who are bonfire voters and desire to exercise their franchise should however, offered reasonable facility, subject to the normal exigencies of service, either by way of coming late to office or by being allowed to leave office early or a short absence on that day.

INNOVATIVE LEAVE Human Resource department of every company deals with employees and to maintain a healthy and friendly relation with them. They work as a bridge between employees and management. As the competition in the labour market is high to find and retain skilled employees HR department of various companies other than the legal leaves also are coming up with various innovative leaves. Some of the examples of these leaves adopted by different companies to provide Bereavement benefit to their employees are as follows: Leave
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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 Birthday of HR policies in some of the private firms. Leave
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In Bharti Airtel company a half day leave is been provided to the employee for the celebration of Birthday. Employee Volunteering Leave
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Employee volunteering leave is a leave been granted to an employee to participate in volunteer for a charity. Bharti Airtel Company provides one day paid leave to its employee for volunteering work. References: The Factories Act 1948 The Mines Act, 1952 The Plantation Labour Act, 1951