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What are the different types of leaves that an employee in India can avail of?  Employees, across all industries in India, are entitled to a certain number of leaves per year aside from the holidays and days off. The number and type of leave depend on the industry, employer, and state you are in under the Factories Act and State’s shop and establishment act. Every state has different leave entitlement and leaves policies which is the basis for the leave policy of your company. In this article find out information about privilege leaves, rules for casual leave, compensatory off, leave carried forward, paid casual leave etc. in India?

What are different types of Leaves in India

What are different types of Leaves in India

General Overview of Leaves

Commencement of Leave Period is calendar year i.e 1st January to 31st December every year.  All regular employees are entitled to around 27 days’ leave in a year. Holiday List is provided at the beginning of the calendar year. Generally, all State Legislations have a common provision for leaves usually at least seven holidays for national and other festivals. Republic Day, Independence Day, and Mahatma Gandhi’s birthday are compulsory holidays. Employer and Employees can decide on remaining national and festival holidays. Hence Diwali holiday in Karnataka is usually on Narak-Chaturdashi(second day) while in Delhi it is on Laxmi Pooja day. Minimum 7 days casual leave and 14 days sick leave are provided to employees.

Employees need to apply for each leave and take approval except in cases where approval could not be taken in advance usually for casual or sick leaves. Grant of leave shall depend upon the policies of the workplace and is at the discretion of the manager/management. There is no set rule for which leave to be approved and not approved.  An employer can refuse the leave application, if not satisfied with the reason of leave. It depends from reason to reason, manager to manager.

Prorate means in proportion. For new joinee & resigned employees one gets pro rated leaves. So if one works half a year, one is entitled to just half of leaves.

Usually All leaves with pay are  excluding weekly off and holidays. For example  if an employee take leave from Saturday to Monday where Sunday is weekly off then Sunday should not be counted as leave. Hence only 2 leaves should be counted.  If an employee is on leave for whole month (30 days) which includes 4 weekly off and 1 holiday then employee should be considered on leave for 25 days only. But then it depends on the Shop and Establishment Act of the state.

From Paycheck.in Earned & Casual Leave in India Shop and Establishment Act of 2 states is given below

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

 

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

 Types of leaves

Sick Leave/Medical Leave

Sick leave is the leave that an employee can avail when he is out of work due to illness.

  • Sick Leave can be taken for a minimum 0.5 to maximum 7 days (paid).
  • There are no sick leave carry-forwards or encashment. At the end of the calendar year, any available sick leave will lapse automatically.
  • For all absences exceeding 2 or 3 days, depending on company policy, usually, a medical certificate needs to be enclosed.
  • Sick Leave can be appended with Earned Leave.
  • For new joinee & resigned employees, one gets pro-rated sick leave.

Casual Leave

Casual Leave(CL) are granted for a certain unforeseen situation or where you are required to go for one or two days leaves to attend to personal matters and not for vacation. In case of casual leave normally company’s strict maximum to 3 days in a month. In such cases, the person has to take the permission in advance.

  • Casual Leave can be taken for a minimum 0.5 to maximum 3 days. In case of more than 3 days leave, it should be taken as Earned/Privileged Leave. If taking 3 leaves together Need to apply before.
  • As per the rules under The Shops and Establishment Act, you are entitled to 6 days of Casual Leave
  • There are no casual leave carry-forwards. On the closing day of the year, any unused Casual Leaves will lapse automatically.
  • Casual leave is not encashable. At the end of the year, unused Casual Leaves lapse automatically.
  • Can not be appended with  Earned/Privileged Leave or Sick Leave
  • For new joinees or person who has resigned Casual leaves are on a Pro-rata basis. If you have joined during the middle of the year say Jul 1, your casual leave will half ( pro-rated) from the date you start employment through December 31 of that calendar year.

Earned Leave or Privilege leave

Privilege leave or Earned Leave is provided for planned long leaves for the purpose of travel, vacation etc

  • Earned Leave is calculated on a month-on-month basis for the calendar year. Earned Leave is credited at the beginning of Calender Year to every employee’s account, but the entitlement will be proportional to the number of months worked. For example Based on company policy, for every month completed in the company 1.25 days will be credited to the employee’s entitlement.
  • If you have joined during the middle of the year, your earned leave will be pro-rated from the date you start employment through December 31 of that calendar year.
  • For employees who resign, their leaves entitlement would be calculated pro-rata i.e. till their last day of work. Any excess leaves taken would be adjusted in Full & Final Settlement.
  • If you are unable to use all of your accrued Earned Leave during a calendar year, you may elect to carry forward any accrued but unused Earned leave into the next calendar year, subject to the maximum accrual level. A maximum number of earned leaves is based on State your company is in, which typically is 30 working days but in some states can go up to 45 or 60 days.
  • Accumulated leaves can be encashed at the time of working or leaving the company based on the company’s policy. The formula used for the calculation of Encashable Leaves is : Encashable Amount = Monthly Gross / 22* Encashable Leave.
  • Leave Encashment during service is fully taxable in all cases.
  • Any payment by way of leave encashment received by Central & State Govt. employees at the time of retirement in respect of the period of earned leave at credit is fully exempt.  In case of other employees, the exemption is to be limited

What is the difference between Earned Leave and Privileged Leave: Although the nature and purpose of both Privilege Leave(PL) and Earned Leaved(EL) are the same, however, applicability differs in terms of minimum allotment and act which covers them.

  •  Under Factories Act such leaves are called Earned Leave (EL) and under Shops & Estb. Act the same is called Privilege Leave (PL).
  • Another difference is how many leaves are allotted under this category. Under Factories Act, 1 EL for every 20 days of work (18 per year)and on the other hand under S&E Act 5 PL for every 4 months work (15 per year).

Other leaves

Apart from these, there are other paid, unpaid, or half-paid leaves like Study Leave, Bereavement Leave, and Leave for Voting. These although are left at the organization’s discretion.

National Holidays 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 is decided based on the local festival of that locality and is granted to the employees in accordance with the company policies.

Maternity Leave

Maternity Leave is covered by Maternity Benefits Act, 1961

  • Female employees are entitled to a maximum of 12 weeks (84 days) paid maternity leave. Six weeks leave has to be taken after the actual date of delivery
  • A woman worker is entitled to maternity benefit only if she has worked at least 80 days in an establishment in the 12 months prior to her expected date of delivery
  • In case of miscarriage or medical termination of pregnancy, an employee is entitled to six weeks of paid maternity leave.
  • Employees are also entitled to one additional month of paid leave in case of complications arising related to pregnancy, delivery, premature birth, miscarriage, medical termination or a tubectomy operation (two weeks in this case)
  • No pregnant woman can, on a request made by her in this behalf, be required by her employer to do any work (during 10 weeks before her expected delivery) which is of an arduous nature or which involves long hours of standing, or which in any way is likely to interfere with her pregnancy or the normal development of the fetus, or is likely to cause her miscarriage or otherwise to adversely affect her health.

Paternity leave

Paternity leave is paid or unpaid leave given to a male employee when a child is born. While paternity leave is authorised for government employees there is no law that instructs the private sector to make it obligatory. Hence, paternity leave is open to interpretation by individual companies. Thus, on the one hand, you have Cisco Systems (India) which grants its employees 12 weeks paternity leave and on the other, you have Infosys which offers 5 days of paid leave

Individual organizations decide whether or not they would like to extend the facility of Paternity Leave. There is no legal requirement in regards to granting Paternity Leave to anyone.

Leave without pay

If a person does not have any unused leave 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 depending on management discretion.

Articles for Employees: Job: Salary, EPF, Income Tax

Hope this gave you an overview of various leaves that one is entitled to in India. Why holidays in different places differ? Why all companies do not give Paternity leave? Do you think men should get Paternity Leave and if yes how many days?

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