Dear Seniors
Please help me in understanding the factory act regarding annual leave with wages, the act says:
"Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages"
Question: 1. According to this, a person has to work for 240 days from the January to December, Is weekly off or holidays, cl and SL are included it or not.
Question 2: Suppose an employee joins in the Month of August, so he can not complete his 240 days in that calender year, then which calender year is considered for his 240 days.
Act Says:
"A worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages"
Please give an example of the above statement
Thanks
Dinesh Kumar
From India, New Delhi
37Please help me in understanding the factory act regarding annual leave with wages, the act says:
"Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages"
Question: 1. According to this, a person has to work for 240 days from the January to December, Is weekly off or holidays, cl and SL are included it or not.
Question 2: Suppose an employee joins in the Month of August, so he can not complete his 240 days in that calender year, then which calender year is considered for his 240 days.
Act Says:
"A worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages"
Please give an example of the above statement
Thanks
Dinesh Kumar
From India, New Delhi
You have quoted Sec 79(1) of the Factories Act.Read the explanation 1 below the Sec for answer to your first question.Read 79(2) for your second question. Varghese Mathew 09961266966 04712542059
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Dear Mr.Dinesh,
1.Weekly offs and holidays are counted in criteria consideration of 240 working days.
Sick leaves, Casual Leaves are not counted in criteria calculation of 240 working days.
But accumulation of leaves will be done on actual working days. i.e, weekly offs or holidays or any other leaves will not be considered.
2.you have to read 79(2) carefully.
It is there as follows.
(2) A worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages at the rate laid down in clause (t) or, as the case may be, clause (ii) of sub-section (1) if he has worked for two-thirds of the total number of days in the remainder of the calendar year.
That mean If an employee joins some time in between the year then the eligibility criteria will be considered as he should work 2/3rd period of remaining days. His leaves accumulation will be done at 1 day @ 20 days working.
Regards,
Swarna
From India, Visakhapatnam
1.Weekly offs and holidays are counted in criteria consideration of 240 working days.
Sick leaves, Casual Leaves are not counted in criteria calculation of 240 working days.
But accumulation of leaves will be done on actual working days. i.e, weekly offs or holidays or any other leaves will not be considered.
2.you have to read 79(2) carefully.
It is there as follows.
(2) A worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages at the rate laid down in clause (t) or, as the case may be, clause (ii) of sub-section (1) if he has worked for two-thirds of the total number of days in the remainder of the calendar year.
That mean If an employee joins some time in between the year then the eligibility criteria will be considered as he should work 2/3rd period of remaining days. His leaves accumulation will be done at 1 day @ 20 days working.
Regards,
Swarna
From India, Visakhapatnam
Dear Dinesh,
Those who are joiining in Jan they have to work for 240 days.As you said x has joined in Aug, you have to observe no of days worked from Aug to Dec.For 5 months no of days approximately 130 days.ok 2/3rd of 130 days.If he worked for 97 days he is eligible for PL/EL
He has to physically workfor 240 days(from Jan to Dec)(This is applicable only those are joining in Jan)
with regards
V.subbarao
From India, Madras
Those who are joiining in Jan they have to work for 240 days.As you said x has joined in Aug, you have to observe no of days worked from Aug to Dec.For 5 months no of days approximately 130 days.ok 2/3rd of 130 days.If he worked for 97 days he is eligible for PL/EL
He has to physically workfor 240 days(from Jan to Dec)(This is applicable only those are joining in Jan)
with regards
V.subbarao
From India, Madras
Inorder to gain complete knowledge over Factories ACT & statutory compliances & industrial laws of core HR.
visit:
Ramson's HRD Institute, flat no.202, sree sree towers, dharamkaram road, ameerpet, hyderabad.
contact :- SRINIVAS - 7799010088
From India, Hyderabad
visit:
Ramson's HRD Institute, flat no.202, sree sree towers, dharamkaram road, ameerpet, hyderabad.
contact :- SRINIVAS - 7799010088
From India, Hyderabad
Dear Swarna,
You have mentioned the Week Off and Holidays are considered in criteria calculation (240 Days)
But in factory act says that -
For the purpose of this sub-section-
(a) any days of lay off, by agreement or contract or as
permissible under the standing orders;
(b) in the case of a female worker, maternity leave for any
number of days not exceeding twelve weeks; and
(c) the leave earned in the year prior to that in which the
leave is enjoyed;
shall be deemed to be days on which the worker has worked in a factory
for the purpose of computation of the period of 240 days or more, but
he shall not earn leave for these days.
only Any Lay Off, maternity leave (in case of any female worker) and earned leave enjoyed will be calculated for the computation of 240 days or more not the Weekly off or holidays.
From India, New Delhi
You have mentioned the Week Off and Holidays are considered in criteria calculation (240 Days)
But in factory act says that -
For the purpose of this sub-section-
(a) any days of lay off, by agreement or contract or as
permissible under the standing orders;
(b) in the case of a female worker, maternity leave for any
number of days not exceeding twelve weeks; and
(c) the leave earned in the year prior to that in which the
leave is enjoyed;
shall be deemed to be days on which the worker has worked in a factory
for the purpose of computation of the period of 240 days or more, but
he shall not earn leave for these days.
only Any Lay Off, maternity leave (in case of any female worker) and earned leave enjoyed will be calculated for the computation of 240 days or more not the Weekly off or holidays.
From India, New Delhi
Ramson's HRD Institute thanks the students for the support and the trust they showered in making the Level -1 program " CORE HR PRACTICAL TRAINING PROGRAM " a great success. In 5 years the institute trained almost 1000 candidates(Freshers & Experienced). Now is the time for expansion. Ramson's HRD institute is starting the second level program in HR.
Level-2 Program: Brief Explanation on Industrial laws:
1) Factories Act - 1948.
2) A.P Shops & Establishment Act - 1988.
3) Maternity Benefit Act - 1961.
4) Bonus Act - 1965.
5) Apprentice Act - 1961.
6) Employees provident fund Act -1952.
7) Industrial disputes act -1947.
8) Employees state Insurance Act -1948.
9) Payment of Gratuity Act - 1972.
10) Work mens compensation Act - 1923.
11) Payment of Wages Act - 1936
12) Contract labour Act -1970
From India, Hyderabad
Level-2 Program: Brief Explanation on Industrial laws:
1) Factories Act - 1948.
2) A.P Shops & Establishment Act - 1988.
3) Maternity Benefit Act - 1961.
4) Bonus Act - 1965.
5) Apprentice Act - 1961.
6) Employees provident fund Act -1952.
7) Industrial disputes act -1947.
8) Employees state Insurance Act -1948.
9) Payment of Gratuity Act - 1972.
10) Work mens compensation Act - 1923.
11) Payment of Wages Act - 1936
12) Contract labour Act -1970
From India, Hyderabad
You are rightly said
Even in the "FORM 16" Leave with Wages Register all these categories have been mentioned to determine the 240 days. No CL, SL, and Weekly off column has been given in this register to determine the 240 days. If anybody has any reference in this act which cay clear that weekly off are included to determine 240 days.
Regards
Dinesh Kumar
From India, New Delhi
Even in the "FORM 16" Leave with Wages Register all these categories have been mentioned to determine the 240 days. No CL, SL, and Weekly off column has been given in this register to determine the 240 days. If anybody has any reference in this act which cay clear that weekly off are included to determine 240 days.
Regards
Dinesh Kumar
From India, New Delhi
Dear Dinesh,
I try to give my views on what the section means related to calculation/entitlement of annual leave as per FA-1948.
1. Entitlement @ 1 day for 20 days provided the employee has put in 240 days attendance in calender year -
a) Suppose an employee joins on any day other that 1st January in the year, his required attendance will be 2/3rd of the available days in the calender year.
b) Suppose an employee was on roll for whole year i.e. from 1st Jan to 31st Dec., but falls short of 240 days attendance - in this case, some one has earlier mentioned that Sundays / Holidays will be taken into consideration. Sorry dear, if you do this it will be wrong. You can just add the paid leave like Casual leave, Sick/medical leave and annual leave availed by the employee. In case of Sundays/Holidays, these will be taken only if the workman has actually worked on those holidays. If, by adding the paid leave to actual attendance, the total is equal or more than 240 days, then only his/her leave will be calculated @ 1 for every 20 days for the actual attendance put in by the employee and not for 240 days or more which has been arrived by addition of paid leave.
c) Every employee earns annual leave for previous year and avails in next year except for those who are superannuating in that calender year itself. Such superannuating employees are paid wages in lieu of balance earned leave or are allowed to avail leave in the last month of their superannuation, as per rule and practice of the Company. However, new employee is always entitled to Casual leave and medical/sick leave on pro-rata basis.
If you have more doubts, pl respond. I will try to satisfy them, as far as possible.
AK Jain
HR Personnel
From India, Jabalpur
I try to give my views on what the section means related to calculation/entitlement of annual leave as per FA-1948.
1. Entitlement @ 1 day for 20 days provided the employee has put in 240 days attendance in calender year -
a) Suppose an employee joins on any day other that 1st January in the year, his required attendance will be 2/3rd of the available days in the calender year.
b) Suppose an employee was on roll for whole year i.e. from 1st Jan to 31st Dec., but falls short of 240 days attendance - in this case, some one has earlier mentioned that Sundays / Holidays will be taken into consideration. Sorry dear, if you do this it will be wrong. You can just add the paid leave like Casual leave, Sick/medical leave and annual leave availed by the employee. In case of Sundays/Holidays, these will be taken only if the workman has actually worked on those holidays. If, by adding the paid leave to actual attendance, the total is equal or more than 240 days, then only his/her leave will be calculated @ 1 for every 20 days for the actual attendance put in by the employee and not for 240 days or more which has been arrived by addition of paid leave.
c) Every employee earns annual leave for previous year and avails in next year except for those who are superannuating in that calender year itself. Such superannuating employees are paid wages in lieu of balance earned leave or are allowed to avail leave in the last month of their superannuation, as per rule and practice of the Company. However, new employee is always entitled to Casual leave and medical/sick leave on pro-rata basis.
If you have more doubts, pl respond. I will try to satisfy them, as far as possible.
AK Jain
HR Personnel
From India, Jabalpur
Dear AK Jain Sir,
Thanks a lot for your example it is a great help.
Suppose an employee joins on 1st January but for unauthorised absence, he remains absent and could not complete 240 days. He completed only 230 days including all Offs, Sundays, Cl, SL and EL, As the employee could not complete 240 days then what will happen to his EL. Will he get any EL for that year or not.
Regards
Dinesh Kumar
From India, New Delhi
Thanks a lot for your example it is a great help.
Suppose an employee joins on 1st January but for unauthorised absence, he remains absent and could not complete 240 days. He completed only 230 days including all Offs, Sundays, Cl, SL and EL, As the employee could not complete 240 days then what will happen to his EL. Will he get any EL for that year or not.
Regards
Dinesh Kumar
From India, New Delhi
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FACTORY ACT 1948.xls
Amendment of factory act MP rules.pdf