Leave Policy for different sectors in India

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 each legislation detail the implementation or applicability of these leave policies.

1. EARNED LEAVE
2. CASUAL LEAVE
3. SICK LEAVE/MEDICAL LEAVE
4. MATERNITY LEAVE
5. PATERNAL LEAVE
6. NATIONAL AND FESTIVAL HOLIDAYS
7. QUARANTINE LEAVE
8. EXTRAORDINARY LEAVE
9. STUDY LEAVE/SABBATICAL LEAVE
10. LEAVE NOT DUE
11. LEAVE FOR GENERAL/BYE ELECTION FOR PARLIAMENT AND STATE ASSEMBLIES
12. INNOVATIVE LEAVE

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 year.

Factories Act, 1948 - Section 791

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 522

 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 263
 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 44

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 75

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 & 316

 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 7

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 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 158

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 79

Under the Act an employee is entitled to 15 days of casual leave in a calendar year.
Apprentices Act, 1961& Apprenticeship Rules, 1992

Rule 139

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.11Sick 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)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 of accumulated leave up to 40 days in a year.

Plantation Labour Act, 1951 - Section 3213

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)14

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 415

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 Employee’s (Conditions of Service) and Miscellaneous
Provisions Act, 1955 - Rule 2916

A female employee who has completed one year of continuous service is entitled to three months of
maternity leave.
Maternity Benefit Act, 1961 - Section 417

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 918

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 1019

Also additional leave with pay for upto 1 month can be availed on production of proof, revealing illness
due to pregnancy, delivery, miscarriage, or premature birth.

Section 1320

Where a female employees needs to undergo tubectomy operation she can avail leave with wages at the
rate of maternity benefit for upto two weeks immediately following the day of her operation.

Plantation Labour Act, 1951 - Section 3221

Female employees covered under the Act are eligible for maternity leave in accordance with the Maternity
Benefits Act, 1961.

Factories Act, 1948 - Section 7922

The Act makes provision for maternity leave with wages for expecting mothers for a maximum period of
12 weeks.

PARENTAL LEAVE FOR GOVERNMENT EMPLOYEE’S

Maternity Leave23
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 children.

Child Care Leave24

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 be the same as that of earned leave.

Paternity Leave25

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 Government’s move, many State governments have also implemented similar
provisions for its employees.

Child Adoption Leave26

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 HOLIDAYS27

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.

The Shops And Establishments 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 Employee’s (Conditions of Service) and Miscellaneous
Provisions Act, 1955 - Rule 3028

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 1629

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 Employee’s (Conditions of Service) and Miscellaneous
Provisions Act, 1955

Rule 3130

Extraordinary leave without wages may be granted to employees covered under this Act, by the
newspaper establishment in which he is employed.

Sales Promotion Employees (Conditions of Service) Act, 1976

A sales promotion employee may be granted extraordinary leave without wages at the discretion of the
employer in special circumstances.

Apprentices Act, 1961 - Section 1531

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 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.

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 Employee’s (Conditions of Service) and Miscellaneous
Provisions Act, 1955 - Rule 3233

A working journalist who has no leave to his credit may be granted leave at the discretion of the
newspaper establishment in which such working journalist is employed.

Sales Promotion Employees (Conditions of Service) Act, 1976

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 34

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) Act, 1963)35

Under Industries Association Act, 1963 Section 3 (A) also there is a provision for such leave.

For Central Government employees provision for such leave differs for each election details of which can
be checked as under given table36 :
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.
(i) Lok Sabha
(b) Grant of Special Casual Leave-
Permissible on the same grounds/circumstances as in the case of
general elections [of I(b) above.]
(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
(ii) State Assemblies 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. The Central Government-offices shall not be closed. The
Government employees who are bonfire voters and desire to
III.Panchayat/Corporation.
exercise their franchise should however, offered reasonable
/Municipalities or other- local
facility, subject to the normal exigencies of service, either by way
bodies
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 benefit to their employees are as
follows:

Bereavement Leave37

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 Leave38

In Bharti Airtel company a half day leave is been provided to the employee for the celebration of Birthday.

Employee Volunteering Leave39

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