• Annual leave calculated against holidays and weekends by employer

I have resigned from my current role in my company. as per the company policy annual leaves can be adjusted with the notice period and relieved early. however the hr department says that the annual leaves are adjusted against calendar days (which includes holidays and weekends) and not just the working days. I feel that annual leaves are meant to be adjusted against only the working days. Could you please advise if this is legal per labour law to adjust my leaves even with holidays.
Asked 12 months ago in Labour from Bangalore, Karnataka
 all leaves with pay are excluding weekly off and holidays which means even 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.
Ajay Sethi
Advocate, Mumbai
36327 Answers
2014 Consultations

5.0 on 5.0

ABSTRACT FROM FACTORY ACT REGARDING LEAVE

79. ANNUAL LEAVE WITH WAGES. - (1) 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 for a number of days calculated at the rate of - (i) if an adult, one day for every twenty days of work performed by him during the previous calendar year; 
(ii) if a child, one day for every fifteen days of work formed by him during the previous calendar year. 
Explanation 1 : 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. 
Explanation 2: The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave.
Ajay Sethi
Advocate, Mumbai
36327 Answers
2014 Consultations

5.0 on 5.0

I have resigned from my current role in my company. as per the company policy annual leaves can be adjusted with the notice period and relieved early. however the hr department says that the annual leaves are adjusted against calendar days (which includes holidays and weekends) and not just the working days. I feel that annual leaves are meant to be adjusted against only the working days. Could you please advise if this is legal per labour law to adjust my leaves even with holidays.

Numbers of leaves entitlement in a company depends upon state you are in. Every state has different leave entitlement and leave policies which should be seen before one defines leave policy of your company. Leave policy of a company cannot be less than that mentioned by the State’s shop and establishment act.

Leaves can be broadly divided based on its applicability to establishments covered under theFactories Act and the Shops and Establishments Act. Leave is calculated for the calendar year January to December.

 
 employee has right to take leave during notice period.


Annual or earned leave is granted on the basis of total number of working days and the management's statement that the holidays and Sundays are adjusted in the Annual leave is incorrect and contrary to the law of the land in this regard. 
T Kalaiselvan
Advocate, Vellore
26301 Answers
265 Consultations

5.0 on 5.0

So does the labour law confirm that my annual leaves cannot be adjusted with weekends and holidays. Can I quote this with my company HR department. Please confirm. Also can you share the reference number of the quote in labour law which can be referred .

You can very well make a representation in writing to the management seeking clarification in this regard because there is a misunderstanding in this.  The management is  not legally right in their such contention. 
T Kalaiselvan
Advocate, Vellore
26301 Answers
265 Consultations

5.0 on 5.0

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