Is provision of Casual Leave mandatory for the employer?

Hello,

I am a newly recruited HR in a Pvt. Ltd. Co. The total strength of employees is around 25. Leave provisions are as follows:

- Earned/Privilege leave - 12
- Public holidays - 12

Apart from this, the company does not have any provisions for Casual leave and Sick leave. Kindly assist in drafting a proper leave policy. Also, please clarify whether casual leave is mandatory. I have to put up a fresh proposal and present it for approval to our Managing Director. Please note our office overseas has all leave benefits.

Megha

Dear Anmol,

Leave provisions depend upon the establishment-specific labor law applicable to the organization. Unless the type of the establishment is known, it will not be possible to provide a correct answer. If yours is a factory, there is no provision for C.L and S.L. If it is an establishment under the State Shop & Estt Act, then it is compulsory for the employer to provide for C.L, S.L, and P.L in their leave policy at not less than the scales prescribed under the applicable law.

If your company is covered under the Industrial Employment (Standing Orders) Act, under the provisions of Model Standing Orders, there is a provision of CL with or without pay.

R R Kapoor

Dear Amol,

If your establishment is in Maharashtra, under the Maharashtra Shops Act/Rules, in addition to privilege leave, you have to give 8 days of casual leave and 8 paid Holidays including 4 National Holidays. Please refer to the Act for more details.

Sick leave or leave of absence on account of sickness is governed by ESI or left to the discretion of the Management.

Regards,
Vinayak Nagarkar
HR Consultant

Thank you so much, everyone. Ours is a lighting company registered under the Companies Act. This is our head office in Mumbai. We have factories in Dubai and Mumbai. Are the rules for office staff and factory staff different? Kindly update, sir.

Dear colleague,

Obviously, Dubai laws will apply to those employees working there. You may extend the same leave policy as Mumbai for the sake of uniformity and if it is of mutual benefit.

Regards,
Vinayak Nagarkar
HR Consultant

Dear Anmol,

Just to add further, the office staff and factory workers in Mumbai are treated differently for leave. Factory workers are governed by the Factory Act, and staff are governed by the Shops Act.

Regards,
Vinayak Nagarkar
HR Consultant