I know in the past a lot of discussions have happened related to the number of leaves in a factory. I have gone through the Factories Act and also the Maharashtra Factories Act, but nowhere is it mentioned about Casual, Sick, and Privilege leaves. It just states that a worker becomes eligible for leave after working at least 240 days in a year. Leave will be credited the next year, i.e., for every 20 days worked, 1 leave will be credited. Now, my management has decided to reduce the number of sick leaves this year. Is this the right practice? Our factory is located in one city, and the head office is in another city. Also, the management has specified that sick leaves would be considered only on hospitalization. Please advise on how to handle this situation.
From India, Mumbai
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In the case of employees working in a manufacturing set up or factories, the only leave available is the Earned leave or privileged Leave, which is referred to as Annual leave with Wages in the Act. There is no provision for granting sick leave and casual leaves. However, if the employees have been receiving CL and SL, then it should be part of the service conditions, and the management cannot reduce it or scrap it without giving notice under Section 9A of the Industrial Disputes Act. Therefore, you can raise a dispute, stating that a change in the service conditions cannot be enforced without taking the workers into confidence.

Employees in your head office, which is covered by the Shops and Commercial Establishment Act, shall receive CL and SL because the Shops Act provides for CL and SL.

From India, Kannur
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  • CA
    CiteHR.AI
    (Fact Checked)-Your understanding of leave provisions under the Factories Act and Industrial Disputes Act is correct. Keep up the good work, your inputs are valuable. (1 Acknowledge point)
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  • In addition to what Madhu said, check the standing orders. It mostly has details of SL and CL required. If it is there, please follow those. If you want to reduce the SL, then the standing orders have to be reduced.

    Again, whether SL will be only for hospitalization will be also specified in Standing Orders. If the employees are under ESIC, then those rules will apply.

    From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Checked)-You're right! Standing orders often detail leave provisions. Changes should follow legal procedures. If under ESIC, its rules apply. Great input! (1 Acknowledge point)
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  • I got the information that although our Head Office is located in another city, we are registered under the Factories Act, so the Shops and Establishment Act will not be applicable to us. I also learned that standing orders are not applicable to us as there are fewer than 100 employees in our company. Experts, I appreciate your responses. Please clarify what needs to be done. As far as ESIC is concerned, we are already following all the rules. What about non-ESIC employees?

    Due to changes in the rules, there is a lot of dissatisfaction among employees.

    From India, Mumbai
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  • CA
    CiteHR.AI
    (Amendment impartial review)-You are correct about the Factory Act & standing orders. However, leaves' reduction can be challenged if it's below the legal requirement. Keep communicating openly!(Reality may align with HUMAN perspective. more research needed.)
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  • I think that was clarified by me in my previous post itself that you cannot get leaves at par with your head office because the head office is covered by Shops Act where there are provisions for CL and SL in addition to PL. Regarding standing orders, many states have separately made rules prescribing it mandatory for establishments with 50 workers. Please go through your state amendment.

    As already pointed out, a privilege or anything that is enjoyed over and above what is allowed under the law is not a right of employees. But at the same time, no employer shall take away any privilege being enjoyed by the employees without taking them into confidence. At the same time, if that privilege is a right conferred to them by means of a settlement or clause under the certified standing order or simply service conditions, whether implied or express, then they can challenge it. The aggrieved employees can challenge the decision of the management.

    Employees covered by ESI will get many benefits, but these benefits cannot be extended by the employer to employees not covered by ESI. The reason is that employees covered under ESI are those who are getting lower salaries, say less than Rs 21,000 per month. In respect of employees getting above this limit, it is expected that they will be able to find better ways to get their medical expenses met either by taking some mediclaim or insurance policies.

    From India, Kannur
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  • CA
    CiteHR.AI
    (Amendment impartial review)-Your input is mostly accurate. However, it's important to note that under the Factories Act, workers are entitled to annual leave with wages, not just after 240 days of work. Regarding sick leave, it varies by state. It's advisable to consult a local labor expert for specifics. Keep contributing!(Reality may align with HUMAN perspective. more research needed.)
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  • Plz refer modal standing order or if u r company has any standing order
    From India, Bengaluru
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  • CA
    CiteHR.AI
    (Fact Checked)-You're right. The Standing Orders Act could be relevant and helpful. Further, sick leave rules may vary as per company policy within legal frameworks. Keep engaging! (1 Acknowledge point)
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