Leave Entitlements in India

 By Ghanavi Umesh

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An employee cannot be expected to work 365 days a year. Allowing employees to take leave from work and being sensitive to their problems is hence important not only for the benefit of the employees but also making the workplace more efficient.

In India, the law allows for leave primarily under three heads: Privileged leave or Earned leave, Casual Leave and Sick Leave. The Shops and Establishments Acts provide for these leave entitlements. It is to be noted that this is not a central statute and as a result different states in India have different number of days under each head. However, it is mandatory that leave under all three heads are provided in each state.

The Shops and Establishments Acts define a commercial establishment as a place where there is a trade or business or any work related to any society, charitable organization, journalistic organizations, quarries, mines, contractors or auditor organizations or where occurs an activity of banking, brokerage, insurance, trade or private educational institutions. An employee working in any of the above establishments is entitled to privileged leave, casual leave and sick leave.

Privileged Leave

This leave is something that an employee earns as a result of his service in his organization. For example, if an employee has worked in a company for two years, he or she might be entitled to 15 days of leave additional to the casual and the sick leave. This is known as privileged leave, which is also known as earned leave.

Casual Leave

This leave can be availed by employees for meeting their personal emergencies for either full day or half day.

Sickness Leave

This leave can be availed by employees for medical reasons as the name suggests. The difference between casual leave and sickness leave is that the former cannot be carried forward whereas the latter can be.


Parental Leave

The Maternity Benefits (Amendment) Act, 2017 increased the previous maternity leave provisions for women from 12 weeks to 26 weeks. Women can now avail maternity leave not more than 2 weeks before the delivery date and the rest of the 26 weeks after the birth of the child. It also provides that such women be protected from dismissal during their leave period and be provided crèche facility (in workplaces with at least 50 employees) and frequent breaks to attend to the child once they get back to work along with an option to work from home after the 26 week period.

While Paternity leave benefits are provided under the law in most countries, it is not legally available in India. Nevertheless, quite a number of organizations in India do provide for paternity leave benefits to new fathers. This makes sure the women are not completely burdened with raising the child in its first few months. The Andhra Pradesh State Government allows for 15 days paternity leave within 6 months of the birth of the child.

In all of the above categories of leave entitlements, the employees are entitled to their payment during the period of their leave. In some case, half payment is done on the days of sickness leaves.


Extraordinary Leave

This leave is granted to regularise unexplained absence of the employee from work and this leave does not require the employer to pay the wages for the leave period. An employee usually takes this leave when he requires a break and takes time off duty.

Study/Sabbatical Leave

This leave is usually granted to employees who have completed a certain number of years in service to undergo in India or abroad for higher studies related to his or her sphere of duty. The employer may make complete or partial payment during the period of study leave.

Quarantine Leave

This has especially gained significance in the current COVID-19 situation. The employer may grant up to 30 days leave if an employee contracts an infectious disease to prevent the spread of the disease to other employees in their workplace if the disease is particularly dangerous.

Leave for Election

The employer must allow an employee to take one day’s leave on the polling day of any General Election or Bye-election to enable him to exercise his constitutional right of voting.

 

In addition to these, all organizations irrespective of whether they are private or public firms, including MNCs are mandatorily required to remain closed on the national holidays i.e. Republic Day (26th February), Independence Day (15th August) and Gandhi Jayanti (2nd October).

 

The Weekly Holidays Act of 1942 provides that all shops and commercial establishments must be closed for one day a week and the employees must be given leave on this day without any deduction or abatement of wages for that day. Such establishments might be required to close for an additional half a day depending on the notification by the state in which they are present. 

 

While the above categories of leave entitlements are those that are guaranteed or recognised by law, there are some categories of leave entitlements which organizations choose to provide for their employees by being sensitive to the needs and problems of their employees.

Bereavement Leave

This leave allows an employee to avail up to 7 days of leave after the death of their close relative (usually is limited to parents, siblings, spouses, children and in-laws) but this varies with the policies adopted by the HR departments of organizations.

Birthday Leave

Bharti Airtel, for example, allows its employees half day leave on their birthdays.


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Ghanavi Umesh is a 2nd year student at National Law University Delhi. She has a keen interest in Constitutional law, Environmental law and Intellectual Property law. She is also interested in Economics and Philosophy. One can either find her reading something or bingeing on a TV show in her leisure time. She also loves painting occasionally.

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