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- Employees, across all industries in India, are entitled to a certain number of leaves per year aside from the holidays and days off. The number and type of leave depends on the industry,employer and state you are in under the Factories Act and State’s shop and establishment act.
- Every state has different leave entitlement and leave policies which is basis for leave policy of your company. In India, three types of leaves are generally followed namely earned leave, sick leave and casual leave which an employee can avail without loss of pay.
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- Casual leave is provided to to take care of urgent and unseen matters like child has fallen down in school and you get call from school.
- Sick leave is provided in case employee gets sick.
- Privilege leave or Earned Leave is provided for planned long leaves for the purpose of travel, vacation etc.
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- Commencement of Leave Period is calendar year i.e 1st January to 31st December every year. All regular employees are entitled to around 27 days leave in a year.
- Holiday List is provided at the beginning of the calendar year. Generally all State Legislations has common provision for leaves usually at least seven holidays for national and other festivals. Republic day, Independence Day and Mahatma Gandhi’s birthday are compulsory holidays.
- Employer and Employees can decide remaining national and festival holidays. Hence Diwali holiday in Karnataka is usually on Narak-Chaturdashi(second day) while in Delhi it is on Laxmi Pooja day. Minimum 7 days casual leave and 14 days sick leave is provided to employees.
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- Employeeneed to apply for each leave and take approval except in cases where approval could not be taken in advance usually for casual or sick leaves. Grant of leave shall depend upon the policies of the workplace and is at the discretion of the manager/management. There is no set rule for which leave to be approved and not approved. Employer can refuse the leave application, if not satisfied with the reason of leave. It depends from reason to reason, manager to manager.
- Prorate means in proportion. For new joinee & resigned employees one gets pro rated leaves. So if one works half a year, one is entitled to just half of leaves.
- Usually All leaves with pay are excluding weekly off and holidays. For example if an employee take leave from Saturday to Monday where Sunday is weekly off then Sunday should not be counted as leave.
- Hence only 2 leaves should be counted. 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. But then it depends on the Shop and Establishment Act of the state.