Earned & Casual Leave in India

Q 1: How many leaves should be applicable in a company?

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 States shop
and establishment act.
Generally all State Legislations has common provision for major matters. They provide at least
seven holidays for national and other festivals. Republic day, Independence Day and Mahatma
Gandhis birthday are compulsory holidays. Employer and Employees had given right to decide
remaining national and festival holidays.
Similarly minimum seven days casual leave and 14 days sick leave is provided to employees.
Earned leaves/ Privilege leaves : These are the leaves which are earned in the previous year and
enjoyed in the preceding years. These are also known as privilege leave this can be carry forward
for the quatum upto the total of three years and vary from state to state as per the shop &
establishment act. These are encashable on basic salary to the employee. the condition for taking
these leaves usually differ from company to company but normally in advance atleast 15 days. this
can be clubbed with sick leave if sick leave is not balance with the employee.
Casual Leave: These leave are granted for certain unforeseen situation or were you are require to
go for one or two days leaves. In case of casual leave normally company's strict maximum to 3 days
in a month. In these case either the person has to take the permission in advance or has to be
regulated on joining. this leave is normally never clubbed with Privilege leave, but it can be clubbed
with sick leave if there is is no sick leave balance. Again quantum var from state to state as per shop
& establishment act, normally this leave is not encashable or never carried forward. these days to
attract people or to reduce absenteeism at the end of the year the balance Casual leave in
converted to PL in the leave account.
Leave without pay: If person do have any leave to his balance and the situation warrants him to
take the leave, the leave is granted by the Company as loss of pay or which may be adjusted
against the future leave or as a special case the special paid leave based on the person contribution
to the Company at management discretion.
Compensatory off: These leave are granted if the person come on work during the holidays,
normally compensated as leave to be taken or as an encashable option.
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.

LEAVE IN ESTABLISHMENTS COVERED UNDER THE FACTORIES ACT

Leaves as per Factories Act applies to all Management Staff, Executives, Supervisors, workers and
contract workers as all of them fall under the definition of worker under the Factories Act.

Type of Leave

Privileged / Earned

Casua
l

Sic
k

Maternity

Quantum per
year

1 day leave for every 20 days worked in the

previous year (Eg. 300 days worked = 15 days
leave)

Nil

Nil

As per ESI Act OR

Maternity Benefits Act

Entitlement

On working 240 days in the first previous year

NA

NA

NA

Utilization

To apply for leave 15 days prior. Leave not to be

availed more than 3 times a year

NA

NA

NA

Carry
Forward

Not more than 30 days

NA

NA

NA

Other provisions
1. If the Employee has quit or has been terminated, his earned leave balance should be paid to
the employee and in case of death, to the nominee, within 2 days.
2. Any worker who has applied for leave and has not been granted the same, such refused
leave shall be carried forward without any limit.
3. Leave can be calculated on Basic wages and DA.
4. Leave book & Leave Register to be maintained for each worker
LEAVE IN ESTABLISHMENTS COVERED UNDERTHE SHOPS AND ESTABLIHMENTS ACT
Shops and Establishments Act provides for provisions of leave for the employees. The said Act is
framed by each State on its own and therefore would be different in its provisions. Therefore, a table
has been designed to collate provisions of leave as applicable to each State separately.
ANDHRA PRADESH SHOPS AND ESTABLISHMENTS ACT, 1988

Type of Leave

Privileged
Leave/ Earned
Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per
year

15 days

Not exceeding 12
days

Not exceeding 12
days

Wages for 6 weeks

preceding delivery and 6
weeks after delivery of the
period of leave

Entitlement

On working
240 days in a
year

During 12 months of
service and
subsequent 12

During 12 months of
service and
subsequent 12

For every woman who has

completed 6 months or

Accumulation

45 days in 3
years

months

months

more service

Not allowed

Not allowed

Not allowed

ASSAM SHOPS AND ESTABLISHMENTS ACT, 1971

Type of Leave

Privileged Leave/
Earned Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per
year

16 days after 12
months continuous
employment

12 days for 12
months service

12 days for 12
months service

Provisions of
Maternity Benefits
Act, 1961 to apply

Entitlement

On working 240 days

in a year

During 12 months of
continuous
employment

During 12 months of
continuous
employment

Accumulation

Maximum of 30 days

Not allowed

Not allowed

BIHAR SHOPS AND ESTABLISHMENTS ACT, 1953

Type of Leave

Privileged Leave/ Earned Leave

Casual
Leave

Sick
Leave

Maternity Leave

Quantum per
year

1 day leave for every 20 days worked in the

year

12 days

12 days

Provisions of
Maternity Benefits
Act, 1961 to apply

Entitlement

6 days after working for 120 days in 4

months.

During
the year

During
the year

Not
allowed

Not
allowed

Entitlement is Minimum 80 days

Accumulation

Maximum of 45 days. If employee has 45

days of leave to his credit and is refused
leave then such period of refused leave is to
be encashed

Computation

All holidays falling at the end of middle of the leave period shall not

be computed.

BOMBAY SHOPS AND ESTABLISHMENTS ACT, 1948

Type of Leave

Privileged Leave/ Earned Leave

Casual
Leave

Sick
Leave

Maternity Leave

Quantum per
year

21 days on working 240 days in a year

Nil

Nil

Provisions of
Maternity Benefits
Act, 1961 to apply

Entitlement

5 days after 3 months on completion of

60 days working in that period

Nil

Nil

Accumulation

42 days

Nil

Nil

Computation

Suffixed or prefixed holidays to the leave period shall not be

accounted as leave. Holidays or Sundays falling between the period
of leave shall be treated as leave

DELHI SHOPS AND ESTABLISHMENTS ACT, 1954

Type of Leave

Privileged Leave/ Earned

Leave

Casual Leave

Sick Leave

Maternity
Leave

Quantum per
year

15 days

12 days casual-cum-sick leave

Entitlement

5 days after 3 months on

completion of 60 days working
in that period

Not less than 1 day for every completed

period of 1 month (casual-cum-sick leave)

Accumulation

45 days maximum of 3 years

Not allowed

No
provisions

Not allowed

J&K SHOPS AND ESTABLISHMENTS ACT, 1966

Type of Leave

Privileged Leave/ Earned

Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per
year

15 days

14 days every year

Nil

Entitlement

On working 240 days in a year

During the year

Nil

Accumulation

Maximum of 3 months

Not allowed

Nil

Computation

Suffixed or prefixed holidays and Sundays to the leave period shall

not be accounted as leave. Holidays or Sundays falling between the
period of leave shall be treated as leave

Provisions of
Maternity Benefits
Act, 1961 to apply

KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1961

Type of Leave

Privileged Leave/ Earned Leave

Casual
Leave

Sick Leave

Maternity Leave

Quantum per
year

20 days (1 leave for every 20 days) on

working 240 days in a year

12 days on
Medical
grounds

Provisions of
Maternity Benefits
Act, 1961 to apply

Entitlement

On working 240 days in a year. On

joining mid year, he will be entitled to
2/3 of the remaining period during the
year

Maximum of 30 days

Not
allowed

Not allowed

rd

Accumulation

KERALA SHOPS AND ESTABLISHMENTS ACT, 1960

Type of Leave

Privileged Leave/ Earned

Leave

Casual
Leave

Sick Leave

Maternity Leave

Quantum per
year

12 days after 12 months

continuous service

12 days

12 days (plus sterilization

operation 6 days for
men and 14 days for
women)

Provisions of
Maternity Benefit
Act, 1961 to apply

Entitlement

All holidays and Sundays

falling at the end or in between

the period of leave shall not be
counted as leave
Accumulation

24 days in 2 years

Not
allowed

Not allowed

MADHYA PRADESH SHOPS AND ESTABLISHMENTS ACT, 1948

Type of Leave

Privileged Leave/ Earned Leave

Casual
Leave

Sick Leave

Maternity Leave

Quantum per
year

30 after 12 months continuous employment

14 days

Nil

Provisions of
Maternity Benefi
Act, 1961 to appl

Entitlement

5 days after 3months employment on

completion of of 60 days working in that
period

During the
year

Nil

Accumulation

90 days in 3 years

Not allowed

Not
allowed

Annexation

No annexing of casual leave allowed with privileged leave. Suffixed or

prefixed holidays and Sundays to the leave period shall not be accounted
as leave. Holidays or Sundays falling between the period of leave shall
be treated as leave

ORISSA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1956

Type of Leave

Privileged Leave/ Earned

Leave

Casual
Leave

Sick
Leave

Maternity Leave

Quantum per
year

20 days (1 leave for every 20

days) on working 240 days in
a year

15 days on
medical
grounds

Entitlement

On working 240 days in a

year. On joining mid year, he
will be entitled to 2/3 of the

Every woman who has put in

continuous employment of 6 month
or more shall be entitled for 6 week
of leave preceding delivery and 6
weeks after delivery

rd

remaining period during the

year
Accumulation

30 days in case employee has

30 days privileged leave to
his credit and if its refused
then it can be allowed to be
extended

Not
allowed

Not
allowed

Computation

Holidays or Sundays suffixed or prefixed or falling in

between the period of leave shall not be treated as
leave

PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1958

Type of Leave

Privileged Leave/
Earned Leave

Casual
Leave

Sick Leave

Maternity Leave

Quantum per
year

1 leave for every 20 days

worked

7 days

7 days

Entitlement

After 20 days of
continuous employment

During the
year

During the
year

Every woman who has put in

continuous employment of 6
months or more shall be entitled fo
6 weeks of leave preceding deliver
and 6 weeks after delivery

Accumulation

30 days

Not allowed

Not allowed

Annexation

Suffixed or prefixed holidays and Sundays to the leave

period shall not be accounted as leave. Holidays or
Sundays falling between the period of leave shall be
treated as leave

Haryana State to refer to Punjab Shops and Establishments Act.

RAJASTHAN SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1958

Type of Leave

Privileged Leave/ Earned Leave

Casual
Leave

Sick
Leave

Maternity Leave

Quantum per
year

1 days leave for every 120 days

worked on working 240 days in a

Every woman who has put in

continuous employment of 6 months

year. If employee has joined at

some other time and has worked
atleast 2/3 of the year and then he
too shall be eligible.

or more shall be entitled for wages a

7/12 the rate of wages drawn for 6
weeks of leave preceding delivery
and 6 weeks after delivery

rd

Accumulation

30 days

TAMILNADU SHOPS AND ESTABLISHMENTS ACT, 1947

Type of Leave

Privileged Leave/
Earned Leave

Casual
Leave

Sick
Leave

Maternity Leave

Quantum per
year

12 days

12 days

12 days

Provisions of Maternity Benefits

Act, 1961 to apply

Accumulation

24 days

Not
allowed

Not
allowed

Uttar Pradesh SHOPS AND ESTABLISHMENTS ACT, 1962

Type of Leave

Privileged Leave/
Earned Leave

Casual
Leave

Sick Leave

Maternity Leave

Quantum per
year

15 days after every 12

months continuous
employment

10 days

15 days

Entitlement

On completion of one
year continuous service

After 6
months of
continuous
service

After 6
months of
continuous
service

Every woman who has put in

continuous employment of 6
months or more shall be entitled
for 6 weeks of leave preceding
delivery and 6 weeks after
delivery as per Maternity Benef
Act

Accumulation

45 days in 3 years. If
employee has 45 days of
leave to his credit and is
refused leave then such
period of refused leave is
to be paid.

Not allowed

Not allowed

WEST BENGAL SHOPS AND ESTABLISHMENTS ACT, 1963

Type of Leave

Privileged
Leave/ Earned
Leave

Casual Leave

Sick Leave

Maternity Leave

Quantum per
year

14 days for every

completed year

10 days. It
cannot be taken
for more than 3
days at a stretch

14 days in
very year
on half pay.

Every woman who has put in

continuous employment of 6 months o
more shall be entitled for 6 weeks of
leave preceding delivery and 6 weeks
after delivery

Entitlement

On completion of
one year
continuous
service

During the year

During the
year

Accumulation

24 days in 2
years