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
