Factory Act / Leave Records

Factory Act / Leave Record Services Provided By – Provident Funds Consultant

Services We Provide

  • Monthly Leave Record
  • EL Register
  • CL Register
  • S L Register
  • OT Register
  • Fines Register
  • Damages & Deduction Register
  • Also Yearly Leave Encasement for Employee Record.

Employees, across all industries in India, entitled to 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 under in Factory Act also in States shop and establishment act. Every state has different leave entitlement and leave policies which actually the base for leave policy of your company. In India, three types of leaves are generally followed namely Earned leaves, Sick leaves and also Casual leaves. An employee can avail these leaves without loss of pay.

Casual leave:

Casual Leave provide to take care of urgent and unseen matters like child has fallen down in school or you get call from school.

Sick leave:

Sick Leaves provided in case employee gets sick.

Privilege leave or Earned Leave

Is provided for planned long leaves for the purpose of travel, vacation etc.

General Overview of Leaves:

Commencement of Leave Period is calendar year i.e. 1st January to 31st December every year.  All regular employees entitled to around 27 days leave in a year. Holiday List provided to the employees at the beginning of the calendar year. Generally all State Legislation has common provision for leaves usually.

Employee need to apply for each leave and take approval except in cases where approval could not be taken in advance. For Example, in case of 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.

Types of leaves

Sick Leave/Medical Leave:

Sick leave actually the leave that an employee can avail when he suffer from illness.

S L ( Sick Leave ) can be taken for minimum 0.5 to maximum 7 days (paid).

At the end of calendar year any available sick leave will lapse automatically.

For all absences exceeding 2 or 3 days, depending on company policy, usually medical certificate needs to be enclosed.

As per Factory Act Sick Leave can be appended with Earned Leave.

For new joiner & resigned employees one gets prorated sick leave.

Casual Leave:

Casual Leave (CL) granted for certain unforeseen situation. CL can acquire to go for one or two days leaves to attend personal matters and not for vacation. In case of casual leave normally company strict with maximum to 3 days in a month. In such cases the person has to take the permission in advance.

Casual Leave can be taken for minimum 0.5 to maximum 3 days. In case of more than 3 days leave, it should be taken as Earned/Privileged Leave. If taking 3 leaves together need to apply before.

As per the rules under The Shops and Establishment Act, you are entitled to 6 days of Casual Leave

There are no casual leave carry-forwards. At the closing day of year any unused Casual Leaves will lapse automatically.

Casual leave is not cash-able. At the end of the year unused Casual Leaves lapse automatically.

Cannot be appended with Earned/Privileged Leave or Sick Leave

For new joined or person who has resigned Casual leaves are on Pro rate basis. If you have joined during the middle of the year say Jul 1, your casual leave will half (pro-rated) from the date you start employment through December 31 of that calendar year.

Earned Leave or Privilege leave:

Earned Leave calculates on a month on month basis for the calendar year. EL credited in the beginning of Calendar Year to every employee’s account. Entitlement of earned leave proportional to the number of months worked. For example Based on company policy, for every month completed in the company 1.25 days will be credited to the employee’s entitlement.

If you have joined during the middle of the year, your earned leave will be pro-rated from the date you start employment through December 31 of that calendar year.

For employees who resign, their leaves entitlement would be calculated pro rated i.e. till their last day of work. Any excess leave taken would be adjusted in Full & Final Settlement.


What is difference between Earned Leave and Privileged Leave?

Although the nature and purpose of both Privilege Leave (PL) and Earned Leaved (EL) are same. However, applicability differs in terms of minimum allotment and act which covers them.

Under Factory Act such leaves called Earned Leave (EL) and under Shops & Est. Act the same leaves called Privilege Leave (PL).

Another difference is how many leaves are allotted under this category. Under Factory Act,

1 EL for every 20 days of work (18 per year) and on the other hand under S&E Act 5 PL for every 4 months work (15 per year)


The average number of workers employed daily should be calculated by dividing the aggregate number of attendance on working days.

Man-days worked by the number of working days in the year. In reckoning attendance, attendance by temporary as well as permanent employee should be counted. Also all employees should be included, whether they are employed directly or under contractors.  Attendance on separate shifts (e.g. night and day shifts) should be counted separately. Days  on which the factory was closed  for  whatever  cause, and days on which the manufacturing processes not carried on should not be treated as working days. Partial  attendance for less than half a shift on a working day  should  be ignored. While  attendance for half a shift or more on such day should be treated as full attendance.


Seasonal Factories

  1. For seasonal factories, the average number of workers employed during the working season and the off-search should be given separately. Similarly the number of days worked and average number of man-hours worked per week during the working and off-season should be given  separately.
  2. The average number of hours worked per week means the total actual hours worked by all workers during the year excluding the rest intervals but including overtime work divided by the product of total number of workers employed in the factory during the year and 52. In case the factory has not worked  for the  whole  year,  the  number of  weeks during which the factory worked  should be  used  in  place of the figure  52.
  3. Every person killed or injured should be treated as one separate accident. If in one occurrence six persons were injured or killed, it should be counted as six accidents.
  4. In item 24(a, the number of accidents which took place during the year should be given. In case of non-fatal accidents only these accidents which prevented workers from working for 48 hours or more, should be indicated.