Leave policy for Hyderabad (Telangana) under factories

General Discussions
1

Hi

Could you help me understand the leave policy for Hyderabad under factories

PL/EL

SL

CL

Others

and advise if the management can update the leave policy in case the current policy is not in accordance with the laws.

Best Regards

vijaya

1 Like
3

@vijumahesh :white_check_mark: What the Factories Act provides

  • Under Section 79 of the Factories Act, every worker who has worked for at least 240 days in a calendar year is eligible for “leave with wages” (annual/earned leave).
  • For an adult worker, the entitlement is 1 day of earned leave for every 20 days of work in the previous calendar year
  • For a young worker (child), the leave accrues at a slightly different rate: 1 day per 15 days worked. [India Code+1]
  • Unused earned leave can generally be carried forward to the next year, subject to limits defined in law.
  • If a worker’s employment ends (resignation, dismissal, retirement, death, etc.) before leave is availed, then wages in lieu of earned leave must be paid.
  • Wages during leave are calculated as per the worker’s “average full-time earnings” for recently worked days (excluding overtime/bonus, but including allowances as applicable).

In summary: the “annual/earned leave with wages” — often called “Privilege Leave (PL)” or “Earned Leave (EL)” — is statutorily mandated under the Factories Act for eligible factory workers in Hyderabad/Telangana (subject to qualifying work-days).

:warning: What the Act does not Mandate (or gives discretion on)

  • The Factories Act does not explicitly prescribe separate entitlements for Casual Leave (CL) or Sick Leave (SL) for all factory-workers.

  • That means “CL” or “SL” — or any other types of leave beyond “leave with wages” (earned leave) — are not automatically guaranteed under the Act. Many factories incorporate them through internal leave policy / standing orders / collective agreements.

  • Because of this, the number of CL/SL (if provided) and rules around them (carry-forward, encashment, sickness certificate, eligibility, etc.) usually depend on what the employer defines in policy, as long as it does not contradict statutory requirements.

:memo: Can the Management Update the Leave Policy?

Yes — the management can update or define an internal leave policy to provide CL, SL or other leave categories (or even enhance EL benefits), subject to the following conditions:

  • The policy must not undermine or reduce the statutory minimum entitlement of earned leave (EL) mandated by the Factories Act.
  • For earned leave, the accrual rate (or at least equivalent benefit) should respect the statutory formula (i.e. 1 day per 20 days worked for adults, etc.).
  • If the employer introduces additional leave types (CL/SL/others), the policy should clearly outline eligibility, carry-forward, encashment (if any), application & approval process — and be transparent to workers.
  • If there are “standing orders” or a leave-scheme under the Act (where leave scheduling is regulated to ensure continuity of work), any policy must comply with those procedures — e.g. leave application timelines, agreements with worker representatives/committee (if required), display of leave-scheme, and record-keeping as per law.

In short: internal leave policy can be more favourable (e.g. more leave types or more days of leave) — but cannot be less favourable than what the law provides for earned leave under the Act.

:bullseye: What You Should Do to Confirm

  1. Check whether your establishment is registered under the Factories Act (i.e. is indeed a “factory”). If yes, the statutory earned-leave provisions apply.
  2. Examine the written leave policy or standing orders (if any) to see if the employer has provided for CL, SL or other leaves.
  3. If CL/SL are provided, check if the policy clearly defines their terms — especially carry-forward, encashment of unused leaves, and application process (medical certificate, notice period, etc.).
  4. If the existing policy does not provide CL/SL (or gives fewer leaves than you expect), you may raise the matter with management — politely requesting a revision by emphasising that while EL is guaranteed under law, CL/SL are normally at employer’s discretion.
  5. If you want, you may reference the relevant sections of the Act (e.g. Section 79 — Annual leave with wages) while corresponding with management.