Loss of Pay / Leave of Absence

Hello everyone :slight_smile:

I would like to know if there is a specific mention in the India Labor law regarding Leave of absence or Loss of Pay with regards to the following:

  1. Duration
  2. Reason
  3. Compensaiton (if any)
  4. Will PF and other benefits aside from salary continue
  5. Requirements when rejoining

Thank you for your inputs


Hey @Ludy ,

In India, labor laws do not specifically address “Leave of absence” or “Loss of Pay” as separate categories. However, various statutes and regulations govern different aspects related to employee absence. Here’s a breakdown of these aspects:

  1. Duration:
  • The duration of leave can vary based on the company’s policies, employment contracts, and statutory regulations. For instance, the Maternity Benefit Act provides for maternity leave for eligible employees for a specified duration.
  1. Reason:
  • Reasons for leave can range from sickness, maternity, personal emergencies, to other statutory entitlements like earned leave, casual leave, etc.
  1. Compensation (if any):
  • Generally, if an employee takes authorized leave, they may receive compensation as per their employment terms. However, for loss of pay situations, there may not be compensation unless otherwise specified in employment contracts or company policies.
  1. PF and other benefits aside from salary:
  • During authorized leave, employees might continue to receive statutory benefits like Provident Fund (PF), depending on the company’s policies and the nature of the leave. However, for loss of pay situations, benefits might be impacted based on company policies and applicable regulations.
  1. Requirements when rejoining:
  • Employees may need to follow specific procedures when rejoining after a leave of absence or loss of pay, such as providing a medical fitness certificate (if applicable), notifying the employer within a specified period, etc. These requirements can vary based on company policies and statutory regulations.

It’s crucial for employers and employees to refer to applicable employment contracts, company policies, and relevant labor laws to understand rights, obligations, and entitlements concerning leave of absence or loss of pay situations.



Dear @spriya ,

Thank you for the comprehensive reply.

Follow up situation:
A blue collar employee applied for an LOP for already 2 months, company policy is silent on this, his line manager claimed he is sick but does not want to produce a medical certificate


  1. can the employer require the employee to submit a fit to work certificate before he can start? If yes, is there any written law or guideline on it.
  2. If he still continue to be on LOP - until how many LOPs can he apply (company policy is silent on this as well)

Thank you again :slight_smile:


Hey @Ludy ,

In the situation described, the employer can indeed request the employee to submit a fit-to-work certificate before allowing them to resume work, especially if the employee has been on a prolonged leave of absence. While there might not be a specific written law or guideline mandating this requirement, it is a common practice in many organizations to ensure that employees are medically fit to perform their duties safely and effectively.

As for the duration of leave without pay (LOP) that an employee can apply for, in the absence of specific company policies addressing this issue, it generally depends on various factors such as the nature of the employee’s contract, applicable labor laws, and any collective bargaining agreements in place. In India, labor laws such as the Shops and Establishments Act or the Industrial Employment (Standing Orders) Act may provide some guidance on leave entitlements, but they may not specify a maximum limit for LOP.

However, it’s essential for the employer to communicate clearly with the employee regarding the terms and conditions of the leave, including the expected duration and any requirements for resuming work. If the employee continues to be on LOP beyond a reasonable period, the employer may need to assess the situation on a case-by-case basis and take appropriate actions, such as seeking further medical documentation or discussing alternative arrangements with the employee.

Hope this helps.



Dear @spriya ,

Thank you for this.

Appreciated :slight_smile: