Chapter IV Chapter IV

(1) Every employee who has worked for a period not less than two hundred and forty days in an establishment during a year shall be allowed during the subsequent year, leave with wages for a number of days calculated at the rate of- (i) if an adult, one day for every twenty days of work performed by him during the previous year; (ii) if an adolescent one day for every fifteen days of work performed by him during the previous year. Explanation 1 - For the purpose of this sub-section- (a) any days of lay-off, by agreement of contract or as permissible under the standing orders of an employer; (b) in the case of a female employee, maternity leave for any number of days not exceeding twelve weeks; and (c) the leave earned during the year prior to that in which the leave is enjoyed; shall be deemed to be days on which the employee has worked in an establishment for the purpose of computation of the period of not less than two hundred and forty days but he shall not earn for these days. Explanation 2 - The leave admissible under this sub-section shall be exclusive of all holidays whether occrring during or at either end of the period of leave. (2) An employee, whose service commences otherwise than on the first day of January of a year, shall be entitled to leave with wages at the rate laid down in Clause (i) or, as the case may be, Clause (ii) of Sub-section (1) if he worked for two-thirds of the total number of days in the remainder of the year. (3) In addition to any leave that may be given under Sub-section (1) every employee shall be entitled also during any year to sickness leave not exceeding fifteen days : Provided that sickness leave shall be admissible only after continuous employment for a period of one year : Provided further that the granting of sickness leave shall be subject to such condition as may be prescribed. (4) If an employee is discharged or dismissed from service during the course of a year, he shall be entitled to leave with wages at the rate laid down in Sub-section (1) even if he has not worked for the entire period specified in Sub-section (1) or Sub-section (2) entitling him to earn leave. (4-A) The services of an employee shall not be terminated unless a notice of thirty days for such termination has been given to him or unless, in lieu of notice, the employer has paid to the employee wages for one month calculated at the rate payable on the date of the notice of termination of service : Provided that no such notice or payment of wages in lieu of such notice shall be necessary if the termination of service is made as a measure of punishment or if the termination is under an agreement between the employer and employee concerned, which specifies a date for the termination of service. (5) In calculating leave under this section, fraction of leave of half a day or more shall be treated as one full day's leave, and fraction of less than half a day shall be omitted. (6) If an employer does not in any year take the whole of the leave allowed to him under Sub-section (1) or Sub-section (2), as the case may be, any leave not taken by him shall be added to the leave to be allowed to him in the succeeding year : Provided that the total number of days of leave that may be carried forward to a succeeding year shall not exceed thirty in the case of adult or forty in the case of an adolescent ; Provided further that an employee who has applied for leave with wages but has not been allowed such leave in pursuance of any scheme laid down in Sub-section (9) or (10) shall be entitled to carry forward the unavailed leave without any such limit. (7) An employee may at any time apply in writing to the manager of an establishment not less than fifteen days before the date on which he wishes his leave to begin, to take all the leave or any portion thereof allowed to him during a year : Provided that the number of times leave may be taken during any year shall not exceed three. (8) If an employee wants to avail himself of the leave with wages due to him to cover a period of illness, he shall be granted such leave even if the application for leave is not made within the time specified in Sub-section (7), and in such case, wages as admissible under Section 16 shall be paid not later than fifteen days from the date the leave is availed of. (9) For the purpose of ensuring continuity of work in an establishment, the employer in agreement with the representatives of the employees therein chosen in the prescribed manner, may formulate a scheme in writing whereby the leave allowable under this section, may be regulated. (10) The scheme formulated under Sub-section (9) shall be posted in convenient places in the premises of the establishment and shall remain in force for a period of twelve months and may thereafter be renewed, with or without modification, for a further period of twelve months at a time by the employer in agreement with the representatives of the employees as specified in Sub-section (9). (11) An application for leave which does not contravene the provisions of Sub-section (7) shall not be refused, unless refusal is in accordance with the scheme for the time being in force under Sub-sections (9) and (10). (12) If the employment of an employee who is entitled to leave under Sub-section (1) or Sub-section (2), as the case may be, is terminated by the employer before he has taken the entire leave to which he is entitled, or if having applied for and having not been granted such leave, the employee quits his employment before he has taken the leave, the employer shall pay him the amount payable under Section 15 in respect of the leave not taken, and such payment shall be made, where the employment of the employee is terminated by the employer before the expiry of the second working day after such termination, and where any employee quits his employment, on or before the next pay day. (13) The unavailed leave of an employee shall not be taken into consideration in computing the period of any notice required to be given before discharge, or dismissal. (14) No employee shall be entitled to terminate his employment unless he has given to the employer a notice of not less than thirty days. (15) Where an employee contravenes the provisions of Sub-section (14) he shall be liable to forfeiture of any unpaid wages payable by the employer for a period not exceeding fifteen days.

(1) For the leave allowed to him under Section 14, an employee shall be paid at a rate equal to the daily average of his total full time earnings for the days on which he worked during the month immediately preceding his leave, exclusive of any overtime and bonus but inclusive of dearness allowances and the cash equivalent of the advantage accruing through the concessional sale to the employee of foodgrains and other articles. (2) The cash equivalent of the advantage accruing through the concessional sale to the employee of foodgrains and other articles shall be computed as often as may be prescribed oh the basis of the maximum quantity of foodgrains and other articles admissible to a standard family as hereinbefore referred to in the Explanations to Sub-section (3) of Section 8. (3) For the purpose of this section the provisions of Sub-section (4) of Section 8 shall apply mutatis mutandis.

An employee who has been allowed leave for not less than four days, in the case of an adult, and five days in the case of an adolescent shall, before his leave begins, be paid the wages due for the period of leave allowed.

Any sum required to be paid by an employer under this Chapter but not paid by him shall be recoverable as 'delayed wages' under the provisions of the Payment of Wages Act, 1936 (IV of 1936).

The State Government may make rules directing employers to keep registers containing such particulars as may be prescribed and requiring the registers to be made available for examination by the Inspector of the area concerned and the Chief Inspector.

Where the State Government are satisfied that the leave rules applicable to employees in an establishment provide benefits which in their opinion are not less favourable than those for which this Chapter makes provision, they may, by written order, exempt the establishment from all or any of the provisions Of this Chapter, subject to such conditions as may be specified in the order.