Leave and Working Hours
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In India, leave and working hours are subject to various labor laws and regulations, which can vary depending on the state, but the Shops and Establishments Act and the Factories Act provide a basic framework for leave and working hours. Many employers also offer additional types of leave and flexible working arrangements.
Attendance Management System
Attendance refers to the act of being present or available at a particular place, especially in the context of work. Attendance is recorded using various methods, such as manual sign-in sheets, electronic card swipes, biometric systems, or digital applications. These records help organizations keep track of the presence or absence of individuals. Maintaining accurate attendance records is essential to ensuring compliance with work and facilitating payroll processing. It also highlights instances of absenteeism, which can be planned (such as approved leaves) or unplanned (due to illness or emergencies). Managing absences effectively is crucial for maintaining productivity and minimizing disruptions.
Attendance data can be used for reporting and analysis, helping organizations identify trends, patterns, and areas where improvement may be needed. It can also be used for performance evaluation and salary calculations. Automated attendance systems can reduce the administrative burden of manual attendance tracking, improve accuracy, prevent worker time-theft, and provide real-time data for decision-making. You can use ERP based software like SAP, Workday, Oracle, Keka etc. or you can also manage your attendance on Excel in the case of small organizations.
Abbreviation can be used for Manual Attendance Management in Excel.
| SR No | Abbreviation | Full Form |
| 1 | P | Present |
| 2 | A | Absent |
| 3 | CL | Casual Leave |
| 4 | SL | Sick Leave |
| 5 | PL | Privilege /Earned/Annual Leave |
| 6 | PH | HO | Public Holiday |
| 7 | WO | Week off |
| 8 | HDCL+HDP | Half Day CL + Half Day Present |
| 9 | HDSL+HDP | Half Day SL + Half Day Present |
| 10 | HDPL+HDP | Half Day PL + Half Day Present |
| 11 | HDA+HDP | Half Day A + Half Day Present |
| 12 | ML | Maternity Leave |
| 13 | BL | Bereavement Leave |
Working Hours:
The working hours in India are regulated by the Factories Act 1948 and the Shops and Establishments Act, which is enacted by each state in India.
Working hours refer to the specific time duration during which employees are expected to be actively engaged in their job duties. These hours are set by employers and can vary widely depending on the industry, company policies, shift, and local labor laws. The normal working hours are 8 or 9 hours per day depending on the state, typically from 9:00 AM to 5:00 PM, with an hour for lunch or breaks. However, working hours can vary in different shifts and may include night shifts work, or weekend work. totaling 48 hours in a week.
Normal Working Hours:
Under the Factories Act 1948 & The Shops and Establishments Act which varies from state to state, entitles employees to a weekly rest day and a maximum of 8 or 9 Hours of work per day as per state but cannot exceed 48 hours in a week with a rest interval of at least half an hour after every 5 hours of work.
Interval Hours for Rest:
According to the Factories Act 1948 & The Shops and Establishments Act, employees are entitled to a rest interval of at least half an hour after every 5 hours of work. The rest interval can be taken in one or more breaks.
Spread Over Hours:
The spread over hours as per the Shops and Establishments Act and the Factory Act are as follows:
According to the Factories Act 1948 & The Shops and Establishments Act, the spread over hours as per the Shops and Establishments Act vary from state to state and can be 10 to 12 hours per day as per state, including the rest interval. This means that an employee cannot work for more 10 or 12 Hours in a day as per state, even if they take breaks throughout the day.
Overtime:
If an employee works beyond the standard working hours, they are entitled to receive overtime pay, which is higher than their regular wage. Overtime rates can vary, but it is usually twice the ordinary rate of wages.
Maximum Overtime:
The Max over hours as per the Shops and Establishments Act & Factory Act vary from state to state. It can be 2 hours per Day,12 hours per Week, 50 hours per Quarter, 150 hours per Year depending on State Rule.
Leave Management
Leave management is the process of tracking and managing employee leave requests and approvals. It is an important part of any organization, as it helps to ensure that employees are able to take the time off that they need, while also ensuring that the business continues to operate smoothly.
There are a number of different ways to manage leave. Some organizations use a manual system, where employees submit leave requests to their manager and the manager then approves or rejects the request. Other organizations use a leave management software system, which automates the leave request and approval process.
Benefits of Leave Management:
- Improved efficiency and accuracy: Leave management systems can help to streamline the leave request and approval process, making it more efficient and accurate.
- Reduced workload for HR staff: Leave management systems can reduce the workload on HR staff, as they automate many of the tasks involved in managing leave.
- Improved visibility and reporting: Leave management systems can provide visibility into employee leave patterns and trends, which can be used to improve workforce planning and decision-making.
- Improve work-life balance: Employees can take the time off that they need to recharge and spend time with their loved ones.
- Reduce turnover: Employees who are satisfied with their work-life balance are less likely to leave the company.
- Reduce stress and burnout: Employees are less likely to feel stressed and burned out if they are able to take regular leave.
- Improve morale and productivity: Employees who feel valued and supported by their employer are more likely to be happy and productive.
- Reduce absenteeism: Employees are less likely to take sick leave if they are able to take regular leave to recharge and spend time with their families.
Benefits of Leave Management:
Leave policies in India vary from state to state, but Most employees are entitled to these types of leave.
Paid Leave
Annual Leave (PL):
PL a type of paid leave that is granted to employees based on Prorate based according to leave credit system. PL days are versatile and can be utilized for various purposes, including vacations, personal commitments. The allocation of PL days per year varies across states within the range of 15 to 30 days. Employees are required to give their employer advance notice before taking PL leave.
Furthermore, PL days can either be carried forward to the following year or be subject to encashment, with a cap on the number of days that can be carried over. For example, an employee may be allowed to carry forward up to 45 PL days to the next year.
Sick Leave (SL):
Employers are generally required to provide paid sick leave which can be availed by an employee for unforeseen or medical sickness requirements. The allocation of PL days per year varies across states within the range of 6 to 12 days on pro-rata based according to leave credit system. Medical certificate is required from employee if the medical leave is more than 1 days subject to the company leave policy.
Casual Leave (CL):
This is a leave type meant for a short period, which can be availed by an employee for urgent hours or emergency unforeseen or casual requirements. The allocation of PL days per year varies across states within the range of 6 to 15 days on pro-rata based according to leave credit system.
Maternity Leave:
Maternity leave is a workplace benefit that provides expectant mothers with paid time off from work to give birth and care for their newborn child. The duration of maternity leave up to a maximum of 26 weeks paid leave (including weekends & public holidays) according to the Maternity Benefit Act 1961 & ESI Act 1948,
Compensatory Off (Comm Off):
A compensatory off, commonly known as “comp-off,” is a form of compensation provided to employees for working beyond their regular working schedule during holidays or week off for their additional work. Compensatory offs are intended to reward employees for their dedication and help maintain a healthy work-life balance. The availability and terms of comp-offs can vary by company policies.
Unpaid Leave (UPL | LWP | UPL)
Unpaid leave refers to a period during which an employee is granted time off from work by their employer but does not receive regular salary or wages for that duration. During unpaid leave, the employee is typically not obligated to perform job duties. Unpaid leave can be either voluntary, where an employee requests time off without pay, or it can be approved by the employer for specific reasons, such as personal emergencies, extended vacations. The duration of unpaid leave can vary from a few days to several weeks or months, depending on the circumstances and employer policies. Unpaid leave can provide flexibility for employees to address personal or family needs while preserving their employment status.
If an employee has consumed more than allotted leaves, there is Leave Without Pay or Unpaid Leave. If a leave request is rejected by the Immediate Manager and still the employee is absent on the same day, it will be considered as Loss of Pay or disciplinary action in severe cases.
In addition to these types of leave, employees may also be entitled to Special leave:
Some organizations may provide special leave for specific purposes. Special leave is a type of leave that is granted to employees in exceptional circumstances. It is typically granted to employees who need to take time off work for reasons that are beyond their control, such as a serious illness or a family emergency.
Special leave is not typically covered by The Shop Act & The Factory Act. Instead, it is granted at the discretion of the employer. Some examples of Special Leave are given below:
Bereavement or Compassionate Leave
Bereavement or compassionate leave is a type of leave granted to employees to cope with the loss of a close family member or loved one. This leave is designed to provide employees with the time and support needed to deal with the emotional and practical aspects of grief and mourning. The duration of bereavement leave varies widely, with most policies offering a few days to a week of paid or unpaid leave, depending on the circumstances and employer policies.
Paternity Leave
Paternity leave allows fathers or partners to be actively involved in the care for a newborn or recently adopted child and upbringing of their child during the critical post-birth period. It recognizes the importance of a father’s or partner’s involvement in the early stages of a child’s life and promotes a work-life balance. The duration of paternity leave varies by country, employer, and local regulations. It typically ranges from a few days to several weeks. In India Center Gov provide 15 days Paternity leave to their employees. In Private sector it is totally depends on company discretion.
Marital Leave | Wedding Leave
Marital leave is designed to enable employees to focus on their wedding preparations and celebrations without the added stress of work responsibilities. The duration of marital leave can vary from one or more days, depending on the employer’s policies and local regulations. It is typically a short-term leave.
Loyalty Leave
Organizations use the term “loyalty leave” colloquially to refer to additional paid time off or a special form of recognition given to long-serving employees as a way to acknowledge and reward their dedication and loyalty to the company. The duration of loyalty leave may vary, with some companies offering an extra day or more of paid time off for each year of service. Eligibility for loyalty leave is often based on the length of an employee’s service with the company. Long-term employees who have reached a certain milestone, such as 5, 10, or 15 years of service, may become eligible.
Sabbatical Leave
Sabbaticals are designed to allow employees to take a break from their regular work duties to focus on personal or professional growth, research, education, or other non-work-related pursuits. The duration of a sabbatical can vary widely, ranging from a few months to a year or more. The specific length often depends on the employer’s policies and the nature of the sabbatical. Eligibility for sabbatical leave may be based on an employee’s length of service with the organization. Some employers require employees to have worked for a certain number of years before becoming eligible for a sabbatical.
House Shifting OR Relocation or Moving Leave
House shifting leave is designed to help employees address the practical aspects of relocating their household, which can be a time-consuming and stressful process. This leave is intended to provide employees with the necessary time to manage the logistics of their move, such as packing, unpacking, and settling into their new home, without disrupting their work commitments. The duration of house shifting leave can vary depending on the employer’s policies. It may be a day or two, a week, or longer, depending on the circumstances and the employee’s needs.
Anniversary Leave OR Celebration Leave
Anniversary leave is designed to allow employees to celebrate personal milestones and important life events without the worry of work-related commitments. Eligibility for anniversary leave may vary by employer and may depend on factors such as the length of an employee’s service with the company, the type of milestone being celebrated, and the company’s policies. The duration of anniversary leave can vary. Some employers may provide a single day off, while others may offer a longer period, such as a week, for employees to celebrate and enjoy their special occasion.
Birthday Leave
Birthday leave is intended to allow employees to mark their birthdays without the need to work. It acknowledges the significance of personal milestones and promotes work-life balance.
Mensuration Leave
Menstruation leave is designed to recognize and accommodate the physical and emotional discomfort that some individuals may experience during their menstrual periods. It aims to promote gender equality, support women’s health, and reduce absenteeism due to menstrual-related issues. The duration of menstruation leave is typically limited to a specific number of days per menstrual cycle. The exact number of days may vary depending on company policies.
Foundation Day Leave
Foundation day leave” typically refers to a day off or holiday granted to employees or an organization’s members to celebrate the anniversary of the foundation or establishment of that organization. Many companies and institutions commemorate their founding day to reflect on their history and achievements.
Family and Medical Leave Act (FMLA):
In the United States, FMLA provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for certain family or medical reasons, including serious health conditions and caregiving.
Jury Duty Leave:
Many companies provide paid time off to employees who are called for jury duty to serve as jurors.
It’s essential to refer to your company’s employee handbook or consult with your HR department to understand the specific types of leaves available to you, how they are accrued or granted, and any eligibility criteria or documentation requirements associated with each type of leave. Additionally, labor laws and leave policies can vary significantly between countries and regions, so it’s important to be aware of the relevant regulations in your location.
Public Holiday
India observes numerous public holidays, and employees are generally entitled to take a paid day off on these occasions. Public holidays are an important part of Indian culture. They provide an opportunity for people to celebrate their traditions and culture, and to spend time with their families and friends. In India, there are three national public holidays, Republic Day (January 26), Independence Day (August 15), Mahatma Gandhi Jayanti (October 2).
In addition to these national holidays, each state in India has its own list of public holidays. These holidays are typically celebrated on days of religious or historical significance.
Weekly off
A weekly off is a day of the week when an employee is not required to work. In India, the Shops and Establishments Act, 1948, requires all employers to grant their employees a weekly off. The Act does not specify which day of the week the weekly off must be on, but typically Sunday is a common weekly off day for many companies. For companies that follow a 5-day workweek, Saturday and Sunday are typically the weekly off days. For companies with 24/7 operations and employees working in shifts, the weekly off day rotates according to a work schedule.
Leave Calander
A leave calendar is a type of calendar that is used to track employee leaves. It can be used to track all types of leave, including paid leave, sick leave, vacation leave, and personal leave.
Leave Calendar can be based on Financial Year from Apr to Mar or Annual Year from Jan to Dec.
Leave Allotment or Leave Credit System
A leave credit system is a system for tracking and managing employee leave. It is typically used by businesses to track employee leave entitlements and balances, and to ensure that employees are taking the leave that they are entitled to take.
There are four types of Leave Credit System
Employees are entitled to credit leave balance, carryforward & Encashment on pro-rate based according to the leave policy. Annual Leave can be Carryforward according to the Shop Act and encashment can either be on Basic & DA or on Gross wages depending upon Company Leave Policy. Other Leave generally laps at the end of leave calendar year.
Absent Rate
The absence rate is the percentage of employees who are absent from work due to any reason against the total strength during a particular period. It is calculated by dividing the number of employees who are absent by the total number of employees and multiplying by 100.
For example, if a company has 100 employees and 10 of them are absent on a given day, the absence rate would be 10%.
Absent Rate = Total Days Lost / (Employee Strength X Average No of Working Days Per Employee) X100
There are several factors that can contribute to the absence rate, including:
Conclusion
The leave and working hours regulations in India are complex and vary depending on the state and the industry. However, there are some general principles that apply to all employees. Employees are entitled to a certain amount of paid leave each year, and they cannot be forced to work overtime. Employers should be aware of the relevant laws and regulations and should implement leave and working hours policies that are fair and equitable for all employees.
| Leave and Working Hours As per Shop & Establishment | |||||||||||
| SR No | State | Sick Leave | Casual Leave | Earned / Privileged Leave | Max Carry Forward / Encashment | Normal Working Hours | Max Hours in Week | Interval For Rest After five hours of work | Maximum Over Time Hours | Spreadover Hours | Rate of OT Wages |
| 1 | Andaman and Nicobar Isla | 12 Days | 12 Days | 15 Days | 45 | 9 Hours Per Day | 48 Hours | 1 Hour | 1 Hour per Day & 50 Hour per Quarter | 12 Hours | Twice |
| 2 | Andhra Pradesh | 12 Days | 12 Days | 15 Days | 60 | 8 Hours Per Day | 48 Hours | 1 Hour | 6 hours in a week | 12 Hours | Twice |
| 3 | Assam | 12 Days | 12 Days | 16 Days | 30 | 8 Hours Per Day | 48 Hours | 1 Hour | 2 Hour per Day & 50 Hour per Quarter | 10:30 Hours | Twice |
| 4 | Bihar | 12 Days (Half-Pay every year) |
12 Days | 18 Days | 45 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 1 Hour per Day & 54 Hour per Quarter, 150 Hours per Year | 12 Hours | Twice |
| 5 | Chandigarh | 7 Days | 7 Days | 18 Days | 30 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 50 Hours per Quarter | 10 Hours | Twice |
| 6 | Chhattisgarh | No provision for sick leave | 14 Days | 30 Days | 90 | 9 Hours Per Day | 48 Hours | NA | 6 Hours in a Week | 12 Hours | Twice |
| 7 | Dadra and Nagar Haveli | 9 Days | 6 Days | 15 Days | 45 | 8 Hours Per Day | 48 Hours | 1 Hour | 6 Hours in a Week | 12 Hours | Twice |
| 8 | Daman and Diu | 9 Days | 6 Days | 15 Days | 45 | 8 Hours Per Day | 48 Hours | 1 Hour | 6 Hours in a Week | 12 Hours | Twice |
| 9 | Delhi | 12 days (Sick leave or Casual leave both combined) |
12 days (Casual leave or Sick leave both combined) |
15 Days | 45 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 6 Hour per Week & 150 Hours per Year | 10 Hours - Commercial Establishment & 12 Hours - Shop |
Twice |
| 10 | Goa | 9 Days | 6 Days | 15 Days | 45 | 8 Hours Per Day | 48 Hours | 1 Hour | 6 Hours in a Week | 12 Hours | Twice |
| 11 | Gujarat | 7 Days | 7 Days | 18 Days | 63 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 125 Hours per Quarter | 10:30 Hours | Twice |
| 12 | Haryana | 7 Days | 7 Days | 18 Days | 30 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 50 Hours per Quarter | 12 Hours | Twice |
| 13 | Himachal Pradesh | 7 Days | 7 Days | 18 Days | 30 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 50 Hours per Quarter | 10 Hours | Twice |
| 14 | Jammu and Kashmir | No provision for sick leave | 14 Days | 30 Days | 90 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 3 Hours per Week | 12 Hours | Twice |
| 15 | Jharkhand | 12 days (Half-Pay every year) |
12 Days | 18 Days | 45 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 6 Hour per Week & 150 Hours per Year | 12 Hours | Twice |
| 16 | Karnataka | 12 Days | NA | 18 Days | 45 | 9 Hours Per Day | 48 Hours | 1 Hour | 50 Hours per Quarter | 12 Hours | Twice |
| 17 | Kerala | 12 Days | 12 Days | 12 Days | 24 | 8 Hours Per Day | 48 Hours | 1 Hour | 50 Hours per Quarter | 10:30 Hours | Twice |
| 18 | Madhya Pradesh | No provision for sick leave | 14 Days | 30 Days | 90 | 9 Hours - Shop 10 Hours - Commercial Esteblisment |
48 Hours | NA | 6 Hours in a Week | 12 Hours | Twice |
| 19 | Maharashtra | No provision for sick leave | 8 Days | 18 Days | 45 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 125 Hours per Quarter | 10:30 Hours | Twice |
| 20 | Manipur | 12 Days | 12 Days | 30 Days | NA | 9 Hours - Shop 7 Hours - Commercial Esteblisment |
48 Hours | 0.5 Hour | NA | 12 Hours | Twice |
| 21 | Meghalaya | 12 Days | 12 Days | 16 Days | 30 | 8 Hours Per Day | 48 Hours | 0.5 Hour | 2 Hours per Day | No Applicable | Twice |
| 22 | Nagaland | 12 Days | 12 Days | 16 Days | 30 | 8 Hours Per Day | 48 Hours | 1 Hour | 2 Hours Per Day & 50 hours Per Quarter | 10:30 Hours | Twice |
| 23 | Odisha | 15 Days | No provision for casual leave | 18 Days | 30 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 1 Hour Per Day & 50 hours Per Quarter | 12 Hours | Twice |
| 24 | Puducherry | 12 Days | 12 Days | 12 Days | 24 | 8 Hours Per Day | 48 Hours | 1 Hour | 2 Hours Per Day & 54 hours Per Week | 12 Hours | Twice |
| 25 | Punjab | 7 Days | 7 Days | 18 Days | 30 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 50 Hours per Quarter | 10 Hours | Twice |
| 26 | Rajasthan | No provision for sick leave | No provision for sick leave | 30 Days | 30 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 1 Hour Per Day & 50 hours Per Quarter | 12 Hours | 1.5 Time |
| 27 | Sikkim | 12 Days | 12 Days | 20 Days | 60 | 9 Hours Per Day | 48 Hours | 1 Hour | 3 Hours in a Week | 11Hours | Twice |
| 28 | Tamil Nadu | 12 Days | 12 Days | 12 Days | 45 | 8 Hours Per Day | 48 Hours | 1 Hour | 6 Hours in a Week | 12 Hours | Twice |
| 29 | Telangana | 12 Days | 12 Days | 15 Days | 60 | 8 Hours Per Day | 48 Hours | 1 Hour | 6 Hours in a Week | 12 Hours | Twice |
| 30 | Tripura | 14 Days | 12 Days | 15 Days | 56 | 8 Hours Per Day | 48 Hours | 1 Hour | 1:30 Hours per Day &120 Hours Per Year | 10:30 Hours | Twice |
| 31 | Uttar Pradesh | 15 Days | 10 Days | 15 Days | 45 | 8 Hours Per Day | 48 Hours | 0.5 Hour | 2 Hours Per Day & 50 hours Per Quarter | 12 Hours | Twice |
| 32 | Uttarakhand | No provision for sick leave | 8 Days | 18 Days | 45 | 9 Hours Per Day | 48 Hours | 0.5 Hour | 125 Hours per Quarter | 10:30 Hours | Twice |
| 33 | West Bengal | 14 Days (Half-Pay every year) |
10 Days | 14 Days | 28 | 8 Hours Per Day | 48 Hours | 1 Hour | 1:30 Hours per Day &120 Hours Per Year | 10:30 Hours | Twice |
