Annual leave with wages

Presented By:

Priti Singh
Sarika Singh
Nikhil Gharat
Application of Chapter
Sec 78(1)The provisions shall not operate to the prejudice of
any right to which the worker is entitled under any other
law/terms of any awards/contract of service.
Provided:
 That such law/contract provide longer annual leave with wages
than provided.
 Quantum of leave shall be in accordance with such law/contract.
 But in relation to matters not provided for in such
law/contract/agreement or matters which are provided for less
favorably therein, the provisions of sec. 79 to 82 so far as may
be, shall apply.
Sec 78(2) The provisions of this chapter shall not apply to the
workers of any railway administered by the Government, who
are governed by leave rules approved by the central
government.
 Annual Leave with wages
Sec 79 (1) Each worker who has worked for the period of 240
days or more in a factory during a calendar year shall be allowed
during subsequent calendar year, leave with wages for a number
of days calculated as
i. If an adult: 1 day for every 20 days work performed in prev. year
ii. If a child: 1 day for every 15 days work performed in prev. year
Explanation 1
Any days of layoffs,
maternity leave(not exceeding 12 weeks),
leave earned in the year prior to that in which leave is enjoyed
Shall be included in the calculation of 240 days or more but
employee will not earn leave for these days.
Explanation 2
Leave under this subsection shall be exclusive of all holidays.
Sec 79 (2) A worker whose service commences otherwise
than on 1st of Jan. shall be entitled to leave with wages as per
clause (i) & (ii) of subsection (1) if he has worked for 2/3rd of
the total no. of days in the remainder of the calendar year.

Sec 79 (3) If a worker is discharged or dismissed from service

or quits his employment or is superannuated or dies while in
service, during the course of the calendar year, he or his heir
or nominee, as the case may be, shall be entitled to wages in
lieu of the quantum of leave to which he was entitled
immediately before his discharge/dismissal/quitting of
employment/superannuation/ death calculated as per the
subsection (1) even if he had not worked for the entire period
specified in subsection (1) or (2) making him eligible to avail
of such leave, such payment shall be made
 i. Where worker is discharged/dismissed/quits employment,
before the expiry of second working day from date of such
discharge/dismissal/quitting.
ii. Where worker is superannuated/dies while in service,
before the expiry of two months from the date of such
superannuation/death.

Sec 79(4) in calculation of leave under this section,

fraction of leave of half a day or more shall be treated as
one full days leave, and fraction of less than half a day
shall be omitted.
Sec 79(5) If a worker does not in any one calendar year take
the whole of the leave allowed to him under subsection (1) or
(2), any leave not taken by him shall be added to the leave to
be allowed to him in the succeeding calendar year.
Provided: No. of days of leave that may be carried forward to
succeeding year shall not exceed 30 in case of an adult or 40
in case of a child.
provided further: a worker who has applied for the leave with
wages but has not been given such leave in accordance with
any scheme laid down in subsection(8)and(9)[or in
contravention of subsection(10)] shall be entitled to carry
forward the leave refused without any limit.