Update your knowledge on Labour Laws:

Leave and holidays

Dr. K. Kuhathasan - CEO: Cenlead

Types of Leave you enjoy

* Weekly Holiday (Rest Days)

Saturday half day, Sunday full day. Some firms operate only for five days and offer two weekly holiday. 52 weeks X 2 days) 104 days

* Poya Day:

One day off in every month - 12 days

* Statutory holiday:

(Mercantile Holidays) also known as Public (Holiday) Eight days in every year.

* Casual leave:

Minimum recommendation Labour Laws seven days annually. Few organizations offer more.

* Annual Holidays:

(Vacation Leave and or sick leave) Minimum recommendation by Labour Laws 14 days. A few firms offer around 20 days.

* Short Leave:

A few firms allow this concession: Two days in a month of one-and a half hours.

* Accident leave:

When an accident takes place while on duty. Number of days recommended by a medical officer.

* No pay Leave:

Number of days taken over and above the stipulated leave.

* Sick Leave:

Although not covered Under Labour laws, a few organizations allow around 10 days for this purpose. Other organizations cover this under casual leave and annual leave.

Statutory holidays under Shop and Office Act

* Every employee shall be entitled to a paid holiday at his ordinary rate of pay on statutory holidays. (Mercantile holidays)

* An employee who is required to work on a statutory holiday will be given a day off in lieu on or before December 31, of that year. In the alternative an extra day’s salary at the ordinary rate of pay for one day’s work in addition to the ordinary rate of pay for that day.

* Each Department or Section will forward a list of the employees who work on Statutory holidays to the HR Manager immediately after the holiday concerned indicating whether lieu leave is to be granted. This list must be copied to the payroll Department for purpose of payment.

* An employee rostered for work shall be treated as if the day is a normal working day in terms of attendance but will be entitled to the weekly holiday or the half holiday will be allowed on another day.

Statutory holidays coinciding with weekly holidays

Where a statutory holiday coincides with what is customarily a weekly holiday or half holiday, that day would be treated as the statutory holiday and the weekly holiday or the half holiday will be allowed on another day.

Example: On February 27, Saturday was a statutory holiday. Most of the organisations declared 26 Friday as a half day holiday.

Similarly, if a statutory holiday falls on a Sunday, that Sunday will be treated as a statutory holiday and the Sunday weekly holiday should be given on another day preferably on the week before or after.

Statutory holidays and weekly holidays coinciding with leave

Where a Shop or Office employee has been allowed leave under the Act and if any day on which he is on leave is either a statutory or weekly holiday, such holiday must be allowed, in addition to the days he is on leave. For instance, if an employee has been allowed 10 days leave and one such day that he is on leave is a statutory holiday, he should be deemed to have utilized only 7 1/2 days from his leave entitlement, in view of the statutory holiday and the 1 1/2 days weekly holiday in that period.

Five-day working week

* Under the Shop and Office Act, the obligation of an employee operating a five day week in terms of the five day week the Law is as follows -

* If a statutory holiday falls on a Saturday and the Saturday had been customarily treated as the weekly half holiday, then the employer must grant only a half day in lieu. No alternative half holiday arises where it is a Poya Holiday that falls on Saturday.

* Where an employee works on the Saturday morning only, he is not entitled to any lieu leave but only to overtime remuneration at 1 1/2 times the normal hourly rate. If he works on the Saturday afternoon which is customarily the weekly half holiday, then he is entitled to 1 1/2 times the normal hourly rate for such work plus a half holiday in lieu.

In the case of manual work categories covered by the decisions of the Wages Boards -

* Where a statutory holiday falls on a Saturday no alternative short working day or holiday is due. The same applies where a Poya Day falls on a Saturday.

* Where an employee is employed on a Saturday he is entitled to one-and-a-half times the normal hourly rate but no lieu leave is due on account of having worked on that day.

Annual holidays

Under the Shop and Office Act, the annual leave includes sick leave as well. The Act provides for 14 days vacation leave (annual leave) and seven days of casual leave.

In respect of his first year of employment (seven January 1 - December 31), an employee is entitled to the following proportionate leave in the following year.

* 14 days if employment commenced on or after January 1 but before April 1

* 10 days if employment commenced on or after April 1, but before July 1

* Seven days if employment commenced on or after July 1, but before October 1

Four days if employment commenced on or after October 1.

Accumulation of annual leave

Accumulation of annual leave is not possible, it is possible only at the time of termination of employment, At the time of the termination of employment, an employee is entitled to:

* Claim for the remaining leave. * Claim the leave for the current year * If his period of employment in that year is less than 10 months - one day in respect of each month he was employed in that year. * If his period of employment in that year is more than 10 months - normal 14 days annual leave entitlement. * Annual leave should be taken during the calendar year in which it is due.

Any leave not taken by the end of each calendar year will automatically lapse, unless the employee concerned had applied for that leave and his application had not been approved by the Company. * Part of the Annual Leave should be taken in a continuous stretch of not less than seven days.

An application for leave will be considered only in exceptional cases. * An application for Annual Leave must be made on the prescribed Application for Leave Form and sent to the H.R. Manager with the recommendation of the Departmental Head at least two weeks before the requirements of leave. * The H.R. Manager will inform the employee of the outcome of his application for leave by returning the Leave Form to him with a copy to the Salaries Department.

Leave rosters

* It is the responsibility of all Departmental Heads to prepare a Leave Roster for their staff before the beginning of each calendar year, and to ensure that the staff proceed on leave as rostered.

The law shall apply only to the seven days that the employees shall take at a stretch. As far as possible, the preferences of employees shall be met by requesting each employee to select the period during which he would like to have his leave.

* No leave deferment beyond the calendar year in which it is earned should be allowed unless there are very good reasons, and the prior approval of the General Manager has been obtained through the employee’s Departmental Head.

* The combination of Annual Leave and Casual Leave will not be permitted other than in exceptional circumstances.

Casual leave

This category of leave is commonly referred to as “Casual Leave” with full pay. In respect of each calendar year, an employee is entitled to not more than seven days leave in the year for private business, ill health or other reasonable cause. In the first year of employment one day for each complete period of two month’s service.

A probationer, is also entitled in the first calendar year of employment to proportionate leave on the basis stated above. In the second calendar year, irrespective of whether the employee is confirmed in employment or not, he/she would be entitled to seven days Casual Leave and a Pro rate entitlement of Annual Leave.

* In the first year of employment (January - December) one day’s leave for each completed two-months.

* Casual Leave must be applied for in advance. Where the reason for the absence is one which could not have been foreseen, the Management may, at its discretion, approve such leave.

* If not applied for in advance, the Department is entitled to know the reason for absence, when applying for same subsequently, where the business requirements so require, an application for Casual Leave may be refused.

* Casual leave is normally to be taken at the rate of one or two days at a time. Exceptions to this would include a case of ill - health where the absence may necessarily exceed a day or two.

Poya holidays

* All employees, are entitled to a holiday on all monthly Full Moon Poya Days.

* In the case of monthly rated employees. they will be entitled to their wage for that day which would be included in their monthly salary. If any such employee works on this day, he should be paid an extra half day’s remuneration in addition to his normal monthly salary irrespective of the number of hours worked during the normal working hours.

* The Full Moon Poya Day will be an unpaid holiday for all daily rated employees. If any such employee is required to work on this day he would be remunerated at 1 1/2 times the normal daily wage, irrespective of the number of hours worked during the normal working hours.

* Where a monthly rated employee is employed on a Full Moon Poya Day which falls on a Saturday, and such employee is employed on that day up to the normal time of closing on a Saturday, he will be entitled to an extra half day’s wage as remuneration but no alternative half holiday in lieu need be allowed.

* If he is employed on this day beyond the normal closing time on a Saturday, he will in addition, be entitled to the benefits normally available to him for work beyond the normal closing time on a Saturday.

* In the case of a five-day week, employees will be entitled to the normal benefits for work on a Saturday if they are employed on that day.

* Where a daily rated employee for whom the Full Moon Poya Day is an unpaid holiday is employed on the Full Moon Poya Day which falls on a Saturday beyond the hours normally worked hourly rate. But no alternative half holiday is possible.

* Where the Full Moon Poya Day falls on a weekly holiday or half holiday or half holiday or statutory or customary holiday, no alternative holiday or half holiday should be given.

Rest Days (Weekly Holiday)

* In the case of the shop and Office Act, 1 1/2 days weekly holidays with pay has to be given. Weekly holidays can also be commuted to be taken on a monthly basis with the prior approval of the Commissioner in the case of employees engaged in essential services.

* It may also be noted that workers, who work only on five days a week instead of six days a week, enjoy two weekly holidays instead of the 1 1/2 days weekly holidays.

* Under the Factories Ordinance, Sunday is a holiday for all factory workers. However, in the case of women and children their work have to be stopped at 1.00 p.m. on one day of the week thus giving them the benefit of 1 1/2 days weekly holidays. Under the Women, Young Persons and Children Act the number of hours per week has been restricted to the extent of allowing some females and children the benefit of enjoying 1 1/2 days weekly holidays.

* A “week” is defined in the Shop and Office Act as the period from Saturday midnight to the midnight of the following Saturday. Employees who work not less than twenty eight hours (excluding overtime and intervals) in any one week must be allowed one-and-a-half days’ paid holidays in that week or in the week immediately after.

* In ascertaining whether an employee has worked twenty-eight hours in a particular week, any period during which that employee was on leave or holiday with full remuneration is deemed to be a period worked.

If an employee was placed on no pay for any period (for instance any period on suspension without pay), then he is deemed to have not worked for the purpose of making up the twenty-eight hours (in other words 3 1/2 days working eight hours a day), which is necessary to qualify for the weekly holidays in that week.

* In certain establishments, the normal hours of work for a day is less than eight and therefore the qualifying period for weekly holidays has been considered 3 1/2 days work a week.

* Failure to grant weekly holidays is an offence under the Act. However, an employer may allow with the prior permission of the Commissioner, holidays due in respect of consecutive weeks in any month in accumulation at any time in that month. The Hotel Industry permits accumulation of weekly holidays in certain situations. This practice is mostly found in resort hotels where staff could be from outstation locations.

If you are asked to work on the following days.

Statutory holidays (Mercantile Holidays) Extra one day salary must be paid or another off day must be given.

Rest Days (Saturday, Sunday) Overtime payment of 1 1/2 times must be paid for the number of hours worked and a day off (for Sunday) or half day off (For Saturday) be given. If a statutory holiday falls on Saturday or Sunday, another half day or full day off as the case may be, must be given.

Poya Days should be paid an extra half day salary in addition to his normal monthly salary. But not entitled to another day off.

If a Poya day falls on a Saturday or Sunday or statutory holiday you are not entitled to an extra day off.

Fixed term contracts

Employees are at times recruited for a fixed period of time not exceeding twelve months. In such instances the employee is entitled to the following leave -

(a) Casual Leave - At the rate of one day for each complete period of two months.

(b) Annual Leave - On the same basis as for an employee with a normal contract of employment.

Short leave

There is no legal provision for short leave.

Short leave, therefore, is largely a matter of practice which varies from employer to employer.

* The maximum period of short leave usually allowed at any one time is one and a half hour.

* Only two shorts leaves are allowed in a month.

* Generally employers allow short leave only at the beginning of the day, before a meal interval, or at the end of the meal interval of the working day.

Accident leave

Labour Laws are silent on Accident Leave

However in a few industries, Accident Leave is given if they are disabled by reason of an accident whilst on company service. Accident Leave will be granted only in instances where it was proved that the employee was not negligent, after the investigation and will be based on the recommendation of the Medical Officer.