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Section 14

Annual Leave with Wages.

(1) Every employee who has worked for a period of 240 days or more in an establishment during a calendar year shall be allowed, during the subsequent calendar year, leave with wages for a number of days calculated at the rate of,-

(i) in an adult, one day for every twelve days of work performed by him during the previous calendar year;

(ii) if a child, one day for every fifteen days of work performed by him during the previous calendar year.

Explanation 1. - For the purpose of this sub-section-

(a) any days of lay off, by agreement or contract or as permissible under the standing orders;

(b) in the case of female employee, maternity leave for any number of days not exceeding twelve weeks; and

(c) the leave earned in 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 240 days or more, but he shall not earn leave for these days.

Explanation 2. - The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave.

(2) An employee whose service commences, otherwise than on the first day of January, 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 has worked for two-thirds of the total number of days in the remainder of the calendar year.

(3) If an employee is discharged or dismissed from service during the course of the year he shall be entitled to leave with wages at the rate laid down in sub-section (1) even if he was not worked for the entire period specified in sub-section (1) or subsection (2) entitling him to earn leave.

(4) 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.

(5) If an employee does not in any one calendar year take the whole of the leave allowed to him under sub-section (1) or subsection (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 calendar 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 an adult or forty in the case of a child:

Provided further that an employee who has applied for leave with wages but has not been given such leave in accordance with any scheme laid down in sub-section (8) and (9) shall be entitled to carry forward the un-availed leave without any limit.

(6) Any employee may at any time apply in writing to the manager of the establishment not less than seven days before the date on which he wishes his leave to begin, to take all the leave or any portion thereof allowable to him during the calendar year: Provided that the number of times in which leave may be taken during any year shall not exceed six.

(7) 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 (6) and in such a case wages as admissible under Section 16 shall be paid not later than fifteen days.

(8) 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.

(9) A scheme formulated under sub-section (8) shall be posted in convenient places in the premises of the establishment and shall be in force for a period of twelve months and may thereafter be renewed, with or without modification, for a further period of 12 months at a time by the employer in agreement with the representatives of the employees as specified in sub-section (8).

(10) An application for leave which does not contravene the provisions of sub-section (6) shall not be refused unless refusal is in accordance with the scheme for the time being in operation under sub-section (8) and (9).

(11) If the employment of an employee who is entitled to leave under sub-section (1) or subsection (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 nay employee quits his employment, on or before the next pay day.

(12) The un-availed 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.