Leave pay

Leave Salary means the monthly amount paid by Government to a Government employee on leave. When an employee takes a leave of absence from work, it can be either paid or unpaid. A personal leave of absence will likely be unpaid. In some cases, employers can determine if a leave of absence is paid or unpaid.

The Factories Act has provided annual/earned leave of 12 working days for all the workers who have worked at least 240 days in a year. If a worker takes four or more days' leave at a time, his wages are paid before the leave begins.

Providing such leaves is mandatory as per labour laws, though the quantum of 2 such leaves vary state by state. As per the Factories Act and Karnataka Shops & Establishments law, a minimum of one day for every 20 days worked is to be provided as earned leave.

other than the factories act, the Industrial disputes act 1947 would also apply. 

in shankar balaji waje vs maharashtra, it was held that a worker 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 allowance and the cash equivalent of the advantage accruing through the confessional sale to the worker of foodgrains, and other articles , as per sec 80 of the factories act, 1948.

a worker is a person employed in an industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work, for hire or reward, hence if the person would apply the factories act to his paid leave wages,  then he is classifies as a worker.

What are the present norms followed by your organisation?

Thanks for your response and information given by you helps me a lot. Please could you give information about the situation of leave pay for those workers not come under Factories Act.

I mean that the workers working under unorganized sector and not in the purview of Factories Act.