Section – 32. Annual leave with wages, etc.
(1) Every worker employed in an establishment shall be entitled to leave with wages in a calendar year, subject to the following conditions:—
(i) the worker must have worked for one hundred and eighty days or more in that calendar year;
(ii) leave shall be granted at the rate of—
(a) one day for every twenty days of work;
(b) one day for every fifteen days of work in the case of an adolescent worker;
(c) one day for every fifteen days of work for workers employed below ground in a mine;
(iii) periods of layoff, maternity leave or annual leave shall be counted for calculating eligibility of one hundred and eighty days, but no leave shall be earned for such periods;
(iv) holidays falling within or adjoining the leave period shall not be counted as part of the leave taken;
(v) where a worker joins service after the first day of January, he shall be entitled to leave at the specified rate if he has worked for at least one-fourth of the remaining days in that calendar year;
(vi) where a worker is discharged, dismissed, resigns, retires, or dies during the year, he or his heir/nominee shall be entitled to wages in lieu of earned leave, even if he has not completed the qualifying period, and such payment shall be made—
(a) within two working days in case of discharge, dismissal or resignation;
(b) within two months in case of retirement or death;
(vii) if a worker does not avail the full leave in a year, it shall be carried forward to the next year, subject to—
(a) a maximum accumulation of thirty days;
(b) no limit on carry forward if leave was applied for but refused;
(viii) the worker shall be entitled to encash leave at the end of the calendar year upon request;
(ix) where accumulated leave exceeds thirty days, the excess leave may be encashed.
(2) The appropriate Government may, by notification, extend these provisions to other establishments, except railway establishments.
(3) The provisions of sub-section (1) shall not adversely affect any rights of a person employed in a mine that arise under any other law or under the terms of any award, agreement or contract of service:
Provided that where such award, agreement or contract provides for a longer period of annual leave with wages than that specified in sub-section (1), the employee shall be entitled to such greater leave. However, matters not covered in such award, agreement or contract shall be governed by sub-section (1):
Provided further that if the Central Government is satisfied that the leave rules applicable to employees in any mine offer benefits that are not less favourable than those provided under sub-section (1), it may, by a written order and subject to specified conditions, exempt such mine from all or any provisions of sub-section (1).