CHAPTER VII Leave and holidays with wages and Insurance Scheme for Employees

30. Leave :- (1) Every employee who has served for a period of two hundred and forty days or more during a continuous period of twelve months in any establishment shall be entitled during the subsequent period of twelve months, to leave with wages for period of fifteen days, provided that such leave with wages may be accumulated upto a maximum period of sixty days:

Provided that any continuous period of service in an establishment preceding the date on which this Act, applies to that establishment shall also count:

Provided further that any leave accumulated by an employee in an establishment under the law applicable to that establishment preceding the date on which this Act applies to it, shall not be affected;

Provided also that every employee in any shop or establishment shall be entitled for encashment of the leave with wages for a period of eight days in every year.

(2) An employee may apply in writing to the employer, not less than seven full working days before the date of availing himself of his leave, to allow all the leave or any portion thereof, to which he is entitled under sub section (1):

Provided that the number of instalments for taking leave shall not exceed three during a period of twelve months.

(3) An employee who has been allowed leave for not less than five days under sub section (2) shall, before his leave begins, be paid the wages due for the period of the leave allowed if he makes a request therefor.

(4) Every employee who has served for a period of not less than two hundred and forty days during a continuous period of twelve months in any establishment shall be entitled for encashment of eight days of leave with wages that has accrued to him under sub section (1) during the subsequent period of twelve months. The employer shall pay to the employee the wages for the leave so encashed by the employee within a week of receipt of the application for such encashment from the employee.

(5) Every employee in any establishment shall also be entitled during his first twelve months of continuous service and during every subsequent twelve months of service (a) to leave with wages for a period not exceeding twelve days on the ground of any sickness or accident and (b) to casual leave with wages for a period not exceeding twelve days on any reasonable ground.

(6) Every employee in an establishment after he has put in not less than two years of service under the same employer, shall also be entitled for special casual leave not exceeding six days only once during his entire service, if he has undergone vasectomy or tubectomy operation, subject to the production of a certificate therefor from an authorised medical practitioner under whom he has undergone the operation.

(7) If any employee entitled to any leave under sub section (1) is discharged by his employer before he has been allowed such leave, or if the leave applied for by such employee has been refused and if he quits his employment before he has been allowed the leave, the employer shall pay him the amount, payable under this Act, in respect of the period of leave.

(8) If an employee is lawfully discharged by his employer when he is sick or suffering from the result of an accident the employer shall pay him the amount payable under this Act in respect of the period of leave to which he was entitled at the time of his discharge in addition to the amount, if any, payable to him under sub section (3).

(9) An employee in a hostel attached to a school or college or in an establishment maintained in connection with the boarding and lodging of pupils and resident masters, shall be allowed the privileges referred to in sub sections (1) to (8), reduced however proportionately to the period for which he was employed continuously in the previous year or to the period for which he will be employed continuously in the current year, as the case may be; and all references to the periods of leave in sub sections (1) and (5) shall be construed accordingly, fractions of less than half a day being disregarded.


31. Other holidays :- (1) Every employee in any establishment shall also be entitled to nine holidays in a year with wages on the days to be specified by notification from time to time, by the Government which shall include the 26th January (Republic day), 1st May, (May Day), 15th August (Independence Day) 2nd October (Gandhi Jayanthi), and 1st November (Andhra Pradesh Formation Day) and on every such holiday, all the establishments, either with or without employees, shall remain closed.

(2) Notwithstanding anything contained in sub section (1) the Chief Inspector may, having due regard to any emergency or special circumstances prevailing in the State or any part thereof, notify any other day or days as holidays with wages to employees or class of employees as he may deem fit. The holidays so notified shall be deemed to be additional holidays:

Provided that, any such employee in any residential hostel, restaurant, eating house, theatre, or any place of public amusement or entertainment may be required to work in such establishment on any such holiday declared under sub section (1) or sub section (2), subject to the condition that in lieu thereof, a compensatory holiday with wages shall be allowed to such person within thirty days from the date of such holiday:

Provided further that, such compensatory holidays shall not exceed seven in a year and where any such employee in any such establishment is required to work on any such compensatory holiday, he shall be paid additional wages at the ordinary rate of wages in lieu of such holiday.

(3) Nothing in sub section (1) shall apply in respect of any establishment where the number of holidays with wages allowed by the employer is more than the holidays notified by the Government under that sub section:

Provided that, every such employer shall send a list of holidays with wages allowed by him, which shall include the five holidays specified in sub section (1), to the Inspector and to the Chief Inspector and shall also display the list at a prominent place of the establishment.



32. Pay during leave and holidays :- Every employee shall, for the period of the leave allowed under sub sections (1) (5) of Section 30 or the holidays allowed under Section 31, be paid at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding month exclusive of any earning in respect of overtime.


33. Power to increase the period of leave allowable under Section 30 :- Notwithstanding anything in Section 30, the Government may, by notification, increase the total number of days of leave allowable under sub section (1) of that section and the maximum number of days upto which such leave may be accumulated in respect of any establishment or class of establishments.


34. Compulsory enrolment of employees to Insurance cum savings scheme :- (1) Every employee who has served in an establishment for a period of not less than one year shall subscribe to the insurance scheme or Insurance cum Savings scheme as may be notified by the Government to be applicable to the establishment in which the employee is working, at the rates, stipulated by the Government in the notification either in lumpsum every year or in monthly instalments as may be prescribed by the Government in the notification. For this purpose the employer shall make the payment to the authority notified by the Government on behalf of the employee on or before the stipulated date and recover the same from the wages payable to the employee.

(2) In addition to the subscription of the employee mentioned in sub section (1), every employer of the establishment to which the scheme of insurance or Insurance cum Savings is made applicable by the Government, shall also pay such percentage of annual wages of employee as may be notified by the Government, from time to time, to the authority notified for the purpose as employer s contribution on or before the specified date every year.




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