Section 32: Annual leave with wages, etc.

Finin2min analysis — what the section actually does

Full statutory text — Section 32

32. Annual leave with wages, etc.—(1) Every worker employed in an establishment shall be entitled
for leave in a calendar year with wages subject to the following conditions, namely:—
      (i) that he has worked one hundred and eighty days or more in such calendar year;
      (ii) that he shall be entitled for one-day leave for every twenty days of his work, in the case of
   adolescent worker for fifteen days of his work, and in case of worker employed below ground mine, at
   the rate of one day for every fifteen days of his work, in such calendar year;
      (iii) any period of layoff, maternity leave or annual leave availed by such worker in such calendar
   year shall be counted for calculating the period of one hundred and eighty days or more under
   clause (i), but he shall not earn leave for the period so counted;
      (iv) any holidays falling between the leave availed by such worker (in a calendar year or prefixed or
   suffixed holiday) shall be excluded from the period of leave so availed;
       (v) in case of such worker whose service commences otherwise than on the first day of January
   shall be entitled to leave with wages at the rate specified in clause (ii), if he has worked for one-fourth
   of the total number of days in the remainder of the calendar year;
      (vi) in case such worker is discharged or dismissed from service or quits employment or is
   superannuated or dies while in service, during the course of the calendar year, such worker or his heir
   or nominee, shall be entitled to wages in lieu of the quantum of leave to which such worker was
   entitled immediately before his discharge, dismissal, quitting of employment, superannuation or death,
   calculated as specified in preceding clauses, even if such worker has not worked for the required
   period under this sub-section making such worker eligible to avail such leave, and such payment shall
   be made—
         (a) where such worker is discharged or dismissed or quits employment before the expiry of the
      second working day from the date of such discharge, dismissal or quitting; and
        (b) where such worker is superannuated or dies while in service, before the expiry of two
      months from the date of such superannuation or death;
       (vii) if such worker does not in any one calendar year take the whole of the leave allowed to him
   under this sub-section and the rules made thereunder, then, any leave not taken by him shall be added
   to the leave to be allowed to him in the succeeding calendar year so that—
         (a) the total number of days of leave that may be carried forward to a succeeding year shall not
      exceed thirty days; and
         (b) such worker, who has applied for leave with wages but has not been given such leave in
      accordance with this sub-section and the rules made thereunder shall be entitled to carry forward
      the leave refused without any limit;
      (viii) without prejudice to clause (vi) such worker shall be entitled on his demand for encashment of
   leave at the end of calendar year;
      (ix) such worker shall be entitled, where his total number of leave exceeds thirty days under
   sub-clause (a) of clause (vii), to encash such exceeded leave.
   (2) The appropriate Government may, by notification, extend the provisions of sub-section (1) to any
other establishment except railway establishment.

   (3) The provisions of sub-section (1) shall not operate to the prejudice of any right to which a person
employed in a mine may be entitled under any other law or under the terms of any award, agreement or
contract of service:
   Provided that if such award, agreement or contract of service, provides for longer annual leave with
wages than that provided in sub-section (1), the quantum of leave, which the person employed shall be
entitled to, shall be in accordance with such award, agreement or contract of service but leave shall be
regulated in accordance with the provisions of sub-section (1) with respect of matters not provided for in
such award, agreement or contract of service:
   Provided further that where the Central Government is satisfied that the leave rules applicable to
persons employed in any mine provide benefits which in its opinion are not less favourable than those
provided for in sub-section (1) it may, by order in writing and subject to such conditions as may be
specified therein exempt the mine from all or any of the provisions of sub-section (1).
                                                CHAPTER VIII
                            MAINTENANCE OF REGISTERS, RECORDS AND RETURNS

How to apply this provision

1. Primary statutory test — (1) Every worker employed in an establishment shall be entitled for leave in a calendar year with wages subject to the following conditions, namely:— (i) that he has worked one hundred and eighty days or more in such calendar year;
2. Additional operative limb — (ii) that he shall be entitled for one-day leave for every twenty days of his work, in the case of adolescent worker for fifteen days of his work, and in case of worker employed below ground mine, at the rate of one day for every fifteen days of his work, in such calendar year;
3. Qualification / exception to test — Provided that if such award, agreement or contract of service, provides for longer annual leave with wages than that provided in sub-section
4. Numerical or timing control — Annual leave with wages, etc.—(1) Every worker employed in an establishment shall be entitled for leave in a calendar year with wages subject to the following conditions, namely:— (i) that he has worked one hundred and eighty days or more in such calendar year;
5. Central Rule mapping — 76. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
6. Prescribed-form link recorded in the corpus — XX. Confirm the current notified form/version before filing.

Rules, forms and cross-references

A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.

Worked example

Q&A — Section 32

Source & verification trail