law: Factories Act, 1948 
  79. Annual leave with wages 
  (1) Every worker who has worked for a period of 240 days or more
  
  in a factory 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 ) if an adult, one
  
  day for every twenty 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 a female worker, 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 worker has worked in a
  
  factory for the purpose of computation of the period of 240 days or more, but
  
  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) A worker 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.
   90  [(3) If a worker is discharged or dismissed from service
  
  or quits his employment or is superannuated or dies while in service, during
  
  the course of the calendar year, he or his heir or nominee, as the case may be,
  
  shall be entitled to wages in lieu of the quantum of leave to which he was
  
  entitled immediately before his discharge, dismissal, quitting of employment,
  
  superannuation or death calculated at the rates specified in sub-section (1),
  
  even if he had not worked for the entire period specified in sub-section (1) or
  
  sub-section (2) making him eligible to avail of such leave, and such payment
  
  shall be made- 
  ( i ) where the 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
  (ii) where the worker is superannuated or dies
  
  while in service, before the expiry of two months from the date of such
  
  superannuation or death.]
  (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 a worker does not in any one calendar year take the whole
  
  of the leave allowed to him under sub-section (1) or sub-section (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 a worker, 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) 92[or in contravention of sub-section
  
  (10)] shall be entitled to carry forward the 93[leave refused]
  
  without any limit.
  (6) A worker may at any time apply in writing to the manager of
  
  a factory not less than fifteen 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 application shall be made not less
  
  than thirty days before the date on which the worker wishes his leave to begin,
  
  if he is employed in a public utility service as defined in clause (n) of
  
  section 2 of the Industrial Disputes Act, 1947 (14 of 1947):
  PROVIDED FURTHER  that the number of times in which leave may be
  
  taken during any year shall not exceed three.
  (7) If a worker 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 81 shall be paid not
  
  later than fifteen days, or in the case of a public utility service not later
  
  than thirty days from the date of the application for leave.
  (8) For the purpose of ensuring the continuity of work, the
  
  occupier or manager of the factory, in agreement with the Works Committee of
  
  the factory constituted under section 3 of the Industrial Disputes Act, 1947
  
  (14 of 1947), or a similar Committee constituted under any other Act or if
  
  there is no such Works Committee or a similar Committee in the factory, in
  
  agreement with the representatives of the workers therein chosen in the
  
  prescribed manner, may lodge with the Chief Inspector a scheme in writing
  
  whereby the grant of leave allowable under this section may be regulated.
  (9) A scheme lodged under sub-section (8) shall be displayed at
  
  some conspicuous and convenient places in the factory and shall be in force for
  
  a period of twelve months from the date on which it comes into force, and may
  
  thereafter be renewed with or without modifications for a further period of
  
  twelve months at a time, by the manager in agreement with the Works Committee
  
  or a similar Committee, or as the case may be, in agreement with the
  
  representatives of the workers as specified in sub-section (8), and a notice of
  
  renewal shall be sent to the Chief Inspector before it is renewed.
  (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-sections
  
  (8) and (9).
  (11) If the employment of a worker who is entitled to leave
  
  under sub-section (1) or sub-section (2), as the case may be, is terminated by
  
  the occupier 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 worker quits
  
  his employment before he has taken the leave, the occupier of the factory shall
  
  pay him the amount payable under section 80 in respect of the leave not taken,
  
  and such payment shall be made, where the employment of the worker is
  
  terminated by the occupier, before the expiry of the second working day after
  
  such termination, and where a worker who quits his employment, on or before the
  
  next pay day.
  (12) The unveiled leave of a worker shall not be taken into
  
  consideration in computing the period of any notice required to be given before
  
  discharge or dismissal.