A well-designed leave policy guarantees that workers can take the time off they need, that employers meet their legal responsibilities, and that staff morale and organisational effectiveness are maintained.
To stay in compliance with the law and promote the welfare of their employees, employers must comprehend and apply appropriate leave management.
This article break downs the provisions of Leaves under the Chapter 9, which mention Section 40 to 51 of Labour Act 2074. These Sections explain about leave types, eligibility, conditions, and your rights as an employee in the most human and practical way possible.
What Are the Types of Leaves Under Labour Act?
According to the provisions of Chapter 9, various kinds of leave are granted to Nepal’s employees. All employees get 21 days’ leave as annual leave in accordance with the Labour Act. Here is a summary of the mandatory leave types that every employer must provide under the Labour Act, 2074:
1. Weekly Leave
Weekly leave is basic, but every employer needs to guarantee it. In accordance with Section 40 of the Labour Act, employees are entitled to at least one day of weekly leave per month.
In practice, most organisations provide one day off per week, typically Saturday or Sunday. However, since the law only requires one day per month, an employer could technically comply with the law while offering significantly less time off than commonly practised.
2. Public Leave
Under Section 41 of the Labour Act, every employee is entitled to a minimum number of paid public holidays yearly.
All employees get 13 paid public holidays, including May Day (Labour Day), whereas female employees get 14 days with the extra day being International Women Labour Day.
If you work in a regulated sector like banking, insurance, education, etc, the concerned authority publishes the official list of holidays. If not, your employer decides, but they must ensure you receive the minimum number of holidays as prescribed by law.
3. Substitute Leave
As per Section 42 of the Labour Act, every employee must be provided with their wages within 21 days of the day they worked.
To claim it, submit a leave request as soon as possible, and it should be simple, reasonable, and well within your rights.
4. Home Leave
Home leave is known as casual or earned leave, which is leave you accumulate over time for personal needs like rest, errands, or visiting family.
Under the Labour Act, you earn 1 day of paid home leave for every 20 days worked, which adds up to about 18 days per year if you work continuously.
However, you will not receive separate home leave if you work in schools, colleges, or institutions that offer summer or winter vacations. Instead, you are entitled to the difference if your vacation days are fewer than your earned leave.
5. Sick Leave
Sick leave ensures your salary is not affected when you are unwell. As per Section 44 of the Labour Act, you are entitled to 12 days of paid sick leave per year, calculated proportionally if you have worked less than a year (e.g., 6 months = 6 days).
If you are sick for over three consecutive days, a medical certificate from a registered doctor is required. Always inform your employer immediately, by call, text, or email, and submit a formal leave application, especially if you take more than a day off.
6. Maternity and Paternity Leave
Becoming a parent is life-changing, and the Labour Act, 2074, provides important support for both mothers and fathers. For mothers, Section 45 grants 14 weeks of maternity leave, with at least 2 weeks taken before delivery and 6 weeks after as mandatory.
Of this, 60 days (about 8.5 weeks) are fully paid; the rest may be unpaid or adjusted with other leave. In the case of miscarriage or stillbirth after 7 months, full maternity leave still applies. If a doctor recommends more rest, up to one additional month of unpaid leave must be approved.
For fathers, the law provides 15 days of paid paternity leave, and if the mother passes away within 60 days of childbirth, the father may use the remaining maternity leave to care for the child. Do not forget to submit your child’s birth registration certificate to claim these benefits.
7. Mourning Leave
Losing a loved one is never easy, and the law recognises the need to take time off work to grieve. Under Section 48 of the Labour Act, employees are entitled to 13 days of paid mourning leave in the following situations:
- If your father or mother passes away,
- If your legally married spouse passes away,
- If you are a legally married woman, if your father-in-law or mother-in-law passes away.
8. Accumulation of Leave
As per section 49 of Labour Act, your leave is like a savings account. Home leave can be saved up to 90 days, and sick leave up to 45 days. If you resign, retire, or in case of death, you or your family can claim the cash value of unused leave.
Even better, your employer must pay the extra at year-end if your accumulated leave exceeds the limit. Your time off is quite literally money in the bank. You may need a salary certificate showing your final basic pay to claim this.
Are All Types of Leaves Is Right of the Employee?
Only sick, maternity, and mourning leave are guaranteed rights under the law. Other types, like public holidays, home, or substitute leave, are considered benefits, not absolute rights.
Your employer can deny or reschedule these leaves if there is a valid reason, such as a company emergency or staff shortage. However, they must always give you a proper explanation.
Conclusion
While some leaves are your legal right, others depend on your employer’s discretion. Always know which type you are applying for, and if a leave is denied or changed, your employer must clearly explain why.
Furthermore, understanding the difference between leave as a right and leave as a benefit helps you manage your time better and avoid misunderstandings at work. Always check your company’s leave policy and communicate clearly with your employer when applying for any leave.
Frequently Asked Questions (FAQs)
Q. How much annual leave do you get in Nepal?
A. Employees are entitled to 21 consecutive days of annual leave in a 12-month leave cycle.
Q. How many public holidays are there in a year?
A. There are 13 days of paid leave for male employees and 14 days of paid leave for female employees, guaranteed by the Labour Act, 2074.
Q. How many sick leaves are in a year?
A. Under the Labour Act 2074, employees are granted 12 days of paid sick leave per year.
Babita Pariyar
Babita is a law student with a keen interest in property accountancy and legal compliance. She contributes insightful, well-researched articles that reflect a fresh and analytical perspective on evolving legal matters.
