As per provisions of this Act, every employer is required to allow three National holidays and a minimum of four festival holidays in a year.

There is also a provision in this Act for seven days' casual Leave and 14 days Sick Leave at half pay in a year. However the workers entitled to sickness benefit under the Employees State Insurance act, 1948 are not entitled for sick leave. Since most of the factories are covered under Employees State insurance Act, 1948, the sick leave provisions are generally not applicable on workers employed in factories. It has also been clarified in Section 14 of this Act, that nothing contained in this Act, shall affect any right or privileges, which any worker is entitled to receive under any other law, contract, custom or usage, if such rights or privileges are more favorable to him than those to which he would be entitled under this Act.

This Act requires maintenance of Register containing details of Casual and Sick leave availed by the workers.

There is also provision of mutual consultation between the management and the workers under this Act and Rules made thereunder for deciding the days to be observed as festival holidays in a factory.