Yes you are entitled to leave under the Factories Act, 1948. Under Section 79 of the Factories Act, 1948 a worker is entitled to leave after the completion of 240 days of work.
Under Section 2(l) of the Factories Act, a worker includes a person employed through a contract. Therefore you and your colleagues working on contract are covered under the Act. As per Section 79 of the Act, after working for 240 days in a calendar year a worker is entitled to take leave in the next calendar year. Considering that you and your colleagues have been working for 7 years you have most definitely worked for more than 240 days in total but for the application of this provision it is important to prove that you’ve worked for 240 days or more in the preceding calendar year. If you complete 240 working days in 2015 only then will you be entitled to take leave in 2016 under Section 79. It is advised that you must ensure that you and your colleagues have been working for 240 days in 2015. This can be done by procuring and preserving the master role and attendance sheets the contractor is required to maintain under the Factories Act.
Under the Act, an adult can take leave for 1 day for 20 days of work in the previous year. Therefore if a worker has completed 240 days in 2015 then he will be entitled to 12 in 2016 and if he has worked for 300 days in 2015 then 15 days in the year 2016. In case a worker discharged or dismissed from service or quits his employment or is superannuated or dies while in service then he or his nominee is entitled to wages for the leave left due on him. Where the worker does not avail the leave in one calendar year then it will be carried forward to the next calendar year if the balance is not more than 30 days. The policy of determining the procedure of taking the leave will be determined by the Works Committee which will have representative of the workers and the policy must be publicly disclosed. For a leave availed under section 79 a worker is entitled to wages which were paid to him in the preceding month before the leave.
Therefore you and your colleagues will be entitled to take leave in 2016 only if you have completed 240 days of work in 2015 as per the provisions of the Factories Act, 1948. The duration of the leave will be determined by the number of working days in the previous calendar year.