Hello I am working in a builder firm as an HR Person. Till this time we never had any leave policy in our office, now the partners are deciding to adopt one, i proposed them that there should be minimum 21 days leave granted to the employees, however the top bosses are not agreeing to it and saying that the national holidays will be inclusive in the leave which comes to 16 days in a year and rest 5 days the staff can take the leave. would like to know is there any difference between the holiday and leaves and is the difference stated in any of the acts. This way the system is not beneficiary to the staff and is also not professional. This is creating a kind of demotivation among the staff. Please help me at the earliest.
thanking you in anticipation.
Buy Shops and Establishment Act with State Rules whic shates leave provision and holidays.
Then bring to the notice of your owners that this is mandatory provisions as per laws of the state and they must agree to this.
Your owners of the company will not agree until you provide proof of supporting documents to recommendation made by you justified.
I have checked again the shop & establishment act however there is no clear cut notification that a company has to give the National holidays 14 to 16 days over and above the 21 days Paid leaves. My management is still saying that we will announce 25 days total leave (inclusive of 4 mandatory national holidays) and no other holidays will be granted. If the leave is balance then the staff will be allowed to take leave on particular festivals or else it will be considered Leave without Pay. Please give me the exact reference of the section as per the Shop and Establishment Act that i can show to my management as a proof of evidence.
There are standard 13 holidays in a year (Including national holidays also), apart from that Employees should eligible to take leaves also, i.e. Annual Leaves ( Varies from 15 days to 21 Days- Working days) and Sick Leaves (10 Working days).
Hope this will help to solve your query.
1. Your establishment is definitely covered by the "Bombay Shops and Commercial Establishments Act". It provides for Earned/Privilage Leave which comes to about 21 days fopr a year and is earned at a rate also specified in the act. Employers wish does not matter UNLESS knowing the employer wishes to breach applicable law!
2. Depending upon the salary/wage levels your establishment may also be covered under the ESI Act where the employer is not required to give "sick leaves" but the covered employee is eligible to receice "sickness benefit" for all absence greater tha. two days the "benefit" is roughly 5/8th of the salary/wage for the period of sickness. And this benefit is available, theoreticall, for over 90 days in a year.
3. Paid Holidays or generally known as Festival holidays are governed by the Negotial Instruments Act and National and Festival Holidays Act. You have to read these up. The paid holidays that the State Govt declared for each year are NOT binding on the employer but the Shops Act also states that, 26th January, 1st May, 15th August and 2nd October as compulsory holidays and if the employees are required to work on these days then they have to be compensated additionally.
So mostly your subject is covered by different laws and the employer has precious little discretion in the matter. Collect and compile the data and present to your superiors as what the law states and as what you recommend. Hopefully they will understand. If despite all this the powers that be wishe to ignore all this, in your position inthe hierarchy there isnothing much you can do! Either lump it or look out!
September 15, 2008
Your answers are very well elaborative, however after studying the Shop and Establishment act i am still not clear on the point that is there any provision in act that states the employer has to give public holidays in addition to the 21 days annual leave. As my employer is saying that we are not going to declare any public holidays in the company only the 4 national holidays that are mandatory. This mean if i want a holiday on Diwali or Dusshera then i will have to apply for a leave for that particular day while the staff from other organisation would actually be enjoying a holiday, i will have one leave deducted from my 21 days quota. this way if i calculate the major festivals then i will have to take minimum 12 leaves in a year so at the end of it i will have only 13 leaves in my hand. Is there any provision in the Act that states clearly that Public holidays are to granted over and above the annual leave.
Seniors pl reply asap as i have provide evidence to the management.
But there is something like that if you mix your leave with the national or proposed holiday then that day of holiday may be counted as a leave. (although i m not sure of that !!!)
For example: If saturday is a working day at your office and you take two leaves, leaves on saturday and monday (with sunday being a natural holiday) then in such a situation it may be counted as three leaves.
Faisal Mustafa Khan
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