Ruth Hilda
Dear Seniors,
As per the Shops & Establishment Act provision we need to give 12 days EL and it can be accumulated up to 24 days.
Kindly clarify on the below points
1. Unavailed/ the leave beyond 24 days will it be encashed
2. Is encashment compulsory?
3. can we define the leave policy say that “if it’s not availed it will be lapsed”
Thanks,
Ruth

From India, Cochin
Aisha Sulthana
40

Hi Ruth Hilda,
You can defiantly frame out an internal leave policy with the prior info of earned leaves utilization and its terms, Mode of carry forward etc etc. As per the shops and Establishments, You would need to provide 7 sick leaves, 7 casual leaves, 15 earned leaves apart from National and festival holidays. Ensuring you provide all the leaves and you can put the condition as all leaves should avail before that proposed year, else it will get lapsed.
But, You cannot change this on a forght night and make it effective. According to Industrial Disputes Act, You would need to communicate any changes in the policies/Procedures to employees at least 21 days prior notice.
So, make sure, You can frame out/ change the existed policy and communicate employees in a proposed way before making it effective.

From India, Bangalore
Madhu.T.K
4193

Shops and Commercial Establishments Acts are state Acts and therefore, the provisions will differ from state to state. If you are talking in Kerala scenario, the Act simply says that it can be accumulated upto a 'maximum' period of twenty four days. That means, the unavailed leaves will lapse. Regarding encashment, the Act says that it shall be paid in cash at the time of discharge or termination of employment. That means the Act is silent with respect to whether it can be encashed during service. Therefore, with a view to reducing the practice of availing leave if the company wants to include a provision of encashment in its leave policy the same is fine.
Regards,
Madhu.T.K

From India, Kannur
fredrick castro
2

If it is not availed it will lapse but if the employee applies for leave and the management does not grant him leave, all such unavailed leave can be carried forward without any limit
From India, Madras
srivastavacmlal
125

Dear Mr Fredrik Castro,
Your opinion is very good and welcomed. At the same time I would request you to please let us know the Section no./Rule No. with reference to which you have given your opinion.
With thanks and regards.
Srivastava

From India, New Delhi
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