Human Resources - Generalist
V. Balaji
Ir & Hr
Hr Executive
General Manager - Hr
Payroll And Statuatory
Hr Executive
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Dear Sir(s),
The question I am having to clarify for my client is based on the following case:
According to the AP Shops and Establishment Act, 1988,
  1. Employee is entitled for a minimum period of 12 days casual leave on any reasonable ground and 12 days on the ground of sickness or accident.
  1. I am also told that the earned leave entitlement per annum is for 15 days. Is that true?
  2. My observation has been that companies usually follow a total annual leave duration of anywhere between 24 and 30 days inclusive of casual, sick and earned leave.
  3. Why is this different from what is mentioned in the Act?
  4. How do I explain this to the client?
Please help me with my concern!
Thanks a bunch
13th October 2008 From India, Hyderabad
As per establishment Act, 12 casual leaves,12 sick leaves and 15 earned leaves per year. Earned leaves can be utilised only after the completion of 1 year.
but companies doesn't follow strictly these ruules. Leaves willbe mostly 24 leaves They will disturb as 12cadual or sick leaves and other 12 leaves as earned leaves so that they can give working days.
You need to follow as the per comapny
Bye Usha

13th October 2008 From India, Hyderabad
I really disagree with you who have mentioned about the Leave process, but accordinlgy Shops and Establishment act, says tht any employee who is full time or part time they are entitle for 6 days casual leave and coming towards the Sick for every two months 1 leave will be alloted to employee as sick leave; that means for every month 1/2 leave will be given to employee towards the sick leave (not 12 levae)

Coming to Earned leave, as per the factories act or shops and establishment act says that any employee who is working with any firm they have to work for twenty days then they are entitle for 1 day earned leave that means (for 240 days in a year if the employees works then he/she is entitle for 12 days leave and this will be utilised after completing one year service with the present comp)

and this leave will not be enchased from the employer untill unless employees does not complete his first year service)

i hope this will clear to every one doubt. if not do revert for any clarification to the below mentioned mail id..

Satya Penubothu

15th October 2008 From India, Hyderabad
Dear Satya,
Thanks very much. Its interesting that you say that, because the attachment I have enclosed in my e-mail is exactly the reason why I asked that question earlier :icon1:.
This attachment was found in CiteHR. Not that documents in CiteHR are error free, but I also have a policy documents from the Andhra Pradesh Chamber of Commerce that has the same verbiage.
Quite a mystery this I must say! :icon6:
Thank you anyway and do let me know if the puzzle is crackable!
15th October 2008 From India, Hyderabad

Attached Files
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File Type: doc AP Shops & Establishment Act.doc (82.0 KB, 6096 views)

i just wanted to know that, if any employee taken leaves from 1st to 10th of the month, we need to consider 10 days leave or we need to exclude the geberal holidays (i.e., Saturday and Sunday)

15th October 2008 From India, Bangalore
Leaves as per AP Shops and Establishments Act: Sick Leave - 12 Casual Leave - 12 Earned Leave - 15
16th October 2008
Hi Ravi,
Traditonally as a policy, a holiday is not part of an employee's leave balance.
Therefore if a holiday falls in between an employee's leave period, it is not construed to be part of an employee's leave plan.
16th October 2008 From India, Hyderabad
Hi, Kindly suggest me that defferent leaves and policies in Shops and Establishment Act at chennai based company. Presently we have 25 days flat leave for all. Regards, Raju - HR Chennai.
17th October 2008 From India, Madras
Therefore my next question to the group is,
1. Why then does the AP Shops and Establishment Act, 1988 publish so many leaves as mentioned above?
2. Which organizations follow them accurately?
3. What is the logic behind these companies following the leave policy as per the AP Shops and Establishment Act, 1988?
I really am interested in hearing your response.
22nd October 2008 From India, Hyderabad
Dear Mr. Penubothu,

greetings to you,

Leave policy is differ from one organization to another.
we are also following the same, but come to the fact...

As per the AP shops and Establishment Act, 1988...

EL- 15 (Compulsary presence for 240 days in a calander year, if not can't eligible for the same) How ever after completion of One year service.

SL- 12

CL- 12

the same has been attached for your reference (Scanned copies in .Pdf format)

and as per your mail you have mentioned that CL-6, SL-6 and EL-12. You said that SL can given 1/2 a day per month- can we post or apply the same if employee sick.

and, I did't find that CL posting as SL if CL-6 the applicability as same as SL i.e. 1/2 day. Can we post 1/2 a day leave (No 1/2 day postings for CL).

I am requesting you to send your Leave policy copy for reference.

I need some suggestions from you regarding the same to make better policy.

How ever, Private companies do not like to increase the Leaves.

but we need to answerable to the Labor commissioners...

I hope i may get quick responce from your end..


9th December 2008 From India, Hyderabad

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File Type: pdf Leaves in APSE Act.pdf (1.79 MB, 1907 views)

Dear Srinivas,
I am very eager to know, how many companies providing the same leaves and type of orgnaizations weather MNc's or proprietory companies.
I may get immediate reply from you.
9th December 2008 From India, Hyderabad
Need a clarification on leave policy. We have 20 earned leaves after the completion of the 6 months probation. The 20 earned leaves would start from the day you are confirmed. After confirmation of six months the employee would not get the leaves for the duration of 6 months probation period. Is this a right practice?
9th January 2009 From India, Hyderabad

Mr. Srinivas I Agree with you and let me make you clear at one point that Govt of AP has said that Since the IT & ITES companies have been classified under the “Essential Services Act”, by the Government of Andhra Pradesh as given below;



Information & Communications Technology (ICT) Policy of the Government of Andhra Pradesh – ICT Policy 2005-2010 - Orders – Issued.

Promotions 1 Section
G.O.Ms.No.11 Dated.21.03.2005.

Read the following:
G.O.Ms.No.27, IT&C Department, dtd.27.06.2002.
a. Under Point - 35
b. Sub Point - “a”
c. Sub Sub Point - “v”

this information has been circulated and been published in NASSOM publication some time back in the same year when the Govt of AP Announced

according to this, so i dont think that we come under Shops and Establishment Act and Factories Act.....

can revert back for any clarification and feel free to get in tocuh with the below mentioned contact number

Hand Fone: +91 9948774090
22nd April 2009 From India, Hyderabad
Hello Sree,
Simple computation: Basic + D.A x No. of days of leave (to be encashed)/26 days
Eg. Monthly Salary of 'X' is Rs.1000 (600 basic+ 120 d.a + 280 h.r.a + 100 conveyance)
Number of leaves to be encashed = 10
Amount to be paid = 600+120/26x10 = 276.92 i.e Rs.277
Note: if you don't have D.A or V.D.A in your salary components (like many companies do), you may take only basic for above computation.
22nd September 2009
from the below it was clear that 6 cl , 6 sl, and every twenty working days one EL ( after 240 days )
can u please tell me under which section or chapter this comes of shop & establishment act.
Umesh Nitturkar

6th October 2009 From India, Secunderabad
Hi sir.
i am a police constable in AP and now on a 5 years leave and working in dubai. my question whether can i extend my leave for another couple of years ?
please help me with your valuable reply.
18th January 2010 From United Arab Emirates, Dubai
Hello can any one provide me the below 1. Latest doc for Leave as per APSE act.(ITES) 2. Other Mandatory Benefits to be provided by the company.
22nd February 2010 From India, Madras
Mr.Satya, As per the GO IT & ITES organisations are allowed to self certify that they are following the rules. These organisations surely comes under AP S & E act. FYI PL Regards, Sankar Alla
4th March 2010 From India, Hyderabad
Can anyone tell me AP shops establishment how many CL,SL,EL and other maternity leave i want to know the numbers plz kindly help me in getting the answer. Hope i will get the answer at the earliest
29th September 2010 From India, Hyderabad
Mr. Raju,
As per Tamil Nadu shops and establishments Act following are guidelines w.r.t. leave.
1. Casual Leave : Required to give 12 days in a year.
2. Sick Leave : Any employee goes on leave due to sickness, only then this leave is required to be given.
3. Holidays : Again this is maximum of 12 days in a year shall be given
19th October 2010 From India, Madras
Mr. Raju,
Please ignore my earlier posting. By mistake, my hand pressed one of the keys and it got posted before I could even complete the message:
Re: Leave Policy - AP Shops and Establishment Act 1988
Mr. Raju,
As per Tamil Nadu shops and establishments Act following are guidelines w.r.t. leave.
1. Casual Leave : Required to give 12 days in a year.
2. Sick Leave : No.of days 12 in a year. If an employee goes on leave on account of sickness/accident, only then this can be sanctioned.
3. Holidays : Employee who have put in 12 months continus service shall be granted 12 days holidays with wages. This shall be provided to them in the subsequent year. This type of holidays can be accumulated upto a maximum of 24 days and can be encashed at the time of leaving / separation.
V. Balaji
19th October 2010 From India, Madras
Hi All,
Can I know the calculation of EL's as per shops and est act?
We are doing the calculation taking basic/30*No. of EL's. I have i doubt about the working days( i.e 30 or 26 working days)
Thanks & Regards
Divya Reddy A
14th March 2013 From India, Hyderabad
Hi Guys, I have not seen 12 CL’s and 12 SL’s in any of the documents of AP Shops and Establishment Act>> Can any body share the document on the same. Regards, Hari
16th August 2013 From India, Chennai
Hi ,i have a doubt.. Iam the hr of one of the IT Organisation.. what to refer to create new leave policy?
4th January 2017 From India, Hyderabad
Hello Sir,
If an employee apply cl prefix and suffix of the week off is he eligible for weekoff. Ex: If he applied leave on saturday and monday is sunday calculated as paid holiday.
30th November 2017 From India, Hyderabad
Hi Warm Greetings to all !!
I have a doubt that according to AP Shops & Establishments Act
Is CL can be combined to any other Leave or not like IS Cl can be clubbed with SL / EL / Compensatory Off...
Can any one explain ....
Thanks & Regards..
13th February 2018 From India, Kakinada
Dear All
Many people are confused regarding leave policy .
SL- 12

FACTORIES ACT : There is no CL & SL
EL : Who worked 240 days ( Psychical Present Days i.e Excluding W-Off , leaves & Absents )only
eligible . For Every 20 Worked days can eligible ONE EL.
For EX: If X Employees worked 273 days , 273/20 = 13.65 rounded to 14
19th April 2018 From India, Hyderabad
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