Need Your Help In Understanding Leave Policies Under AP Shops And Establishment - CiteHR
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Hello Team ,

Greetings of the day!!

I have been a member of this amazing HR Community for few years . It has been always a great help for me throughout my career .

Now I need your help in understanding and formulating a leave structure which would abide Andhra Pradesh Shops and Establishment Law .

To introduce:

I am working as a HR Business Partner for a Software Company which is an ISO , CMMI certified having offices in USA and INDIA . our primary area of working is software Development and Testing.

We work for 5 days a week . Now our leave system is 6 Earned leaves which can carry forward to next year to a maximum of 18, and 12 Casual leaves(Which cannot be carry forwarded) .

My Company has recently got registered under AP Shops and Establishment though they been operating since 2004 in Hyderabad, India .

My Questions are :

1. Is it required for software companies to follow this Shops and Establishment Law? Because I have seen lot many software companies which are not following the same .

2. Shops and Establishment act formulated in view of 6 day week , but IT companies are following 5 day week system. How can there be any balance established ?

3. AP Shops and Establishment Act says” Leaves: Every employee who has served with 240 days or more during a continuous period of 12 months in any establishment shall be entitled during the subsequent period of twelve months , to leave with wages may be accumulated up to a maximum period of sixty days”. But all IT companies on 5 day model are working for only 230 days a year(excluding weekends, leaves and holidays), does this gives us liberty to exclude Earned Leaves ?

4. Are casual and sick leaves are compulsorily 12 each ? ( in the act it is mentioned not more than 12 each category)

Thank you in advance for your time and support .

Please feel free to ask for any clarifications .


Narasimha Reddy V

HR Business Partner
Community Prime Sponsors - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS. "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA.
Shops and Commercial Establishment Act is applicable to your organization. How you can interpret the clauses is something which to be consulted with a practicing labor law expert
Thanks for your quick reply . i am very new to statutory things and am trying to understand by gathering information from seniors like you . Request you to elaborate your suggestion.
Law is applicable in toto inspite of you working for 240 days or not. Annual leaves if 15 days and 12 days each of casual and sick are mandatory as per law. You need to work your logistics around it.
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