My office is in Gurgaon and falls under Punjab shops and Establishment Act. We currently have 18 EL, 7 CL and 7 SL. the EL can be carried upto a year , hwoever CL and SL expire at the end of each year.
we have no policy of adjusting leave against notice period or leave encashment.
I am trying to modify the policy saying allow accumulation of EL upto 60 days , and allow SL to be carried to up to a certain number. Please advise , SL can be carried for how many days.
Also is their any law pplicable. Also can a few please share their leave policies.
Many thanks
3rd July 2014 From India, New Delhi

Asst.manager -hr
Assistant Manager-hrd
+1 Other

1. A worker is entitled in every calendar year annual leave with wages at the rate of one day for
every 20 days of work performed in the previous calendar year, provided that he had worked for 240
days or more in the previous calendar year.
But there is no any such law which leaves can be carry forwarded and which can be encash it varies company to company, which kind of leave policy they need to give their employees.
3rd July 2014 From India, Mumbai
Their is no such rule specifying how much leaves to be carry forward. but factory act has specified the accumulation of EL which should not be more than 30 EL. but you can increase the limit.
it is depending upon company that they can make a policy of leave carry forward or encashment.
If you want to carry forward all SL then law will not object.
It is said that if any settlement which provides better benefits than what is specified in the act then that settlement applies their.
Arun J.
3rd July 2014 From India, Hyderabad
Please read the Punjab Shops and Establishment Act thoroughly to help you finding your query, please find below sec 14 which answers your query

14. Leave. -- (a) Every employee who has been in employment for not less than twenty

days in a year shall be entitled to one day’s earned leave for every such twenty days:

Provided that a young person shall be entitled to one day’s earned leave for every fifteen

days of employment during the year.

(b) if an employee is discharged or dismissed from or leaves service during the course of

the year he shall be entitled to leave with wages or wage in lieu of un-availed leave at the

rates laid down in clause (a).

(c) In calculating leave under this section, fraction of half a day or more shall be treated

as one day’s leave and fraction of less then half a day shall be ignored.

(d) If an employee does not in any one year take the whole of the leave allowed to him

under clause (a), any leave not taken by him shall be added to the leave to be allowed to

him in the succeeding year:

Provided that—

(i) Subject to any specific agreement between the employer and the employee, the

total number of days of leave that may be carried forward to a succeeding year

shall not exceed forty in the case of a young person or thirty in any other case;

(ii) The provisions of this section shall not operate to the prejudice of any rights to

which an employee may be entitled under any other law or under the terms of any

award, agreement or contract of service;

(iii) Where such award, agreement or contract of service provides for a longer leave

with wages or weekly holidays than those provided under this section the

employee shall be entitled to only such longer leave or weekly holidays as the

case may be.

(2) Leave period in clause (a) of sub-section (1) shall, when applied for be granted except

for a valid reason to be communicated in writing by the employer to the employee within

fifteen days of the application:

Provided that the leave so refused shall, if applied for again, be allowed during the year.

(3) (a) For the purpose of computing the period during which an employee has been

in employment within the meaning of sub-section (1) (a), the period during which he

was on leave under this section and the off days in a week referred to in section 11,

shall be included.

(b) The un-availed leave of an employee shall not be taken into consideration in

computing the period of any notice required to be given before discharge, removal or


(4) Notwithstanding anything contained in the foregoing sub-section every employee in

an establishment shall be allowed with wages seven days casual leave and seven days

sick leave in a year.
12th July 2014 From India, Ahmadabad
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