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Hi, I have my own IT Software Company in Ahmedabad, Gujarat. I manage the HR and I would like to know the latest rules regarding Leave policy. An employee is entitled to how many CL, PL and SL per year and per month? Also, if someone can send me a format for all compulsory HR policies like leave policy, recruitment policy, termination policy, probation period policy, notice period policy, salary revision/promotion policy, etc.
Dear Khushali,

Please refer mumbai/bombay shop & establishment act and gujarat rules, every thing will be clear. Please also refer my attachment on the subject. Every employee who has worked for not less than 3 month in a year shall be eligible for 5 days leave for every 60 days worked. And for those who have worked for not less than 240 days - 01 day for every 21 days worked. Days on which establishment remains closed, public holidays should be counted as working days for the purpose of calculating working days. It all depends on the type of establishment you are working and weather standing orders are applicable to your estt. Please check before implementation

As a best practice, you may look at the following

CL - 7 days (Min 1 day and Maximum of 2 days)

PL - 20 days (Min 1 day and Maximum of 10 days at a stretch and should mandate all the employees to avail these leaves and shall not be carry forward or reimbursed to have a better work life balance)

SL - 12 days (Can be carry forward to the next years and can go up to cumulative of 120 days)

ML - 90 days (4 weeks before the due date)

Holidays - 8 (3 are compulsory i.e Republic day, Independence Day, 2 October) and 5 are optional as per gujrat goverment notification.

Hope this will help in your assignment



HR Consultant


Attached Images
File Type: jpg SHOP & Est Leave Rules 001.jpg (318.7 KB, 1092 views)

Hi, information shared is very helpful. I would like to know leave encashment calculation under Gujarat shops and establishment act. My previous employer is calculating it dividing the amount by 360 per year and not 240. Is it correct or in line with laws and act?
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