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Dear Seniors,
I am working with a Pharma Co. having head office in Mumbai and registered under Bombay Shops & Establishment Act. As many pharma cos, we also have filed staff across India but no offices other than Mumbai.
Our leave policy is in line with the provisions of the act.
I want to know whether an employee who is working in field at Tamil Nadu will be entitled for the same leaves / or as per the Tamil Nadu Shops & Establishment.
I went through earlier discussions on cite hr wherein seniors have suggested that the provisions of the state where the employee is working will be applicable.
However, when I checked with one of the shops and establishment inspectors of our ward, he says that the provisions of the state from where the salary is being processed will be applicable.
Besides, none of the acts have thrown light on this matter.
Please give your comments.
Thanks & regards
1st January 2015 From Singapore, Singapore
DS: The state in which the salary is being processed, in your case, is Mumbai so the S&E laws of Mumbai will be applicable - Technically!
In practice, almost all employers that face similar situations like yours tend to allow staff to draw on leaves by the state they are working in/deployed to or employed in.
The fine line confusion arises from the following:
1) If your appointment letter has employees reporting to someone in the HQ location - then the employee has been deputed or 'transferred' and will be eligible for leaves of the HQ state/location.
2) If your firm has a branch office registered in another state, then the labor laws (including holidays/leaves) of the state apply since it is assumed that the employee is reporting to the local branch office.
In your case, if the S&E inspector claims to the contrary, he's incorrect if the holiday list, by location is part of your HR policy.
Hope this helps
1st January 2015 From India, Mumbai
Since you are working with a Pharma company, the shop and establishment act does not apply to your fi ld staff. Instead you need to follow the provisions of sales promotion employees conditions of employment act.
The leave rules, weekly off and various other provisions of the act needs to be followed by you for these employees. Shop and establishment act will apply only to those employees who are stationed mostly at the office.
1st January 2015 From India, Mumbai
Holidays have nothing to do with S & E Act. Mandatory holidays such as Independence Day, Republic Day, Gandhi Jayanti & May Day have to be given. Rest each state can have different list of holidays based on local festivals etc.
Anil Nagpal
3rd January 2015 From India, Pune
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