Industrial Relations And Labour Laws
Hr Executive
+1 Other

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Dear All!! I’m an HR executive working in an IT company situated in Kerala. I need your support to frame a leave policy for my organization.
Your leave policy would be based on Shops and Establishment Act applicable to your state, and also more or less in line with similar establishments in Kerala
No leave policy which does not allow 12 days of casual Leave, 12 days of sick leave and 12 days of Earned leave (after completion of 12 months of service) during a year will be illegal. at the same time, you are free to give any additional number of leave. Please remember that the above mentioned leaves are to be given to each employee even if you work for 5 days.
12 days Annual leave is correct.
But in the case of CL and SL the relevant section 13 (2) of Kerala Shops and Commercial Establishments Act 1960 reads,
"Every employee in an establishment shall also be entitled during every twelve months of continuous service a)to leave with wages for a period not exceeding twelve days on the ground of any sickness incurred or accident sustained by him and b) to casual leave with wages for a period not exceeding twelve days on any reasonable ground."
So 12 days of SL and CL prescribed is not minimum but maximum in a year.
There are IT companies in Tvm which gives SL ,CL @ less than 12 in an year based on the above wording.
In addition IT employees are entitled for leaves under ESI Act and Maternity benefits Act and for holidays as per Kerala National and Festival Holidays Act.
Standing Orders Act is applicable to IT establishments in Kerala having 50 or more workmen.Till standing orders are certified for such establishments, the model standing orders of Kerala will be applicable, which prescribes 10 casual leaves.
IT companies in Tvm may contact me for further advice.
Varghese Mathew

The wording "not EXCEEDING 12 days" has been misinterpreted by many companies. I get quires saying that why should we give 12 days leave because the Act says that it is maximum 12 days and as such we can give 7 or 9 days leave also. But one important thing is that the the wording is like this, " Every employee is ENTITLED TO.......12 days leave...." The word ENTITLED makes the interpretation different. If it was like, every employer shall give a maximum of 12 days leave, then it is for the employer to decide how much leave to be given whereas when it becomes an ENTITLEMENT of EMPLOYEE, it is the right of an employee to get 12 days leave.Yes, he cannot ask for more than 12 days CL or SL, but can demand 12 days SL or CL, as the case may be, and the employer should give it.
Dear Madhu / Varghese Sir,
Establishment who has obtained the Registration under Kerala Shops Act It is mandatory for such establishment to obtained Registration under Kerala National and Festival Holidays Act.
Kindly revert.

If the establishment has 20 or more employees,it is mandatory to allow holidays as per Kerala national and festival holidays Act.There is no system of registration under that Act.Registration under the Shop and commercial establishments Act is enough.
Separate registration is not required as there is no provision for registration under holidays Act.
Dear Varghese Sir,
Thanks for the reply on Kerala National Festival and Holidays Act,May I request you to share the process flow in making application to the Statutory Authority about the same.

Dear anonymous, Pl share your email and name and place of your organisation. Varghese Mathew
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