Hi, I have recently joined a start-up in Bangalore and am formulating different HR policies. We have internally stipulated a policy to carry forward 1 Casual leave for every 3 Casual leaves in the previous year. I would like to know if this in any way going against the Karnataka Shops & Commercial Establishment Act or the Labor Laws.
For Example: If an employee has got unused 5 Casual leave/ Earned leave at the end of 2020. The total CL that will be carried to the next year is 1 CL as,
5 CL= 3CL(~1CL in 2021) + 2CL(not eligible to carry forward as its < 3CL)
To conclude, Does the law entitle an employer the privilege to stipulate policies regarding carry forward of leaves to the next calendar year?

From India, New Delhi
Hr Manager
Hr And Operations Associate


As regards Leaves to employees, Statutory laws stipulates only a prescribed number of leaves that a company has to grant to employees. However, it is for the company to decide what types of leaves and how many to be given to employees. Only issue, that company management need to bear in mind that such leaves should not be lesser than what the Law prescribes.
As a general practice followed in organizations, carried forwarding is permitted only in case of Sick Leaves (SL) or Privilege/Earned Leave (AL/PL/EL). As a normal practice Casual leave should not be considered for carried forward, These are leaves employee has to avail in order to meet personal commitment or emergencies. Unavailed portion of CL shall automatically expire at the end of year.

From India, Aizawl
What is the minimum number of Privilege/Earned Leave that should be carried forward to the next year as per the Karnataka Shops & Commercial Establishment Act or the Labor Laws.
From India, New Delhi

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