Priya George

Dear all, Could you tell me what is Earned Leave entitlement under ''SHOPS AND COMMERCIAL ESTABLISHMENT ACT 1961"? Also, there is a point that employees should work a minimum of 240 days to be eligible for earned leave. Is it removed or still valid?
From India, Bengaluru
Labour Law & Hr Consultant
Hr Consultant
Srinath Sai Ram
Hr Manager
Priya George
Hr Manager

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Srinath Sai Ram

Dear Member,
Annual Leave under The Karnataka Shops& Commercial Establishments Act:
Leave means Leave provided for in Chapter IV- Annual Leave with Wages:
1.PL/EL @ 1 day for Every 20 days Work Performed in the Previous Year. Maximum 15 days Per Annum. Balance of Leave at credit is eligible for Leave Encashment and can be carried forward up to 2 Years entitlement.
2. Accident cum Sick Leave @ 12 days Per Annum subject to production of “Medical Certificate”. Balance of Leave at credit is not eligible for Leave Encashment. Unavailed AL cum SL/Balance shall lapse on 31st December.
3. National/Festival Holidays: 10 days Per Annum.
4. Weekly Holiday:1 day(Every seventh day)
5. Working Hours:8 hours a day (Excluding break for Lunch)
6. Calendar year:1st January to 31st December
7. In calculating Leave under this act, fraction of leave of half a day or more shall be treated as one full days leave and fraction of less than Half day shall be omitted.
8. Balance of PL/EL in credit at the time of leaving service/Resignation is eligible
For Leave Encashment. Leave Encashment is paid on Last Drawn Gross Wages
Excluding Allowances. Further, Balance of PL/EL at credit can be adjusted for
Shortfall in notice period as per terms of Appointment.

9. Employer has to maintain FORM “F” Register of Leave with wages (See Rule
8) Column No 10-Date on which Wages for Balance of Leave Paid, Amount paid
At the time of Leaving Service/Resignation
10. Employer has to issue Form-H (See Rule 9) Leave with wages Book to all

From India, New Delhi

Dear Priya,
The very name " earned leave" suggests that accrual of this kind of leave is not automatic as in the case of casual leave or sick leave which is prefixed either in the establishment- specific labor law or under the leave rules of a particular organization as the case be on calendar year basis. This leave is also called as Annual Leave with Wages, Privilege Leave etc. But the conditions precedent to its accrual is related to one year continuous service or 240 days during the preceding 12 months period in the establishment and its
calculation is made @ one day for every 20 days worked in the 12 months period.
If an employee has not completed 240 days of service in any particular year, no EL would accrue to him for that year.
During the days spent on EL, Maternity Leave, the employee would not earn any EL but such days would be taken into account for the purpose of computation of 240 days service.
The EL thus accrued in a year can be availed of by the employee in the succeeding years only.
This leave can be accumulated only up to the ceiling prescribed under the respective law.
In the event of any kind of termination of employment, the gross salary for whatever the no of EL at the credit of the employee should be paid.

From India, Salem

Dear Mr. Umakantham
Mentioning below the point of Karnataka S&E Act
(4) If an employee is discharged or dismissed from service during the
course of the year he shall be entitled to leave with wages at the rates laid
down in sub-section (1) even if he has not worked for the entire period
specified in sub-section (1) 1
[x x x]1
entitling him to earn leave.
So if someone has worked only for 100 days in calendar year, at the time of separation employee will be entitled for PL/EL encashment

From India, New Delhi

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