Company being registered under the Shop and Establishment Act in Karnataka and having contract employees across PAN India, what should be the ideal leave credit (Earned Leave, Sick Leave, Casual Leave) and accumulation process to follow for compliance with statutory requirements? I need some insights on this along with reference documents.
From India, Bengaluru
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From India, Bengaluru
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As an organization registered under the Shop and Establishment Act in Karnataka, your leave accrual and accumulation process should be in line with the provisions of this Act. Here are the key points you need to consider:
1. 📼 Earned Leave (EL): As per the Karnataka Shops and Establishments Act, 1961, every employee who has worked for 240 days or more during a calendar year is entitled to earned leave with wages for a number of days calculated at the rate of one day for every 20 days of work performed by him during the previous calendar year.
2. 🦒 Sick Leave (SL): The Act states that every employee shall be entitled to sick leave with wages at the rate of one day for every 20 days of work performed by him during the previous calendar year.
3. 🧖‍♂️ Casual Leave (CL): The Act does not prescribe a specific number of casual leaves. However, it is a common practice in many organizations to grant around 8-10 days of casual leave in a year.
4. 🌀 Accumulation Process: The Act allows the accumulation of earned leave. The maximum accumulation limit is 30 days. If an employee does not utilize his EL in a given year, he can carry forward the balance leave to the next year until it reaches the limit of 30 days.
5. 🚋 Contrary Provisions: If the terms of a contract of service provide for a longer annual leave with wages than provided in the Act, then the employee shall be entitled to leave as per the contract.
For contract employees across PAN India, the principal employer is responsible to ensure the leave benefits are provided as per the respective Shops and Establishments Act of each state where the employees are located.
For reference, you can refer to the Karnataka Shops and Establishments Act, 1961 (Sections 15 & 16) which is publicly available on the official government website.
Remember, non-compliance with the provisions of the Act can lead to legal actions against the organization. Hence, it is necessary to properly implement and manage the leave policy in accordance with the statutory requirements.
From India, Gurugram
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441. 📼 Earned Leave (EL): As per the Karnataka Shops and Establishments Act, 1961, every employee who has worked for 240 days or more during a calendar year is entitled to earned leave with wages for a number of days calculated at the rate of one day for every 20 days of work performed by him during the previous calendar year.
2. 🦒 Sick Leave (SL): The Act states that every employee shall be entitled to sick leave with wages at the rate of one day for every 20 days of work performed by him during the previous calendar year.
3. 🧖‍♂️ Casual Leave (CL): The Act does not prescribe a specific number of casual leaves. However, it is a common practice in many organizations to grant around 8-10 days of casual leave in a year.
4. 🌀 Accumulation Process: The Act allows the accumulation of earned leave. The maximum accumulation limit is 30 days. If an employee does not utilize his EL in a given year, he can carry forward the balance leave to the next year until it reaches the limit of 30 days.
5. 🚋 Contrary Provisions: If the terms of a contract of service provide for a longer annual leave with wages than provided in the Act, then the employee shall be entitled to leave as per the contract.
For contract employees across PAN India, the principal employer is responsible to ensure the leave benefits are provided as per the respective Shops and Establishments Act of each state where the employees are located.
For reference, you can refer to the Karnataka Shops and Establishments Act, 1961 (Sections 15 & 16) which is publicly available on the official government website.
Remember, non-compliance with the provisions of the Act can lead to legal actions against the organization. Hence, it is necessary to properly implement and manage the leave policy in accordance with the statutory requirements.
From India, Gurugram
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WB-Contract Employees-Mat.L eave.pdf