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We are following Delhi Shop & Establishment Act in our company.
As per the Act, 15 PL are mandatory per year, which is 1.25 PL per month.

But it is no where mentioned on how many working days an employee is eligible for PL in a month. so below are my queries:

1. Can we make our policy like, if an employee has worked (present in office or work from home) for 20 or more days in a month (excluding weekend/ holidays/ Casual or sick leave he avails), then he is eligible for PL?
Can we do so?

2. Will it be ok if we do not pay for PL during exit or offboarding of a employee?

From India, New Delhi

Dear friend,

To clearly understand the provisions of privilege leave under the Delhi Shops and Establishments Act,1954, I would like to insist that one has to give a meticulous reading of the sub sections (1)(a), proviso (i), (1A) and (2) of section 22 of the Act which deals with the various kinds of leave admissible under the Act.

Yes it is correct that there is no mention about PL on per month basis. The reason is that the employee's eligibility to PL is linked to the length of his continuous service in the establishment as follows:
As per section 22(1)(a) an employee becomes eligible for 15 days PL after completion 12 months continuous service in the establishment.
As per the proviso (i) to section 22(1), he becomes eligible to 5 days of PL only after completion of 4 months continuous service in the establishment.
Therefore, there is no need for the exercise of pro rata basis sanction per month. The employer may sanction the PL applied for subject to the limit or refuse it.

The above answer applies to your first query. For the purpose of computation of continuous service, all the authorized absence have to be included.

"NO" is the answer to your second query in view of section 22(2) of the Act.

You may go through the above provisions once again.

From India, Salem
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