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Sunithamj
Dear All,

Looking for clarity on a few points regarding Leave Policy applicable to IT Companies in Kerala.

1) Based On Kerala Shops And Establishment Act, do all companies with more than 10 employees require to follow a Leave Policy given below (or is there an exemption in the number of CL/SL)

12 Days CL
12 Days SL
12 Days Earned Leave (PL) after 1 Year Of Service With The Company

2) Considering a company with a staff size of 100 members, is it possible to consider the below leave policy?

6 Days CL
12 Days SL
12 Days PL after 1 Year Of Service With The Company

In addition to the 4 (National Holidays) + 9 (Festival Holidays) = 13 Days Holiday Calendar.

3) Also in regard to the credit of PL, would the employee's PL leave balance be credited with 12 Days PL immediately after completion of 1 year of continuous service, or would the credit be given as 1 Day PL per month starting from the 13th month to the 24th month of service? Up to a maximum accumulation of 24 days PL, in the 24 months following the 1 year of service completion.

Any help will be appreciated.

Thank you.

From India, Chennai
KK!HR
1530

Once you are registered as per the Kerala Shop & Establishment Act 1960 you are bound by it. There is no provision for dilution of the statutory requirement, the Act further lays down that an employee's right to get leave benefit under any award, agreement or contract of service is protected.
Considering the location to be Kerala State, it may not be advisable to tamper with any statutory benefit.

From India, Mumbai
Sunithamj
Hi @KK!HR

Thank you for your input.

The intention is not to dilute the requirement but to better understand the specific requirement and eligibility mentioned in the Act, for example,

1) In regard to the credit of PL, would the employee's PL leave balance be credited with 12 Days PL immediately after completion of 1 year of continuous service, or would the credit be given as 1 Day PL per month starting from the 13th month to the 24th month of service? Up to a maximum accumulation of 24 days PL, in the 24 months following the 1 year of service completion.

From India, Chennai
rkn61
624

copying your query:-

1) In regard to the credit of PL, would the employee's PL leave balance be credited with 12 Days PL immediately after completion of 1 year of continuous service - YES.

12 PL in a year means 1 PL in a month

However, unlike CL/SL, PL should be accrued by the employee, that means, if a person put one months service he is entitled to get 1 PL, similarly if he puts one year of service, he will accrue 12 PL.

You may conisder leaves based on calendar year so that for an employee 'A", if he joined you in
January 22, you shall credit 6 days CL and 12 days SL and 12 days PL shall be credited to "A"
in January 23.

I trust this illustration clarified your doubt.

From India, Aizawl
Madhu.T.K
4194

As per law in Kerala, an employee is to be paid 12 days CL and 12 days Sick leave for a year. This can be proportionately given at the time of joining itself. That is, an employee joining, say, on 17th of September 2022 may be given 3 days CL and SL for the year 2022. If he joined on 1st of September or even 15th of September, you can give him 4 CL and 4 SL considering the September as one month. This is the normal practice in Kerala and no Labour Authorities will question it.

Now regarding earned leave, the law states that after completion of 12 months an employee is entitled to 12 days' leave. This can be credited to him in October 2023. But for accounting convenience, it is advisable to credit 3 days (to those who joined in the second half of Sept) or 4 days (those who joined during the first half of Sept) as the case may be on 1st January 2023 itself and then credit the entire 12 days in the next year, ie, 1st January 2024.

This will satisfy the legal requirements as well as practical HR in force.

From India, Kannur
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