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Hello, I wanted to get a clear understanding of the Earned Leaves/Privileged Leaves that can be carried forward according to the Shops and Establishment Acts for the state of Tamil Nadu. I need to know what is the limit and when exactly will the carried forward leaves get lapsed.
Also is it at the companies discretion to encash the remaining during the time of employee termination/exit

From India, Chennai
Seasoned Ir Professional
+1 Other


Under Tamil Nadu Act, the employees can carry forward or accumulate forty five days' earned leave. The leave applied for, if any, refused by the employer shall be counted over and above this forty five days. Any unavailed earned leave at the time of discharge/ termination of employment shall be encashed by him.

Encashment of leave during the service is an employee benefit and as such there is no legal violation if the employer permits employees to encash leave while they are in service.

From India, Kannur

Leave Policy in Tamil Nadu
Leave for Shops and Establishment

1.Casual Leave (Days)- 12 days (during the first twelve months and further continuous service) Carry Forward Days-Not Applicable

2.Sick Leaves- 12 days (during the first twelve months and further continuous service), Carry Forward Days-Not Applicable

3.Earned / Privileged Leave-12 days (after twelve months of continuous service), Carry Forward Days -45

Carried forward earned leaves in Tamil Nadu often come with an expiry date. Typically, it's mandated that these leaves must be utilized within the initial three months of the following year. Failure to use them within this timeframe might result in their lapsing, causing the employee to lose those accrued leaves. While this information generally holds true, it's important to recognize that specific details can vary depending on factors like company policies, employment contracts, and updates to labor laws. To ensure accurate and current comprehension, consulting the Tamil Nadu Shops and Establishments Act directly, official notifications. Individual company policies may enhance leave benefits, but they can't provide fewer benefits than those provided by the applicable labor laws.

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