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singhps21@indiatimes.com
10

Hello Team members,
I am writing to get more valuable input on a particular aspect. I will mention via an example.
There is a company A who is into IT Software, having its registered office in Delhi. However, its corporate office has been in Greater Noida for the last 5 years, where the entire team of around 100+ white collared employees (all software developers) operates from this office. The organization has all the other statutes being followed, PF ESI, Gratuity, GST etc
I am not aware if they got themselves registered under the UP Shop & establishment Act or not. Though i believe being an IT Company they should come under the Shop & establishment Act.

So here are few questions i have:
- Even if they have not got themselves registered, will, by default, the provisions of the UP Shop & Establishment Act be applicable to them. Mainly which are very basic and critical.
- The main question is with reference to the Leave Policy and entitlement. A Senior is of the opinion that we can give leave entitlement as per our wish with no obligation for encashment or accumulation; however, I am of the opinion that Leave entitlement /encashment/accumulation of (PL/EL +CL/SL)for employees should be as per the UP Shops & Establishment Act.

I wanted to understand from fellow HR & legal experts here whether the Senior's view of giving leave entitlement, accumulation or encashment as per their own will is correct or not. I am of the opinion it is not , so would like to get a more thorough understanding here by experts. Also, will there be any legal implication if it is not given as per the statutes?

Thanks
Vikram

From India, Delhi
Madhu.T.K
4194

Carry forward and accumulation to a certain extent of the earned leave is permissible under the Act. But surrender of leave/ encashment of unavailed leaves is not available as a right of employee. But an employee is entitled to get the unavailed leaves encashed when he leaves the organisation.
From India, Kannur
ashok-sharma1
5

If any employee complains to labour authorities or labour inspector on random inspection finds out that you have violated provisions of the Act with respect to leave and encashment, he can start prosecution against your company. If either of the above mentioned situation does not occur, you may go unnoticed till any inspection happens on any future date. Always good to follow statute book, should not act on one's whims and fancies.
From India
singhps21@indiatimes.com
10

Dear Mr. Ashok,
Thank you for your input. I am of the same opinion. I am also of the understanding that a IT Company comes under the ambit of Shop & Establishment Act , can you please mention your input on the same and just in case if the company has not registered under Shop & Establishment Act still by default will the Leave Entitlement needs to be done as per that only.

From India, Delhi
singhps21@indiatimes.com
10

Dear Mr. Madhu TK,
Thank you for your input. I am trying to understand that
If as a business an IT Company comes under the ambit of Shops & Establishment Act.
If the company has not registered itself in Shops and Establishment still some basic statute like Leave Entitlement & other rules will still be applicable to it.
Thanks

From India, Delhi
Madhu.T.K
4194

Regsitration under the relevant Act (if it is an IT company, it would come under the State Shops and Commercial Establishments Act) is a prerequisite to run a business, and non registration under the said Act will not make the employees ineligible to their rights under the Act. As such, even if the company remains unregistered, the employees will not lose their rights like leave, minimum wages, holidays, weekly off, hours of work etc.
From India, Kannur
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