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leena6762
Under the Shop and Establishment Act applicable to IT companies, if an employee takes Leave Without Pay (LOP) with prior approval, will this period be considered as part of their continuous service?
From India, Chennai
Dinesh Divekar
7863

Dear Leena,

Employees work to fulfil their domestic responsibilities and avail of to do so. However, sometimes their needs exceed their permissible leave quota for the year, even with accumulated leave. Against this backdrop, the companies create another type of leave: "Leave Without Pay" (LWP).

Even availing of LWP follows the same procedure, and since it is considered an authorised absence, it cannot be called a "break in service."

If the employee absconds from their duties or overstays their leave, it becomes an unauthorised absence. However, upon resuming their duties, the employee may request the regularisation of the absence. If the regularisation is approved, it cannot be called a "break in service."

For unauthorised absences, if the employee is awarded the punishment, then the companies consider it a "break in service."

These are my observations on how the companies define the "break in service."

Thanks,

Dinesh Divekar

From India, Bangalore
abhishek-dhingra1
12

Hi Leena

I got your question, I am sure you being in an IT company is already having registration under shops and establishment act.

Basis, your question:

1. YES IT companies are also covered under shops and establishment act.

2. if an employee takes Leave Without Pay (LOP) with prior approval, YES this period will be considered as part of his continuous service and you also have to pay gratuity to the employee as well accordingly (as applicable).

From India, New Delhi
jeevarathnam
636

Under Shops & Commercial Establishment act, Factory act etc, any leave which is already approved by the organisation shall be treated as continuous of employment only
From India, Bangalore
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