Navigating Leave Policies: How Does the Shop & Commercial Establishment Act Affect Your Company?

Dear All,

This is Deepa. Please help me out with the leave policy which comes under the Shop & Commercial Establishment Act.

Hello,

I apologize for not attaching the files earlier. I have now attached the files.

Regards,
Vinay.A

Dear Deepa,

As per the Shop Act, we are required to provide 12 casual leave days, 12 Earned leave days, and 12 Sick leave days, totaling 36 days. This constitutes the minimum leave entitlement under the Act. Nevertheless, there is no restriction preventing management from increasing the amount of leave.

Earned leave can be availed after completing one year of service. Any unused casual leave will expire and cannot be carried forward.

R. Sreenivasan
Email: sri1958@gmail.com

Mr. Sreeniwasan,

Is it mandatory to give 12 CL and 12 SL, as what I knew was that a minimum of 12 days has to be given as CL or SL. Can't we combine the two? Such as just 12 days of SL and CL.

Dear Deepa,

A total of 36 days of leave is mandatory: 12 CL, 12 SL, and 12 PL (Privilege or Earned leave). Accordingly, registers need to be maintained every month for all employees. Leave not taken need not be carried forward or encashed.

The following attachment contains the list of registers to be maintained as per the Shops & Establishment Act. Could someone provide me with tips on how essential it is to maintain these registers or any way to reduce this manual work?

Kalpana Jain
HR Team Lead

Hi,

Is the leave policy, as per the Shops & Commercial Establishment Act, applicable to all types of industries like manufacturing, IT services, etc.? Please clarify.

Thanks & regards, Meera

Dear All,

Please let me know the leave policy under the Shops and Establishment Act. Also, I would like to know if a company that has a policy to provide a flat 30 leaves can reduce it or not.

Ravi

Dear Venkat,

First, decide under which of the Acts your unit is covered, i.e., Factories Act, Shop Act, or National, Festival Holidays & Casual & Sick Leave Act, and thereafter go through the leave provisions for different types of leave. In general, it is hereby stated that Casual Leave (CL) and Sick Leave (SL) lapse at the end of the year, while Earned Leave (EL) may be carried forward to a certain limit.

Comments submitted as requested.

Regards,

R.N. Khola

(Labour Law & Legal Consultants)
09810405361

Dear All,

All of us are talking about the Shops & Commercial Establishment Act, but you should know that this is not a central Act. It is a State Act, and therefore, we cannot name it as the Shops Act. It is hoped that each state has enacted this Act. The name of the Act will be based on the name of the state, for example, Punjab Shops & Commercial Establishment Act, 1958, Delhi Shops & Commercial Establishment Act, etc. Different types of leaves vary from state to state. It is advised that you please go through your State Act and Rules and then decide on the matter in question.

Regards,

R.N.Khola

(Labour Law & Legal Consultants)
09810405361

Hi Deepa

I hope you are working for a company located in Kerala. As per the THE KERALA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT. 1960, Chapter - III, an employee is entitled to the following:

Annual leave with wages.-(1) Every employee in an establishment shall be entitled after twelve months' continuous service in that establishment, to holidays with wages for a period of twelve days, in the subsequent period of twelve months, provided that such holidays with wages may be accumulated up to a maximum period of twenty-four days.
(2)Every employee in an establishment shall also be entitled during every twelve months of continuous service (a) to leave with wages for a period not exceeding twelve days on the ground of any sickness incurred or accident sustained by him and (b) to casual leave with wages for a period not exceeding twelve days on any reasonable ground.

Thus it is clear that at least in Kerala,the minimum number of casual leaves and sick leaves are not defined.

Regards

Mahesh.

Hi R.N.Khola,

What types of leaves are applicable to those who work in a factory under the Factories Act? For example, is the leave policy the same for managers, officers, senior executives, and workers? I understand that only PL (Privilege Leave) is applicable. Are CL (Casual Leave) and SL (Sick Leave) also applicable in a factory, and if so, are these leaves available to workers as well? Could you please clarify?

Regards, Ravindranath

Dear Ravindranath,

The worker, as defined under The Factories Act, 1948, is entitled to leave with wages as per Chapter VIII of this Act. A worker is also entitled to National & Festival holidays and Sick & Casual Leaves under the State Industrial Establishment (N & F and C & S) Act if the State has enacted this Act for workers working in factories. He can also avail sickness benefits if covered under the definition of the employee under the ESI Act, 1948. A female worker can also avail Maternity Benefit under the ESI Act or under The Maternity Benefit Act, 1961, whichever the case may be. After finalizing the applicability of the Act, we are to go through the definition of the beneficiary, i.e., worker/employee who becomes entitled to have these leaves. If any of the persons working in factories who are not covered under the definition of the worker/employee, whichever is there in the Act, then he will be getting the leaves as per the leave policy or rules of the unit.

Regards,

R.N.Khola
Labour Law & Legal Consultants
09810405361

Dear ---,

You must be aware that the Shops Act is a State Act; therefore, you are advised to refer to your State Shops Act when making decisions regarding sick leave.

Regards,
R.N. Khola
(Labour Law & Legal Consultants)
09810405361

What is the number of Casual Leave, Sick Leave, and Privilege Leave defined under the Bombay Shop & Establishment Act?

---

Dear Mr. Khola,

I am in the process of building an HR Manual for a Charitable Hospital in Maharashtra. Could you please help me understand how many Casual Leaves and Sick Leaves can be given to employees as per the act?

Dear Poonam,

You are to go through section 35 on 'leaves' under the Bombay Shops & Establishment Act, 1948. You will find there all types of leaves which are to be given to your employees.

Regards,
R N KHOLA

Dear All,

Leave as per Shop & Establishment Act:

CL: 7
SL: 7
EL/PL: 21

I have attached leave details from the Shop & Establishment Act for your reference.

Regards,
Faruk Shaikh
Sr. Executive - HR
Neesa Group, Ahmedabad

Dear Nida,

If your establishment is covered under The Bombay Shops & Establishment Act, 1948, then go through section 35 on the grant of leaves to find a reply to your query.

Regards,
R.N. Khola

Dear Naresh G.,

A number of leave policies are provided by the members at different forums of this site, and you can also download the leave policy on this site itself. It is also important to inform you that the Shops & Establishment Act is not a central act but rather a state act. Different state Shops Acts have varying leave provisions. Therefore, first, determine which State Shops & Establishment Act is applicable in your case. Then, review the leave provisions in that Act and adjust the leave policy accordingly, considering the different types of leaves provided in the applicable Act.

Regards,
R.N.Khola

Dear All,

Please help me understand if the number of earned leaves for next year depends on the number of working days from the previous year.

Dear Member,

First, decide which of the Acts is applicable to your establishment relating to the grant of earned leaves, and then go through the provisions on the subject to find out the answer.

Regards,
R.N. Khola

[Quote: deepak21mishra;1280528]
Dear All,

Please help in the matter of whether the number of earned leaves for the next year depends on the number of working days in the previous year.

Inquiry About Employee Leave Entitlements

As I am working as Manager HR in a company registered under the Shops and Establishment Act, I would like to inquire about the number of leaves that employees are entitled to. Could someone please provide me with details regarding:

- Earned Leave
- Sick or Casual Leave
- Other types of leave

Thank you,

B. M. Sharma

Dear All, As I am working as Manager HR in Gurgaon for a company registered under the Shops and Establishments Act, I would like to inquire about the entitlement of leaves for employees. Could someone please provide details regarding:

- Earned Leave
- Sick or Casual Leave
- Others

Thank you.

Regards, B. M. Sharma

Under the Shops and Establishment Act, there is a provision for only Earned Leave/PL. For every 60 days worked, 5 days of leave are to be given. The Shops & Establishment Act does not mention anything about Sick Leave or Casual Leave.

Leave Policy Clarification

CL can get lapsed immediately. SL can be accumulated up to 27 days and will get lapsed after one year. PL can be accumulated up to 45 days, i.e., for three years.

Thank you.

I wanted to know, as per the Shop & Commercial Establishment Act, how many leaves employees can get. Please reply.

Clarification on Shops & Establishment Act

This is to clarify that the Shops & Establishment Act is a State Act. Therefore, first, identify the State Shops & Establishment Act applicable in your case. Then, review the leave provisions in that Act to determine the number of leaves.

Regards,
R.N. Khola
Welcome Skylark Associates

Kindly advise on the Leave Policy for the Tamil Nadu Shops and Establishments Act. Thank you.

As per the Tamil Nadu Shops and Establishments Act, an employee will be allowed 12 days of Casual Leave (CL), 12 days of Sick Leave (SL), and 12 days of Privilege Leave (PL) after the successful completion of one year. Only PL can be accumulated to a maximum of 30 days, and any excess of the same shall either be encashed or served as notice while leaving. Please advise your views.

Dear Sir,

Our company is registered under the Shop Act and situated in Pune, Maharashtra. We are preparing a Leave policy, but there are different opinions among the management regarding the number of leaves and categories such as national holidays, EL, SL, CL, etc.

Please assist us in preparing the policy in accordance with the rules of the Pune/Maharashtra Shop Act.

Thank you.

As per the provisions of Sec 35 of The Bombay Shops & Establishment Act, there are two kinds of leaves: one is 5 days for every 60 days of employment, and the second is 21 days of leave for 240 days of working. It is also mentioned that these leaves are inclusive of weekly holidays. But if the weekly offs in a year are 52, does it mean that there is no need to give any leave as the total of both kinds of leave will be 25+21= 46. Please clarify....

Can you please share the updated S&E leave rule for Pan India.

Regards,
Abhijit Saha

If an employee has 34 unused EL days left in their account and resigns from their service, is it a statutory norm that the EL amount should be paid to the employee as per the Shop and Establishment Act? This falls under the Odisha Act. Or is there no such provision in the act.

Please help.