Understanding Leave Entitlements: How Do They Differ from the AP Shops and Establishment Act 1988?

Dear Sir(s),

The question I am having to clarify for my client is based on the following case: According to the AP Shops and Establishment Act, 1988,

1. Employee is entitled to a minimum period of 12 days of casual leave on any reasonable ground and 12 days on the grounds of sickness or accident.

Doubts:

1. I am also told that the earned leave entitlement per annum is for 15 days. Is that true?
2. My observation has been that companies usually follow a total annual leave duration of anywhere between 24 and 30 days, inclusive of casual, sick, and earned leave.
3. Why is this different from what is mentioned in the Act?
4. How do I explain this to the client?

Please help me with my concern!
Thanks a bunch. Regards, Satyajit

Hi,

As per the Establishment Act, 12 casual leaves, 12 sick leaves, and 15 earned leaves are allocated per year. Earned leaves can only be utilized after the completion of one year. However, companies don't strictly adhere to these rules. Leaves are typically consolidated as 24 leaves, with 12 considered as casual or sick leaves and the other 12 as earned leaves to align with working days.

It is important to adhere to the company's policies in this regard.

Bye,
Usha

I really disagree with you regarding the mention of the Leave process. According to the Shops and Establishment Act, any employee who is full-time or part-time is entitled to 6 days of casual leave. In terms of sick leave, for every two months, 1 leave will be allotted to the employee; this means that for every month, 1/2 leave will be given to the employee as sick leave (not 12 leaves).

Moving on to Earned leave, as per the Factories Act or Shops and Establishment Act, any employee working with a firm must work for twenty days to be entitled to 1 day of earned leave. This means that for 240 days in a year, if the employee works, they are entitled to 12 days of leave. This leave can be utilized after completing one year of service with the current company, and it will not be encashed by the employer unless the employee completes their first year of service.

I hope this clears any doubts for everyone. If not, please revert for any clarification to the below-mentioned email address.

Cheers,
Satya Penubothu
penubothus@gmail.com

Dear Satya,

Thank you very much. It's interesting that you say that because the attachment I have enclosed in my email is exactly the reason why I asked that question earlier. This attachment was found on CiteHR. Not that documents on CiteHR are error-free, but I also have policy documents from the Andhra Pradesh Chamber of Commerce that have the same verbiage. Quite a mystery, I must say! Thank you anyway, and do let me know if the puzzle is solvable!

Sincerely, [Your Name]

Hi,

I just wanted to know if any employee takes leaves from the 1st to the 10th of the month, should we consider it as a 10-day leave or do we need to exclude general holidays (i.e., Saturday and Sunday).

I really disagree with you regarding the Leave process. According to the Shops and Establishment Act, any full-time or part-time employee is entitled to 6 days of casual leave. As for sick leave, every two months, 1 leave is allotted to the employee, which means that for every month, 1/2 leave will be given towards sick leave, not 12 leaves.

Regarding Earned leave, as per the Factories Act or Shops and Establishment Act, any employee working with a firm must work for twenty days to be entitled to 1 day of earned leave. This means that for 240 days in a year, if the employee works, they are entitled to 12 days of leave, which can be utilized after completing one year of service with the present company. This leave will not be encashed by the employer unless the employee completes their first year of service.

I hope this clears any doubts for everyone. If not, please revert for any clarification to the below-mentioned email id.

Cheers,
Satya Penubothu

Leaves as per the AP Shops and Establishments Act:

Sick Leave - 12
Casual Leave - 12
Earned Leave - 15

Please let me know if you need any further assistance.

Hi Ravi,

Traditionally, as a policy, a holiday is not part of an employee's leave balance. Therefore, if a holiday falls in between an employee's leave period, it is not construed to be part of an employee's leave plan.

Regards,
Satyajit

Hi,

Kindly suggest the different leaves and policies in the Shops and Establishment Act at a Chennai-based company. Presently, we have 25 days of flat leave for all.

Regards,
Raju - HR
Chennai.

Great!

Therefore, my next question to the group is:

1. Why then does the AP Shops and Establishment Act, 1988, publish so many leaves as mentioned above?
2. Which organizations follow them accurately?
3. What is the logic behind these companies following the leave policy as per the AP Shops and Establishment Act, 1988?

I really am interested in hearing your response.

Regards,
Satyajit

Dear Mr. Penubothu,

Greetings to you.

Leave policy varies from one organization to another. We are also following the same, but when it comes to the facts...

As per the AP Shops and Establishment Act, 1988...

EL - 15 (Compulsory presence for 240 days in a calendar year; if not met, eligibility is affected) However, after completion of one year of service.

SL - 12

CL - 12

The same has been attached for your reference (scanned copies in .pdf format).

You mentioned CL-6, SL-6, and EL-12 in your email. You stated that SL can be given half a day per month - can we apply the same if an employee is sick?

I did not find that CL can be posted as SL if CL-6; does the applicability remain the same as SL, i.e., half a day? Can we post half a day leave (no half-day postings for CL)?

I am requesting you to send your Leave policy copy for reference.

I need some suggestions from you regarding the same to create a better policy.

However, private companies are reluctant to increase the number of leaves, but we need to be accountable to the Labor Commissioners.

I hope to receive a prompt response from you.

Goodbye,

K. Srinivas

Dear Srinivas,

I am very eager to know how many companies provide the same leaves and types of organizations, whether MNCs or proprietary companies.

I would appreciate an immediate reply from you.

Goodbye,
K. Srinivas

Hi,

I need clarification on the leave policy. We have 20 earned leaves after the completion of the 6 months probation. The 20 earned leaves would start from the day you are confirmed. After confirmation of six months, the employee would not get the leaves for the duration of the 6 months probation period. Is this a right practice?

Regards,
Sumanth

Mr. Srinivas I Agree with you and let me make you clear at one point that Govt of AP has said that Since the IT & ITES companies have been classified under the “Essential Services Act”, by the Government of Andhra Pradesh as given below;

GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

Information & Communications Technology (ICT) Policy of the Government of Andhra Pradesh – ICT Policy 2005-2010 - Orders – Issued.

INFORMATION TECHNOLOGY & COMMUNICATIONS DEPARTMENT
Promotions 1 Section
G.O.Ms.No.11 Dated.21.03.2005.







Read the following:
G.O.Ms.No.27, IT&C Department, dtd.27.06.2002.
a. Under Point - 35
b. Sub Point - “a”
c. Sub Sub Point - “v”

this information has been circulated and been published in NASSOM publication some time back in the same year when the Govt of AP Announced

according to this, so i dont think that we come under Shops and Establishment Act and Factories Act.....

can revert back for any clarification and feel free to get in tocuh with the below mentioned contact number

Hand Fone: +91 9948774090

Hello Sree,

Simple computation: Basic + D.A x No. of days of leave (to be encashed)/26 days

E.g. Monthly Salary of 'X' is Rs. 1000 (600 basic + 120 D.A + 280 H.R.A + 100 conveyance). Number of leaves to be encashed = 10. Amount to be paid = 600 + 120/26 x 10 = 276.92, i.e., Rs. 277.

Note: If you don't have D.A or V.D.A in your salary components (like many companies do), you may take only basic for the above computation.

Sir,

From the below, it is clear that 6 CL, 6 SL, and every twenty working days one EL (after 240 days). Can you please tell me under which section or chapter this comes in the Shop & Establishment Act?

Umesh Nitturkar
9849419515

Hi, sir.

I am a police constable in AP and am currently on a 5-year leave, working in Dubai. My question is, can I extend my leave for another couple of years? Please help me with your valuable reply.

Kalesh

Hello, can anyone provide me with the following:

1. The latest document for Leave as per the APSE Act (ITES).
2. Other mandatory benefits to be provided by the company.

Thank you.

Mr.Satya,
As per the GO IT & ITES organisations are allowed to self certify that they are following the rules.
These organisations surely comes under AP S & E act.
FYI PL
Regards,
Sankar Alla

Leave Entitlements in AP Shops

Can anyone tell me how many CL (Casual Leave), SL (Sick Leave), EL (Earned Leave), and other maternity leave days are available for employees in AP shops? I want to know the specific numbers. Please kindly assist me in finding the answer. I hope to receive a response as soon as possible.

Regards,

Mr. Raju,

As per the Tamil Nadu Shops and Establishments Act, the following are the guidelines regarding leave:

1. Casual Leave: Employees are required to take 12 days of casual leave in a year.
2. Sick Leave: This leave is only necessary when an employee is on leave due to sickness.
3. Holidays: Employees are entitled to a maximum of 12 days of holidays in a year.

Thank you.

Mr. Raju,

Please ignore my earlier posting. By mistake, my hand pressed one of the keys and it got posted before I could even complete the message:

Re: Leave Policy - AP Shops and Establishment Act 1988

Mr. Raju,

As per the Tamil Nadu Shops and Establishments Act, the following are guidelines regarding leave:

1. Casual Leave: Employees are required to give 12 days per year.
2. Sick Leave: 12 days per year. If an employee is on leave due to sickness or accident, only then can this leave be sanctioned.
3. Holidays: Employees who have completed 12 months of continuous service shall be granted 12 days of holidays with wages. This entitlement will be provided to them in the following year. The accumulated holidays can be up to a maximum of 24 days and can be encashed at the time of leaving or separation.

V. Balaji

Calculation of Earned Leaves (EL) as per the Shops and Establishments Act

Can I know the calculation of ELs as per the Shops and Establishments Act? We are calculating it by taking basic/30 * number of ELs. I have a doubt about the working days (i.e., 30 or 26 working days).

Thanks & Regards,
Divya Reddy A

Hi Guys, I have not seen 12 CL's and 12 SL's in any of the documents of the AP Shops and Establishment Act. Can anybody share the document on the same?

Regards, Hari

Hi, I have a doubt. I am the HR of one of the IT organizations. What should I refer to when creating a new leave policy?

Hello Sir,

If an employee applies for the CL prefix and suffix of the week off, is he eligible for the week off? For example, if he applied for leave on Saturday and Monday, is Sunday calculated as a paid holiday?

Thank you.

Hi, warm greetings to all!

I have a doubt regarding the AP Shops & Establishments Act. Can CL be combined with any other leave, such as can CL be clubbed with SL/EL/Compensatory Off? Can anyone explain?

Thanks & Regards.

Dear All,

Many people are confused regarding the leave policy.

LEAVES AS PER ACT IN AP & Telangana:
- Shops & Establishments:
- CL - 12 on a prorate basis
- SL - 12
- EL - 15

- Factories Act:
- There is no CL & SL
- EL: Only those who have worked 240 days (physical present days i.e., excluding W-Off, leaves, & absences) are eligible. For every 20 worked days, one EL can be accrued.
- For example, if an employee X has worked 273 days, 273/20 = 13.65 rounded to 14.

Regards,
Chaitanya

Casual Leave Allocation

My organization is dividing the total casual leaves per month, i.e., 18 leaves / 12 months, and asking employees to apply for only 1.5 leaves per month. Anything above this will result in a loss of pay. Is this correct?