Does Our Chartered Accountants Firm Fall Under the Delhi Shops & Establishment Act for Leave Policies?

swati saxena
Dear Friends,

I am working in a chartered accountants firm, which is a partnership firm. I am working on the leave policy for my company. Could anyone please tell me if we come under the Delhi Shops & Establishment Act?

All the laws, rules, and regulations related to office hours and maternity leaves would be as per the Shops & Establishment Act. Please reply. Your comments would be helpful. Please reply.
pcmbahr@gmail.com
Dear Swati,

I have drafted a leave policy. Please see the attachment.

Thanks,
P.C. Gupta
1 Attachment(s) [Login To View]

swati saxena
Dear friend,

Would you please tell me if this policy has been formulated by you for a partnership firm or a private limited company?

Thank you.
teknow.hr
Can anyone tell me the minimum number of employees required in an establishment under the Delhi Shops & Establishment Act of 1954 for the provisions of leave to be implemented in a private limited company?

Please reply to me soon with the relevant act.
satyam.hr
Dear Swati,

According to the Delhi Shops and Establishment Act, every person employed in an establishment shall be entitled to:

(a) after every twelve months' continuous employment, to privilege leave for a total period of not less than fifteen days;
(b) in every year, to sickness or casual leave for a total period of not less than twelve days;

Provided that:
(i) an employee who has completed a period of four months in continuous employment shall be entitled to not less than five days of privilege leave for every such completed period; and
(ii) an employee who has completed a period of one month in continuous employment shall be entitled to not less than one day's casual leave for every month.

Furthermore, a watchman or caretaker who has completed a period of twelve months in continuous employment and to whom the provisions of Sections 8, 10, 11, 13, and 17 do not apply by virtue of an exemption granted under Section 4 shall be entitled to not less than thirty days' privilege leave.

(i) Privilege leave to which an employee is entitled under clause (a) of sub-section (1) or under any such law, contract, custom, or usage, award, settlement, or agreement as referred to in Section 3, or any part of such leave, if not availed of by the employee, shall be added to the privilege leave for any succeeding period to which the employee is entitled. However, the total period of accumulated privilege leave shall not exceed three times the period of privilege leave to which the employee is entitled after every twelve months' employment.

(ii) Leave admissible under clause (b) of sub-section (1) shall not be accumulated.

If an employee entitled to leave under clause (a) of sub-section (1) of this section is discharged by their employer before being allowed the leave, or if, having applied for and been refused the leave, the employee quits their employment before being allowed the leave, the employer shall pay them full wages for the period of leave due to them.
prghr
Can anyone share what the procedure is for declaring the list of holidays pertaining to Delhi under the Shops and Establishment Act? Also, please advise where we should submit the request letter after preparing the holidays list.

Regards,
PRGHR.
amit20102010
I am working in a partnership firm. They provide 27 days of leave in a year, but if anyone takes more leave, the salary will be deducted. However, if somebody has 7 days of leave left, they are forfeited. There is no provision for leave encashment. Please provide any rule that mandates leave encashment for all establishments.
AHNL
Could someone kindly tell me what the definition of the word "wage" is for leave encashment when an employee is leaving the organization and their privilege leave is being encashed?
Palnish1901
Fellow members,

A close reading of Section 22 indicates the following useful points:

i. MAXIMUM leave accumulation of PL cannot exceed 45 days

ii. There is NO MINIMUM limit for PL accumulation

iii. The encashment of PL is mandatory only when the employee departs from the company either by way of termination, retirement, or resignation. Yearly encashment is not prescribed by law.
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