Understanding Sick Leave Obligations: Do ESI-Registered Companies Need to Provide It to All Employees?

Our company is under the Shops & Establishment Act. Can you clarify the following for me, sir?

I have a query: our company is registered under the ESI Act, and we provide this benefit to all employees except those whose salary exceeds 10,000/-. Now, is it necessary to provide sick leave to all employees or only to those who are not covered under this act? Or, due to ESI registration, is the company not obligated to provide sick leave to anyone? Can you please clarify this for me, sir, and explain what the labor act states regarding this matter?

Regards, Karthik

Sick leave is applicable to all the employees in the company. Companies normally provide 5 sick leaves in a year. This is applicable to all the employees. What is your company's leave policy? How many sick leaves do you provide?

Mr. Karthi,

I believe you are from Tamil Nadu. As per Chapter VI of the Tamil Nadu Shops & Est. Act 1947, sec 25(2), the eligibility of sick leave is as follows:

(2) Every person employed in any establishment shall also be entitled during his first twelve months of continuous service after the commencement of this Act, and during every subsequent twelve months of such service, to leave with wages for a period not exceeding 12 days, on the ground of any sickness incurred or accident sustained by him.

Dear Ponraj,

I am from Tamil Nadu but currently working in Kerala. If an employee joins in January 2009 and falls sick in August 2009, taking 12 days off, is he eligible for those 12 days or only after completing his first year of employment? Also, does this policy apply to staff under ESI? Can you please clarify this for me?

Regards, Karthik

Those who are covered under ESI are not eligible for SL. Pro-rata can be considered. It is up to the decision of your management.

Dear Ponraj,

As per your statement, "those who are covered under ESI are not eligible for SL," but please clarify who is not covered under ESI and what the act states.

Regards,
Subiah. G
Chennai

Doctors will certify the period of sickness, and the insured person will get up to a maximum of 50% of his wages as compensation. Please refer to the TN ESI scheme for more details.