Understanding Working Hours and Leave Policies in Private Limited Companies: What Should You Know?

Dear Sir,

I am working in a private limited company and would like to inquire about the following topics:

1. What should be the working hours (per day/per week/per month) in a private limited company?
2. What are the rules related to leaves (CL/EL/RL/ML) and holidays that should be followed by a private limited company?

Regards,
Shanti

It is not the constitution of the establishment that determines whether it is a public limited company, private limited company, cooperative society, partnership, or proprietary form that decides the working hours, leaves, and other service conditions of the employees. Instead, it is the labor laws applicable to the type of business being conducted that dictate these matters. For example, factories where the manufacturing process takes place must adhere to the rules outlined in the Factories Act. Similarly, mines must comply with the Mines Act, plantations must follow the service rules prescribed under the Plantations Labour Act, and service sector businesses must adhere to the leave and working hour regulations specified in the Shops and Commercial Establishments Act.

Various Acts have established different regulations regarding working hours and the distribution of work, with slight variations based on the respective state's applicability. The Shops and Establishments Act, being a state Act, applies only within that state, while the other Acts are central Acts that are generally similar, subject to any state-specific rules that may be attached to them.

To provide accurate guidance, it is necessary to know the industry your establishment represents.

Regards,

Madhu.T.K

Thank you for the response. The company where I am currently employed operates in the service sector. I believe providing this information would assist you in addressing my inquiries regarding the policies and regulations concerning holidays and leaves.

Dear,

You are required to go through your State Shops & Establishment Act for these different types of leaves.

R.N.Khola

Yes, Mr. Khola is right. Please go through the State Shop & Establishment Act where you can find different sections for leave (EL/SL/CL), working hours, holidays, overtime, weekly closure, etc.

Regards,
Anupam

Dear R N Khola,

Greetings for the day!!

Can you please help me know what is the State Shops & Establishment Act? Is there any site wherein I can refer for more details? Sorry if I am asking you a silly question, but genuinely, I don't know about this. I would appreciate it if you could help me with this. Awaiting your reply.

Thanks & Regards,
Shamal
Recruitment Consultant
PEMS Pvt Ltd

Dear Shamal,

If you are working in Mumbai, then go through the Bombay Shops & Establishment Act. Our HR members have also shared this Act on one of our forums. Please try to find the same. You can also do a Google search for a 'soft copy of the Bombay Shops & Establishment Act, 1948'.

R.N.Khola

We are working in the construction company in the roles of Project Manager and Vice President in a consultancy capacity. Kindly confirm if we are eligible for Earned Leave (EL) and Casual Leave (CL) as per company rules.

Kindly provide us with the necessary information.

Ahmedabad is in Gujarat, so naturally, the Gujarat Shops and Establishment Act should apply. However, there is no Gujarat Shops and Establishment Act. Instead, the erstwhile Bombay Shops and Establishment Act has been adopted by Gujarat. It is important to keep in mind that Gujarat has its own Shops and Establishment Act.

Adv. Naveen Bhardwaj
9871158855

I am currently working in a private limited company and would like to inquire about the following topics:

1. What should be the working hours (per day/per week/per month) in a private limited company?
2. What are the rules related to leaves (CL/EL/RL/ML) and holidays that should be followed by a private limited company?

Regards,
Amit Lad
SCPL - Mumbai

There are many types of leave—sick leave, casual leave, and earned leave—that employees can avail of. Could you please help me with this?

Regards,
Sameer

Thank you for your precise and accurate answer. It really enhanced my understanding. Kindly let me know under which Shops and Establishment Act Noida will be covered, and can you provide me a link?

Thanks and Regards,
Karuna Sharma

I understand that Noida is in the UP District, and as such, the UP State Shops and Commercial Establishments Act will be applicable to your establishment. The Act can be viewed on the official website of the Labour Department of UP.

Regards,
Madhu.T.K

I am working in a private limited company and would like to know about the following topics:

1. What should be the working hours (per day/per week/per month) in a private limited company?
2. What are the rules relating to leaves (CL/EL/RL/ML) and holidays I should follow in a private limited company?

Regards,
Devibhanu

I am working in a US-based MNC. The company does not provide holidays for national holidays like 2nd October. Additionally, we only receive 7 holidays in a year with no CL, EL, or any medical leaves. When we employees inquire about this, they inform us that since it is an IT company, we already have Saturday and Sunday as week offs. The company pays us on a per-day basis, which means that if we don't work on Saturday or Sunday, we do not get paid for those days. The company states that they are following U.S. employment policies. It is challenging to survive in this company. Can you please guide me regarding the proper labor laws on this topic?

Thanks,

Please check this source: http://www.paycheck.in/main/labour-l...ays/paid-leave

You can find the following with the heading:

Earned & Casual Leave in India

Q1: How many leaves should be applicable in a company?

- Earned leaves/Privilege leaves
- Casual Leave
- Leave without pay
- Compensatory off

Leave in Establishments Covered Under the Factories Act

Leave in Establishments Covered Under the Shops and Establishments Act

- Andhra Pradesh Shops and Establishments Act, 1988
- Assam Shops and Establishments Act, 1971
- Bihar Shops and Establishments Act, 1953
- Bombay Shops and Establishments Act, 1948
- Delhi Shops and Establishments Act, 1954
- J&K Shops and Establishments Act, 1966
- Karnataka Shops and Commercial Establishments Act, 1961
- Kerala Shops and Establishments Act, 1960
- Madhya Pradesh Shops and Establishments Act, 1948
- Orissa Shops and Commercial Establishments Act, 1956
- Punjab Shops and Commercial Establishments Act, 1958
- Haryana State to refer to Punjab Shops and Establishments Act.
- Rajasthan Shops and Commercial Establishments Act, 1958
- Tamil Nadu Shops and Establishments Act, 1947
- Uttar Pradesh Shops and Establishments Act, 1962
- West Bengal Shops and Establishments Act, 1963

Q2: What is Encashment of leave?

Q3: Can an employee take leave during the notice period?

Thanks,
Rajesh Agarwal

Dear Sir/Madam,

On the last day of June 15, there was heavy rainfall, causing all our staff to be unable to report to the office due to transport cancellations. However, our management has counted this as absence and marked us as absent. Consequently, our salaries will be deducted. What steps can I take in this situation?

Thank you.

You cannot take advantage of such a situation. Therefore, if you could not attend to duty due to any reason, the day should be marked as leave. If the reason for taking leave is genuine, like what happened in the instant case (i.e., heavy rain and cancellation of public transport), you can request the management to convert the LOP to CL or PL depending upon the availability of leave.

Madhu.T.K

Dear Amit,

It is clear that you are working in a company in Bombay. Therefore, the Bombay Shops and Establishments Act is applicable to your company. I recommend that you go through the soft copy of the same on Google.

Thank you.