Is Earned Leave Mandatory Under the Shops and Establishments Act? Seeking Clarity and Penalties

Dear Sirs, I work for a company registered under the Shops and Establishments Act. Could you please let me know if the company is required to provide Earned Leave (EL) as a compulsory provision under this act? If so, which section of the act specifies this requirement?

In case it is mandatory, what would be the penalty if the company fails to comply with this provision?

Additionally, could you suggest the ideal leave structure for an ITES/BPO company?

Thank you.

Shops and Establishment Act will vary from state to state. Please mention the details clearly...

All eligible employees are entitled to receive earned leaves as per the Shops & Establishment Act, and therefore, these leaves are compulsory. For further clarification, please go through your applicable State Shops Act for penal and grant of EL provisions.

With Regards,
R.N.Khola

Please read Chapter IV and Section 15 for your clarification.

Earned Leave is mandatory for every permanent employee who has completed 240 days of continuous service in an establishment. Though the act differs from state to state, it mandates every establishment/factory/shop, etc., to provide such a number of days as Earned Leave for leisure and recuperation.

Sir, the act doesn't say that EL is compulsory. It only talks about one leave per 20 days. It also doesn't mention what kind of leave... CL, EL, etc.

I have heard many companies still following the 12 CL and 12 ML structure. Is it correct? (ITes/BPO) What does the law say specifically about the structure? Can anyone refer to the subsections of the act?

Regards,
George

Yes, if you are registered under the act, then it is compulsory to allow EL/PL, and CL. If somebody works for 240 days, then allow him/her 12 EL or PL and also can allow 6 SL and 7 CL.