Need Help Creating Leave Policies for a Small Solar Company in Karnataka: What Are the Legal Requirements?

Hi, I am Asha. I am working in a solar power company as an HR Executive. I have joined this company 1 month back. We manufacture solar water heaters, etc. The total strength of the company is 30.

Till date, they have not followed any leave policies. But they want me to frame leave policies for the company. I am not sure about rules applicable for casual leave and sick leave in Karnataka.

Kindly advise me on whether sick leave is compulsory. If yes, then how many leaves should be allowed, and how many casual leaves should be allowed as per the law. Also, which book should I refer to for related issues?

Please help me out on this issue as this is very urgent.

Thanks & regards,
Asha R

Dear ASHA,

Please find the Leave rules as per the Shop and Establishment Act of Karnataka, The Karnataka Shops and Commercial Establishments Act, 1961:

1. Quantum of Leave per Year
a. Privilege - 1 day for every 20 days of work performed by him
b. Casual - Not specified
c. Sick - During the first 12 months of continuous service and every subsequent 12 months not exceeding 12 days on the grounds of any sickness or accident or for any other reasonable cause.

2. Entitlement of leave
a. Privilege - During the year
b. Casual - Not specified
c. Sick - During the year

3. Annexation of leave
a. Privilege leave - Not specified
b. Casual - Not specified
c. Sick - Not specified

4. Accumulation of leave
a. Privilege leave - Can be carried forward but not exceed 30 days in any calendar year
b. Casual - Not specified
c. Sick - No accumulation allowed

Thank you.