Hi Anjali,
Leave policy need to be prepared based on provision of Shop & Establishment Act. As per Karnataka Shop & Establishment act, employee is eligible for PL (1 Leave for 20 working days) and CL/SL (1 leave per month).
PL will be carry forwarded upto 30 days and CL/SL will get lapsed every year (December)
You need to maintain Form F & H (Leave Records).
Feel free to call or revert for any assistance.
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