Navigating Leave Policies: How Do the Factories Act and Bombay Shops Act Apply to Software Companies?

Hi, please help me. I am working on the leave policy formation for my company. Could you please provide me with the provisions related to leaves under the Factories Act and the Bombay Shops and Establishment Act? I am getting confused.

Confusion Regarding Applicable Acts

I am confused about two matters as follows:
1. As my company is a software company, which acts will be applicable to the company?
2. I am confused about the leave provisions of the above-mentioned acts.

Finally, could you please inform me how many minimum leaves should be given in a year as per these acts?

Kindly reply soon.

Regards,
Gayatri

Leave Provisions Under Relevant Acts

Factories Act - 1 paid leave for every 20 days of physical attendance.
BS & E Act - 21 leaves per calendar year.

Hi, thanks for your reply, but I have one more query regarding the statement "1 paid leave for 20 days of physical attendance." Are Sundays and national holidays included in physical attendance? Kindly reply.

Regards,
Gayatri

Dear Gayatri,

Software companies are covered by the Shop & Establishment Act as there is no manufacturing process or production; it is only a commercial establishment.

So, in my view, you should keep in mind the provisions of the Shop & Establishment Act of the state in which your company is situated. If the Bombay Shop & Establishment Act is applicable, then carefully read sections 35 to 37 of the Act before the formation of the leave policy.

Furthermore, to add, the Shop & Establishment Act is a state subject, and leave provisions differ from state to state. You need to go through all Shop Acts' leave provisions in which your branches are situated to form a uniform leave policy for your whole organization.

For any further clarification, you can post.

Regards