Understanding Privilege Leave: Who Qualifies for This Benefit Under the Law?

Hi, under the Shops and Establishment Act, it is stated that "Privilege Leave" is granted to covered employees. Who are the covered employees? The employees will receive privilege leave benefits only if the company has a policy to provide privilege leave or if any state or central act/law mandates the company to offer the benefit of privilege leave.

The employees who are working in any type of company covered under the Shops & Establishment Act are entitled to Privilege Leave. It is mandatory for the employer/company to grant privilege leave to the employee as per rules framed by the State Government as well as the Central Government. The company may form its own policy for leave, but the minimum leave criteria will be followed as per Government rules.

I hope the above will satisfy your query. If you want to seek any other clarification, you are most welcome.

Regards

Hi, under the Shop & Establishment Act as well as the Factories Act, there is a provision for the grant of Privilege Leave, which is earned leave. The minimum criteria for earned leave is 1 day of leave for every 20 days worked by the employee, subject to their actual attendance of 240 days in a year (this is not applicable for employees joining during the year). Many companies have their policies for the number of leaves provided to employees, but the minimum shall be as per the above formula.

Anyone who works for a company or shop, whether directly or indirectly, is eligible to avail leave.

Regards

Understanding Legal Provisions for Leave Entitlement

The provisions of the law will prevail. An establishment can be covered either under the Factories Act or the Shops Act, and the entitlement of Earned Leave (EL) will be governed by the provisions of the applicable law.

Regards,
Vasant Nair

Kindly let me know if the company is not ready to abide by the rules of the government. My company provides 12 leaves a year, i.e., 1 compulsory leave per month, despite the fact that I have shared the Delhi Shops and Establishment Act with them.

What Can Be Done in This Case?

What can be done in this case?

As per my information, PL is given in addition to CL and SL. I think if a company is not following the rules of the Shop and Establishment Act, the Shop and Establishment Inspector can file a case against the employer. If the employer is not attending the case himself or through a representative, a warrant can be issued by the court against him and penalized for each violation. As 'leave' rules are related to employee welfare, maybe a complaint can be given to the labor/employee welfare monitoring authorities. They can also send an inspector to check.