Understanding Leave Entitlements Under the Shops Act
The Shops Act is a state enactment, and the Shops Acts of some states, like the Bombay Shops and Establishments Act, provide for only annual leave but not Casual Leave (CL) or Sick Leave (SL), while others may provide for CL and SL. Therefore, you have to follow the Shops Act of your state.
Annual Leave Provisions
Regarding annual leave, it is admissible under the Bombay Shops Act (given as an example) and Factories Act as follows:
Annual Leave Under the Bombay Shops Act:
• Employees who worked for 240 days or more in a calendar year are entitled to leave up to 21 days in a calendar year.
• Subject to point (1) above, employees who worked for not less than three months in any year are entitled to leave at the rate of 5 days for every 60 days of service.
• Leave un-availed or refused can be accumulated and carried forward subject to a maximum of 42 days.
Annual Leave Under the Factories Act:
• Adult workers who worked for 240 days in a calendar year are entitled to leave at the rate of one day for every 20 days of work.
• Leave un-availed or refused can be accumulated and carried forward subject to a maximum of 30 days in the case of adults and 40 days in the case of children.
Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
Tel: [Phone Number Removed For Privacy Reasons]