Navigating Leave Policies: How Can We Ensure Compliance Across All States?

In my organization, the existing leave policy includes 18-PL/EL, 6-SL, and 6-CL. We have a pan-India presence, and auditors have pointed out that we need to have a compliant leave policy. The issue at hand is twofold:

1. If we adhere to the state-wise Shop and Establishment Acts, our leave policies will vary. Administratively, it will be challenging to manage without any software.

2. If we do not follow the state rules, how can we ensure 100% compliance?

I would like to understand how we can have a single leave policy that is compliant. What is the best configuration of leaves to achieve this goal?

Can you provide some information on whether your company's standing order is approved or if your company is following the Model Standing Order?

Leave Policy Compliance

Secondly, if you refer to any act, such as the Mining, Shops & Establishment, or Factory Act, statutorily only EL leave is defined. CL and SL are not defined in any act. Many auditors of different firms have various opinions, so it's essential to review the relevant act before making any policy changes.

Thanks/Regards,

Ratikanta Rath

Thanks. Not all, but shop and establishment acts do mention sick leave. Please check the Bengal Shop and Establishment Act or the Kerala Shop & Establishment Act.

Though I will check the standing order status, please help me understand the connection.

Regards,
SV

Thank you for the information. I will definitely go through both the state's Shops and Establishment Act.

Regarding Standing Orders

If your company has a certified standing order by the Regional Labour Commissioner (RLC) or Deputy Labour Commissioner (DLC) of your location, then the approved leave policies are clearly defined within that standing order.

Providing additional benefits to an employee does not pose any legal issues if the management is willing to bear the extra cost.

Regards,
Ratikanta Rath