Confused About Leave Entitlements? Help Me Understand the Shops vs. Factory Act!

samshu
I have joined a new company where there are 10 festival leaves, 7 earned leaves, and 4.5 sick leaves, with no casual leave provision. I am unsure whether my new company falls under the Shops and Establishments Act or the Factory Act. Could you please provide information on the mandatory leave entitlements under both acts?

Thanks in advance.

Regards,
Samshudin.
varghesemathew
If yours is a factory, the Factory Act does not provide for casual or sick leave or festival holidays. If it is a commercial establishment, then casual, annual, and sick leaves are governed by the Shops and Commercial Establishments Act of your state. For festival holidays, you should check the National and Festival Holidays Act of your state, if applicable. If you are covered by the ESI scheme, you will receive sick leave benefits in cash from ESI.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]
samshu
I have been informed by my company that it is a 100% subsidiary of a Chinese company, and our contract is renewed annually. Therefore, if my company is registered under the S.E Act, will we receive the benefits of SL, CL, and EL regardless of the subsidiary status? The company provides only 17 days of leave per year following their Chinese head office rules.

I am eagerly awaiting your response.

Thank you.
varghesemathew
Understanding Registration and Leave Entitlements

The word 'suppose' indicates uncertainty about being registered under either the FA Act or the S&CE Act. If you are registered under the Bombay Shops & Commercial Establishment Act, you must provide leaves as per that Act, which I believe is not less than 21 days in a year.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]
samshu
Thank you very much for clearing my doubts. However, our company is providing only 17 annual leave days, and they have indicated that we must adhere to their China Company policy. Is this accurate? In India, regardless of any Parent MNC Rule, shouldn't we be entitled to leave as per Indian labor law only? Could you please provide an explanation?

Regards,
Malik.
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