Are Companies Allowed to Offer Fewer Leaves Than the AP Shops & Estb Act Requires?

Here is the doubt for me: As per the AP Shops & Estb Act, there are 12 CL and 12 SL. However, my doubt is, I have seen that a few companies are only providing 6 CL and 6 SL. Is this right or wrong? Can we follow that practice, and if so, would there be any objections from the Labour Department or ESIC department during claims?

Regards,
Srinivas

The leave provisions as per the act are valid in law. The leave allocation is being questioned by the employees. If employees remain quiet, it will continue as a trend. If questions arise, the establishment has to adhere to the leave provisions as per the Act. It all depends on factors like this.

Regards,
D. Gurumurthy
HR & IR Consultant
Hyderabad.

The provisions with regard to leave as prescribed in any Act or Law applicable to a particular industry or establishment must be respected and implemented. If not, they can be challenged in a court of law or labor courts. Leave provisions can be improved by any establishment or industry in the interest of employees, but these provisions cannot be less than what is prescribed in any applicable Act.

Regards,
AK Jain

Applicability of CL and SL

The applicability of Casual Leave (CL) and Sick Leave (SL) depends on whether you fall under the Shops & Estt Act or the Factories' Act. While the former may stipulate 12 days each of CL and SL, the Factories' Act is silent on SL and CL. It specifies only Privilege Leave (PL). Therefore, establishments covered under the Factories' Act give CL and SL as per their convenience.

However, a minimum number of 8 Paid Holidays are to be given to each establishment. This includes 4 national holidays (26 Jan, 1 May, 15 Aug, and 2 Oct) and 4 state holidays, which are to be decided by the company.