Rules For Leave Calculation According To Companies Act

Dear All
Can you please help us. I am associated with a mid level Indian Company. In our organization if you are absent before and after a Holiday or a week Off (WO), the Holiday or WO is counted as leave. We don't have any specific allocation of CL, PL. There are a total 30 days allotted leaves that is en cashable. My boss wants to know if there is a provision in the Companies Act that specifically states that. The exact lines from the act itself will be very helpful. So that we can formulate a new set of leave rules. For your reference: We are a Real Estate company.
Upasana Mazumdar
HR

Companies Act has no role in this case. As the said company is a Real Estate Firm, the Leave Rules of employees who are in services area shall be covered under Shops & Commercial Establishment Act & Rules of the state the organization belongs. Respective legislation would be applicable for building workers (if any).
However, the prevailing rule in your organization " When an employee becomes absent before and after a Holiday or a Week Off, the Holiday or Week Off is also considered as Leave". is just a practice of your organization and not supported by any specific labor legislation.
You could add this in your standing orders. Normally when a company issues appointment order, the same will be referred like 'the terms and conditions mentioned in company standing orders'.

Agree, there is no provision in Companies Act, the leave calculation should as per the provision of Shops and Establishment Act or Factories Act reply above is satisfactory and I do not think you need to take a second opinion on that

Hi,
The leave admissible, shall be exclusive of all holidays whether occurring during or at either end of the period of leave.

Hi
Company act has nothing on this front.
You need to look instead at labour laws.
What your company is doing, is a standard practice.
It's called the sandwich rule. There is no specific rule either in favour or against this in the factory act or shop and establishment act.
If standing orders applies to you (see industrial employment standing orders act) then check the provision of the same as it has more detailed terms for leaves and other procedure to be followed by factories and offices with more than 50 employees.