New to HR? How Do Pharma Companies Calculate Leaves Under the Shop and Establishment Act?

Hi All,

I am new to this field. Kindly guide me on how leaves are calculated for a Pharma-based private company as per the Shop and Establishment Act.

Regards,
Chris

Leave Rules Under the Bombay and Gujarat Shops and Establishments Acts

As per the Bombay Shops and Establishments Act, 1948, and the Gujarat Shops and Establishments Act, 1962, the following are the rules regarding leaves:

1. Casual Leave is generally granted for 7-12 days in a year, which may or may not be encashable. It is for the employer to decide as per service conditions.

2. Sick Leave is generally granted for 12-15 days in a year, which generally is not encashable, but some employers do permit up to a certain number of days. Accumulation can be up to 90-150 days as per the service conditions laid down by the employer.

3. Privilege Leave is granted at the rate of 21 days a year. Under the Shops Act, accumulation is 42 days, but the employer may permit accumulation up to 180 to 240 days and can be encashed.

Thank you.

Types of Leave

1. Privileged Leave/Earned Leave = Quantum per year (21 days on working 240 days in a year)
2. Casual Leave = Nil
3. Sick Leave = Nil
4. Maternity Leave = Provisions of Maternity Benefits Act, 1961 to apply

Entitlement

1. Privileged Leave/Earned Leave = 5 days after 3 months on completion of 60 days working in that period
2. Casual Leave = Nil
3. Sick Leave = Nil

Accumulation

1. Privileged Leave/Earned Leave = 42 days
2. Casual Leave = Nil
3. Sick Leave = Nil

Computation

Suffixed or prefixed holidays to the leave period shall not be accounted as leave. Holidays or Sundays falling between the period of leave shall be treated as leave.