Can Late Arrival Salary Deductions Be Offset with Annual Leave or Comp Off in Maharashtra?

Our company is registered under the Shop and Establishment Act in Maharashtra.

The team is facing the issue of adjusting leave towards Annual Leave and Compensatory Off. If the deduction in salary is because of the employee coming late, can those leaves be adjusted towards Annual Leave and Compensatory Off?

Deduction for late arrival at the office is a punishment, and this should be reflected as a deduction from the salary. The employee should not be allowed to adjust it against their entitled leaves.

Madhu.T.K