Can We Legally Change Our Leave Policy Under the TN Shop & Establishment Act?

I am working for a software company. Previously, we used to have a 6-day week, but now we have changed to a 5-day week. We would like to revise the leave policy we used to follow. Previously, it was 12 CLs, 12 SLs, and 15 PLs/ELs. Now, we want to reduce the CLs and SLs and remove the ELs completely. Hence, I would like your input on this. Can I remove the ELs from the leave policy, and will there be any legal issues if I do so? If there are legal implications, how many days can I allocate for ELs?

Understanding the TN Shop & Establishment Act

I would like to understand more about the TN Shop & Establishment Act.

Regards,
Ramya

You cannot remove EL's. It's against the law. You can probably reduce CL's and SL's.

The work performed by software employees is fundamentally creative and time-bound, requiring continuous mental application. The more they relax through extended weekends, the more productive they become. Therefore, transitioning to a 5-day workweek is a matter of administrative convenience and productivity enhancement, primarily in the organization's interest. As such, the employer has no right to reduce the statutory leave entitlements, which are, if correctly understood, merely the minimum standards.

Regards,
[username]

Ms. Ramya,

As per the Shops and Establishments Act of Tamil Nadu, regardless of the number of working days in a week, a company must adhere to the prescribed leave limits, which are 12 days for each category of leave - Casual Leave (CL), Sick Leave (SL), and Earned Leave (EL). Failure to comply will result in the appropriate officer from the Labour Department taking action against the company.

V. Murali

RTI Request on Compliance with the Tamil Nadu Shop and Establishment Act

I have sent an RTI request to the Government Agency asking about the type of action taken on software (SW) organizations that are not following the Shop and Establishment Act of Tamil Nadu. The reply received was that they are taking action if companies do not follow this.

However, in my past and present companies, which are software organizations, this rule is not followed. Upon checking with a few of my friends, I found out that they also follow 6 Sick Leave (SL), 6 Casual Leave (CL), and 12 Earned Leave (EL), which is against the Shop and Establishment Act. No labor officer is taking action against them, but the RTI response gives a false statement.