Creating a Leave Policy in Bangalore IT Startups: Are Sick and Casual Leaves Necessary?

I'm working in an IT startup in Bangalore. I'm creating a new leave policy. At present, we get 12 earned leaves only other than the 10 mandatory public holidays. There are no sick leaves or casual leaves. Is this fine? Are sick leaves and casual leaves mandatory? At present, all leaves are included in the 12 earned leaves. Please let me know.

IT company comes under the Shops & Commercial Establishment Act. As per the Shops Act, the following leaves need to be given:

Earned Leaves: For every 20 days worked, 1 EL is mandatory.
Sick Leave: 1 leave for every 30 days.

For more details, you can refer to the following link: [Department of Labour](http://www.ekarmika.com/(S(vgg0igx35kxfug5tafpdvyxm))/Static/Default.aspx).

For further information, please reach out.

Leave Policies and Legal Framework

Leave policies in any organization are decided by the law under which it is registered. There are two laws of the land in our country: The Shop and Establishment Act and The Factories Act.

The Shop and Establishment Act

The Shop and Establishment Act is applicable to all establishments that do not use power for machinery. The machinery does not include computers, fax machines, scanners, printers, and other similar items. The paid leave, or leave with wages, shall be one paid leave for every 12 days worked. The leave is credited if the worker has worked for 240 days in a year.

The Factories Act

The Factories Act is applicable to all establishments that may or may not use power for machinery. The paid leave, or leave with wages, shall be one paid leave for every 20 days worked. The leave is credited if the worker has worked for 240 days in a year.

In a typical organization, assuming the number of working days as 365 - 52 (Sundays) - 3 (national holidays) = 310 days, leave for 26 days in the case of establishments registered under The Shop and Establishment Act and leave for 15.5 days in the case of establishments registered under The Factories Act are available to every employee fulfilling the condition of at least 240 days of working.

Out of the above eligible leave, casual, sick, and privilege leave are subdivided depending on management and working staff.

The above are the paid leave entitlements as per the law. However, every organization is free to provide more than the prescribed amount.

Regards, Jawaharlal Moondra

Under The Karnataka Shops & Commercial Establishments Act, 1961, the leave entitlements are as follows:

- PL/EL: 1 Day for every 20 days of work performed in a calendar year.
- Accident cum Sick leave: 12 Days per annum in a calendar year.
- National & Festival Holidays: 10 days per calendar year.

Please let me know if you need any further information or clarification.