Navigating Leave Policies for Small Pvt Ltd Companies in Delhi: What Are the Essentials?

I run a small private limited company in Delhi, and we operate in the dot com sector. I need to understand what the minimum leave policy should be for my company. Is there any document available that I can refer to for complete details? How do I calculate the per day salary to be deducted for leave without pay? Which holidays am I required to provide to my employees compulsorily?

Understanding Employee Leave Under the Delhi Shops and Establishment Act

Please refer to the Delhi Shops and Establishment Act to know about the provisions of employee leave. You may grant a greater number of days of leave than prescribed in the act but not fewer. Employee leave is tied to the attendance of the employee.

I am not familiar with the exact provisions of the said act; however, approximately, for every 20 working days, an employee becomes eligible to take a day's leave. There are 365 days in a year. When you subtract 52 Sundays and 10 national/festival holidays, you have (365 - (52 + 10) = ) 303 working days. By dividing 303 by 20, you get 15. Therefore, each employee is eligible to receive 15 days of earned leave per annum.

Please review the provisions of the Delhi Shops and Establishment Act to determine whether the act mandates casual leave, sick leave, etc.

Sections 16-18 of the Delhi Shops and Establishment Act refer to the query you have raised. Sections 21 and 22 deal with the query you have raised. Rules of the Act have been established. Refer to Rules 7, 9, 10 for better clarity.

[Office Of The Labour Commissioner](http://www.delhi.gov.in/wps/wcm/connect/doit_labour/Labour/Home/Acts+Implemented/Details+of+the+Rules+Implemented/The+Delhi+Shops+Rules%2C+1954/The+Delhi+Shops+and+Establishments+Rules%2C+1954)

Delhi's Shops and Establishments Act: Leave Entitlements

According to clause 22 of Delhi's Shops and Establishments Act:

(a) After every twelve months of continuous employment, employees are entitled to privilege leave for a total period of not less than fifteen days.

(b) In every year, employees are entitled to sickness or casual leave for a total period of not less than twelve days.

Questions Regarding Leave Policies

However, I need to know:
- How many days in continuity can they take these leaves?
- Are these leaves paid or unpaid?
- If an employee is absent without taking prior permission, can he/she claim it as paid casual leave?

PL stands for earned leave. This leave accrues after a certain number of working days; for example, for every 20 days of work, one day of PL is earned. Once 10 days of PL have accrued, an employee can take 10 days of Earned Leave (EL) consecutively. There is a policy for leave encasement at the time of retirement. Leave is a privilege and not a right. Employees are expected to seek prior permission before taking leave. In case of absence without permission, it may result in leave without pay.

Hi,

I just need a little more insight for a small company, basically a builder. How many days of leave can be allowed for an employee in a year? Is it mandatory that we provide leave apart from Sundays and national holidays (how many days)?

Cordially,
Cherian

Annual Leaves with Pay under Delhi Shops and Establishments Act, 1954

The following annual leaves with pay are applicable for employees under the Leave Policy according to the Delhi Shops and Establishments Act, 1954.

Earned/Privileged Leaves

Earned/Privileged Leaves (after every twelve months of continuous employment): 15 days. EL is calculated as 1 day of leave for every 20 days worked. This is a leave you earn after working for 20 days. A person earns it, and it is accumulated. It can be availed only in the next year or after working for 240 days. A trainee also earns this leave but cannot avail it during the training period. However, he can encash it if he resigns during this period.

Casual Leaves

1. Casual Leaves (leave for urgent or unforeseen contingencies): 07 days

Sick Leaves

2. Sick Leaves (leave on account of sickness or illness): 07 days

Apart from these, 11 Gazetted/Festival Holidays are also given to all employees.

Close Day Holiday

Every shop and commercial establishment shall remain closed on a close day (which will be notified by the Government), and such a day will be a holiday for the employees. In addition to the close day, every shop and commercial establishment shall remain closed on three of the National holidays each year. It is advisable to contact the Labour Department of your area for better clarity and understanding.