Navigating Leave Laws for Pvt Ltd Companies in Mumbai: Is Year-End Lapse Acceptable?

Leave Law for Private Limited Companies in Mumbai

Can you please let me know the leave law applicable for a company which is:
- Registered as a Pvt Ltd company
- Operating in Mumbai (Bandra) as the head office with 12 employees and has a warehouse at Vasai with 3 employees
- Has a Gumasta license; registered under the Shop and Establishment Act of BMC

Our company has a total of 31 leaves for employees, not separated as CL and PL. Is that acceptable? Previously, it was 10 CL and 21 PL, but now clubbed together as "Leave." Also, is it okay if the leaves lapse by the end of the year if not taken?

Your leave rules are governed by the Shop and Establishment Act. It is very clear on the leave procedure and maintenance of leave registers to be maintained.

Please let me know if you need further assistance or clarification on the leave policies.

Hey Rahul,

Your organization comes under the Maharashtra Shops and Commercial Establishment Rules, and therefore, you should follow the leave rules specified. It is also important to establish a leave policy that includes rules, basic practices such as lapse, encashment, and whether employees are allowed to adjust leave with their notice period. This policy should be circulated among all employees.

Thank you.