Leave Policy Confusion: Should HR Follow Company Act or State Laws for Granting Leaves?

Leave Policy Compliance for HR Managers

I am working as an HR Manager in a Pvt. Ltd. Co, and I would like to know whether someone in my position should follow the rules for granting leaves (Casual Leave, Sick Leave, Privilege Leave) as per the Company Act of India or the Shops and Establishments Act according to the state. Additionally, I read online that privilege leave should only be granted if an employee has worked for at least 242 days. Does this refer to the number of actual working days the employee has attended? We have a total of 10 employees, excluding 2 directors, as it is a Pvt. Ltd. Co.

Understanding the Companies Act and Employment Matters

The Companies Act is a fundamental law that governs the creation, continuation, and winding up of companies, as well as the relationships between shareholders, the company, the public, and the government. It primarily deals with the appointment of directors and company secretaries, and does not cover employment matters extensively.

Therefore, it is advisable to refer to the State Shops and Establishments Act to clarify doubts regarding leave provisions applicable to employees in your company. If your company operates a factory, you should also consult the Factories Act, 1948.