Are Sick and Casual Leaves Required for Small Companies in Karnataka?

I am an HR executive in a Pvt Ltd Company (Software Embedded Design company in Bangalore). The total strength is 23 employees. We have only Earned Leave of 18 days and Public Holidays of 12. Is it mandatory that we should have SL and CL? The company comes under Karnataka Shops and Establishment Act.

I hope you are registered under the Shops and Establishment Act. As per the Act, you are supposed to maintain a register of PL, SL, and CL.

Hi Rohini,

For your establishment, the Shop & Establishment Act is applicable. You need to provide 1 earned leave for 20 working days and 1 SL/CL per month to your employees. Additionally, you are required to maintain Forms F & H.

Feel free to call or revert for any assistance.

Hi Praveen,

Thanks for the inputs. Currently, we only have 18 earned leave days. At the end of the year (December), we provide 50% leave encashment and carry forward 50% of the leaves to the next year. For example, if an employee has 8 days of leave, 4 days can be encashed, and 4 days can be carried forward to the next year.

If we implement CL/SL, can we continue with the leave encashment every year? If not, what is the maximum earned leave an employee can accumulate?

Regards,
Rohini

Hi Rohini,

SL/CL will lapse at the end of the year, and EL can be accumulated for up to 30 days. Encashment needs to be done during his separation.