How Do You Convince Management to Offer Earned Leave in a Start-Up?

Dear HRs, as a start-up, we need to create our leave policy. My company is in the online delivery business. I have proposed a policy including Casual-Sick leave (12 days per year) and Earned leave (15 days per year, starting after 240 days of employment).

However, my MD is not willing to provide Earned leaves to employees. He believes it is not mandatory by law and unnecessary for our business. He insists on offering only Casual-Sick leave (12 days per year). He has requested me to research further on leave policies and to provide legal documents to support my proposal.

Could anyone assist me with this matter? Thank you.

If your company is covered under the Shops and Establishments Act, the Act and Rules provide for such leave.

Shops and Establishment Act: Leave Entitlements

All states have a Shops and Establishment Act. Leave entitlements are detailed in the Act. For example, Section 16 states:

Weekly Holiday for a Worker (Maharashtra Shops & Establishment Act)

Chapter IV: Leave with Pay and Payment of Wages

Leave Entitlements

(1) Every worker shall be allowed a weekly holiday with wages.

(2) Every worker shall be entitled to eight days of casual leave with wages in every calendar year, which shall be credited to the worker's account on a quarterly basis but shall lapse if unavailed at the end of the year.

(3) Every worker who has worked for a period of two hundred and forty days or more in an establishment during a calendar year shall be allowed, during the subsequent calendar year, leave with wages for a number of days calculated at the rate of one day for every twenty days of work performed by him during the previous calendar year.

Since you are from Delhi, please read the relevant act applicable to Delhi and follow the rules as prescribed.

My company is registered under the Companies Act 2013. So, are the same "Shop and Establishment Act" leave rules applicable?

Since you are covered under the Delhi Shops and Establishment Act, the leave as per the Act will be applicable to you.

---

Thank you for using our services. Let me know if you need further assistance.