How Do You Calculate Earned Leaves Under the Maharashtra Shops and Establishment Act?

Dear Friends,

I work as an HR Executive in a pharmaceutical company. We observe a 5-day work week, and we have 10 festival holidays with 10 CL/year. Could you please tell me how to calculate the number of Earned Leaves for an employee according to the Maharashtra Shops and Establishment Act recent amendment?

Thank you

Chapter IV – Section 18(3) of The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act

Section 18(3) of the Act stipulates that earned leave should be 1 day for every twenty days worked. The relevant section pertaining to Earned Leave is reproduced below for your easy reference:

Section 18(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.

(4) Subject to the provision of clause (3), every worker who has been employed for not less than three months in any year shall, for every sixty days on which he has worked during the year, be allowed leave, consecutive or otherwise, for a period of not more than five days.

(5) Every worker shall be permitted to accumulate earned leave up to a maximum of forty-five days.

Warm Regards,
Lakshmanan
Labour Law Consultant – PAN INDIA