Certainly it would be a problem to the employer when it is complained of or it comes to the notice of the inspection authorities as it is a clear violation of the statutory leave provisions.
Whether it is leave or any other statutory condition of employment, the standards of scale set by a law are minimum only. They are not prescribed and fixed just randomly by the law-makers but only after an overall analysis of factors like international conventions, the nature of employment, prevailing geo-cultural practices, psychophysical impacts of employment etc. Therefore, no individual employer can reduce them according to his own whims and fancies.
The employees may seek redressal through direct or indirect modes by bringing it to the notice of the Commissioner of Labor for the State.