Leave policy and Leave encashment - Is encashment of leaves at the time of termination mandatory under law?

aashini-kaushik
I have a small software company registered in Gujarat. The company employees < 10 work from home. They get Saturdays and Sundays off with 8 mandatory national holidays and 2 optional minority holidays. What should be my leave policy? Is encashment of leaves at the time of termination mandatory under law? I read most companies offer 12 Casual leaves + 12 earned leaves a year ( 1 day off for 20 working days) but most places say leave encashment is not mandatory. Please advise.
KK!HR
You need to follow the leave policy as what is required as per the Shop & Establishment Act of Gujarat. Leave encashment while in service is not mandatory but it is mandatory as a terminal benefit.
aashini-kaushik
I am unable to find Gujarat shops and establishment 1948 act copy.
PreetamDeshpande
Dear Member
Please visit the link below for the Gujarat Shops and Establishment Act
Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019
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