Karnataka state leave policy in all branches - justify challenges to internal auditors - 15 states PAN India leave credits/debits

Hi Sir, We have a corporate office in Bangalore-Karnataka and 21 branch offices PAN India (15 different states)
At present we are following Karnataka state leave policy in all branches please guide us we have to maintain respective state Shops & Establishment Act ?? or we can justify to internal auditors due to base location and corporate office is located from Karnataka so we are following Karnataka state leave policy as per S&E act.??
or is there any noncompliance for we adopted Karnataka state leave policy to all states ?? Challenges are due to 15 states from PAN India leave credits/debits and maintained yearly it's not possible... regularly. Kindly give your valuable reply, how to justify it?

Dear Mr Raju Gowda,
Your 21 Branch Offices i PAN India are registered under respective State Shops & Comml Establishments Act.Consequently, Employees are eligible for Leaves as provided therein.Karnataka Shops & Comml Estab Act, 1961 has Jurisdictional Limit i.e Karnataka.
Pl do not look at your convenience.You have to maintain records State wise.If leaves provided under Kar Shops Act is more than other State Leaves, you can continue to provide

Branch Offices in respective states are supposed to function as per Shops and Commercial Establishment Act & Rules of such states. Then it will lead to 15 different sets of leave rules and holiday lists. I recommend to begin planning now to get it done, so that you can avoid non-compliance issue at a later stage. Also enforcing such a comprehensive policy and then tracking leave and holidays also require tremendous effort. Try reliable and scalable solutions like greytHR for automation purpose. I have seen month end rush and stress of HR and Payroll managers in many firms with employees PAN India.

Dear Raju-Gowda,

In continuation of the views of our learned friends with which I am in complete agreement, I would like to add as follows:

For any disputes relating to service conditions like leave, wages/salary and allowances, termination of employment of employees, actual place of work determines jurisdiction not withstanding the place from where they are administratively controlled in matters like appointment, transfer etc.

Therefore, when an organization has pan India presence and operations, inter State transfer of employees on exigencies of work cannot be ruled out. Even if you rule out that possibility and maintain only intra State norms in respect of transfers, promotions etc., you have to abide by the provisions of the Act and Rules applicable to that State only. Thus it becomes imperative that every organization which has got branches in more than one State has to strictly maintain only uniform conditions of employment like leave, wages so as to avoid disparity and compliance with all such States' laws as well. Particularly, when such pan India establishment is one falling under different State S&E Acts, you have to compare the leave provisions of various State Acts and strike a balance by adopting the highest scale of leave possible. It will ensure uniform leave benefits to the employees irrespective of their place of postings and ease of compliance to the management as well.

Dear colleague,
I concur with views expressed here that in matters of leave compliance, each State Shops Act will have to be followed.
In case of Pan India presence, you may consider uniform leave policy for all states if the leave quantum is equal to or better than the highest in any State. This , though, may result into giving more than some State Shops Act, it will preempt administrative hasstles in terms record keeping of leaves and in inter-state transfers of the staff.
If you don't favior this, your option is to follow each State leave provisions.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant

Dear Friends,
Hereby attaching a leave applicability sheet as per different Shop & Establishment Act.
If companies having offices more than one state registered under S&E Act, it can be used the same for calculation of leaves.

Kindly, friends
Herewith attaching a leave application form in accordance with various Shop & Establishment Acts.
Companies with offices in many states that are registered under the S&E Act may utilize the same method for calculating leaves.
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