Is It Fair for Startups to Deduct Salary Without a Written Leave Policy?

I have recently (August 2021) joined a for-profit startup company that has not yet finalized its HR policy in writing, including the basics of the number of leaves allowed for employees. We have been verbally informed that we can only take 1 day of sick leave in a month—no CL, EL, or any other type of leave is sanctioned, and if we take more than 1 day of leave, our salary is deducted.

Questions about Leave Policy

My questions are: Can a company refuse to give its employees CL and EL? Can they deduct salary when no policy has been finalized, and nothing has been given in writing to staff?

The company is registered under either the Shops and Establishment Act or the Factories Act of the particular state. Please find out the provisions of the employee leave of the act applicable to you. The number of days of leave can be more than the act applicable but not less. Secondly, employee leave is a statutory benefit, and its denial is a transgression of the law.

Thanks,

Dinesh Divekar

Dinesh-ji has shown you the correct approach. However, please note that in both acts, the leave normally accumulates in January for the previous year, and from the time you join to January of the next year, you are not eligible for leaves.

However, you may also refer to the Model Standing Orders of your state and consider that as a benchmark.