Are We Complying with Telangana's Shops and Establishments Act on Employee Leave? Seeking Guidance

Our private limited company is located in Telangana State. We have already declared the following:

1) Casual Leaves are 10 days per annum, after confirmation on the company's rolls.
2) Sick Leaves are 5 days per annum, after confirmation on the company's rolls.
3) Earned Leaves are 12 days per annum, after one year from the date of confirmation on the company's rolls.

Additionally, the 1st and 2nd Saturdays of every month are declared holidays.

Understanding Leave Entitlements Under the Shops and Establishments Act

However, it has come to our understanding that according to the Shops and Establishments Act, staff are eligible for the following leaves:

1) 15 days of casual leaves,
2) 15 days of sick leaves, and
3) 15 days of earned leaves after the completion of one full year.

Could somebody guide us on the matter? If we need to amend our leave rules, please inform us. Can the 24 days of Saturday holidays be adjusted against undeclared casual leaves and sick leaves?

Best Regards.

The leave norms you have declared are not completely in line with the Telangana Shops and Establishments Act. According to the Act, every employee who has worked for 240 days in a year is entitled to:

1) 15 days Casual leave,
2) 12 days Sick leave, and
3) 15 days Earned leave.

As per your question, you are providing fewer Casual and Sick leaves. Therefore, it would be advisable to amend your leave policy to align with the Shops and Establishments Act to avoid any legal issues.

As for your question on adjusting the Saturday holidays against undeclared Casual and Sick leaves, the Act does not permit this adjustment. The holiday and leave provisions are separate and must be treated independently.

You should revise your leave policy as follows:

1) Increase Casual leaves to 15 days per annum.
2) Increase Sick leaves to 12 days per annum.
3) Continue providing Earned leaves as 15 days per annum after completion of one year of service.

Remember, it’s important to communicate these changes to your employees clearly and in a timely manner.

For more information, you can directly refer to the Telangana Shops and Establishments Act.