Is Our 22-Day Leave Policy Compliant with Tamil Nadu Labour Laws for Our Employee Handbook?

Friends/Professionals,

We are a Staffing and Servicing Private Limited Company with fewer than 50 employees. Currently, we have the following working hours and leave policy. Can someone help me determine if it complies with the Tamil Nadu Labour Act without any issues?

Working hours and shifts

Working hours: 9 hours/day, including lunch and tea breaks. Night shift: 6 pm to 3 am (working as per USA Time).

Working days and holidays

Working days: Monday to Friday (5 days a week). Public and festival holidays: 10.

Leave policy

We don't have separate CL/SL/EL, but we provide 1 CL per month with pay. Thus, the total leave will be 22 days, apart from Saturday and Sunday (both days are compulsory holidays).

Question regarding leave policy implementation

My question is, since we are giving Saturday and Sunday as holidays, should we implement the above 22 days instead of 45 days, and can this be mentioned in the Employee Handbook and get the signature for acceptance?

Note: I have reviewed the Tamil Nadu Act 1947, 1958 but didn't find these details. If any experienced individuals can help me, it would be very helpful for me to implement this in our company.

Thanks,
Sathy

Your industry falls under the Shops & Commercial Establishment Act. Therefore, refer to the Tamil Nadu Shops & Commercial Establishment Act, which clearly outlines CL, SL, and EL.

Thanks for your response. My question is, since we are giving Saturday and Sunday as holidays, should we implement the above 22 days instead of 45 days and mention it in the Employee Handbook to get the signature for acceptance?

Leave Policy Compliance with Tamil Nadu Labour Act

Are you giving 22 days' leave? No. You give 10 'holidays' as per the Tamil Nadu Industrial Establishments National and Festival Holidays Act and 12 days of casual leave at the rate of one day for every month. That is not sufficient. You have to give holidays, 10 Nos, as well as leaves as per the Tamil Nadu Shops and Commercial Establishments Act. The said leave shall include 12 casual leaves, 12 sick leaves, and 12 earned leaves. The earned leaves shall be paid once an employee completes 12 months of service, but the other leaves, i.e., CL and sick leaves, are available during the first year of service itself. In respect of employees who join after the 1st of January, you can grant leaves proportionately. You cannot mix up the leaves with holidays, though in the Tamil Nadu Shops Act, the terms are used interchangeably.

Working Days and Leave Entitlement

Coming to 5 days working, the Act is silent about any concession in this regard. As leaves are 'entitlement' of employees, the same number of leaves shall be given to workers even though they work for 5 days in a week. After all, it is a difference of only 3 hours, and it is for your convenience that the establishment is working for 5 days only.