Understanding Annual Leave Carry-Over: Can Employees Really Keep 45 Days?

Hi Everyone! I am new to the India Employment Act.

Annual Leave Carry-Over Days

Can someone kindly advise if the annual leave carry-over days are such that an employee can carry over up to 45 days to the next calendar year? As per the Maharashtra S&E Act, it is stated that "every worker shall be permitted to accumulate earned leave up to a maximum of 45 days."

Example: An employee is entitled to 18 days of annual leave per year. At the end of 31 Dec 2023, the employee has a balance of 50 days. Am I correct to say that this employee can only carry over 45 days to 2024? As such, in 2024, the employee will have a total of 63 days (45+18).

I would appreciate it if someone could please enlighten me. Thank you very much!

Annual Leave Carry-over Limit under Maharashtra S&E Act

Based on the Maharashtra Shops and Establishments Act, the provision allows workers to accumulate earned leave up to a maximum of 45 days. In the scenario provided, where an employee is entitled to 18 days of annual leave per year and has a balance of 50 days at the end of 31 Dec 2023, the interpretation is correct.

Practical Application:

The employee can carry over only 45 days to the next calendar year, as per the statutory limit. Therefore, in 2024, the employee will start with 45 days carried over from the previous year and will earn an additional 18 days of annual leave, resulting in a total of 63 days for the year.

Key Takeaway:

It is crucial to adhere to the legal provisions regarding annual leave carry-over limits to ensure compliance with the Maharashtra S&E Act. Employers should accurately track and manage employees' leave balances to prevent any discrepancies or non-compliance issues.

Additional Note:

For further clarification or detailed information, it is recommended to consult the specific provisions of the Maharashtra S&E Act or seek legal advice to ensure full compliance with the legislation.