Leave segregation for permanent employee - legal consequences if granted semi-annually as 7.5 for each 6 months?

priyaslakshmi1905@gmail.com
Dear professionals, Could there be legal consequences if a company only allows 15 casual and sick leaves, granted semi-annually as 7.5 for each 6 months? Some employees are asking for 12 casual and 12 sick leaves. The management hesitates to provide that amount of leave; is it reasonable to offer 15 instead?

Furthermore, we presently provide 12 earned leaves for permanent employees.
Looking forward to your assistance.

Thank you
KK!HR
First, make it clear as to the nature and size of your organisation. If you are speaking with reference to a Factory as defined in the Factories Act 1948 then the leave provisions in it have to be followed, otherwise, it would be the Shops & Establishment Act of your state (Kerala?) which has to be followed.
Pl bring clarity on these issues.
Madhu.T.K
In a factory kind of operation the leaves that you are presently giving is more than what is required under the law. But if you come under Kerala Shops and Commercial Establishments Act, you are expected to give 12 days' Casual Leave, 12 days of Sick leaves during a year. Each of CL and SL may be proportionately given at the rate of one per month.

However, earned leave is admissible only to employees who have completed 12 months of service and the total earned leave is 12 days. In order to bring a common date january 1st) for crediting the leaves to all employees across the organisation, it is advisable to give EL to those who have joined during the preceding year proportionately to the months worked in the preceding year. This adjustment is acceptable even for the law enforcing officers.

Granting EL only to permanent employees is not acceptable but it should be given to all employees whether permanent or temporary if they have worked for 12 months. Therefore, if you do not want that a probationer be given EL, you can hold it for 12 months and you need not credit the EL of probationers pro rata basis in January. But as soon they complete 12 months, you should credit 12 days EL.

Under the labour law, any person engaged to do any work connected with the business of the organisation is an employee. All such employees are required to be given all social security benefits and employee benefits like hours of work, intervals of rest, weekly off, leave with wages etc. There is no classification called temporary and permanent for treatment of granting of leave with pay. You can terminate employment of a probationer without notice, there is no lien on employment for a temporary employee and that he cannot demand permanency. But you cannot refuse to give leave, or you cannot ask him to work for more than 8 hours a day or 48 hours a week, or you cannot ask him to work continuously for more than 10 days. Though paying overtime wages or granting compensatory holidays are remedies but you cannot demand such working.
priyaslakshmi1905@gmail.com
Updating the same :

We are an IT company consisting of 20 working employees.
priyaslakshmi1905@gmail.com
Madhu T.K., thank you for your update.

If the management is unwilling to implement the proposed changes, what legal consequences might they encounter aside from the potential employee turnover and burnout? Even though prioritizing the well-being of employees is crucial, exploring the legal implications is essential.
Madhu.T.K
Leaves is regulated by section 13 of the kerala Shops and Commercial Establishments Act. When the same says that the employer is bound to give 12 days CL, 12 days SL and 12 days of EL, that is the law. If the employer is not giving it, it would be booked as a serious non compliance and the enforcing officer can penalise the employer. Once an Inspector conducts an inspection, he will find out a number of non compliances. The HR Manager has a responsibility to guide the employer to make the organisation legally okay in all respects. Whether the rules is implemented or not, you should make them aware of these rules. Otherwise you will face the consequences. Remember that the employers of smaller companies are those who are least bothered about legal side of HR. This is from my experience in the filed extending more than three decades.....!
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