Can We Combine Casual and Paid Leave into One Category Without Legal Issues?

Dear HR professionals,

We are a company based in Mumbai with around 200 employees. According to the Maharashtra Shops and Establishments Act, employees are entitled to a total of 8 Casual Leaves in addition to the prescribed Paid Leave.

I have a query regarding consolidating all types of leave under one category, Paid Leave (PL), for approximately 30-32 days, instead of maintaining separate categories for PL and CL as outlined in the act. I have heard that many companies adopt this approach. Would combining these leaves cause any issues from the authorities' perspective? I kindly request clarification on this matter.

Warm Regards,

Differences in Leave Types and Compliance

The purposes for which different leaves can be availed are distinct. The manner in which these leaves, such as Casual Leave (CL) and Paid Leave (PL), become due is different. Similarly, the way these leaves can be availed is also different. Moreover, only PL can be carried forward, while unavailed CL will lapse at the end of the year. Therefore, even though you have more leaves than what is provided under the Act, you are not considered to be in compliance with the rules.

Sir/Madam,

CL can be availed for half a day, but PL can only be availed for a full day.