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I am working with an MNC with its head office in the United States. We have a uniform leave policy for the US and New Zealand offices. I have been tasked with developing a Leave Policy for the India office located in Gurgaon, Haryana.

Leave Policy Development for India Office

Is it possible for us to apply the same policy for leaves as in the US and New Zealand, or do we need to develop a Leave Policy in accordance with Indian Rules/the Punjab & Haryana Shop and Establishments Act?

Regards,
Ajay

From India, New Delhi
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If your company is registered under Punjab Shops & Establishment Act, then you have to follow the rules of the State Act.
From India, Ahmadabad
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Dear Ajay ji, As long as you are providing better provisions under your any policy than that of the statute you are subjected to, there is no issue.
From India, Mumbai
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It is advisable to follow the concerned State Shops & Establishment Act/Rules where your office is located regarding leaves and paid holidays. However, if your leave policy incorporates all statutory leaves/paid holidays provisions as prescribed under the concerned State Shops & Establishment Act/Rules where your office is located, then you must give in writing informing the concerned Government Labour authorities about it for hassle-free compliance.

Thanks,
Anil Sharma

From India, Pune
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Dear Mr. Anil,

Thank you for the advice. Could you also clarify if we have a total of 30 leaves in a year, do we need to categorize them as Earned Leave (EL), Casual Leave (CL), and Sick Leave, or can we simply state in our policy that there are 30 leaves in a year?

Thank you,

Ajay Sharma

From India, New Delhi
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If your state's Shops & Establishment Act specifies CL/SL/EL differently, you must follow accordingly. Otherwise, you can draft the policy as needed. Lastly, it is advisable to differentiate CL/SL/EL in the policy for smooth functioning.
From India, Ahmadabad
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If, as per the US leave policy, it is greater than the Indian leave policy, you can go ahead. If the US leave policy is less than Indian rules, then please maintain it as per Indian state rules.

Regards, Sukhpal

From India, Delhi
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Under Punjab Shops act, Year is defined as financial year. Do we follow financial yera for leave calculation also??
From India, Mumbai
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If you are registered under Punjab S&E Act, you have to follow as per the act i.e. Financial Year for all leaves
From India, Ahmadabad
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