reallytruefriend
1

Dear Seniors,
I have a question in mind for which I need your guidance / clarity.
Is it mandatory for the companies to provide CL / SL facility to their employees? If yes, how many CL / SL are mandatory and what is the formula for calculating these leaves.
Thanks and Regards,
Satinder Pal Singh
9781391170

From India, Ludhiana
saiseven
54

Sub- CL/SL in companies

If your establishment is a factory, You have to provide for annual leave under sec.79 which can be availed on sickness grounds. However, the ESI Act 1948 which covers factories, permits an employee to remain absent from duty for treatment of sickness or disablement during which he is entitled to wages to be calaculated in the manner prescribed under ESI Act.

As regards CL, it is provided for under the model standing orders of each state. A factory employing 100 or more workmen is also covered by the Industrial Employment(Standing Orders) Act 1946. In that event, therefore you have to provide for CL as per model standing orders of your state since a factory is also covered by the Industrial Employment(Standing Orders) Act 1946.

If your establishment is a commercial establishment, you need to provide for leave as admissible under the Shops and Establishments Act of your State. The Shops Acts of some States provide for casual and sick leave also in which case, you need to provide for them while others like the Bombay Shops and Establishments Act provide for only one kind of leave (earned leave) which can be availed on sickness grounds. However in some states like Maharastra, the shops and commercial establishments are also covered by the Industrial Employment (Standing Orders) Act. In that event, you need to provide CL also as per the model standing orders.

if your commercial establishment is also covered under ESI by governemnt notification, the employee is also eligible for sickness benefits available under ESI Act. For example, Shops and commercial establishments are covered under ESI by government notification in the state of Maharstra. Please verify the status with regard to your state.

Hope this clarify your date on the manadatory nature of CL/SL

If your establishment is covered under Sales Promotion Employees Act 1976, you need to provide CLand SL as prescribed under the said Act to sales promotion employees.

Hope this will clarify the mandatory nature of CL/SL

B.Saikumar

HR & Labour Law consultant

Chipinbiz Consultancy. Pvt.Ltd

Mumbai

From India, Mumbai
reallytruefriend
1

Dear Mr. Saikumar,
Thanks for your response.
We are neither a factory nor any kind of shop or commercial activities. We are a placement agency. Please guide under which act or rules our office falls for CL / SL.
Thanks and Regards,
Satinder Pal Singh

From India, Ludhiana
saiseven
54

Dear Satinder
A placement Agency provides manpower to various clients of it and charges fee or commission for the same and it may also employ some persons for wages to do the work such as search and documenataion etc.Thus a Placement Agency carries on comemrcial activity. Normally the definition of 'Establishment' in any Shop Act of a State includes commercial establishments also as in Bombay Shops and Establishments Act 1948.Therefore in my opinion, a Placenment Agency is an establishment within the meaning of Shops and establishments Act and thus squarely covered by it.Please verify the definition in the Shops of Act of your State.
Trust this will clarify your doubt.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234

From India, Mumbai
phipl
1

Dear Sir,
Our establishment is a commercial establishment, you have to provide following leaves per annum.
PL : 21 Days
CL :4 Days
SL : 5 Days
As per your information EL/PL & CL defined under Shops & Est. Act & Ind. standing Order Act.
which is correct but pls.explain in details about SL & number of Sick leaves avail employees under which act & under which section.
Rgds
PHIPL

From India, Daund
saiseven
54

Dear member
since your's is a commercial establishment, you will be governed by the Shops and Establishments Act of your State. the Shops Acts have provided for EL/PL. However the Shops Acts of some states also have provided for SL and CL while others, for example, the Bombay shops Act do not provide ofr SL/CL. Therefore Please refr to teh Shosp Act of your State and according ly provide for leave.
B.Saikumar
HR Lablor Law Advisor
Mumbai

From India, Mumbai
phipl
1

Bombay shops & Est. Act is applicable for us. as per the act only EL/PL is mandatory for us But when we think about standing Order Act. In that act only CL are mention under section 10. But is not clear about number of CL will avail. But in case of SL is not defined. pls. Suggest how much SL avail or under which act instead of ESIC
From India, Daund
saiconsult
1899

Even though the Bombay Shops Act did not provide for CL or SL, you can provide for them. If the model standing orders under Bombay Rules do not specify the number of CLs to be provided, you can have two options .
1) you can fix the number of Cls as per model standimng orders under central rules which is ten in aclander year. or
2) you can follow the practice adopted by other placement agencies in Mumbai.
3) There is no Act applicable to you other than ESI Act which provides for SL. You can provide on your own or you can follow the practice adopted by other placement agencies in Mumbai. Public sector banks grant 30 days SL on half pay basis in a calendar year.
B.Saikumar
HR &Labour Law Advisor
Mumbai-9930532927

From India, Mumbai
phipl
1

Dear Saikumarji It means SL is not compulsory. Even it is avail from earlier it can be stop immediately or any time with consent of authority.
From India, Daund
saiconsult
1899

If any facility is being enjoyed by the employees/workmen as custom for a considerable time it acquires the cahracter of aservice condition and then it canot be stopped immediately without following the procedure under Sec.9-A of the Industrial Disputes Act( if the employees affected are workemn within the definition under teh Industrial disputes Act). However commercial establishmenst in Maharatra are also governed by the Industrial Employment Standing Orders Actand, provided they employe 50 or more employeesand therefore you need to verify whther the model standing orders under Bombay Rules provide for SL. after considering all these aspects and implications, you can take a prudent decision.
B.Saikumar
Hr &Labour Law Advisor
Mumbai
09930532927

From India, Mumbai
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