Hello Team, Greetings of the day!! I have been a member of this amazing HR Community for a few years. It has always been a great help for me throughout my career. Now I need your help in understanding and formulating a leave structure that would abide by the Andhra Pradesh Shops and Establishment Law.
To Introduce: I am working as an HR Business Partner for a software company that is ISO and CMMI certified, having offices in the USA and India. Our primary area of work is software development and testing. We work 5 days a week. Currently, our leave system includes 6 earned leaves, which can be carried forward to the next year to a maximum of 18, and 12 casual leaves (which cannot be carried forward).
My company has recently been registered under the AP Shops and Establishment Act, although they have been operating since 2004 in Hyderabad, India.
My Questions Are:
1. Is it required for software companies to follow this Shops and Establishment Law? Because I have seen many software companies that are not following the same.
2. The Shops and Establishment Act was formulated with a 6-day week in mind, but IT companies are following a 5-day week system. How can a balance be established?
3. The AP Shops and Establishment Act states: "Leaves: Every employee who has served 240 days or more during a continuous period of 12 months in any establishment shall be entitled during the subsequent period of twelve months to leave with wages, which may be accumulated up to a maximum period of sixty days." But all IT companies on a 5-day model are working for only 230 days a year (excluding weekends, leaves, and holidays). Does this give us the liberty to exclude earned leaves?
4. Are casual and sick leaves compulsorily 12 each? (In the act, it is mentioned not more than 12 in each category.)
Thank you in advance for your time and support. Please feel free to ask for any clarifications.
Regards, Narasimha Reddy V HR Business Partner
From India, Hyderabad
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To Introduce: I am working as an HR Business Partner for a software company that is ISO and CMMI certified, having offices in the USA and India. Our primary area of work is software development and testing. We work 5 days a week. Currently, our leave system includes 6 earned leaves, which can be carried forward to the next year to a maximum of 18, and 12 casual leaves (which cannot be carried forward).
My company has recently been registered under the AP Shops and Establishment Act, although they have been operating since 2004 in Hyderabad, India.
My Questions Are:
1. Is it required for software companies to follow this Shops and Establishment Law? Because I have seen many software companies that are not following the same.
2. The Shops and Establishment Act was formulated with a 6-day week in mind, but IT companies are following a 5-day week system. How can a balance be established?
3. The AP Shops and Establishment Act states: "Leaves: Every employee who has served 240 days or more during a continuous period of 12 months in any establishment shall be entitled during the subsequent period of twelve months to leave with wages, which may be accumulated up to a maximum period of sixty days." But all IT companies on a 5-day model are working for only 230 days a year (excluding weekends, leaves, and holidays). Does this give us the liberty to exclude earned leaves?
4. Are casual and sick leaves compulsorily 12 each? (In the act, it is mentioned not more than 12 in each category.)
Thank you in advance for your time and support. Please feel free to ask for any clarifications.
Regards, Narasimha Reddy V HR Business Partner
From India, Hyderabad
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Shops and Commercial Establishment Act is applicable to your organization. How you can interpret the clauses is something which to be consulted with a practicing labor law expert
From India, Bangalore
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202From India, Bangalore
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Thanks for your quick reply . i am very new to statutory things and am trying to understand by gathering information from seniors like you . Request you to elaborate your suggestion.
From India, Hyderabad
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From India, Hyderabad
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AP shops and establishment Act, 1988.pdf
PF Case Law - Leave Encashment.doc