Leave policy

According to Bombay Shop Act, the employee is entitled to 21 days leaves for subsequent year if he/she is worked for 240 days in that year. All such leaves are treated as Earned Leave. No law has given any bifurcation in casual or sick leaves except under MB Act 1961 for women. Complete policy is required to be analysed before finalization. 

Shailendra Deshpande

HR Consultant, Pune

The 12 casual days are apart from 10 days holidays. What is the law if no employee has worked more than 240 days? The company is barely 6 months old and there are less than 20 employees.

Also, is leave encashment/deduction on extra leave supposed to be on basic salary or gross salary?

Software companies are covered by State Shops & Estbs Act.

You may go thru;

Bombay Shops & Estbs Act

and Rules framed under IT……..

and compare while in Maharashtra

and of respective state while you are in any other  state….

And go thru Chapter/sections/clauses on Leave nd encashment of leave…

The applicable enactments are available at website of Dept. of Labor e.g; Maharashtra;

https://mahakamgar.maharashtra.gov.in/index.htm

Quick Links

• Acts & Rules

https://mahakamgar.maharashtra.gov.in/acts-rules.htm

https://mahakamgar.maharashtra.gov.in/images/lc/pdf/the-bombay-shops-establishments-act.pdf

The rate of wages is also explained  in the enactments.

The establishment and employer that are covered by the enactments can provide superior benefits but not inferior, to the employees.

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