Hi, we are setting up leave structure for our company. It is a Pvt. Ltd. software development company located in Pune, Maharashtra falling under the Shops and Establishment Act. I believe Act LXI 2017 is what we should follow. I am referring to the copy here: https://bombayhighcourt.nic.in/libwe...ts/2017.61.pdf
I have a few queries which hopefully can be resolved by the helpful community here.
Query 1:
18(2): Every worker shall be entitled to eight days of casual leave with wages in every calendar year, which shall be credited into the account of the worker on a quarterly basis but shall lapse if unavailed at the end of the year. Does this mean casual leaves are credited two per quarter and not given in bulk for the year?
Query 2:
18(3): Every worker who has worked for a period of two hundred and forty days or more in an establishment during a calendar year shall be allowed, during the subsequent calendar year, leave with wages for a number of days calculated at the rate of one day for every twenty days of work performed by him during the previous calendar year.
18(4): Subject to the provision of clause 18(3), every worker who has been employed for not less than three months in any year shall, for every sixty days on which he has worked during the year, be allowed leave, consecutive or otherwise, for a period of not more than five days. 18(3) makes it clear that the number of earned leaves = Working days x 1/20. I am confused about the subsequent calendar year part. Since our company is new and all employees have only worked for a month so far, does that mean 18(3) is not applicable until one of these employees works for 240 days? If so, how are their leaves calculated for now? Also, I am unable to understand 18(4) completely.
Query 3:
A total of 8 festival holidays are allowed, including 26 Jan, 15 Aug, 2 Oct, and 1 May, and 4 additional holidays. If any of the mandatory national holidays falls on a weekly holiday (e.g., 26 Jan falling on Saturday), does it mean we now have to give 5 additional holidays?
Thanks in advance!
From India, Chalisgaon
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I have a few queries which hopefully can be resolved by the helpful community here.
Query 1:
18(2): Every worker shall be entitled to eight days of casual leave with wages in every calendar year, which shall be credited into the account of the worker on a quarterly basis but shall lapse if unavailed at the end of the year. Does this mean casual leaves are credited two per quarter and not given in bulk for the year?
Query 2:
18(3): Every worker who has worked for a period of two hundred and forty days or more in an establishment during a calendar year shall be allowed, during the subsequent calendar year, leave with wages for a number of days calculated at the rate of one day for every twenty days of work performed by him during the previous calendar year.
18(4): Subject to the provision of clause 18(3), every worker who has been employed for not less than three months in any year shall, for every sixty days on which he has worked during the year, be allowed leave, consecutive or otherwise, for a period of not more than five days. 18(3) makes it clear that the number of earned leaves = Working days x 1/20. I am confused about the subsequent calendar year part. Since our company is new and all employees have only worked for a month so far, does that mean 18(3) is not applicable until one of these employees works for 240 days? If so, how are their leaves calculated for now? Also, I am unable to understand 18(4) completely.
Query 3:
A total of 8 festival holidays are allowed, including 26 Jan, 15 Aug, 2 Oct, and 1 May, and 4 additional holidays. If any of the mandatory national holidays falls on a weekly holiday (e.g., 26 Jan falling on Saturday), does it mean we now have to give 5 additional holidays?
Thanks in advance!
From India, Chalisgaon
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Hello,
I'm glad you reached out with your queries. Let's address them one by one:
Query 1:
The Act indeed specifies that each worker is entitled to eight days of casual leave with wages per calendar year, which will be credited into the worker's account on a quarterly basis. This translates to two casual leaves per quarter. Unused leaves will lapse at the end of the year. 🤓
Query 2:
Yes, you're right. As per clause 18(3), employees who have worked for 240 days or more in a calendar year are eligible for earned leaves at the rate of 1 day for every 20 days worked in the subsequent year. Since your company is new and the employees have worked for less than three months, this clause doesn't apply yet.
For now, as per clause 18(4), your employees are eligible for leave of not more than 5 days for every 60 days they have worked. This can be availed consecutively or otherwise.
In simpler terms, if an employee has worked for 60 days, they are entitled to 5 days of leave. If they work for 120 days, they get 10 days of leave, and so on.
Query 3:
The Act mandates that you provide eight festival holidays, including 26 Jan, 15 Aug, 2 Oct, 1 May, and four additional holidays of your choice. If any of these mandated holidays falls on a weekly holiday (like a Saturday), it doesn't mean you need to provide an additional holiday. The day is still recognized as a holiday, despite coinciding with a weekend. 🤗✨
I hope this clears all your doubts. Remember, the goal is to ensure a fair and flexible leave policy that benefits both the employer and the employee. ✅
From India, Gurugram
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31I'm glad you reached out with your queries. Let's address them one by one:
Query 1:
The Act indeed specifies that each worker is entitled to eight days of casual leave with wages per calendar year, which will be credited into the worker's account on a quarterly basis. This translates to two casual leaves per quarter. Unused leaves will lapse at the end of the year. 🤓
Query 2:
Yes, you're right. As per clause 18(3), employees who have worked for 240 days or more in a calendar year are eligible for earned leaves at the rate of 1 day for every 20 days worked in the subsequent year. Since your company is new and the employees have worked for less than three months, this clause doesn't apply yet.
For now, as per clause 18(4), your employees are eligible for leave of not more than 5 days for every 60 days they have worked. This can be availed consecutively or otherwise.
In simpler terms, if an employee has worked for 60 days, they are entitled to 5 days of leave. If they work for 120 days, they get 10 days of leave, and so on.
Query 3:
The Act mandates that you provide eight festival holidays, including 26 Jan, 15 Aug, 2 Oct, 1 May, and four additional holidays of your choice. If any of these mandated holidays falls on a weekly holiday (like a Saturday), it doesn't mean you need to provide an additional holiday. The day is still recognized as a holiday, despite coinciding with a weekend. 🤗✨
I hope this clears all your doubts. Remember, the goal is to ensure a fair and flexible leave policy that benefits both the employer and the employee. ✅
From India, Gurugram
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