Dear All, Is it mandatory to allow carry-over of unused leave to next year under leave provisions of Shop & Establishment Act? Thanks, Asif

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Hi Asif, It’s never mandatory, but depends on your company’s policy.
From United Arab Emirates, Dubai
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dear asif yes,under leave provisions of Shop & Establishment Act you can accumulate upto the 42 leave in you account. ravi
From India, Nagpur
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Hi Ravi,

Thanks for the reply. However, I would like to know, "Is it mandatory to carry forward the leaves," or can we ask employees to avail all the leaves available during the respective calendar year? If not, then leaves will lapse.

Thanks again.

Asif


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Hi,

It is mandatory, and every state has a different rule regarding it. For example, in Maharashtra, it is 42; in Delhi, it is 15; in Gujarat, it is 63; in Karnataka, it is 30, etc. The act does not specify whether employees can be asked to take leave or not. However, it does specify that any unutilized leave should be carried forward.

Thank you.

From India, Mumbai
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Dear Asif,

Yes, it is mandatory to carry forward the accumulated leave to the following year, but only up to 42 leaves. The rest will lapse. On the other hand, you cannot compel the employee to avail leave just to avoid encashment of the leaves at the time of separation. Additionally, 42 is the minimum threshold set by the Shops and Establishment Act. However, many companies have designed their policies in a way that employees should fulfill all their moral responsibilities to ensure the smooth operation of workflow.

Ravi

"Mistakes are proof that you are trying."

From India, Nagpur
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Will depend on the state’s shops act provisions. But most of the states permit carry forward of leave of 1 or 2 years of entitlement.
From India, Mumbai
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