Anonymous
I have a small software company registered in Gujarat. The company employs fewer than 10 people who work from home. They have Saturdays and Sundays off, along with 8 mandatory national holidays and 2 optional minority holidays. What should be my leave policy? Is the encashment of leaves at the time of termination mandatory under the law? I have read that most companies offer 12 Casual leaves + 12 earned leaves per year (1 day off for every 20 working days), but many sources mention that leave encashment is not mandatory. Please advise.
From Canada, Vancouver
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KK!HR
1656

You need to follow the leave policy as what is required as per the Shop & Establishment Act of Gujarat. Leave encashment while in service is not mandatory but it is mandatory as a terminal benefit.
From India, Mumbai
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Anonymous
I am unable to find Gujarat shops and establishment 1948 act copy.
From Canada, Vancouver
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Dear Member,

Please visit the link below for the Gujarat Shops and Establishment Act: [Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019](http://www.bareactslive.com/Guj/guj254.htm).

Thank you.

From India, Mumbai
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