Hi Team,
I am working in a Software organization. I am not part of HR.I am part of Service excellence team.
When I am doing Security audit on Hr, related to statutory and regulatory requirement I found its not exactly meeting the Tamilnadu Shop and establishment act. I already gone through few previous discussions and could not find the correct answer. However understood that all the Software organizations are falling under Shop and establishment act as per court ruling.
From my understanding we should have 12 days Annual leave,12 days sick leave and 12 days CL. And for permanent employees the leaves to be credited on 1st Jan of every year or after completing one year. Till that time based on company policy 1 day per month will get included.
However we have 12 days AL, and 8 days CL or Ml. No separate leave for Cl and ML.Also even for permanent employees , the leaves are credited for each month only. Reason if they credit all leaves in jan , few were taking all the leaves and absconding.
As a SW organization we have 9AM to 6 PM with 1 hr lunch break. Holiday on Saturday and Sunday.
Our HR says we are not following 48 hrs work as given in Shop and establishment act. My argument is as per the act it is 48 hrs max only.
Please guide me are we following the shop and establishment act leave policy correctly? Otherwise it will become a non compliance against the regulatory requirement.
From India, undefined
1I am working in a Software organization. I am not part of HR.I am part of Service excellence team.
When I am doing Security audit on Hr, related to statutory and regulatory requirement I found its not exactly meeting the Tamilnadu Shop and establishment act. I already gone through few previous discussions and could not find the correct answer. However understood that all the Software organizations are falling under Shop and establishment act as per court ruling.
From my understanding we should have 12 days Annual leave,12 days sick leave and 12 days CL. And for permanent employees the leaves to be credited on 1st Jan of every year or after completing one year. Till that time based on company policy 1 day per month will get included.
However we have 12 days AL, and 8 days CL or Ml. No separate leave for Cl and ML.Also even for permanent employees , the leaves are credited for each month only. Reason if they credit all leaves in jan , few were taking all the leaves and absconding.
As a SW organization we have 9AM to 6 PM with 1 hr lunch break. Holiday on Saturday and Sunday.
Our HR says we are not following 48 hrs work as given in Shop and establishment act. My argument is as per the act it is 48 hrs max only.
Please guide me are we following the shop and establishment act leave policy correctly? Otherwise it will become a non compliance against the regulatory requirement.
From India, undefined
Your observation is correct. Every employee who has completed 12 months service is required to be given 12 days of earned leave in addition to 12 days CL and 12 days sick leave. A company cannot have less number of leaves and cannot say that " we do not follow Shops...Act. If the company is registered under this Act, it is mandatory that the rules prescribed under the Act should be followed without fail.
With regard to working hours since they are working for 8 hours per day there is no violation of the Act. The spread over including the 1 hour lunch interval can be upto 10 hours and 30 minutes, but in this case it is less than that and the actual working time is not more than 8 hours per day. You can work for five days or six days, that is the head ache of the company but it does not mean that in five days you should make 48 hours. Working for more than 9 hours on a day is not permitted and if you have Saturday and Sunday off days, then the maximum you can get is 45 hours working hours and not more than that. In the present case, nobody works for more than 8 hours also. Therefore, this will not become a non compliance.
Madhu.T.K
From India, Kannur
With regard to working hours since they are working for 8 hours per day there is no violation of the Act. The spread over including the 1 hour lunch interval can be upto 10 hours and 30 minutes, but in this case it is less than that and the actual working time is not more than 8 hours per day. You can work for five days or six days, that is the head ache of the company but it does not mean that in five days you should make 48 hours. Working for more than 9 hours on a day is not permitted and if you have Saturday and Sunday off days, then the maximum you can get is 45 hours working hours and not more than that. In the present case, nobody works for more than 8 hours also. Therefore, this will not become a non compliance.
Madhu.T.K
From India, Kannur
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Leave Policy.doc