Dear All,
I have the following queries related to the leave rules and would appreciate it if you could help me sort out these queries.
a) I have recently come across the Maharashtra Shops and Establishments Act of 2017, where it is mentioned that "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". So, does it mean that for 312 working days (365 days less 48 week-offs), there are 15.6 days of earned leave for a year?
b) Also mentioned in the act is "The leave admissible under this section shall be exclusive of all holidays whether occurring during or at the end of the period of leave." So, are any week-offs or public holidays in between the leaves availed the exclusive right of leaves? For example, if an employee takes leave on Friday and Tuesday (Saturday and Sunday are the weekend off, and Monday is a public holiday), will Friday to Monday be considered as leaves, i.e., 5 days, or not, i.e., only 2 days of leave?
c) As per the Shops and Establishment Act, is it mandatory to pay leave encashment in full and final settlement of an employee? Can the employer deny paying the eligible leave encashment amount to a resigned employee?
Kindly revert.
From India, Mumbai
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I have the following queries related to the leave rules and would appreciate it if you could help me sort out these queries.
a) I have recently come across the Maharashtra Shops and Establishments Act of 2017, where it is mentioned that "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". So, does it mean that for 312 working days (365 days less 48 week-offs), there are 15.6 days of earned leave for a year?
b) Also mentioned in the act is "The leave admissible under this section shall be exclusive of all holidays whether occurring during or at the end of the period of leave." So, are any week-offs or public holidays in between the leaves availed the exclusive right of leaves? For example, if an employee takes leave on Friday and Tuesday (Saturday and Sunday are the weekend off, and Monday is a public holiday), will Friday to Monday be considered as leaves, i.e., 5 days, or not, i.e., only 2 days of leave?
c) As per the Shops and Establishment Act, is it mandatory to pay leave encashment in full and final settlement of an employee? Can the employer deny paying the eligible leave encashment amount to a resigned employee?
Kindly revert.
From India, Mumbai
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Dear friend,
The nomenclature "Earned Leave" would indicate that it is a leave earned by the employee through his attendance or the number of days he could be considered on duty. Therefore, the accrual of such leave is subject to a certain minimum number of days of attendance in a year, and the rate of accrual is computed as a proportion to a block of attendance. This is the universal concept and general method of calculation of E.L for employees.
The Leave with Wages prescribed under section 18(3) of the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 is also similar in this regard.
(a) The weekly holiday under section 18(1), the 8 days of Casual Leave under section 18(2), and the 8 festival holidays under section 18(7) have to be treated as duty even though the employee may not be required to work. Thus, in a year of 365 days, subtracting the above 68 days (52+8+8), the actual number of working days amounts to 297 days in a year. Therefore, the answer to your first query must be ascertained by also considering the situation of no work in the establishment, leave of absence due to maternity, the utilization of authorized E.L by the employee, and the involuntary absence of the employee as outlined under section 18(8)(a),(b),(c), and (d) respectively as the number of days worked by the employee. Hence, the maximum number of earned leave per year would be [365 x 1/20] = 18.25 or 18 days only.
(b) Based on the phrasing of section 18(9), your presumption appears correct to me.
(c) I would suggest you revisit the proviso to section 18(6).
Please let me know if you need further clarification.
From India, Salem
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6185The nomenclature "Earned Leave" would indicate that it is a leave earned by the employee through his attendance or the number of days he could be considered on duty. Therefore, the accrual of such leave is subject to a certain minimum number of days of attendance in a year, and the rate of accrual is computed as a proportion to a block of attendance. This is the universal concept and general method of calculation of E.L for employees.
The Leave with Wages prescribed under section 18(3) of the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 is also similar in this regard.
(a) The weekly holiday under section 18(1), the 8 days of Casual Leave under section 18(2), and the 8 festival holidays under section 18(7) have to be treated as duty even though the employee may not be required to work. Thus, in a year of 365 days, subtracting the above 68 days (52+8+8), the actual number of working days amounts to 297 days in a year. Therefore, the answer to your first query must be ascertained by also considering the situation of no work in the establishment, leave of absence due to maternity, the utilization of authorized E.L by the employee, and the involuntary absence of the employee as outlined under section 18(8)(a),(b),(c), and (d) respectively as the number of days worked by the employee. Hence, the maximum number of earned leave per year would be [365 x 1/20] = 18.25 or 18 days only.
(b) Based on the phrasing of section 18(9), your presumption appears correct to me.
(c) I would suggest you revisit the proviso to section 18(6).
Please let me know if you need further clarification.
From India, Salem
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I need a clarification that are these 8 casual leaves in addition to 21 Privelege / Earned leaves or the PL / EL have been abolished. Kindly clarify.
From India, Mumbai
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From India, Mumbai
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Dear sir,
I have been working with Logistiks Pvt Ltd company as an HR for the past 4 months, which falls under the Service Industry, governed by the Maharashtra Shops & Establishment Act.
I would like to inquire about the policy regarding opening leaves. Are they granted from 1st January or 1st April? Last year, the opening leaves were provided to employees on 1st April. Therefore, I seek confirmation on whether they are allocated from January or April.
Thank you.
From India, Pune
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I have been working with Logistiks Pvt Ltd company as an HR for the past 4 months, which falls under the Service Industry, governed by the Maharashtra Shops & Establishment Act.
I would like to inquire about the policy regarding opening leaves. Are they granted from 1st January or 1st April? Last year, the opening leaves were provided to employees on 1st April. Therefore, I seek confirmation on whether they are allocated from January or April.
Thank you.
From India, Pune
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Leave account of an employee gets opened effective from the date of his joining the organization only. Therefore, an employer cannot fix a date according to his administrative convenience.
However, lapsable leave, i.e., leave like C.L., S.L., the availment of which is on a calendar year basis, syncs and coterminates with the particular year.
From India, Salem
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However, lapsable leave, i.e., leave like C.L., S.L., the availment of which is on a calendar year basis, syncs and coterminates with the particular year.
From India, Salem
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thttps://paycheck.in/labour-law-india/leave-and-holidays/paid-leave
There's a section called
BOMBAY SHOPS AND ESTABLISHMENTS ACT, 1948
No sick leaves - they're part of overall leaves for the year.. as far as I understood.
Please confirm this?
also enforces sandwich leaves.
Plus it says
They provide at least seven holidays for national and other festivals. Republic day, Independence Day and Mahatma Gandhi’s birthday are compulsory holidays. Employer and Employees had given right to decide remaining national and festival holidays.
Similarly minimum seven days casual leave and 14 days sick leave is provided to employees.
From India, Mumbai
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There's a section called
BOMBAY SHOPS AND ESTABLISHMENTS ACT, 1948
No sick leaves - they're part of overall leaves for the year.. as far as I understood.
Please confirm this?
also enforces sandwich leaves.
Plus it says
They provide at least seven holidays for national and other festivals. Republic day, Independence Day and Mahatma Gandhi’s birthday are compulsory holidays. Employer and Employees had given right to decide remaining national and festival holidays.
Similarly minimum seven days casual leave and 14 days sick leave is provided to employees.
From India, Mumbai
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Please check and kindly provide your valuable input.
BOMBAY SHOPS AND ESTABLISHMENTS ACT, 1948
Type of Leave:
- Privileged Leave/ Earned Leave
- Casual Leave
- Sick Leave
- Maternity Leave
Quantum per year:
- 21 days on working 240 days in a year
- Nil
- Nil
- Provisions of Maternity Benefits Act, 1961 to apply
Entitlement:
- 5 days after 3 months on completion of 60 days working in that period
- Nil
- Nil
Accumulation:
- 42 days
- Nil
- Nil
Computation:
- Suffixed or prefixed holidays to the leave period shall not be accounted as leave.
- Holidays or Sundays falling between the period of leave shall be treated as leave.
From India, Mumbai
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BOMBAY SHOPS AND ESTABLISHMENTS ACT, 1948
Type of Leave:
- Privileged Leave/ Earned Leave
- Casual Leave
- Sick Leave
- Maternity Leave
Quantum per year:
- 21 days on working 240 days in a year
- Nil
- Nil
- Provisions of Maternity Benefits Act, 1961 to apply
Entitlement:
- 5 days after 3 months on completion of 60 days working in that period
- Nil
- Nil
Accumulation:
- 42 days
- Nil
- Nil
Computation:
- Suffixed or prefixed holidays to the leave period shall not be accounted as leave.
- Holidays or Sundays falling between the period of leave shall be treated as leave.
From India, Mumbai
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Leave for Shops & Establishment
Type Of Leave | Leave Entitlement | Max Carry Forward Days
Sick Leave
- No provision for sick leave
- Not Applicable
Casual Leave (Days)
- 8 Days
- Not Applicable
Earned / Privileged Leave
- 5 Days (for every 60 days worked)
- 18 Days (for every 240 days worked)
- 45 Days
Working Hours for Shops & Establishment
- Normal Working Hours: Nine hours in a day and forty-eight hours in a week
- Interval For Rest: After five hours of work interval of rest of at least half an hour
- Maximum Over Time Hours: One hundred and twenty-five hours in a period of three months
- Spreadover Hours: Ten and a half hours in a day
- Rate of OT Wages: Twice the ordinary rate of wages
From India, Pune
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Type Of Leave | Leave Entitlement | Max Carry Forward Days
Sick Leave
- No provision for sick leave
- Not Applicable
Casual Leave (Days)
- 8 Days
- Not Applicable
Earned / Privileged Leave
- 5 Days (for every 60 days worked)
- 18 Days (for every 240 days worked)
- 45 Days
Working Hours for Shops & Establishment
- Normal Working Hours: Nine hours in a day and forty-eight hours in a week
- Interval For Rest: After five hours of work interval of rest of at least half an hour
- Maximum Over Time Hours: One hundred and twenty-five hours in a period of three months
- Spreadover Hours: Ten and a half hours in a day
- Rate of OT Wages: Twice the ordinary rate of wages
From India, Pune
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LEAVE RULES.doc