Hello Everyone,

Can anyone in this group help me get the complete Leave Policy for Tamil Nadu under the Factory Act and Shop Establishment Act? I'm an HR professional and recently shifted to Chennai.

From India, Chennai
Acknowledge(0)
Amend(0)

Hi Sandip,

These are some of the basic knowledge that an HR professional should seek. To start with, consult the acts, laws, and rules, and exactly follow what has been provided therein:

1. Factories Act and TN Factories Rules
2. TN Shops and Estts. Act
3. Model and Standing Orders of the respective industries
4. TN Govt. notification for general and festival holidays for the respective years
5. Cull out/collect details and practices followed in the similar industries/shops dealing in the sector.

Do your own homework on the above; that will suffice.

From India, Bangalore
Acknowledge(0)
Amend(0)

Hi Sir, Thanks for your valuable answer. Could you please suggest which one I should follow? Factory act or Shop & Estts. act or both the act should be followed. Regards; Sandip
From India, Chennai
Acknowledge(0)
Amend(0)

Hi Sandeep,

How will I know? You have to check the status, composition, and registration of your firm. It depends on what entity you are and the nature of your operation, as well as your manpower, etc. There is no possibility of both the Factory Act and Shops Establishment Act being applicable to you. Your registration will provide you with that information.

You need to inform us of your status so that we can suggest other aspects.

From India, Bangalore
Acknowledge(0)
Amend(0)

Dear Sandip,

In continuation of the replies above, I would like to add that the workers/persons employed coming under the purview of the Factories Act, 1948, and the Tamil Nadu Shops and Establishments Act, 1947, are also covered by the Tamil Nadu Industrial Establishments (National and Festival Holidays) Act, 1958, in respect of National and Festival holidays. A factory under the FA, 1948, and a shop/establishment under TNSE Act are defined as industrial establishments under the Act of 1958.

Under section 3 of the TNIE(FH) Act, 1958, every employee should be allowed in each calendar year a holiday of one whole day on January 26, the 1st of May, the 15th of August, and the 2nd of October, and 5 other festival holidays. Within 30 days from the date of the commencement of work in the industrial establishment, the employer has to get 5 festivals approved by the Inspector for the area as festival holidays to be given to the employees.

Apart from the weekly holiday of one day in every week u/s 16 of the TNSE Act, 1947, every person employed shall be given 12 days of leave with wages in each calendar year following 12 months of continuous service u/s 25(1), which is analogous to EL. This leave can be accumulated to the ceiling of 45 days, and whatever the number of days at the credit shall be encashable in the event of termination of employment.

Under sec. 25(2)(a), the employed person is entitled to 12 days of lapsable leave with wages in each calendar year on account of sickness or accident. However, the balance leave at the credit of the employee is encashable on termination during the calendar year.

Under sec. 25(2)(b), the employed person is entitled to 12 days of lapsable Casual Leave with wages.

Every employer is required to issue every month wage slip/leave card in Form T under rule 11(6) of the TNSE Rules, 1948.

Section 79(1) of the FA, 1948, mandates the grant of Annual Leave with Wages to every worker. Section 79 is a complete Code in itself in respect of this leave, and it is better to go through the provisions of the entire section thoroughly to know its scale, calculation, accumulation, and encashability.

From India, Salem
Acknowledge(0)
Amend(0)

Thanks you Umakanthan Sir for nice explanation.
From India, Chennai
Acknowledge(0)
Amend(0)

Dear Respectful Elders,

I have a few queries on this topic:

1. How many days does an employee compulsorily need to work to get 12 days of EL leave per year? (i.e., if an employee worked for only 216 days/year (an average of 18 days/month), are they eligible for 12 days of EL for that year?

2. If an employee has 12 EL days as carry forward and 12 EL days for the current year (total 24), and if they are going to resign by June, how many days are they eligible for EL encashment (assuming they have not taken any leave until June)?

Thank you.

From India, Madras
Acknowledge(0)
Amend(0)

Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.