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pashyanti (legal manager)     28 May 2010

Company leave rules

Hi everybody!

I want to give thanks to  the advocates who really help me to solve my queries form time to time. Thank you very much for the help.This time also I want some help from you. Pls. help me to clear the doubts.

Our company is LLP & as per the law, it gives the PL/CL(i.e. Paid Leaves & Sick Leaves) to the employees. But now the company decides that the above said leaves will not issued by the company to its employees. My question is :

1. Whether the company has an authority to cancel the PL & CL?

2. Is there is any provision in the related Law in respect of this? (I don't know exactly which law applicable to this.)

3. If yes, then pls. quote the section no. & the related law.

Thanks in advance.




 5 Replies

Rahul (Project Lead)     28 May 2010

Hi Everyone....

Can anybody revert if a IT company can dissolve accumulated PL's of an employee on tendering resignation.

The company in its policy says the following :

1) Adjustment of notice period against leave cannot exceed 15 days on a 30-day notice period and 45 days on a 90-day notice period - Unclear on this point if anyone can explain this

2) Can be encashed - Yes, at the time of separation
only, @ 1 day’s basic pay per PL

3) In case of separation, the encashment of PL shall not be considered Salary for the purpose of determining PF Contribution, Gratuity, Bonus or any other allowances, Benefits or Remuneration wherever applicable.





I presume your company is an establishment (commercial) covered by the Shops & Establishment Act. The leave policy of a company should be guided by the S&E Act of the state where it is registered under the said act. Please check this out. Also, if Standing under (Industrial Standing Orders) is applicable, the leave policy will be in accordance with the standing orders. Your query needs more details for appropriate guidance.


Rahul (Project Lead)     29 May 2010

Hi Vasudevan,

Thanks a lot for your revert but let me know how do i find out the details, our company is based in Navi Mumbai,Maharashtra.




Mahendra Singh (QA)     29 May 2010

Dear Sir,

My wife worked with IFF overseas Pvt. Ltd. ,indore (MP) as Marketing Manager since last 7 years, After she got a offer From Bag Maker, Gurgaon (HR), Everthing could decided by mutual understanding  after that we were shiffted to Gurgaon on 14/05/2010.

As per decided she was joined by 15/05/2010 and she went to the Bag Maker office then by office staff told her for  joining on monday instead of saturday. After she went mondey again boss told her you can joine by  after a week. then we got a mail from the company  HR Which is :-----------

We deeply regretted not to confirm your appointment as our planning to sell domestically has changed and since you have taken long time for joining us, our priority has changed. 

We hope that you will understand and we will let you know when ever we decide to start a new business with domestic market.


Currently they are not confirme for joining just say for waiting.......

we have all the Emails and hard copy and softcopy of Offer Letter.  Please Reply me on mail.



Mahendra Singh Sisodiya



Please find the Bombay Shops & Establishments Act, applicable for Navi Mumbai.

Attached File : 38 38 bombay s e act.pdf downloaded: 408 times

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