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Aishvarya vardhan (Sr Hr)     10 January 2011

Need help to formulate a leave policy (org wide) as per law

Hi All,


Need your help for formulating a leave policy. 


Have gathered info of different state's shop and establishment acts which defines leaves types like PL, CL, SL.. as mentioned below.


These sates have different numbers like 21 pl + 4 SL or 15 PL + 12 CL + 12 SL...etc...  , Now to make a policy which will be org wide (pan india),  how can we come to numbers ??/(Can we reduce CL or SL or Pl/Els  ) which are legally accepted and also practices in mid size it firm.


Bombay Shops & Estb

Karnataka Shops & Estb

AP Shops & Estb

Delhi Shops & Estb

UP Shops & Estb (for Noida)







         otal Days (PL + CL +SL)


21 PL+ CL/SL (optional)


16 PL+12 SL


15 PL+12 SL +12 CL


15 PL +12 CL/SL


15 PL+15 SL+10 CL

12 PL + 12 CL + 12 SL


21 days


28 days


39 days


27 days


40 days

36 days








Please Please let me know as soon as possible.




 5 Replies

Sarjooram Sharma (Assistant Labour commissioner)     12 January 2011

If the establishment is covered under Shops and commercial establishment acts and the branches are established all over the country, you should study the shops and commercial establishment acts of the states where your branches are established and after comparision make provisions for maximum number of leaves which are given in the different acts and include in the standing orders of the company and get it approved by the appropriate authority of the Labour Department where the head office of the company is situated.
2 Like

Aishvaryavardhan (Sr. HR)     20 January 2011

Thank you Sir for your valuable inputs.

Dear Community  members,

I would like to know how it is feasible?

as for example AP has 15 days Leave with wages for a 240 days of continuous service (aprrox 23 days in a year, Sick leave,  SL-> 12 days leave during the first 12 months of continuous work & every subsequent 12 months and Causal Leave CL, 12 days casual leave with wages during the first 12 months of continuous work & every subsequent 12 months ) and as per Bombay shop and est. Act , 21 days for 240 days worked (Around 32 for one year and CL/ SL not specified ).

I beleive IT companies also provide Leave on Saturdays(Total 52 Sat).

hence they reduce PL, CL and SL and give comprehensive Leaves including of all three. they also give leave which are not entiled in law, like Paternity Leave (3, 5 days ), bereavement leave (2,3,5 days) as per diff companies.

Note :IT Firms Exempted from India’s Labor Laws for 2 Years/The Industrial Employment (Standing Orders) Act 1946 (Central Act 20 of 1946) strictly  outlines classification of workers, working hours and shifts, salary, leave and attendance


Dear Aishvarya,

It is the prerogative of the organization to draft leave policy for its employee subject to the condition that the laws of the land are not violated. It may also be noted that th law provides for the barest minimum, which an organization must provide in its stablishment rules. There is no bar in providing higher limits than provided in the state or cenral laws.


Since your organization sems to spread in different states and the concerned states have different leave conditions, I would like to advise you to hire some experienced management consultant to draft a set of leave rules for your organisation.


PS Dhingra

CEO cum Management & Vigilance Consultant

Dhingra Group of Consultants

New Delhi

Deepak Parmar (Accounts Manager)     01 February 2011

Dear Sir,

If the Employees Leave are in Negative, & the Employer does want to deduct his salary at present, then can we continue negative leave in the register. Does it has Legal Validity


Dear Deepak,

The question is not clear, as question of negative leave cannot arise.  Either leave can be due with some balance available at the credit of the employee, or would be having ZERO balance at his credit. Negative leave can only be in case where the employee has been absent by over stayal beyond the leave actually due and at his credit, which you cannot adjust against leave at his credit.


So, please clarify you point, what is actually the prolem that is needed to be sorted out.

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