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Leaves and Working Hours
Leave
The Shops and Establishments Act, implemented by every Indian state, governs business operations regarding wage payments, working hours, rest breaks, opening and closing times, holidays, overtime, and leave entitlements. It aims to safeguard employee rights and ensure fair treatment, fostering a balanced and productive work environment. Adherence to this legislation is essential for businesses to maintain labor standards and uphold employee welfare.
Concept of Leaves
Employees are granted a set number of leave days annually, beyond public holidays and scheduled offs, as per the state's Shops and Establishments Act. Typically, three types of leave are outlined: Privilege, Sick, and Casual leave. However, entitlement varies by state. The establishment's leave policy must adhere to state regulations and cannot offer fewer benefits than mandated by law. This ensures fairness and compliance in granting time off for personal and health needs.
Typically, the structure of the Act remains consistent across regions, although there may be variations in the leave provisions specific to each state.
Leave and Working Hours Applicable Across States in India
The states in which leave & working hours are applicable are listed below:
Andhra Pradesh
Delhi
Goa
Gujarat
Himachal Pradesh
Jammu and Kashmir
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Punjab
Rajasthan
Tamil Nadu
Telangana
Uttar Pradesh
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Types of Leave
Earned leave / Privilege leave
Extra days off, known as earned or privileged leave, are granted to employees alongside their regular wages for a set number of days as mandated by the Shops and Establishments Act. The eligibility criteria for utilizing earned or privileged leave may vary from one establishment to another. Additionally, the maximum number of days of earned or privileged leave that can be carried over to the following year is stipulated under the Shops and Establishments Act. Furthermore, employees have the option to convert their accrued leave into cash, subject to the regulations outlined in the respective state's Shops and Establishments Act and associated rules.
Casual Leave:
Casual leave is granted for unforeseen events or personal emergencies, usually for a day or two. Its duration varies under the Shops and Establishments Act. Companies often limit its use to short periods, but longer absences require prior approval or valid reasons. It's not usually combinable with other leave types, except when leave balances are low. Casual leave isn't convertible to cash and doesn't carry over.
Sick leave:
Employees are granted sick leave benefits to support them during periods of illness. This allows them to take time off from work without losing wages. The specific number of sick leave days provided is determined by the regulations outlined in the Shops and Establishments Act of the respective state. In some states, employees are allowed to carry forward any unused sick leave from one year to the next, providing them with additional flexibility in managing their health and work responsibilities.
Overtime Work
Overtime denotes the additional hours worked beyond the standard daily and weekly hours of employment, typically set at eight to nine hours per day and forty-eight to fifty hours per week in India, contingent upon the employing organization's policies. According to regulations, if an employee surpasses the designated working hours outlined in the Act, the employer is obligated to compensate them at double the regular wage rate for the extra time worked.
Various laws govern overtime and its compensation, with different regulations specifying distinct durations for working hours.
Spread Over Hours
Spread over hours refers to the cumulative time spent by an employee on duty, encompassing both regular working hours, allocated rest breaks, and any overtime worked.
Interval for rest
A resting interval refers to a brief pause taken within the timeframe of regular work hours.