Dear Members,

Need guidance :

As per Shops and Establishment - Karnataka - Jan 2023
- Leave Entitlement
- Leave Accrual process
- Leave Encashment provision
- If an employee is in probation period will it effect his leave entitlement (as per S&D guidelines).

Thank You..

From United States
Leaves as applicable to shops and commercial establishments are governed by section 15 of Karnataka Shops and Commercial Establishments Act. Accordingly, every employee is entitled to get one day leave (with salary) for every 20 days' worked by him. This is normally credited on 1st of very January based on the attendance of the preceding year.

In addition to the above every employee (new joinee also) should be given a total of 12 days leave for a year as sick leave. For existing employees this will also be credited on 1st of January. For new employees (employees who join in the current year) you can credit it proportionately, ie, 11 days to one who joins in February, 10 days to one who joins in March and so on. The HR practice is to treat a fraction of a month of more than 15 days, ie, joining in between 1st and 15th of the month, as full month and to ignore it if the joining date is after 15th of the month.

The law has not made any separate treatment of employee on probation and therefore, an employee on probation should also be entitled to the above leaves.

Balance of Leave or leave unavailed during a year shall be carried forward to the next year subject to a maximum of 30 days. But any leave refused by the employer due to business exigencies shall be allowed to be carried forward even if the total of such carry forward exceeds 30.

Regarding encashment of leaves, what the law stipulates is that unavailed leave shall be encashed at the time of termination of employment. However, the leave policies may provide for such encashment during service also.

From India, Kannur
Thank you Madhu TK.. These are good insights .. Also wanted to check if you have the extract of S&D Acti which mentions these. Warm Regards, Pooja Singh
From United States
What is S&D Act, I don't know. But the leave and other service conditions of employees in shops and other commercial establishments are mentioned in the respective state's Shops and Commercial Establishments Act. You can go through the same of Karnataka State. Please find the attachment.
From India, Kannur
Attached Files (Download Requires Membership)
File Type: pdf Karnataka Shops and Commercial Establishments Act.pdf (214.3 KB, 161 views)

Thank you for the prompt response Madhu TK - Appreciate your help.
From United States
In case of orgnisations following Work from home - Abstract of the Act and Rules - displayed? - how can this be made compliant ..Plz guide
From United States
An organisation, as such, is not actually working from home but it is the employees who are working from their respective homes. It is not needed that the abstract of the Acts are to be displayed in the work station of each and every employee but the notice board which is accessible to the employees is the place where we can display such abstracts and notices. If, suppose, the office itself is closed then it is advisable to upload the Acts (abstracts) in the portal visited by the employees to mark their attendance. This will satisfy the legal requirements.
From India, Kannur
All these leave rules discussed above here, is applicable on as-is basis for Independent Contractor or Consultants ?
From India, Bengaluru
No. No leaves rules are applicable to independent contractors and consultants engaged by an establishment. Some companies employ 'consultants' just to avoid application of labour laws. One of the tests to prove that they are employees is the application of leave rules to them.
From India, Kannur
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