I am working with a organization registered under Bombay shops and establishment act, its not a \'ltd.\' or \'pvt. ltd.\' organization, so i wish to know what should be components of salary structure, as the employee size is small we do not wish to have PF, resulting in grievances, also how many leaves per year should be provided, and their bifurcation.
From India, Pune
5From India, Pune
hi Rutuja,
How much is the employee size?? If it is more than 20, then you have to register for PF or else not.
Depending upon Management decision you can allot 1.5 to 1.75 Leaves per month, apart from National Holidays, Diwali and other festivals.
From India, Pune
How much is the employee size?? If it is more than 20, then you have to register for PF or else not.
Depending upon Management decision you can allot 1.5 to 1.75 Leaves per month, apart from National Holidays, Diwali and other festivals.
From India, Pune
Hii,
Thanks Mayur,
The employee strength is less than 20, so what should be the salary components??
Also, for now we have 12 leaves per year including national holidays and festivals, and 12 paid leaves per year, i.e 1 paid leave per month, that cannot be carry forward, has to be utilized in the same month.
If the leaves are restructured, how many they should be, and their bifurcation??
From India, Pune
Thanks Mayur,
The employee strength is less than 20, so what should be the salary components??
Also, for now we have 12 leaves per year including national holidays and festivals, and 12 paid leaves per year, i.e 1 paid leave per month, that cannot be carry forward, has to be utilized in the same month.
If the leaves are restructured, how many they should be, and their bifurcation??
From India, Pune
Dear Rutuja,
Greetings!!!
As long as your company is registered , it doesn't matter whether it's a Ltd./Pvt. Ltd. company. You have to follow the statutory leaves mentioned in Bombay Shops and Establishment Act. I am giving you the details that i have, plz check for updates.
BOMBAY SHOPS AND ESTABLISHMENTS ACT, 1948
Privileged Leave/ Earned Leave - 21 days on working 240 days in a year
Entitlement - 5 days after 3 months on completion of 60 days working in that period
Accumulation- 42 days
Computation- Suffixed or prefixed holidays to the leave period shall not be accounted as leave. Holidays or Sundays falling between the period of leave shall be treated as leave
Casual Leave - Nil
Sick Leave - Nil
Maternity Leave - Provisions of Maternity Benefits Act, 1961 to apply
As far as salary break up is concerned, you can follow a basic structure which includes Basic, HRA, Medical, Conveyance and Special Allowances. There is enough material available in Cite Hr on salary break up, do a bit of research and you will definitely come across something of your use.
From India, Delhi
Greetings!!!
As long as your company is registered , it doesn't matter whether it's a Ltd./Pvt. Ltd. company. You have to follow the statutory leaves mentioned in Bombay Shops and Establishment Act. I am giving you the details that i have, plz check for updates.
BOMBAY SHOPS AND ESTABLISHMENTS ACT, 1948
Privileged Leave/ Earned Leave - 21 days on working 240 days in a year
Entitlement - 5 days after 3 months on completion of 60 days working in that period
Accumulation- 42 days
Computation- Suffixed or prefixed holidays to the leave period shall not be accounted as leave. Holidays or Sundays falling between the period of leave shall be treated as leave
Casual Leave - Nil
Sick Leave - Nil
Maternity Leave - Provisions of Maternity Benefits Act, 1961 to apply
As far as salary break up is concerned, you can follow a basic structure which includes Basic, HRA, Medical, Conveyance and Special Allowances. There is enough material available in Cite Hr on salary break up, do a bit of research and you will definitely come across something of your use.
From India, Delhi
Very good information. However, one doubt ..
What is the quantum of leave, to be credited to employee’s a/c, after working 365 days ?
It is correctly said that after working 240 days, employee becomes eligible for 21 days. However, these 21 days are for those 240 days work, or for whole year.
One of the reputed site, excelconsultancyservices.co.in clarifies, under FAQ, ‘An employee is entitled to annual leave with pay for 21 days for 240 days of work..
Here the calculation works out to 32 days PL on completion of 365 days.
Will you please confirm leave quota for whole year.. 21 days or 32 days ..
From India, Mumbai
What is the quantum of leave, to be credited to employee’s a/c, after working 365 days ?
It is correctly said that after working 240 days, employee becomes eligible for 21 days. However, these 21 days are for those 240 days work, or for whole year.
One of the reputed site, excelconsultancyservices.co.in clarifies, under FAQ, ‘An employee is entitled to annual leave with pay for 21 days for 240 days of work..
Here the calculation works out to 32 days PL on completion of 365 days.
Will you please confirm leave quota for whole year.. 21 days or 32 days ..
From India, Mumbai
Dear Abhay,
Greetings!!!
It's 240 working days in a year ( i.e. 365 d/366 d).
You have to deduct Sundays, Saturdays, national holidays and government holidays from the 365 days to arrive at this figure. However, depending on your company's policy , this number can increase/decrease , when you calculate number of working days in a year. If so happens, you just keep the calculation at the number of specified working days, ignoring number of days in the year. However, while calculating working days , you should also keep in mind the working hour criteria, and make sure , you are not making your employees slog for more than specified quantum of working hours.
From India, Delhi
Greetings!!!
It's 240 working days in a year ( i.e. 365 d/366 d).
You have to deduct Sundays, Saturdays, national holidays and government holidays from the 365 days to arrive at this figure. However, depending on your company's policy , this number can increase/decrease , when you calculate number of working days in a year. If so happens, you just keep the calculation at the number of specified working days, ignoring number of days in the year. However, while calculating working days , you should also keep in mind the working hour criteria, and make sure , you are not making your employees slog for more than specified quantum of working hours.
From India, Delhi
Dear Rutuja,
Greetings!!!
Look at the entitlement pointer
5 days after 3 months with 60 working days.
That means you will credit 5 days of paid leave , once employee completes 3 months in your company. That 3 months should include 60 working days means he should have actually worked for 60 days to earn 5 days of paid leave. It also means , that at the end of each quarter, you will credit 5 days of leave ( assuming that your employee are working for at least 60 days, don't include Weekly offs and holidays in this 60 day period ) and at the end of last quarter you will credit 6 leaves to take the count to 21.
As far as , new employee is concerned , the first three months will be of probation and in the absence of any other leave (such as CL, ML), you will have to make do with weekly offs/ comp offs/ LOP leaves. After first three months, new employees' leave will start getting credited.
From India, Delhi
Greetings!!!
Look at the entitlement pointer
5 days after 3 months with 60 working days.
That means you will credit 5 days of paid leave , once employee completes 3 months in your company. That 3 months should include 60 working days means he should have actually worked for 60 days to earn 5 days of paid leave. It also means , that at the end of each quarter, you will credit 5 days of leave ( assuming that your employee are working for at least 60 days, don't include Weekly offs and holidays in this 60 day period ) and at the end of last quarter you will credit 6 leaves to take the count to 21.
As far as , new employee is concerned , the first three months will be of probation and in the absence of any other leave (such as CL, ML), you will have to make do with weekly offs/ comp offs/ LOP leaves. After first three months, new employees' leave will start getting credited.
From India, Delhi
In many companies the whole month days, 30/31 days, are considered as working days, which include rest days also, since salary is paid for 30 days. We should not count actual days of work/attendance, for calculation of leave. It is practically not possible too.
Presuming your calculation of actual work days, if any one works for more than 60 days, say 75 days, in 3 months (deduct only 12 Sundays and 2-3 holidays, from 90 days), he is still eligible for 5 days leave. Is it justified, if a person puts 60 days, and another person works 75 days, both are eligible for 5 days leave after 3 months ! And for the whole year 21 days !! Act allows Nil CL and Nil SL.
Rujuta’s statement ‘employee is entitled to get 21 days leave for 240 days of work’ gives us clear meaning, 32 days leave for 365 days, or atleast 26 days leave (if 52 Sundays and 13 holidays are deducted from 365 days). The statement is also certified by excelconsultancyservices.co.in, and at many other places.
Is there any labour court or any other authority’s decision on this !!
From India, Mumbai
Presuming your calculation of actual work days, if any one works for more than 60 days, say 75 days, in 3 months (deduct only 12 Sundays and 2-3 holidays, from 90 days), he is still eligible for 5 days leave. Is it justified, if a person puts 60 days, and another person works 75 days, both are eligible for 5 days leave after 3 months ! And for the whole year 21 days !! Act allows Nil CL and Nil SL.
Rujuta’s statement ‘employee is entitled to get 21 days leave for 240 days of work’ gives us clear meaning, 32 days leave for 365 days, or atleast 26 days leave (if 52 Sundays and 13 holidays are deducted from 365 days). The statement is also certified by excelconsultancyservices.co.in, and at many other places.
Is there any labour court or any other authority’s decision on this !!
From India, Mumbai
Dear Abhay,
Greetings!!!
I have checked into Factories Act for clarity on this. You may assume it to be " 240 days or more".
I appreciate your concern for hard working employees and you are always free to have more leaves for those who puts in more work/productivity. What the act does is put down minimum specification i.e. you are legally bound to credit only 21 days on completion of 240 working days.
If you want, you may also give more EL, CL/SL/Comp Off/Rest days etc. Less than what is specified is not allowed, more is always welcome.
From India, Delhi
Greetings!!!
I have checked into Factories Act for clarity on this. You may assume it to be " 240 days or more".
I appreciate your concern for hard working employees and you are always free to have more leaves for those who puts in more work/productivity. What the act does is put down minimum specification i.e. you are legally bound to credit only 21 days on completion of 240 working days.
If you want, you may also give more EL, CL/SL/Comp Off/Rest days etc. Less than what is specified is not allowed, more is always welcome.
From India, Delhi
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Salary Structure Policy ().xls
Leave Policy.doc