Dear Senior,
We come under Shops & Establishment Act of Tamilnadu.
Our company is taken over recently by an MNC.
However we continue to follow all Indian statutory requirements.
During our earlier management, we used to allocate 12 days CL, 12 days SL and 12 days PL for all employees as per their eligibility.
Now the new management instructed to reduced the leaves to 10 days CL, 7 days SL and 1 day PL for every 20 days working.
They give the justification as the act says "not exceeding 12days only" it never says we should allocate 12 days.
Could you please clarify. Is it right????
Thanks
Devibala
From India, Madras
6We come under Shops & Establishment Act of Tamilnadu.
Our company is taken over recently by an MNC.
However we continue to follow all Indian statutory requirements.
During our earlier management, we used to allocate 12 days CL, 12 days SL and 12 days PL for all employees as per their eligibility.
Now the new management instructed to reduced the leaves to 10 days CL, 7 days SL and 1 day PL for every 20 days working.
They give the justification as the act says "not exceeding 12days only" it never says we should allocate 12 days.
Could you please clarify. Is it right????
Thanks
Devibala
From India, Madras
Please find below the sec 25 of TN shops and establishment act says:
Holidays and sick leave:
(1) Every person employed in any establishment shall be entitled, after twelve months continuous service, to holidays with wages for a period of 12 days, in the subsequent period of twelve months: provided that such holidays with wages may be accumulated up to a maximum of twenty- four days.
(2) Every person employed in any establishment shall also be entitled during his first twelve months of continuous service after the commencement of this Act, and during every subsequent twelve months of such service
(a) to leave with wages for a period not exceeding twelve days, on the ground of any sickness incurred or accident sustained by him and
(b) to casual leave with wages for a period not exceeding twelve days on any reasonable ground.
(3) If a person entitled to any holidays under sub- section (1) is discharged by his employer before he has been allowed the holidays, or if having applied for and been refused the holidays, he quits his employment before he has been allowed the holidays, the employer shall pay him the amount payable under this act in respect of the holidays.
(4) If a person entitled to any leave under sub- section (2) is discharged by his employer when he is sick of suffering from the result of an accident, the employer shall pay him the amount payable under this act in respect of the period of the leave to which he was entitled at the time of his discharge, in addition to the amount, if any payable to him under sub- section (3).
(5) A person employed shall be deemed to have completed a period of twelve months continuous service within the meaning of this section, not withstanding any interruption in service during those twelve months brought about (i) by sickness, accident, or authorized leave not exceeding 90 days in the aggregate of all three. (ii) by a lockout (ii) by a strike which is not an illegal strike (iv) by intermittent periods of involuntary unemployment not exceeding thirty days in the aggregate and authorized leave shall be deemed not to include any weekly holiday or half- day holiday under this act which occurs at the beginning or end of an interruption brought about by the leave.
(6) A person employed in a hostel attached to a school or college or in an establishment maintained in a boarding school and lodging of pupils and resident masters shall be allowed the privileges referred to in sub- sections (1) to (5), reduced however proportionately to the period for which he was employed continuously in the previous year or to the period for which he will be employed continuously in the current year, as the case may be; and all references to periods of holidays or of leave in sub-sections (1) and (2) shall be construed accordingly, fractions of less than one day being disregarded.(7)The Government shall have power to issue directions as to the manner in which the provisional of sub- section (6) shall be carried into effect in all or any class of cases or in any particular case.
From India, Chennai
Holidays and sick leave:
(1) Every person employed in any establishment shall be entitled, after twelve months continuous service, to holidays with wages for a period of 12 days, in the subsequent period of twelve months: provided that such holidays with wages may be accumulated up to a maximum of twenty- four days.
(2) Every person employed in any establishment shall also be entitled during his first twelve months of continuous service after the commencement of this Act, and during every subsequent twelve months of such service
(a) to leave with wages for a period not exceeding twelve days, on the ground of any sickness incurred or accident sustained by him and
(b) to casual leave with wages for a period not exceeding twelve days on any reasonable ground.
(3) If a person entitled to any holidays under sub- section (1) is discharged by his employer before he has been allowed the holidays, or if having applied for and been refused the holidays, he quits his employment before he has been allowed the holidays, the employer shall pay him the amount payable under this act in respect of the holidays.
(4) If a person entitled to any leave under sub- section (2) is discharged by his employer when he is sick of suffering from the result of an accident, the employer shall pay him the amount payable under this act in respect of the period of the leave to which he was entitled at the time of his discharge, in addition to the amount, if any payable to him under sub- section (3).
(5) A person employed shall be deemed to have completed a period of twelve months continuous service within the meaning of this section, not withstanding any interruption in service during those twelve months brought about (i) by sickness, accident, or authorized leave not exceeding 90 days in the aggregate of all three. (ii) by a lockout (ii) by a strike which is not an illegal strike (iv) by intermittent periods of involuntary unemployment not exceeding thirty days in the aggregate and authorized leave shall be deemed not to include any weekly holiday or half- day holiday under this act which occurs at the beginning or end of an interruption brought about by the leave.
(6) A person employed in a hostel attached to a school or college or in an establishment maintained in a boarding school and lodging of pupils and resident masters shall be allowed the privileges referred to in sub- sections (1) to (5), reduced however proportionately to the period for which he was employed continuously in the previous year or to the period for which he will be employed continuously in the current year, as the case may be; and all references to periods of holidays or of leave in sub-sections (1) and (2) shall be construed accordingly, fractions of less than one day being disregarded.(7)The Government shall have power to issue directions as to the manner in which the provisional of sub- section (6) shall be carried into effect in all or any class of cases or in any particular case.
From India, Chennai
Dear Stephen,
Thank you so much for your insight. But could you please inform me straight that the act of reducing the leave from 12 days to 7 days is permissible or not.
Thanks again for your time to reply me.
With Best Regards
Devi Bala
From India, Madras
Thank you so much for your insight. But could you please inform me straight that the act of reducing the leave from 12 days to 7 days is permissible or not.
Thanks again for your time to reply me.
With Best Regards
Devi Bala
From India, Madras
Dear Devi Bala,
I don't know what prompted your new MNC Top Brass to adopt such a stringent interpretation of a benefecial provision based on word-game! The phrase " not exceeding 12 days" can also be interpretted as " not less than 12 days" on the principle of constructive interpretation for the simple reason that stress is given in the sub-section only to " the entitlement" of the person employed and not to" the discretion " of the employer. Of course the employer can exercise his discretion to adopt a higher scale of calculation that would be more benefecial to the persons employed like in the proposed calculation of PL @ ONE DAY for every 20 days of work that works out to 18 days per year. Even otherwise, 12 days each of SL and CL per year has become a customary right or privilege enjoyed by the employees and you can not curb it now.
From India, Salem
I don't know what prompted your new MNC Top Brass to adopt such a stringent interpretation of a benefecial provision based on word-game! The phrase " not exceeding 12 days" can also be interpretted as " not less than 12 days" on the principle of constructive interpretation for the simple reason that stress is given in the sub-section only to " the entitlement" of the person employed and not to" the discretion " of the employer. Of course the employer can exercise his discretion to adopt a higher scale of calculation that would be more benefecial to the persons employed like in the proposed calculation of PL @ ONE DAY for every 20 days of work that works out to 18 days per year. Even otherwise, 12 days each of SL and CL per year has become a customary right or privilege enjoyed by the employees and you can not curb it now.
From India, Salem
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TAMILNADU SHOPS AND EStt.Act.Leave Rules.docx
Forms & Registers Andhra Pradesh Shops & Establishments Act 1988 & Rules 1990.xls