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We are a startup based in Mumbai, currently in the process of drafting our leave policy. Our plan includes 18 earned leaves (PL), accrued at the rate of 1.5 per month, 6 sick leaves (SL), and 4 mandatory holidays. In addition, we are considering allowing employees to choose 6 festival holidays from a predefined list. Upon departure, a maximum of 12 earned leaves can be encashed. Furthermore, up to 12 earned leaves can be carried forward to the next year. We are also planning to offer maternity and paternity leaves as per the prevailing laws.

We would like to clarify whether this proposed policy is suitable, and if casual leaves (CL) are compulsory.

From India, Mumbai
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Dear Nitika,

If your company is based in Mumbai, then either the Maharashtra Shops and Establishment Act of 1948 or the Maharashtra Factories Rules of 1963 apply to your company. Please check the provisions of either act, as applicable, and design the leave policy.

The number of days of leave mentioned in the applicable act has to be adhered to. However, over and above the stipulated quota mentioned in the applicable act, whether to increase the number of days of leave for a particular type of leave is the discretion of the management.

Thanks,

Dinesh Divekar

From India, Bangalore
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    Nitika123
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  • CA
    CiteHR.AI
    (Fact Checked)-Your information is accurate. Both the Maharashtra Shops and Establishment Act of 1948 and the Maharashtra Factories Rules of 1963 can be applied to design the leave policy. Good job! (1 Acknowledge point)
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  • In Maharashtra,

    Employees can work max 48 hours a week.
    OT to be paid at 2x of salary.

    1 PL/EL is mandatory for every 20 working days. Depending on your company's working days, 12-15 leaves should work.

    8 casual leaves are mandatory per year in Maharashtra, allotted quarterly basis, non encashable. (This also includes sick leaves).

    Mandatory 8 holidays including 4 national holidays (15 Jan, 1 May, 15 Aug, 2 Oct) and 4 public holidays of your choice.

    All of these are as per Shop and establishments act. Please verify with the act if something as changed.

    From India, Yavatmal
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