"Every state in India has a Shops & Establishments Act that mandates the various leave rules for employees. The employers must grant annual leave to employees subject to certain conditions.
“An employee could carry forward a maximum of 30 days of annual leave balance. Beyond this limit, the leaves would lapse. If the employer so desires, the excess leave balance over and above the maximum carry forward limit can be converted to cash instead of letting it expire.”
Recently, the Karnataka government amended this provision and enhanced the carry forward limit to 45 days"
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