The Government of Karnataka vides notification no. 08 Of 2021 has amended the provision for annual leave with wage under Section 15(7) of Karnataka Shops and Commercial Establishments Act, 1961. As per the amendment, the total number of days of leave that may be carried forward towards a succeeding year is increased to forty-five days for all employees. Please refer to the notification for more details.
Karnataka-shops-and-commercial-establishments-(second-amendment)-act-2020.pdf (3.5 MB)
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From when is this amendment effective?
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This amendment is with immediate effect from the date of publication.
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Is this 45 days is applicable for encashment of leaves.
Regards,
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Hi Shwetha,
This is for leave carry forward. Leave encashment will be based on organization policy.
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In general practise, annual leaves are encashed as per company poliy. But by rule, it has to be done as per the available leaves during settlement. leave slab varies from state to state
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Thanks Chethan & Bharath , do you have any document were its mentioned the leave encashment days depends on the organization policy on recent amendment. Currently we are following that but now with the new rule says up to 45 days carryforward , when we are allowing max. 45 days leave then why should employee are not be allowed to encash the same.
Regards,
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Hi Shwetha,
Leave encashment varies from company to company. It’s completely depend on employer to take decision to define policy and pay encashment amount to employees.
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| Leave for Shops & Establishment | ||
|---|---|---|
| Type Of Leave | Leave Entitlement | Max Carry Forward Days |
| Sick Leave | 12 (During the first twelve months of continuous service) | NA |
| Casual Leave (Days) | NA | NA |
| Earned / Privileged Leave | 18 | 30 |
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Thank you chethan.
Regards,
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