# Annual Leave Carry Forward - Karnataka Shops And Commercial Establishments (Second Amendment) Act, 2020

**URL:** <https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935>\
**Category:** Leave\
**Tags:** leave-policy\
**Created:** [February 25, 2021, 6:31am UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935 "2021-02-25T06:31:19Z")\
**Posts on this page:** 11\
**Page:** 1

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**Author:** ![Chethanbn](https://avatars.discourse-cdn.com/v4/letter/c/c5a1d2/32.png) [@Chethanbn](https://community.greythr.com/u/Chethanbn)\
**Post date:** [February 25, 2021, 6:31am UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/1 "2021-02-25T06:31:19Z")

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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](https://community.greythr.com/uploads/short-url/oVfPwxfvkfAzVFLG4q6RwNsjfv5.pdf) (3.5 MB)

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**Author:** ![avanti](https://avatars.discourse-cdn.com/v4/letter/a/76d3ee/32.png) [@avanti](https://community.greythr.com/u/avanti)\
**Post date:** [February 25, 2021, 7:09am UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/2 "2021-02-25T07:09:21Z")

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From when is this amendment effective?

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**Author:** ![Bhuvana\_Anand](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/bhuvana_anand/32/4444_2.png) [@Bhuvana\_Anand](https://community.greythr.com/u/Bhuvana_Anand)\
**Post date:** [February 25, 2021, 7:44am UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/3 "2021-02-25T07:44:33Z")

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This amendment is with immediate effect from the date of publication.

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**Author:** ![Shwetha](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@Shwetha](https://community.greythr.com/u/Shwetha)\
**Post date:** [February 25, 2021, 11:22am UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/4 "2021-02-25T11:22:49Z")

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Is this 45 days is applicable for encashment of leaves.

Regards,

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**Author:** ![Chethanbn](https://avatars.discourse-cdn.com/v4/letter/c/c5a1d2/32.png) [@Chethanbn](https://community.greythr.com/u/Chethanbn)\
**Post date:** [February 25, 2021, 11:43am UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/5 "2021-02-25T11:43:16Z")

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Hi Shwetha,

This is for leave carry forward. Leave encashment will be based on organization policy.

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**Author:** ![Bharath](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/bharath/32/249_2.png) [@Bharath](https://community.greythr.com/u/Bharath)\
**Post date:** [February 25, 2021, 12:00pm UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/6 "2021-02-25T12:00:21Z")

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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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**Author:** ![Shwetha](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@Shwetha](https://community.greythr.com/u/Shwetha)\
**Post date:** [February 25, 2021, 12:30pm UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/7 "2021-02-25T12:30:33Z")

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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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**Author:** ![Chethanbn](https://avatars.discourse-cdn.com/v4/letter/c/c5a1d2/32.png) [@Chethanbn](https://community.greythr.com/u/Chethanbn)\
**Post date:** [February 26, 2021, 10:39am UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/8 "2021-02-26T10:39:12Z")

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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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**Author:** ![Ankit](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/ankit/32/1201_2.png) [@Ankit](https://community.greythr.com/u/Ankit)\
**Post date:** [February 26, 2021, 11:18am UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/9 "2021-02-26T11:18:39Z")

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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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<div class="post-metadata">

**Author:** ![Shwetha](https://avatars.discourse-cdn.com/v4/letter/s/9fc348/32.png) [@Shwetha](https://community.greythr.com/u/Shwetha)\
**Post date:** [February 26, 2021, 11:33am UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/10 "2021-02-26T11:33:15Z")

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Thank you chethan.

Regards,

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**Author:** ![Official-Greytribe](https://avatars.discourse-cdn.com/v4/letter/o/0ea827/32.png) [@Official-Greytribe](https://community.greythr.com/u/Official-Greytribe)\
**Post date:** [March 23, 2021, 9:43am UTC](https://community.greythr.com/t/annual-leave-carry-forward-karnataka-shops-and-commercial-establishments-second-amendment-act-2020/1935/11 "2021-03-23T09:43:43Z")

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Thanks @Chethanbn

Linking our inhouse blog here:

[Carry forward 45 days of annual leave balance in Karnataka! Read more - General Discussions - greytHR Community](https://community.greythr.com/t/carry-forward-45-days-of-annual-leave-balance-in-karnataka-read-more/2191)
