Leave Policy - Tamilnadu

Friends / Professionals,
We are in to Staffing and Servicing Private limited Company with less than 50 employees.
Currently we have the below working hours and leave policy. Can someone help me, whether its coming under tamilnadu labour act without any issues.

Working hours : 9hrs/day including lunch and tea break. Night shift 6pm to 3am (working as per USA Time)
Working days: Monday to Friday (5 days a week)
Public and festival Holidays: 10
we don’t have separate CL/SL/EL but we are providing 1 CL per month with pay.

So total leave will be 22 days apart from Saturday and Sunday (both days are compulsory holiday).

My question is, since we are giving Saturday and Sunday as holiday…shall we implement the above 22 days instead of 45 days and can be mentioned in the Employee Handbook and get the signature for the acceptance.

Note: i have gone thru the Tamilnadu Act 1947,1958 but i didnt find these details. if any of the experienced people help me, it will be much helpful for me to implement this in our company.



According to the Tamil Nadu Shops and Establishments Act, 1947, the maximum working hours per day for an adult employee are 9 hours, with a maximum of 48 hours per week. However, this Act does not apply to employees who are covered under the Factories Act, 1948.

Since your company has less than 50 employees, it is unlikely that you are covered under the Factories Act, 1948, and therefore, the Tamil Nadu Shops and Establishments Act, 1947 is applicable to your company.

Under this Act, an employee is entitled to at least one day off every week. In your case, since you are providing Saturday and Sunday as weekly holidays, you are complying with this requirement.

Regarding the leave policy, the Act requires that every employee who has worked for a minimum of 240 days in a year is entitled to 12 days of earned leave. Additionally, employees are entitled to casual leave and sick leave as well. It is advisable to have a separate policy for leave entitlements and clearly communicate the same to the employees.

In your case, you are providing 22 days of leave, which includes casual leave. If you want to provide only 22 days of leave and not separate CL/SL/EL, you can do so, but it is advisable to have a clear policy in place and communicate the same to your employees. You may also want to consult with a legal professional to ensure that you are in compliance with all applicable laws and regulations.

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Dear Team, is there a Legal Expert in this group or known to this group who can advise on the HR and Legal compliance matters - you can reach me on gopal@ghkhrconsulting.com. Thank you for the support in advance.

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