Rules and Regulations for leave

What are the rules and regulations in IT companies related to leaves?

Shop & Establishment Act will applicable.
15 EL and total 12 casual / sick leave will applicable

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Is it mandatory to follow 15EL, 12CL / SL? Ours is an IT company. We are providing 12EL in a year, 10CL (5CL gets adjusted in Christmas Holidays as we have holiday from 24th Dec to 1st Jan) and 10SL to our employees . Kindly advise.


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Depends on the applicable Shops and Commercial Establishment Rules. Where is your organization located?

Hi, our organization is located in Delhi. We are all working from home from different states as of now.

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Ok If Delhi is the base location for the organization and all employees (eventhough people work from home across India), you can follow Delhi Shops & Establishment Act. If separate branches are registered in any other location and employees are assigned, they have to follow the rules applicable to that location (For example if there is a a branch in Mumbai, registered as per Maharashtra Shops Act, and 5 employees are there, then those employees shall follow that rules, and then obvously leave rules as well.

As per Delhi Shops Act, PL would be 15 days, yearly when complete service for a continuous period of 12 months, and SL/CL would be 12 days yearly.

My limited understanding is that an organization can not adjust PL with Holidays. You can have more than one holiday for Christmas but can not reduce PL or SL for Holidays. Also it is mandatory to maintain leave data in the form of a register and then grant, availed, carrry forwrded etc. all matters.

Hi, thanks for your clarification. As per my understanding in your message. We need to provide 15 PL or EL and 12 SL’s and 12CL’s to our employees. At the end you have mentioned that we cannot reduce PL for Christmas Holidays. Can we deduct from CL’s then? Please clarify.

Adjuating Leave with Holidays can be a problem in accounting it because you have to maintain leave records including availing data.

However if employees are comfortable availng leave during Christmas, there is no issue in doing so. Keep Christmas day as Holiday and for rest of the days, let the employees apply for leave and avail. So in effect the organization is not giving more holidays but encouraging empoyees to avail leave.

Hi, many thanks for your clarification.




Selvam R

Appasamy Associates (p) Ltd

Human Resources