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Concept of Leaves

The Shops and Establishments Act, enacted by every state in India, regulates various aspects of employment, including wages, hours of work, rest breaks, opening and closing times, holidays, overtime, annual leave, sick leave, casual leave, and other employment conditions.

Types of Leave under the Shops and Establishments Act
  • Earned leave / Privilege leave: This type of leave is granted to employees in recognition of their service. It can be taken for any reason, but some establishments may have specific requirements for its use. Earned leave can be accumulated and carried forward to the next succeeding year under the Prescribe Shops and Establishments Act.
  • Casual leave: This type of leave is granted to employees for personal reasons unanticipated events or when an employee is unable to attend the office for a day or two due to any personal exigency, such as attending to family matters or taking a day off for rest and relaxation. Casual leave is typically not cashable or carryable forward, and it may be subject to a maximum number of days per year.
  • Sick leave: This type of leave is granted to employees who are unable to work due to illness. Employees are typically paid their wages during sick leave. The number of sick leave days per year is typically set by the establishment in accordance with the state’s Shops and Establishments Act. Sick leave may be carried forward to the next year in some states.
  • Nomination Facility: EPF members can nominate their family members to receive the EPF corpus in case of their demise, ensuring financial security for their loved ones.
  • Transferability: EPF accounts are transferable, which means that when employees change jobs, they can transfer their EPF account to the new employer. This ensures the continuity of their retirement savings.
Overtime work in India: Laws, regulations, and definitions
  • Overtime work:Working hours beyond the regular working hours, which in India is 8-9 hours per day and 48-50 hours per week, depending on the establishment. Overtime work is compensated at twice the regular wage rate.
  • Spread-over hours: The total number of hours an employee works in a day, including rest breaks and overtime.
  • Interval for rest: A break taken during working hours.

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