Dear Shweta,
Up till now you must have gone through the Punjab Shops & Commercial Establishment Act, 1958 wherein according to section 14 we are to bound to give 18 EL on completion of one year ( April to March) & 7 sick leaves & 7 casual Leaves during the current year. This comes out to be 32 & your establishment is giving although total 35 but not in accordance with the requirement of law. Your statement shows that you are not giving total 7 sick leaves & thus you are giving two sick leaves less as required by law. Simultaneously you are also not giving 7 casual leaves. In this way your unit is not complying with the requirement of the provisions of section 14(4) of the Shop Act. In this situation nobody would like to have 12 EL instead of 30. It is made clear that each & every employee/workman is covered under this Act leaving aside the employer & the manager as declared under this Act by the employer & thus all the employees & workers are entitled to have these leaves. As you are giving 30 EL & therefore this benefit becomes condition of employment for these employees. You must be employing two types of employees i.e. one which are covered under the Industrial Disputes Act, 1947 & others which are not covered under this Act & are governed by the service rule of the establishment or which are getting leave benefits as per the appointment letter. In this situation it is suggested that call the meeting of the representative of the employees & try to convince them for amicable settlement if possible otherwise you have to give 21 days notice under section 9A of the I D Act, 1947 before effecting such change. For other employees pass orders accordingly but keeping in view the minimum no. of leaves which are to be given as per this Act & be prepare for contesting the case before the civil court. First try to settle the issues amicably otherwise proceed as stated above. Ask the management to give bare minimum leaves which are prescribed under the law.
Opinion/comments submitted as requested.
With Regards,
R.N.Khola