Managing Leave Adjustments under Shops and Establishment Act: Compliance and Employee Guidelines

Dear Seniors,

Kindly guide on the case that "Our organization is under UP Shop and Establishment Act. We have leaves and off decided as according to the act. Now we want to make some adjustments in leaves, keeping the number of leaves the same at the end (reducing EL and increasing the number of off in a month)". Please let me know if this is possible? If yes, then what are the formalities to be done as according to the act?

I have read the act, and they do not mention anything about the leave adjustment. I have heard that the number of leaves once decided can never be reduced; they can only be increased. Is it so?

Please guide seniors.

Thanks in advance, Ashama

Your query is unclear. Are you looking to reduce the EL and replace it with something else? I hope you are not considering switching from a 6-day week to a 5-day week, as that is not considered leave. The act specifies a certain number of days for each type of leave. You can adjust the number of leaves to that level but cannot go below it.

Furthermore, since the leave rules are already in place, any changes will be considered a modification of the terms of service and will require approval from the employees. Another option is to implement new leave rules for new employees while allowing existing employees to continue with the current leave regulations.

A preferred option is to decide your leave policy first keeping in view your business needs and then map it onto the Shops and Establishment Act. Find the gaps, if any, and discuss your specific issues related to the gaps. Then the right advice shall come in from the experts.

Needless to say, compliance with the Shops and Establishment Act of your state is necessary and unavoidable.

You cannot go below the leave mentioned by the Act, and increasing of off (which I understood) is from 6 days to 5 days working, which is solely at the discretion of the company as per their policy.