Tuesday, January 3, 2012

What should be the minimum Leave in Tamil Nadu?

i got a query (in fact many) in response to my discussion started at citehr.com

One of such question and reply is as follows:

Originally Posted by thilaga_09@yahoo.in View Post
Hi All,
My company is a software development company with 35 employees- chennai. At present we are giving CL-6,SL-6 days, as a private limited company how many leaves we can provide to the employees.

Kindly suggest me some ideas, thanks in advance.

My reply is as follows:
As per the judgment of the Madras High Court, except opening and closing hours of the office the entire Tamil Nadu Shops and Establishment Act applies to software companies in Tamil Nadu hence the leave system of your company should be in line with the Shops and Establishment Act you can red following excerpts

__________________________________________________ __________
CHAPTER VIHolidays with Wages
Holidays and sick leave:
(1) Every person employed in any establishment shall be entitled, after twelve months¶ continuous service, to holidays with wages for a period of 12 days, in thesubsequent period of twelve months: provided that such holidays with wages may beaccumulated up to a maximum of twenty- four days.(2) Every person employed in any establishment shall also be entitledduring his first twelve months of continuous service after the commencement of this Act,and during every subsequent twelve months of such service, (a) to leave with wages for a period not exceeding twelve days, on the ground of any sickness incurred or accidentsustained by him and (b) to casual leave with wages for a period not exceeding twelvedays on any reasonable ground.(3) If a person entitled to any holidays under sub- section (1) isdischarged by his employer before he has been allowed the holidays, or if havingapplied for and been refused the holidays, he quits his employment before he has beenallowed the holidays, the employer shall pay him the amount payable under this act inrespect of the holidays.(4) If a person entitled to any leave under sub- section (2) is dischargedby his employer when he¶s sick of suffering from the result of an accident, the employer shall pay him the amount payable under this act in respect of the period of the leave towhich he was entitled at the time of his discharge, in addition to the amount, if anypayable to him under sub- section (3).(5) A person employed shall be deemed to have completed a period of twelve months¶ continuous service within the meaning of this section, notwithstandingany interruption in service during those twelve months brought about (i) by sickness,accident, or authorized leave not exceeding 90 days in the aggregate of all three. (ii) bya lockout (ii) by a strike which is not an illegal strike (iv) by intermittent periods of involuntary unemployment not exceeding thirty days in the aggregate and authorizedleave shall be deemed not to include any weekly holiday or half- day holiday under thisact which occurs at the beginning or end of an interruption brought about by the leave.(6) A person employed in a hostel attached to a school or college or in anestablishment maintained in a boarding school and lodging of pupils and residentmasters shall be allowed the privileges referred to in sub- sections (1) to (5), reducedhowever proportionately to the period for which he was employed continuously in theprevious year or to the period for which he will be employed continuously in the currentyear, as the case may be; and all references to periods of holidays or of leave in sub-sections (1) and (2) shall be construed accordingly, fractions of less than one day being desregarded
__________________________________________________ _____________________

So it is saying 12 days leave with pay. Hence you cannot term it as CL and SL. you should term it as PL. for your company, giving only 12 days PL is mandatory as per the TN Shops and Establishment Act. Apart from that, there should be one weekly off and other holidays as per National Holidays and Festivals Act.

I hope I am able to clear your doubt.


For the other question and replies my me and other learned Hr professional, please visit


  1. Hi,

    Any body can tell me , whether monthly return is mandatory in tamilnadu under shops and establishment act for software companies..


    1. Hi
      Shops and Establishment Act on IT companies are applicable in Tamil Nadu
      however Chapter II and Chapter III of the Tamilnadu Shops and Establishments Act remains not applicable. The other chapters are applicable

      In the case of Chemoil Advanced Management Services Pvt Ltd, Pallikaranai, Chennai,The honourable Madras High court held that only chapter II and III of the Act is exempted
      The chapter II and III is related to fix the opening and closing hours of shops, commercial firms,restaurants, etc.

      So it is clear that you have to maintain all registers

  2. cl and sick leave is mandatory?
    Kindly explain


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