How to design Leave Policy???

Hi Everyone !!!

Iam a Snr - HR Executive of a mid-sized IT Company,here in this organisation,HR is the key role to implement the policy and what ever changes to the policy can also be done.My current organisation don't have a proper leave policy method to follow.

And i know all the companies have its own form of designing their leave policy.Kindly suggest me the best way of designing leave policy.

Gia Noble

HI!

Please find few details of the leave policy which we follows. I am also in a IT company.




Date of commencement of service will be used as the basis for calculating Leave.

Casual Leave (CL)

Entitlement: 7 days. For all employees

· Will not be utilized for going on a vacation.
· Is being provided for meeting emergencies of a personal nature for which planning cannot be done.
· Cannot be availed for more than 2 days at a stretch.
· Tax incidence if any will be born by the employees.
· Cannot be encashed
· Cannot be accumulated.


Sick Leave (SL)

Entitlement: 5 days. For all employees

· Beyond 2 days requires a doctor’s certificate.
· Cannot be encashed.
· Cannot be accumulated.

Privilege Leave (PL)
Entitlement: 21 days. For all employees

• On completion of every quarter 5 leave will be credited to employee account(in 3rd quarter - 6 leaves)
• Employee must avail all leaves in a calendar year. The leave will be carried forward for two years.
• PL can be prefixed/suffixed with holidays. However, holidays, which fall during the PL days, shall be taken in to account for determining the total PL taken.
• Can be encashed.
• Tax incidence if any will be born by the employee.

Maternity Leave (ML)
Entitlement: 90 days. For female employees only

• On completion of 240 working days, will be credited to female employee account.
• Employee is given 90 days ML twice in one year
• ML must be taken much in advance and it should be 6 weeks before and after the expected date of delivery.
• Cannot be encashed & accumlated.

Comp Off:
Entitlement: For all employees

• In lieu of working on holidays / weekly off and completion of the extra working days.
• Cannot be encashed.
• Can be accumulated till the completion of Quarter.
• Eligible for all grades.

Hope this might have helped you out.

Chitra Sharma

Thanks Chitra,

This is really informative to me & my management people also.And one more question Chitra,do most of the companies go with the same kind of leave policy???

Hi,

While designing you have to decide first How many leaves in a year you r going to provide. How you r going to segregate it. Like sick leave, Casual Leave, Education leave Etc...

In our organisation we merged all categories as one and named it as Privileged leave.

You have to show some difference in no of leaves can be availed. For ecample 1. trainees how many 2. For employees under probation how many 3. For confirmed employees how many?

Process of availing leave like:

1. Who r the authoritative persons can give permission
2. How to process
3. While giving permission what factors should consider

Incase of emergency what process - Like informing Dept head through phone and submitting leave application later.

Occassional Leave:

1. In case of Death / urgency - maximum permit of leave
2. In case of marriage - maximum limit.

For uninformed or unauthorised leave what was the penality.

Leaves for employees who falls under ESI - How many leaves and what was the process

Meternity leave - Specifications.

Hi,

thanx it helped me a lot

__________________
Soumya Sequiera
9967823863

Hi Bhavani,

It was really helpful ,but quick question -what do u mean by education leave -usually how many days u will give such leave to the employees

Is that considered as examination leave or any professional course undertaken for company sake ??????????

What is the rule for providing notice for availing leave? Minimum how many days one should give notice for availing leave. If the notice is not given then can any action be taken.

HI!

For CL and SL there in not praticular notice to be given. Yes but when you anything planned well in advance and you need to take a day or 2 CL then you need to inform atleast 3-4 days before but in case of a planned PL you need to inform regarding those leaves atleast a month before. Incase if the person has not informed you abt those planned leaves well in advance the best you could do is count them as LWP

Chitra

Your article was really helpful to me, this will definately help me to design and implement the leave policy in my company.

However if you could clear one more doubt of mine as to what is LWP?

Thanks once again.

Cheers,
Dharni