Hsiva2003
It Executive

Hi Seniors,
I am working as a HR Executive in an IT organization. We have two type of employees Permanent & contractual employees. Can you help me in making leave policy for both the types. At present for contractual only one leave per month is granted & for permanent two leaves per month. Please provide existing leave policy in a small IT organization.
21st April 2007 From India, Delhi
1.0 GENERAL INFORMATION

1.1 OBJECTIVE/ PURPOSE

The leave rules have been formulated to enable employees to maintain a healthy work life balance. Leave is given to the associates to provide for sickness/emergency/personal work/rest and recreation.

1.2 ELIGIBILITY

The leave policy is applicable to all full time employees of <COM.NAME> based in India. A “year� for Leave calculation is based on the calendar year - January to December.

2.0 LEAVE RULES

The following rules apply to the Causal/ Sick Leave as well as Vacation Leave:

• Leave is calculated on a pro-rate basis from the date of joining and credited into an employee’s leave balance at the beginning of each month.

• For purposes of leave calculation, intervening Saturdays, Sundays and Company holidays prefixed, suffixed or in between leave are not counted.

• In case of Leave Without Pay, Saturdays, Sundays and Company holidays in between leave period will also be counted as Leave without Pay.

E.g. - If an employee takes a leave (without pay) for a week beginning from Monday to the next Monday and reports to work on Tuesday, then 8 days of salary will be deducted from his/ her salary.

2.01 CASUAL/ SICK LEAVE

All eligible employees are entitled to 9 days of casual / sick leave in a calendar year.

Any unutilized leave in this category will lapse at the end of the calendar year.

In the event an employee avails of sick leave for more than 2 days, a doctor’s certificate should also be submitted.

Request for Casual Leave must be made and approved of (by the reporting manager), at least 3 days in advance of the leave taken to enable work planning and functioning during the period of absence.

Casual/ Sick leave cannot be clubbed with vacation/ privilege leave

A maximum of 3 days of casual leave can be taken at a time

2.02 PRIVILEGE/ VACATION LEAVE

All employees are eligible for 15 days of Privilege/Vacation Leave in a calendar year.

2.021 ACCUMULATION OF LEAVE

Employees are allowed to carry forward 15 days of vacation leave to the next calendar year. A maximum of 30 days can be accumulated as leave balance at any point of time.

2.022 ENCASHMENT OF LEAVE

Encashment is possible in the following cases:

Once the leave balance exceeds 30 days*

At the time of separation / retirement.

Vacation Leave encashment will be calculated at annual gross salary (CTC minus the, Variable Pay Plan, Superannuation, Group Gratuity and HFS as applicable) of the year in which the leave was accrued.

Employees need to inform Business HR when they need their leaves to be encashed. The amount is subject to income tax deductions at source as per prevailing Income Tax rules.

Provident Fund deductions would also be made from the Basic as per the Provident Fund Guidelines.

* The leave balance of 30 days would not include the current year’s leave. Employee can encash leave accumulated only up to the last calendar year. The number of leave that can be encased would be the number of days in excess of 30.

Note: Existing accumulated leaves as on December 31, 2003, remains at as is basis and can be encashed at any period of time.

2.03 MATERNITY LEAVE

All full time Women Employees who have worked for at least 90 days shall be entitled for Maternity leave, at a stretch, for maximum of 12 weeks normally -Six weeks preceding the delivery and six weeks post delivery, including the day of delivery. However, the employee has the option to take less or more number of weeks, before and after delivery as long as it totals to 12 weeks. Maternity Leave can be availed for a maximum of 2 children.

2.031 MEDICAL TERMINATION OF PERGNANCY

In case of Medical Termination of Pregnancy (MTP) six weeks of leave, at a stretch, with salary can be availed.

2.032 FAMILY PLANNING LEAVE

Provision also exists for two weeks of leave, at a stretch, with salary if tubectomy operation is undergone.

In all the above cases, full salary is entitled.

2.033 MATERNITY LEAVE AND ADOPTION

Women employees are also entitled to maternity leave with full salary for adoption of a child.

The entitlement is as follows:

Child < 2 years old: 6 weeks leave (at a stretch)

Child 2 - 3 years old: 3 weeks leave (at a stretch)

Note: Adoption leave can be availed only if the adopted child is less than or equal to 3 years.

Maternity Leave for adoption is for a maximum of 2 children.

Please note that the adoption should be legal and as per the provisions of the Child Adoption Act. A certificate from the concerned authorities has to be furnished.

2.034 LEAVE FOR ILLNESS ARISING OUT OF PREGNANCY, DELIVERY,

PREMATURE BIRTH OF CHILD, OR MISCARRIAGE

A woman suffering from illness arising out of pregnancy, delivery, premature birth of child, medical termination of pregnancy or tubectomy operation, shall, on production of necessary evidential documents, be entitled to leave with wages for a maximum period of

one month (at a stretch).

This is in addition to the normal 12 weeks maternity leave prescribed, as per Sec. 2.03

2.04 PATERNITY LEAVE

Male employees, who have worked for at least 90 days shall be entitled for Paternity leave of a maximum of 5 days (at a stretch) per child, own or by adoption. Paternity Leave should be availed of, within 8 weeks of the birth of the child or adoption.

Paternity Leave is for a maximum of 2 children only.

Please note that the adoption should be legal and as per the provisions of the Child Adoption Act. A certificate from the concerned authorities has to be furnished.

Note: Paternity leave for adoption can be availed only if the adopted child is less than or equal to 3 years.

2.05 CIVIC DUTY LEAVE

All employees of the company are eligible for time off maximum up to ½ day to attend the civic duty such as Voting etc.

2.06 COMPENSATORY OFF

Employees working in BPO or Contact Center (in Grades S1 to S3) follow a separate holiday list as decided by their specific unit. Employees, who work on these designated holidays, are eligible for the Compensatory off of one day.

3.0 LEAVE PROCESS

All Leave has to be applied for by using the < online system > or

<offline>

Your Leave Application should contain the following details

o Purpose of Leave

o Dates for which Leave is Required

o Contact Address and Phone Number

Leave application sent directly to HR Department, without approval of the Reporting Manager is not valid.

For those employees who are awaiting allocation to projects, leave will be approved of by the person designated to them from time to time.

Employees returning from their assignments overseas, short-term or long-term, must first report to their respective location and then proceed on leave (provided the same has been approved off by the reporting manager).
22nd April 2007 From India, Bharat
The above policy is applicable for permanent Employees only. Contract Employees - the policy will not be applicable. Contract Employees will be entitled for 1 day Casual/Sick Leave per month only. In case they have joined before 15th of the month only then 1 day will be applicable for them else they cannot take leave the whole month. In case they are getting relieved from the organization after 15th of the month only then 1 day leave is applicable for them. If the employee wants to take leave though he is getting relieved before 15th of the month, prior approval from Reporting manager and HR is required.
22nd April 2007 From India, Bharat
Thanks for the valuable reply. One more thing which i wanted to check related to Contractual employees
1. Leaves if not taken for 3 months are those leaves carry forwarded to 4th month
2. Is leave encashment possible for contractual employees.
3. In case of separation are leaves been adjusted against notice period.
Thanks
Shipra

24th April 2007 From India, Delhi
Leave Encashment will not be applicable for Contract Employees.
Leave more than 4 days accumulation is possible considering the size of the organization only Contract Employees.
In no case Leaves can be adjusted against waiver of notice period for Contract Employees.
24th April 2007 From India, Bharat
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