Hi all,

What should be the leave policy for employees who go for a long break from work for a month or more?

1. Should their leave be deducted and marked as negative balance leave, or should there be a salary deduction and retain the leave?

2. Should the company have a policy of a break from work?

Regards,
Anita

From India, New Delhi
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Hi Anitha, As per my knowledge, Its better to adjust the employee leaves and maintain negative balance as far as employee continuing in the organisation after long leave.
From India, Hyderabad
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Hi Anita,

The question regarding long leave policies varies among firms. Most firms allow leaves that have been accumulated and then deduct for any excess days taken. Large corporations may maintain a negative balance of leaves. Even in call centers and BPOs where the attrition rate is high, employees are not typically terminated for genuine reasons such as exams, weddings, sickness, or bereavement. However, if an employee has leaves accumulated in their account, you cannot deduct long leaves to the extent of the balance of leaves they have.

I hope the above answers your query.

Best Regards, Tina

From India, Mumbai
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Hi, Thanks for your prompt response. What if the employee is willing to take leave in the early financial year? When the employee doesn’t have enough leave balance in his kitty? Regards, Anita
From India, New Delhi
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Hi Anita,

If the employee wants to take a long leave early and does not have enough leave balance in his account, then there are two options.

1) Many firms deduct the extra leaves: for example, an employee has 5 days of leave in his account and he has taken a 7-day holiday. Only 2 days' salary will be deducted because he has 5 days of privilege leave in his account.

2) While some other firms prefer not to deduct any salary: Take the same example. In this case, his salary will not be deducted, and his account will show a (-2) days leave. Now the HR has to decide the maximum number of negative leaves that can be availed.

Mostly, the negative balance system of leaves is implemented by those firms where 2.5 days of privilege leave are credited to the employee's account every month (30 days annually) instead of offering a total of 30 days at the start of the financial year. So, the negative balance holidays can be compensated easily. But you cannot carry forward negative balance leaves for the next financial year.

Best Regards, Tina

From India, Mumbai
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Dear Anita, Please clarify leave with prior permission or leave without permission G S Rajgor
From India, Ahmadabad
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Hi Tina,

I am designing the leave policy for my company. Initially, I had designed 24 days as general leave, but my CEO wants me to segregate the general leave into Privilege Leave, CL, SL, and Maternity leave. Kindly let me know if there is any fixed rule for PL. How should I segregate the same so that in case the employees want to take long leaves, it should be deducted from PL which is encashed?

Looking for a prompt response.

Regards,
Anita

From India, New Delhi
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Dear Anita,

Regarding your 24 days General Leave

You can segregate into 18days Privilege Leave, 3 days Casual Leave & 3 days Sick Leave.

Terms for Availing the Leave

Casual Leave

1. Casual leave entitlement is from April – March – 3 days in a financial year

2. Casual leave should be ordinarily be taken for one day, but in no case for more than 2 days at a time.

3. Prior sanction must be taken by filling in the leave form before availing of casual leave. If it is not possible, the Dept. head should be informed by telephone or in writing, as soon as possible. Leave form should be filled immediately on resuming duty. If the application is not filled within two days of resuming, it will be treated as absence.

4. Unavailed casual leave at the end of the year will be treated automatically lapsed.

Sick Leave

1. Sick leave entitlement is from April – March – 3 days in a financial year

2. Sick leave should be taken only for sickness for self. Sick leave for period exceeding 3 days should be supported by certificate from a Registered Medical Practioner.

3. Unavailed sick leave at the end of the year should be availed within the first 15 days of the new financial year. If the same is not taken, the same would lapse.



Privilege Leave


1. Privilege leave entitlement is from April – March – 18 days in a financial year

2. PL will be permitted to be availed of maximum two times in a year. The leave period should be for a minimum of 4 days.

3. PL should be applied; minimum 15 days in advance and employees can proceed on leave only after having their leave duly sanctioned by Dept. Head and HRD/Admin.

4. Clubbing of PL with maternity leave will be permissible subject to approval of Dept. Head and HRD / Admin.

5. PL balance at the beginning of the year (April) will be carried forward to the next year. PL entitlement not availed for 24 months will be automatically encashed in April of the following year

Maternity Leave

Married Female employee is entitled for maternity leave as per Maternity Benefit Act 1961 or The Employee State Insurance Act 1948 as per the provisions of the Act whichever is applicable to her.

1. Make sure the salary is more than 10000 pm. if less than this you can avail the maternity benefit only under employee state insurance act 1948

2. To be eligible for the Maternity benefit, the employee should work for a period of not less than 80 days in the twelve months immediately preceding the date of her expected delivery.

3. The employee should give a notice before 8 weeks in advance for maternity leave supported by a medical certificate

4. Maternity leave is an additional leave other then the usual leaves/ facilities existing

5. The Employee will be paid full pay up to 12 weeks approximately 6 weeks before delivery and 6 weeks after, provided that she undertakes not to take up with any job during these 12 weeks.

6. If this leave is extended, then the payment will be done to the extend of credit balance leaves in her account else it would be leave without pay.

7. No pay shall be due or payable in lieu of unavailed maternity leave

I hope the above will help you design your Leave Policy.

Best Regards,

Tina

From India, Mumbai
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Dear Tina,

Thank you so much for the prompt response and your valuable inputs. They have really helped me in designing the policy and making it meaningful. I have even incorporated paternity leave for 4 days.

This forum has helped me to a large extent in grooming my skills. I thank all the senior members of this forum who started this site and who share their views and experiences on this forum.

Thanks, Tina.

Regards,
Anita :)

From India, New Delhi
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