Hello Everyone,
I am working as HR manager in a small but growing IT company based at Noida and i am the only Hr over here. we employ only experienced candidates and the probation period is of 6 month for every new joinee. According to our current leave policy employees under probation are not entitled to have any leave what soever and confirmed employee are given 15 CL and 7 medical leaves. I want to formulate new leave policy as it is becoming very tough to retain good talent in our organization due to this leave policy. I am considering to introduce the concept of earned leave by also keeping in mind the leaves allotment to employees under probation.
Please help me out with your suggestions to formulate an effective leave policy.

From India, Mumbai

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Dear Fazil You may frame the leave policy as per the state’s Shops and Establishments Act. This is the minimum requirement.
From India, Chennai
You can take your State's Shops and Establishment Act as the base to provide minimum leave. However you are at liberty to provide better benefits like providing leave during probation etc.You can provid eteh follwing kinds of leave.
1) Earned leave 2) casual leave 3) sick leave 4) leave without pay(extraodinary leave)
2) You can make a provision for allowing employees to avail casual leave and earned leave on prorata basis in case of need.during probation.
HR & labour law advisor

From India, Mumbai
Thank you Mr. Sai and Mr. kpsanjiv for reverting. I am planning to implement all these 1) Earned leave 2) casual leave 3) sick leave 4) leave without pay(extraordinary leave) and after studying leaves policies of different companies, i am thinking of having 1.5 leave as EL to every permanent employee(served 1 year already) with 10 CL and 7 ML and giving 1.5 CL and 1 medical to all the employees in probation on a quarterly basis. for ex - An employee joining us on January 1st will be given 1.5 CL and 1 ML while an employee joining us on 1st February will be given 1 CL and 1 ML and so on. The leave policy will be based upon year starting from January and ending in December. Please suggest me any correction or anything i am missing to improve it further.
Kind regards -
Mohd. Fazil

From India, Mumbai
Dear Fazil,
The attached write up wud give U a broad view of various models followed in India. I wud suggest that taking clue from this also consult other sister concerns in your sector, especially of IT area and better model ur. policy on those lines so that U'll fall in line with those firms as well. All the best.

From India, Bangalore

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i am working in Coonstruction company as an HR. in my company we give 16 paid leaves to an employees after confirmation & 13 national & local holidays. so is that fine ? i have read that as per shop Act employees should get minimum 21 Paid leaves addition to national holidays. please suggest me a good option so that i can impliment it in company.

From India, Pune
Anushka, as per Bombay Shops establishment Act, an employee is entitled to 21 days annual leave and four national holidays minimum. B.Saikumar Mumbai
From India, Mumbai
Thank You Mr. Kumar, That document is very informative. Sir, I am also working on company's increment policy. In our company (IT company of 40+ employees) we increment the salary of our employees twice a year basis and the problem we are facing that when it comes to increment, our employees ask for unjustified raise in their salaries so management has told me to come up with an increment policy to standardized the whole process. Please help me out in drafting the same and what factors i should take into consideration.
From India, Mumbai
Dear Fazil,

In private sector, that too in many partnership or proprietorship firms the policy of granting increment to an employee really has "NO policy" for the simple reason that they are empowered to do anything they want as they are the owners. I have seen in a firm increments are given twice or thrice in a year and for some NO increment at all. But in Pvt.Ltd. Companies the position is little better, but still no one can take this for granted. On the other hand, in Privately held public ltd.companies and state/central companies and govt. depts. things are more clear. They follow a system of "time scale". As U may know when a person is selected and appointed his apptt.letter itself says his salary scale (say Rs.10,000-1000-25,000=15 years) the Minimum of basic (starting basic pay from the date of joining, e.g. Rs.10,000), the Annual increment, say Rs.1000 after every year of service)...and Maximum basic pay, say Rs.25000/= which means after reaching Rs.25000 he/she will be stagnating at Rs.25,000/- unless and until he gets promoted to a next grade which again will have higher time scale. Under this system there is no question of "any demand" for higher or frequent intervals. And employees also know their yearly increment and when they R entitled too. However there is a rider to this as well. "Increment is not a right but should be earned by performing the minimum threshold levels. There are several instances that annual increments are withheld/deferred till such time the employees raise their performance levels to the satisfaction of the bosses, the competent authority. Apart from this some bosses are also empowered to grant more than one increment in a year for those performing above average and outstanding. These policies really relieve the bosses of botheration of such "demands" for higher increment. This is, however, subjected to a "performance appraisal" which determines increment whether grantable or not.

In your case also as stated by U "unjustified raise" seldom granted. If you don't have a "grading" system- e.g.poor, average, above average, satisfactory,good/v.good & outstanding etc., in your Appraisal formality, better make it now to avoid such "demands". At the same time it is always healthy to encourage persons turning out "outstanding" performance, unexpected favourable results, drastic cost cutting, innovative ideas etc. This will give boost to your firm and enable U to retain talents with U keep Ur."attrition" ratio under check. Depending on your ground realities and compulsions U should draft yr.policy. Regards,


From India, Bangalore
Thank you Mr. Kumar and those points you made are very helpful. I am also thinking of sharing company's productivity/profitability with our employees so that it will give them a clear picture of increments given to them. Our is a pvt. ltd. IT Co. and i think increase or decrease in the percentage of increment offered to the employees will be reflected in the company's overall productivity/profitability in addition to individual performance.
From India, Mumbai

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