Leave Policies - Leave Policy - CiteHR
Placement Consultancy
Manager-human Resource
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Hi all,
Ours is a small organisation between 50 and 70 employees. We have leave policy in place which is in line with Karnataka Shops and Establishments Act of 1961.
I have seen many companies not adhering or non-compliant with the act. Therefore, I want to understand if we can have a leave policy of our own, which suits our company's requirements.
If yes, what procedure should we follow to shift our leave policy? Should we pass any internal resolutions?
Any tip in this matter would be helpful.

Dear Avinash,
All the policies have to be framed within the applicable shops and establishment act. Someone who is not following guidelines is always treading on a risky path of being fined to the extent of closure.
However, the provision of leaves in shops and establishment act enlists minimum number of leaves , so if you want to give more leaves keeping employee welfare in mind, that is not going to be a problem. Anything below the statutory provisions is violation.

Dear Shantanu,
Thank you for your response. After thoroughly going through the leave policy of the act, I understood that we need to have Earned Leave and Sick Leave. Is it necessary to have the leaves divided in to EL, SL and CL? Or can we just have Privileged Leave and Sick Leave?

Hi Avinash,
Your organization can have their own leave & attendance policies, in respect of employees, or your Organization can get in touch with HR Consultants for Strategic planning & management as they look and assist you with the policies.
Chetna Kapita
Recruitment Specialist - HR

Dear Avinash,
If the shop and establishment act under which your organization is covered does not enlist CL, you may go ahead with EL and Sick leave only. But, it is always good to have a CL policy in place because it is given to meet personal exigencies which is bound to arrive in everybody's life . If you could somehow manage CL, even if it is not in the act, you will be trying to create an employee-oriented workplace.
You must divide leaves in respective categories for the ease of operation, applicability of law and compliance.

Well Shantanu, I would like to have Privileged Leave instead of Earned Leave. The characteristic of Privileged Leave will be same as EL.
In addition to this, Privileged Leave can also be taken during any emergencies.
I have seen few companies utilise or divide leaves in this method. So wondering if we can do the same. It is far easy to manage for a HR.

Dear Avinash,
As far as i know , PL and EL are one and same. If you come across some difference between the two , kindly bring that to notice.
You are probably talking about mixing PL and CL into one. Legally, you can do this, but since Payment needs to be made for PL and if you mix the two, it will accumulate faster, you must ponder before you go ahead.

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