Leave policy and processes that can be designed for an IT Company - CiteHR
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I am working with an IT company . I am supposed to revise the leave policy and its process. Currently we are providing 12 leaves per Financial Year. And 10 other Festival and National Holidays. Total 22 leaves in a year.
Also the festival leaves includes only Hindu festivals. Pls suggest how can i adjust other festival leaves for other community working at our place without increasing the number of festival leaves provided. Kindly let me know the best leave policy and processes that can be designed for the Company.

Since yours is an IT Company, it would come under the purview of the State's Shops and Establishments Act and as such the State's National and Festival Holidays Act would also become automatically applicable. Since there is no indication about the exact location of your Company in the post, we, as respondents, have no option other than offering our replies based on generalisation only. As per every Shops & Estt. Act, there would be a minimum of 36 days of leave comprising of Casual Leave, Sick Leave and Privilege Leave each @ 12 per annum with the stipulation that PL can be availed of after completion of one year of service only. Similarly, under the National and Festival holidays Act, the employees should be allowed 4 National Holidays and a minimum of 5 Festival Holidays every year. Since festivals have socio-religious orientation, festival holidays should be so specified by the employer that there would be no religious discrimination as set out in the Act and Rules for their initial approval and subsequent changes,if any. The no. of leaves and holidays statutorily prescribed are minimum only. Therefore, while formulating your leave policy you have to take into account several factors such as the nature of the business of the estt, the composition of the workforce such as sex, religion etc., the actual no. of working days and the like.
In the question u have not describe working days 5 days or 6days per week?
According to States National and Festival Holidays Act would also become automatically applicable.
I can suggest you revise your policy to 12 days per year as Jan-Dec and and provide leaves for festivals like common for HINDUS
2Republic Day
6May Day
4State Formation Day (optional)
5lndependence Day
6Vinayaka Chaturdhi
7Bakrid or Ramzan
8Mahatma Gandhi Jayanthi
if not provide any of 12 in the above.

Hi Friends,
At the time of separation of employees, as per the shops and establishment act provisions, what should be salary payable for the balance of leave at credit of the employee on the data of separation? Is this to be calculated on the full salary consisting of basic, hra, conveyance and other allowances or only basic pay component has to be computed? there are different views by different companies. which is correct as per the act. Thanks

Dear Kanika,
As you said only Hindu Festivals comes out with total 22 leaves, I would suggest you to introduce a Special leave quota.
Chitragupta puja
Krishna Janmastami
Maker Sankranti etc.
These Holidays somewhere alloted as a holiday and somewhere not so, those who falling into that community they can avail this one day special leave. This would run from January to December and if not utilised then exhausted .
See if that can work for you.
Tushar Singh

Dear Anonymous
Leave policy of any establishment in India depends upon its location.It will not be wise to comment on the exact status until its location is disclosed. As different states have different rules for it.

Hi Kanika, 26.9.15

Thank you for your query in CiteHR reg. Festival Holidays.

For Continuous Processing Plants/Estt. for uninterrupted Works, you may

Provide 2 Optional Holidays with proposed National & Festival Holidays so that different Community people can take/avail Holiday on their Religious day without your increasing declared holidays. This will also help you to have Min.MP to man Essential Services like Prodn.,Elec, HR etc., as most employees will not observe all Festivals on one date & so, when one set of employees from one Community avail Holidays, the other set will work and vise-versa. Thus, Min. MP can be ensured by adjusting MP to suit shift needs & avoid OT or stop work due to Holidays.

HR has to frame the Leave Rules keeping the interest of the Co. as also its employees.

I have framed the COMBINED Rules governing

all types of LEAVES,

Rules for Earning W/O,


Extra Work - Co-Off Rules, Co-Off Application & Register

Reduction of Leave due to Absenteeism,


M.B. Rules,

P.L. Encashment + Appn.for Encashment-Forms+ Registers.

Leave Administration/ Management is an important HR function and a ticklish job not only for those who frame the Leave Rules but also for the HR Staff who have to administer them in their day to day works as they come into conflict with the employees when Leave Rule is not clearly spelt out. Each Co. Management frame the Rules to suite its Business needs & it varies from Co. to Co.,

However, it has to be Drafted/Framed within the scope of Rules framed under Factories / S&CE Acts.

Most employees try to save Leave (& they must save since that is what they’ll get - un-availed Leave as Encashment when they leave the Services). Same way; Company also want employee to exhaust the Leave to reduce Company’s burden/liability for Encashment when employee leaves the Service.

As the Urgency to take leave cannot be predicted, some employees will go in the middle of the week (say from Friday & return on Wednesday) as against a Planned Leave ( from Monday to Saturday) to save pre-fixing & suffixing Sunday/Holiday/Weekly Off. When the employee suddenly go due to urgency (in the middle of the week) & returns after 4-5 days, How to adjust the Intervening W/O. to save his W/O ?


HR can frame SHORT LEAVE & LONG LEAVE Policy so that needy employees will not lose his W/O in such critical time.

Only when LONG LEAVE is taken (Planned Leave), Intervening W/O will count.

Similarly, providing 2 Optional Holidays in the Holiday List for 2015 will help both Co. & its employees.

We have already Filed/Declared Holiday List with Factory Inspector, L.C., & Notice Board and we also have Rules to give W/Off as per Factories /Shops&Estt. Act. We also have Rules of Minimum days to work/(apply Leave With Pay) in a week to entitle an employee for W/Off. We should have SHORT & LONG Leave Rules Policies so that the employee’s grievance of losing W/O due to taking Short leave in the middle of the week will not happen and HR will not be blamed for not framing proper Leave Rules.

Today, HR Dept. is becoming a target for Not framing / not implementing Progressive Leave Rules; although Leave Rules are available to take care of both Employee’s interest as also that of the Company.

I can assist in framing of all the Rules & Policies. I have served over 30 yrs in HR,IR,LEGAL&Admn. Works of 6 Mfg.Cos. and dealt with all situations, ISO Certifications, Consultants Works etc.,

I request you to provide me some details of the Company like Co’s. Name, Location, Your Mob.No., Email ID, HR Dept.,staff, total employees strength, Products Mfd., etc., so that I can offer HR Consultancy.

Please provide your Email ID to send Consultancy proposal with all Policies to set up HR Dept., Frame SO, Leave Rules etc.,


, Ph: 9535470460 ---- 26.9.15

HR Consultant & Advocate, Ex- AGM (HR&A),

# Rahaman Bldg., Chikkamaranahalli, Devasandra, BANGALURU, Karnataka, S.India. /

#.FS 478, Dr.Ambedkar High School, CM Lay Out , HIRIYUR

Mobile No. 9535470460 Email:

Email: , Qualification: BA,LLB, PGDPM, (MBA-HR),

Ex-Member, NIPM, Calcutta, Ex- Trainee-Member, Indian Institute of Management, B;lore.

Languages Known: All South Indian Languages + English & Hindi

Any company or organization has to formulate their own leave rules/policies as per the relevant Act and rules under which such Company or organization was established. As far as Government companies or organizations concerned, there would be systematic leave policies i.e., Casual leave per year, Sick leave per year, Earned Leave or privileged leave. As your is an IT Company, naturally casual leaves would be 12 per year. Regarding remaining leave, your company has to formulate the leave policy based upon the Organizational Behaviour and Management magnanimity. Employee welfare is to be taken care of. If your company is at liberal terms towards the employees, besides casual leave, you can formulate your other leaves ie., Sick leave, Earned Leave and Maternity leave for female employees. Labour Acts and Shops and Establishment Acts are clear about the facilities to be given to the employees about the leaves among others.
Kindly clarify the following two situations for an office in TN:
1. Oct 3 & 4 are weekly off days. If a person avails casual leave on Oct 1 Friday, do we include the off days?
2. Oct 3 & 4 are weekly off days. If a person avails PL from 28th Sep to 1st Oct, do we include the national holiday (2) and the weekly off days (3&4).

Dear friend,
The no. of days spent on authorised leave has to be treated as duty only. Prefixing or/and suffixing holidays to the single spell of leave is subject to the discretion of the sanctioning authority based on exegencies of work. Based on the above proposition, yes is the answer to your query no.(1) and (2). However, combining of C.L with weekly off days and N&F Holidays can be restricted to certain limit as followed in Govt.Departments.

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