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divya manocha
Hi , I am working as an HR Manager in IT Company. At present Company strength is 30. Recently we came up with a new Leave Policy for our employees. I am sharing our company leave policy here. I have a few questions regarding the same. I would be really thankful to you if you can guide me further and clear my doubts regarding this.

On 1st of every month, every employee can have an addition of 10hours for the leave.

2. On accumulation of extra working hours, we can generate a leave of 10 hours.

3. A person can accumulate a max of 200 hours.

4. The leaves will be of following types:

a. Full day: 10 hours

b. Half day: 5 hours

c. One third: 3 hours

Please note that as per this Policy, the extra hours would be calculated after 6:45pm.
So, in this system we will require a minimum of 1 hour attend. So, if you are moving out at 7:30 pm than you will not be credited with any amount. So, minimum time require to leave the office is 7:45pm.
Also, the hours will be accumulated with the difference of 30 min. Say , if you are leaving at 8, that still be counted as 1 hour. So, there is the difference in that. Also, the hours need the approval from your TL and HR.

Other than this, there are casual leaves, emergency Leave, Emergency leave without balance, Leave without Pay.For applying to each of these leaves, there is a separate procedure.

My query regarding this is : As mentioned above, on the 1st of every month there is addition of 10 hours to every employee account which is equivalent to 1 leave. Also regarding the extra hours if anyone has 10 extra hours in his account that will make 1 leave. What about those people who are not sitting for extra time and completing their task on time and they leave office at 6:30pm. (Our office timings are from 9:00am to 6:30pm(including one hour lunch break)). I just want to ask if 10 hours =1 leave make any sense because as per the standard labour laws an employee cannot work than 9 hours a day. Kindly help me regarding this.

2. Another query is that suppose a person has worked continuously overtime and has 10 hours in his account which makes 1 leave for him. He applies for the leave and leave has been approved. However, according to the Weekly rating system(Parameters that we use for rating like; Efforts , performance and Discipline/Attendance) that we follow for apprasial . If a person has taken that leave,although it has been approved, we are still deducting points (presently we are giving rating out of 5) for that. My Team has a query that what is the benefit of that extra hours then , if the points are still being deducted.

I would really appreciate if you could tell me that what should be the best possible route to this and whether we need to change our rating criteria for performance appraisal.

Looking forward to hear from you soon!!

Thanks and Regards
Shruti Verma
HR executive.

From India, Chandigarh
Labour Law & Hr Consultant
Law Practice
Srinivas Nednurkar
Hr Operations
Divya Manocha
Hr Manager


Dear Shruti Verma,

Your proposed Leave Policy reminds me of the old saying " Old wine in a new bottle! ". I don't think it is a leave policy but a policy of compensatory off for over time work most probably based on the industry practice. Deep down, it is a clever way of depriving the employees of the statutory benefits of over time wages which is normally twice the ordinary rate of wages per hour. Even if your industry wages are far higher than the statutory minimum wages based on collective bargaining, the no. of normal working hours per day below the statutory standard if any and the rate of over time wages are always fixed in consultation with the employees. The proposal mentioned in your second query is a little bit paradoxical. As per this proposal the employees finish their work and leave at the normal closing hour would be more efficient whereas those continue to work beyond the normal working hours at the request of the management and avail proportionate compensatory leave thus earned would be poor in performance.

From India, Salem
srinivas nednurkar

Hello UMA SIR, Correctly Said" it is a leave policy but a policy of compensatory off for over time work" "bit paradoxical"
From India, Hyderabad

This policy may work provided the extra hours worked are counted @double rate. So, in a week, for 10 hrs. extra work, credit of 20 hrs. should be given.
Otherwise, the policy is nothing but what Mr. Umakanthanji has correctly commented...

From India, Kolhapur
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