India - Policy On Annual Leave Utilisation And Carry Over Of Leave Days - CiteHR
Apex Management
Labour Laws Consultants
Rdsyadav
Educator, Management Consultant & Trainer
Vmhr@rediffmail.com
Sr. Manager (p&a)
+2 Others

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Hello HR Colleagues
I'm looking into streamlining my company's leave policy and request your advice on the below. I've two subsidiaries in the states Gujarat and Maharashtra in India.
I would appreciate it if you could share with me the general practice in the private sector in the two states on the followings:
1) annual leave days granted per annum to employees
2) policy on carry over of unutilized leave days
3) policy on encashment of unutilized leave days.
Also please share your knowledge of what is stated in the legislation on the above.
Thank you so much.
Regards
Kal
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Dear sir,
We appreciate your interest in seeking information for upgrading your company's HR and welfare matters. In order to frame and before to announce amendment in HR policy, it is suggested to compare related issues in totality with your peers organizations, vendors, competitors and companies nearby that region so that finally the said policies is fair, just and and futuristic also. HR policies should always be concentrated from enforcement angles but need to be pivoted at people concentric formula.We do surveys and frame work on similar assignments in this fashion for various domestic and MNC client organizations and if you are interested , please write at below mail address to me.
Regds,
RDS Yadav
Dear sir,
The point wise relevant provisions of Factories Act 1948 are as under.
1) annual leave days granted per annum to employees -
Ans : Whatever you earn in the calendar year, can be availed in the subsequent year subject to prior approval by 15 days, thrice in a year and minimum 3 days in single instance.
2) policy on carry over of unutilized leave days
Ans : Unutilised EL can be carry forwarded subject to maximum 30 days or as provided in certified standing ordered.
3) policy on encashment of unutilized leave days.
Ans: No such provision is made for encashment unless you leave the organisation. However, depending upon circumstances like if you refused to avail the EL or to reduce the absence, some managements usually encash the balance on financial or calendar basis.
P K Sharma
Dear KAL,
It is very important that the company in each state should follow the rules and regulations laid down in their state Act which is in vogue. This shall avoid future complications from the Authorities of Government departments.
Regards,
V.MURALI
Share details of type of business and the state.
Leaves are covered under normative legislations: factories act or shops & establishment act. Normative because they stipulate method to calculate minimum quantum of leave for employee. Factories act min leave is calculated with the following formula: 1 day leave for every @ 20 days worked. Shops act leaves differ from state to state. You should know them so that your policy does not contravene the statutory requirements.
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