I am setting up HR policies for a startup in Karnataka. Please guide as to how many Annual Holidays should be given to employees by the company?
From India, Bengaluru

You better share the nature of the organisation. Leave rules varies from Factory & Shops act.
From India, Bangalore

you may frame leave policy as per your requirement the following two option for you which will meat with factory act.
1.Casual leave 8-11days as you desire ,Sick leave 4 days for Covered under ESIC and Sick leave 10 days to non ESIC covered employee ,earned leave 16- 22 days as your company requirement. Paid Leave 10 days or
2. Casual Leave 11, Restricted Holiday(RH) 1day as per list attached you, Earned leave 22, Paid leave 10days

From India, undefined
Suresh Rathi

Dear Alpana,
There are two issues:--
Leave policy
and Holidays
In case your startup falls in Shop and Establishment Act than adhere to EL/CL/ctSL as stipulated in the Act
In case it falls under factories Act, then follow what is contained in the Factories Act
This will take care of leave policy.
Now for Paid Holidays which are calling Annual Holidays, the details will be available in State Rules.
You may check the same from internet.
In case of difficulty mail me at skumar.rathi@gmail and I will try to help you out.
Best Wishes.
Col.Suresh Rathi

From India, Delhi
Soumitra Sengupta

Hi Alpana,

Greetings .....

Alpana, my experience of handling Statutory Issues are that the Law Enforcing Authorities would never trouble you if facilities and benefits you extend to your Employees are adequate or more than what is statutorily provided for. It is therefore essential to have complete knowledge of statute and match (or provide more) you "Organisational Convenience" with an eye on Employee Welfare.

Since many of our learned friends have detailed "statute" affecting the "Leave Policy" of an organisation, I suggest that you chart them "Leave Type" (Festival Holidays/CL/PL or EL/SL) Column-wise and different "Acts providing for it" Row-wise. Reserve the last Row for "Proposed for the Organisation". Now, in the last row repeat (in each Column) the "highest value" in the Column-Cell above to cover your Organisation statutorily.

You may thereafter put your working to your management for a decision based on "Staff Welfare". I must put here that the "Production Target" be kept in view while doing so. Your "Leave Policy" thus is made and ready to he included in overall "HR Policy".

Last but not the least, for an Unionized Organisation, the policy derived as above must have their concurrence as well.

Regards & Wishes,

From India, Pune

Hi Appreciate this post.Hr policies in respect of leave should explain everything abt is leave?how leave is to be availed.who can approve leave?what are the leave entitlments.Under which applicable law the leave policy is regulated.whatare the consequences if leave overstayed orif not taken.Min andax leave days that can be granted as per specific law govering the organisation.etc.More importantly for aĺl aspects emplyee welfare it is duty of hr managers on behalf of managemnt to keep thhe emplyees informed abt the applicable laws and how under the company`s hr policy their welfare is covered.while all employees should formally be abiding by the same policies and directives released from time to time by the managment

Lastly pls refer the applicable labour laws and acts all such social wefare details are taken care of

Eg for comm establishments it is shops and estd act.for factories it is factories act.etc.

Framing leave policy will also require displaying abstract of such rules and any other notifaction that is relevat snd latest.

From India, Vadodara

Hi .Alpanaji, 2.2.17. ..

Thanks for your query in CiteHR- Reg. HR Policies- Congrats; u got a chance to setup HRD. 100s of Works/Steps are there to setup HRD . No one solution can solve several existing HR problems/ issues/Systems u may have/U face.

It depends upon the type of Co.,Mfg., Estt., MígmntísVision, no. of Depts.,employees & varies from Co. to Co.

==== Abbreviations used to reduce space.

I am an Ex AGM-HR&Adm.with 35+ HR,IR,LEGAL, & Admn., Works of 7 Mfg. Cos.- Steel Plants, Power, Chemical , Electronics Plants & Mines ( 2000 + CL). Due to sudden CLOSURE of our STEEL PLANT , I developed /Started H.R.Consultancy and I am providing Consultancy for past 5 yrs.for H.R. Management ( Recruitment to Separation - Soft Copy- for all HR Jobs for easy Adoption).

I hope; some of the below Systems, Rules will be helpful for your P&A works.



HRM to make Leave Rules keeping Co.ís interest, Complying Factories, S&CE.Act as the case may be, Emplís interest & similar Cos. in the area as it may affect Cos.reputation, employees morale & retention.

I CAN provide ALL Rules+ Forms for


all types of LEAVES- SHORT & LONG LEAVE,

W-Off, Extra Work, Co-Off Rules, Appn.& Regr

M.B. Rules, Appn. & Pay Forms,

P.L. Rules, Encash & Pay - Forms

Most emplís try to save Leave (& he must save since that is what he get - as Encashment when he leave job).

When the emplyí suddenly go due to urgency & return after 3-4 days, How to adjust/save his W-O?

Today, HRM is blamed for Not making Rules; though all Rules exist to take care of Co. & workers interest.




Some Cos. still use Leave Appn.-(LA)Loose Forms to take Leave every time: As LA is loose, difficulty to Check, Account, Store, keep track; to make Monthly Salary besides Saving PAPER & Printing Cost/WASTE where hundreds of emplís work.

On Checking 500 entries of Bio-metric Attendance in Big Cos., 20 LA was missing. As LA is loose, Seniors donít get time to check each loose LA & so, wages as Certified by Staff though empls. took leave. Hence,

You can PRINT & Use LEAVE CARD (LC)-RECORD & Stop LA:. LC is handy, Seniors can always Check, Find No.of times, days Leave taken; to Calculate Monthly CL, SL,PL/EL to make Salary. LC/RECORD is Statutory. It cannot be manipulated like Loose LA.

1 Card for 1 Employee for 1 year.

You can introduce LC in Jan.2017. After one year, keep old LC- in Per.File as Record to verify in future. Easy for P&A to work out Entitlment, Balance- Leave Management. It is cheap & easy to maintain. Empl. will know how often he is taking Leave & HOD can caution, Mis-use/approve on need basis. Custody-P&A. Each HOD to keep LC to facilitate his take Leave. HR to call LC when Reqd., to update Leave Regr , Month-end, Decmbr. - Statutory.




For Continuous Working Cos.,(Mines, Plants) -for uninterrupted Works, 2 Optional Holidays can be given with National & Festival Holidays to ensure Min.MP to man Essential Services like Prodn., O&M, A/c.s, HR etc., as most emplís donít observe all Festivals at 1 time & so, when 1 set of emplís take Holiday, other set can work & vise-versa. Thus, HODs can plan min.MP for Shift duty/ maintain Essential Services by adjusting MP to suit his needs & avoid OT or stop work due to Holidays (without increasing Declared Holidays-10-12).



. ============

Most HR/P&A Dept. have Per.Files on all emplís.Still,

many emplís current Infn. is missing when HOD wants it; i.e.

1. Present Address to send Notice to X,

2. Mobile No. would have changed to contact X

3. Nominees detls. to Notify accident etc.

4. Nominees detls. to send payment of deceased X

5. To know Marital / dependents detls,

6. To verify latest Addnl. Qlfcn. etc.,

As the above infn. have changed after giving Ist BIO-DATA -on joining, they can be collected by Dec.2016 using above Form to update MIS, MP dtls. For Per.File, PF, ESI & other Stat.Returns,ISO Recordsfor Promotion, S.I./A.I. in Jan.2017 etc.




Recruitment work starts when User Dept. sends MPI/R.F. to HRD/P&A. This Single Sheet Form has many Columns for HOD to Indent several posts- like Name/No.of Post tobe filled, J.D., Qlfcn, Exp.,Grade etc. (of the Person to be recruited). After Competent Authority, send to HR Dept. HRD to compare MP Appl. with MP Planning & Succession Planning Statements to Check Internal Candidates+CL etc. If no suitable match, take MDís appl. to recruit. Follow Recruitment Procedures. Notify to Employment Exchanges under CNVAct, Employees referrals, Data Base. If no candidate, Issue Paper/TV Ad./ Contact Recruiting Agents to Sponsor suitable Candidates.




Absenteeism is becoming a serious problem in some Cos. HRM is blamed for laxity. It can be controlled by using above Form. HRM to take Action against erring employee or when a HOD sends A.N.F. to him. Proper Disc.Procedure tobe followed for AOS lest; Court may nullify it as void.

SAMPLE CIRCULAR + FORM for Adoption, are given below: (1 50 RP&F available).


6. WHY STANDING ORDERS (S.O.) -- I.D.Act. ???


A Certified S.O. under Indus.Employment(S.O) Act; empowers the Co. to take Disc.Action against its Emplís for violating T&C in S.O. BUT; the Co. cannot punish Emplís for Acts not included in S.O - SUPREME COURT.


Hence, Imp.Acts/Conducts involving Discipline of emplís; MUST be included in ďMIS-CONDUCT LISTĒ in S.O. & PROCEDURES of NATURAL JUSTICE MUST be OBSERVED to make Coís. action LEGAL.

Doís, Donítís, Duties of emplís -100 Points,

Mis-conducts forwhich emplís LIABLE FOR DISCI.ACTION-80 points, Co.Appn/BioData Form-40Points, Imp.t& Appt.Order.-for Sk-20, Suprvsrs &above-35. (Pl.check t&c in ur Co.Appn., A.O, S.O.etc.)- Effect of Non- inclusion.




In my previous Mfg.Cos. , I had this opportunity to setup HR systems from the start. First; I studiedAudited existing:

1. Systems, Rules, Documents - maintained / followed in the Company Ė Viz.,

Attendance Registers, Leave Card /Records, Statutory Returns/Reports, Licenses-Factories Act, PF, ESI, Bonus, Gratuity etc., MP Statistical Reports, MIS, Personal Files etc.,

2. Compared with List of- Documents -TO BE Maintained as per Factories/S&CEstts Acts etc., Registers, Records, Reports, MIS, Documents, Statutory Returns/Reports, Licenses, MP Statistical, Reports, MIS, Files, Rules, Policies, Procedures, Processes, Systems, Formats etc., and

3. Recommended the List of GAP / inadequacies / Steps to Set up HR Dept., for Adoption / Implementation as under:-.


================================================== ==============

Imp. FORMATS, Documents for H.R.&Admin.



As I was to take care of both HR &,

Ist. Designed & Introduced Basic Formats for each Jobs like Advance to draw Cash for Coís works, TA & Expenses Bill, Out-Pass, OOD & Visitors Pass, Gate Pass, Leave Card & Register, Indent for Vehicles, Food, Room, Ticket Booking etc., Collected and Maintained all Statutory Registers like Attendance, Wages, Leave, Adult Workers, Register of Extra Work Done (OT) & Co-Off Availed, Punching (Bio- metric- Face Reader) to regulate In & Out Time and Certify Attendance for Salary, Leave Card, Record, Deduction & Remittances of PF, ESI ,WC Policy, other Insurance Policies for Employees-Medi-claim, Machines & Equipments, Motor Vehicles etc., C.L. Regn, Regrs. Records etc., Implemented Bonus, Gratuity, Superannuation Scheme for Sr.Executives. etc.,



Made NEW Company Application / Bio-Data Form to collect full details of all employees already working and collected filled Forms from 200 employees. ISSUED INDUCTION KIT with New Appointment Order, Standing Orders & Leave Rules, I.D.Card, Emp.Code No., EPF & Gratuity Nomination Form, Bank A/c. Opening for all employees & Provided Uniform & PPE after Safety & Induction Training.



was Introduced and New Personal Files opened for each employee with Company Application/BioData, Interview/Selection Approval Sheet of Competent Authority for Apptt., Offer Letter, Induction Schedule on Joining, Apptt. Order-Ack.Copy, all Certificates Copies of DOB, Qualifications, Past Experience, Salary Slip, P.A.Form, Address Proof, Medical & Blood Group Reports, Photos, I.D.Card, Emp.Code No., EPF & Gratuity Nomination Form etc.,



New Man Power Requisition/Indent Form, Candidates Details for Interview / Selection (Comparative List Form), Interview Assessment Form for Selection, CHECK-LIST FORM for INTERVIEW, CHECK-LIST FORM for APPOINTMENT & APPROVAL introduced.



Master List, Addition & Separation, Man-Power Planning, Succession Planning, HRIS, MIS etc, CATEGORISING / GRADING & PAY-SCALE (Band) for all Levels of employees, Job Description, Security Checks, Safety & Health Ė OHC., as per ISO / Managementís requirement were Introduced and implemented



Constitute Safety, Canteen, House-Keeping, House Allotment, Works and Grievance Redressal, Transport, Event Organising Committees etc. involving concerned HODs to create awareness, to ensure smooth functioning of all, Harmonious Relations & to attend to Complaints of employees including Sexual & other types of Harassment & Discrimination.



F. CONDUCT T&D Programs with Imp. vedios on Discipline, Attitude, House-keeping, HEALTH TIPS on AYURVEDA, YOGA, PUNCHAKARMA for STRESS, BP, SUGAR Problems etc.,


I hope; you will find the above useful . Will share more on hearing from U.

C.Neyim Khan,

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

HOSPET/ BANGALURU, Karnataka, S.India.

Mobile No. 9535470460 ===

= Qualification: BA,LLB, PGDPM, MBA-HR-Xaviers),

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

Languages Known:- Kannada, Tamil, Telugu, Malayalam + English & Hindi

From India, Mumbai
Thanks a lot to each one of you for guiding me. This info is v helpful.
From India, Bengaluru
S.M.A Robin

just go through search option to HR department start up, you will find hundreds of materials to study, study first and share if any question arise. Thanks, Robin
From Bangladesh, Dhaka
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