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Dear Sir/ Madam,
I am working for an MNC, having its two office based out of Gurgaon and Bangalore with its HQ in Italy. We are in the process of allocating the standardized EL, SL and CL for the two location based on the state regulation/norms. We have allocated the leaves accordingly , but still when we look at the other organisation in the vicinity and try doing a survey we see that their leave structure varies from us.Wanted expert guidance on the following queries which are arising.
1. Is there a standard process defined for leave allocation in a state / company
2. What are the things we should keep in mind while working on the same.
3. How can we make it workable/common to all divisions to avoid comparison.
Thank you in advance
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Dear friend,
Since India being a Union of States, any business venture having pan-India presence has to abide by various Central and State Labour Laws numbering approximately to 149 altogether. All these Labor Laws could be broadly classified into 6 major heads viz., - (1) Laws relating to particular type of establishments or Establishment-specific Laws like the Factories Act,1948, the Mines Act,1952, State Shops and Establishments Acts etc.,(2) Laws relating to Industrial Relations like the Trade Unions Act,1926, the Industrial Employment ( Standing Orders) Act,1946, the Industrial Disputes Act,1947, the Maharashtra Recognition of Trade Unions & Prevention of Unfair Labor Practices Act,1971 etc.,(3) Monetary Legislations or Laws relating to Wages like the Payment of Wages Act,1936, the Minimum Wages Act,1948, the Payment of Bonus Act,1965 etc.,(4) Social Security Legislations like the Employees Compensation Act,1923, the Employee State Insurance Act,1948, the EPF Act,1952, the Payment of Gratuity Act,1972 etc.,(5) Laws relating to Equality and Empowerment of Women like the Maternity Benefit Act,1961, the Equal Remuneration Act,1976, the Sexual Harassment of Women at Workplace ( Prevention, Prohibition and Redressal ) Act,2013 etc., and (6) Laws relating to deprived and disadvantaged Sections of Society viz., the Contract Labor ( Regulation & Abolition ) Act,1970, the Bonded Labor System ( Abolition ) Act,1976, the Inter-State Migrant Workmen ( Regulation of Employment and Conditions of Service ) Act,1979, the Child Labor ( Prohibition and Regulation ) Act,1986 etc.
As you are well aware the conditions of service like working hours, leave and holidays etc vary from establishment to establishment depending upon its type or nature of work. Therefore, the various kinds of leave and their scales is a matter exclusively dependent upon the type of the establishment. Since yours is an Indian wing of a Multi National Corporation situate in more than one State, if you have manufacturing units spread across the country, the leave provisions in respect of those employed in such units irrespective of their locale could be uniform as all are factories under the Factories Act,1948: if some are establishments under a particular State's Shops and Estt. Act, the scale and types of leave can not be uniform as they vary according to the States of their locations. To cite a glaring example, there is no leave other than Annual Leave with Wages to the workers employed in factories whereas the persons employed in establishments are entitled to Casual Leave, Sick Leave in addition to Earned/Privilege Leave that is analogous to Annual Leave with Wages.
Therefore, If you want to standardize leave provisions at Company level for facilitating inter-unit shuffling of employees on work exigencies, find out the highest leave scale and fix it as the Company scale. In a situation like yours, uniformity of leave scales can be ensured at least as per the class of employees considering the statutory scales applicable to them. If you bear in mind the fact that the statutory standards are always the minimum and they can be raised through collective bargaining between the labor and management, I do hope that you can formulate an effective standard process.
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