Leave policy can be different for Registered office and two factories or we need to make it uniform? - CiteHR
Rkn61
Hr Manager
Vmlakshminarayanan
Sr.manager - Hr&admin
+2 Others

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We are in the process of revising leave policy for company's registered office in Mumbai
at present we have CL 5 SL 5 and PL 1 leave for every 11 working days in the company.
PL can accumulated upto 180 days
in a year only 15 PL can be encashed.
5 PL is required for LTA claiming
We need suggestion that can we merge and reduce CL & SL to 5 in total for the year. this move is legally or is there any restriction or statutory compulsion on it.
Leave policy can be different for Registered office and two factories or we need to make it uniform for all as organisation
Please guide and suggest suitable answer.
Niten Gawde, Mulund.

Hi,
I think that you must follow the Industrial Standing Order for the factories. In such case the leave policies are as follows:
"A person employed in a shop or an establishment shall be entitled—
1. For every completed year of continuous service, to privilege leave on full pay Tor fourteen days
2. In every year, to sick leave on half pay for fourteen days on medical certificate obtained from a medical practitioner.
3. In every year, to casual leave on full pay for ten days
4. In the case of woman, to maternity leave in accordance with such rules as may be prescribed.
In each week, every shop or commercial establishment shall remain entirely closed on, and every person employed in a shop or an establishment shall be allowed as holiday, at least one day and a half day with full wages.
Also, on National Holidays that are declared by each state separately, employee must be allowed holidays with full wages. The periods and hours of work for all classes of workers in each shift shall be exhibited in English and in the principal languages of workman employed in the establishment on notice-boards maintained at or near the main entrance of the establishment and at the time-keeper’s office, if any." Read Full here Drafting of HR policies in line of Industrial Dispute Standing Order
In case of office follow the norms of Maharashtra Shops and Establishment Act. It Says that it does not cover factories. It also says as follows:
Every worker shall be entitled to eight days casual leave with wages in every calendar year which shall be credited into the account of the worker on a quarterly basis, but shall laps if unavailed at the end of the year.
Every worker who has worked for a period of two hundred and forty days or more in an establishment during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of one day for every twenty days of work performed by him during the previous calendar year.
Every worker, who has been employed for not less than three months in any year, shall for every sixty days on which he has worked during the year be allowed leave, consecutive or otherwise, for a period of not more than five days.
Every worker shall be permitted to accumulate earned leave upto a maximum of forty-five days.

Hi,
Please follow leave rules as stipulated in the Act. Merging of leaves or reducing is not advisable. If Factories are situated in different State they need to follow respective state rules and not Maharashtra based.

Leave policy in Registered office and Factories shall be different. should not be the same.
Usually registered office will be away from factories and governed by Shops and Commercial establishments Act. Leave provisions in the said Act and the Factories Act are different.
But if the employees are transferable between RO and Factories ,it is advisable to have uniform leave rules.
Varghese Mathew
9961266966.Tvm

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