We are in the process of revising the leave policy for the company's registered office in Mumbai. Currently, we have 5 CL, 5 SL, and 1 PL leave for every 11 working days in the company. PL can be accumulated up to 180 days, and in a year, only 15 PL can be encashed. 5 PL is required for LTA claiming. We need suggestions on whether we can merge and reduce CL & SL to a total of 5 for the year. Is this move legal, or are there any restrictions or statutory compulsions on it?
Should the leave policy be different for the registered office and the two factories, or should it be uniform for the entire organization? Please guide and provide a suitable answer.
Regards, Niten Gawde
From India, Mumbai
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Should the leave policy be different for the registered office and the two factories, or should it be uniform for the entire organization? Please guide and provide a suitable answer.
Regards, Niten Gawde
From India, Mumbai
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Industrial Standing Order for Factories
I think that you must follow the Industrial Standing Order for the factories. In such cases, 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 for fourteen days.
2. In every year, to sick leave on half pay for fourteen days on a 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 women, 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 a holiday, at least one day and a half day with full wages. Also, on National Holidays that are declared by each state separately, employees 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 workmen 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
Maharashtra Shops and Establishment Act
In the case of offices, follow the norms of the Maharashtra Shops and Establishment Act. It states that it does not cover factories. It also says as follows:
Every worker shall be entitled to eight days of casual leave with wages in every calendar year, which shall be credited into the account of the worker on a quarterly basis but shall lapse 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 up to a maximum of forty-five days.
From India, Kolkata
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180I think that you must follow the Industrial Standing Order for the factories. In such cases, 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 for fourteen days.
2. In every year, to sick leave on half pay for fourteen days on a 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 women, 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 a holiday, at least one day and a half day with full wages. Also, on National Holidays that are declared by each state separately, employees 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 workmen 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
Maharashtra Shops and Establishment Act
In the case of offices, follow the norms of the Maharashtra Shops and Establishment Act. It states that it does not cover factories. It also says as follows:
Every worker shall be entitled to eight days of casual leave with wages in every calendar year, which shall be credited into the account of the worker on a quarterly basis but shall lapse 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 up to a maximum of forty-five days.
From India, Kolkata
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Hi there,
Please adhere to the leave rules as stipulated in the Act. Merging or reducing leaves is not advisable. If factories are situated in different states, they need to follow the respective state rules and not be solely based on Maharashtra regulations.
Thank you.
From India, Madras
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Please adhere to the leave rules as stipulated in the Act. Merging or reducing leaves is not advisable. If factories are situated in different states, they need to follow the respective state rules and not be solely based on Maharashtra regulations.
Thank you.
From India, Madras
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Usually, the registered office will be separate from the factories and governed by the Shops and Commercial Establishments Act. Leave provisions in the said Act and the Factories Act are different. If employees are transferable between the registered office and factories, it is advisable to have uniform leave rules.
Varghese Mathew
9961266966
Tvm
From India, Thiruvananthapuram
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Varghese Mathew
9961266966
Tvm
From India, Thiruvananthapuram
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Leave Policy.doc
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