Please help me for drafting circular of leave policy Management has to decided give 12 paid leave if employees take more leave then salary will be deducted
From India, Ahmedabad
Dear Nidhi,

Though you have raised the query on employee leave, you have not mentioned whether the provisions of the "Factory Act" or the "Shops and Establishment Act" are applicable to your company. You need to follow the provisions of your state, as applicable.

Nevertheless, whether the factory act or the S & E act of most of the states says that an employee is eligible to get a day's paid leave for every 20 days he/she works. Therefore, from the 365 days of the year, when you remove 52 Sundays (or weekly offs) and 10 national and closed holidays, an average employee works for 303 days. When you divide this number by 20, the average employee becomes eligible to get 15 days paid (or earned leave) per annum.

What has been mentioned in the previous paragraph is basic eligibility. The factory act or S & E act of the few states goes beyond and makes the provisions for sick leave or casual leave.

However, you have mentioned eligibility for 12 days leave only. Can you please confirm the basis of your calculation? Providing a draft for the circular is fine, however, the circular has to be in in the confines of the law and not out of it.


Dinesh Divekar

From India, Bangalore

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