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Hi all,

I'm currently working in an IT start-up company where we have around 40 employees on payroll. I'd like to request for your help on framing the policy for leaves. My question is, should I go exactly as per the state shops and establishment act for the leaves (which will be 12 CL, 15 EL, and 12 SL), or can I modify the number of leaves as per the current requirements of the company. By modification, I mean to convert the CL to Work from home. Also, I'd like to know whether we can restrict CLs and ELs to maximum of 1/month? I'm asking this to design the leave policy more strategically as being in a start-up, many times, employees seem to take advantage of the system, even more so when managers are not acting responsibly.

Seasoned Ir Professional
Agm - Hr&admin
Hr Manager


You can give higher number of leaves that what are provided in the Act but you cannot reduce it. The work from home arrangement cannot be treated as an employee benefit rather it is beneficial both for the employer and the employee. I would say that it is more beneficial to the employer. You can reduce the conveyance part of salary but you cannot reduce the leaves, anyway nor is it possible to interchange the leaves. If the employees do take advantage (of work from home?) then stop it and ask them to work from office.
From India, Kannur


It is advisable to follow leave rules as per the ACT.

Converting CL as WFH is not making sense. Work From Home is officially a working day only which cannot be equalized to leave with wages.

In fact @ WFH employees are contributing more rather than working at office. Only advantage of WFH is travel to office will not be there.

From India, Madras
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