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Hi - Looking for inputs on following issues from all seniors peoples here,

In Any private company leave policy can we place 2 set of rules for casual leave based on employee working years in company for example

0 to 2 years working years will get 12 CL
2 to 4 years working years will get 18 CL

As i have gone through one old judgment which do not allow different set of rules for employee based on his entry year.




DATE OF JUDGMENT: 03/11/1965
CITATION: 1966 AIR 808 1966 SCR (2) 498

From India, Delhi

If the statutory minimum number of leaves is 12 days for a year, then what is the issue if the company is giving 18 days CL for those employees who have more than two years of service with the company? It is possible so long as the benefits to the employees is higher than that of what is stated in the statute.

In the case of Salem Erode Electricity Distribution Company case that is referred, the issue was amending the leave rules so that employees or a section of employees would get leaves lesser than what is provided under the Standing Orders. Standing Orders being a binding conditions of service, any change in it shall be effected only by amending it with the consent of the employees. Obviously, the employees who would be affected by the orders resisted and the court also said that there should not be any discrimination. Moreover, the case pertained to an incident of late fifties and early sixties. The industrial scenario then was entirely different from today. Today what is looked into is whether there is any reduction in the employee benefits or not. If there in no violation of law what is wrong with it? It is quite natural that there may be different treatment in salary fixation for employees who have more than 2 years of service and those who have just become eligible for an increment. Leaves is also like this, and employees with certain years of experience shall get more leaves (like additional increment or loyalty bonus) than a fresher or those with one or two years' service.

From India, Kannur

In many organisations even for retention of the employees, the senior employees are given some extra leave and there is nothing wrong. R R Kapoor Vadodara
From India, Vadodara

There is nothing in law that prevents you from having 2 sets of leave rules.
However, there needs to be a distinct difference between them. Experiance and number of years in the company is an acceptable classification.

But you need to follow the rules (standing orders, industrial dispute, factory / Shop and establishment)
I suggest you make 2 categories of employees in the standing orders and then make the leave rules for each. Just ensure you dont go below any other statutory requirements.

At the same time, you can not change the terms of employees who are already working in your company to their detriment. Keep that in mind.

From India, Mumbai

First of all, it's not preferable to have two sets of Leave Rules for different classes/grades of employees. Majority of organised sector used have Leave Rules exactly what is provided in the applicable Acts/Rules such as Factories Act,/Rules, Shops & Commercial Estts Act/Rules and so on. Of course more privileges than what has been provided in the statute not going to be disputed. However, if Standing Order is applicable to your establishment, you can draft the SO, submit it to the Appropriate Authorities, get them approved and implement it in letter & spirit. Generally EL and Sick/Medical/Accident leave are stipulated in the statute. However Casual Leave, Extra-ordinary Leave or Leave Without Pay are specific to the legacy of the existing establishments which will be followed as precedents/ past practices. There is legal bar/inconsistency if you decide to have two sets of leave rules within your estt. if the leave days are not less than those provided in the applicable acts/rules.
It's pertinent note here is in 2019 and 2020, 29 central labour laws were amalgamated, rationalised and simplified into four labour codes, viz, the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health & Working Conditions Code, 2020. After introduction of New Labour Codes there are some changes in Leave policy also - One of the labour laws, namely, the Occupational Safety, Health and Working Conditions Code, states that an employee cannot accumulate more than 30 days of paid leave in a calendar year. The new labour laws divide employees into two categories - 'workers' and 'employees'. A 'worker' is an individual who has no managerial or supervisory role. An 'employee' covers all individuals who are workers as well those working in a managerial and supervisory position in an organisation. Certain provisions under the new labour laws are not applicable to employees working in a managerial or supervisory capacity. This means that managers (employees working in a managerial/supervisory role) are not likely to get many benefits vis--vis 'workers' under the new labour laws. Pl.refer the applicable New Code(s) and State Rules made thereunder and date of its implementation as per the pertinent Gazette Notification.

From India, Bangalore

Leave Rules For Karnataka
Here is a snapshot of various leave rules as per the Karnataka Shops & Establishments Act.
Item Qty Remarks
Annual / Privileged / Earned Leave (AL/PL/EL) 18 days
Casual Leave (CL) NA
Sick Leave (SL) 12 days
Maximum AL/PL that can be carried forward 30 days
Working hours in a day 9 hrs.
Total hours in a week 48 hrs.
Rest Interval 1 hour Rest after 5 hours of work

From India, Bangalore
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