Ed Llarena, Jr.
Owner/ Managing Partner
H.r. Professional
Hr Sr. Exec
Human Resource Manager
Special Projects Consultant
Strategic Hr
+3 Others

what's the most effective way to allow paid time off for your employees? do you differentiate b/t sick & vacation? because i have all these complaining employees (i've only been the HR mananger here for 6 months) who want to schedule their remaining sick/personal days off before the end of the year. there hasn't been really clear direction up until i came on the scene. our current policy states that employees may only carry over 2 days per year(and that doesn't include sick days-they may NOT be carried over). i have currently 3 employees who have not used their sick days and feel entitled to carry them over since so many others used theirs throughout the year by calling in sick. then those that don't call in sick feel like they're being punished for not. what to do? i want to change our policies on this all around and not have sick days, only vacation/personal. any thoughts to this longggggggggggggg winded question???? :lol:
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what's the most effective way to allow paid time off for your employees?
The best way to settle on the number of days is probably earning 1 paid day off for a certain number of working days. Like for example if there are 210 working days and your company policy gives an employee 10 days of paid time off then the figures stand at 1 paid day earned every 21 working days.
do you differentiate b/t sick & vacation?
Yes, sick days are not to be taken as vacation days.
i have currently 3 employees who have not used their sick days and feel entitled to carry them over since so many others used theirs throughout the year by calling in sick.
Sick days are to be carried over. No questions asked. If this is not in place it's a major demotivating factor and will make employees call in sick just to use up the allotted sick leaves.
Maybe you can talk to who sets the policies and let them know the current policies are encouraging unfavorable behavior. Maybe they will allow you to offer Comp Time in Lieu of unused Sick Time? Or perhaps, some incentive can be offered to those who don't use the sick time, such as a nice Christmas bonus that equates to the $ value of the unused sick days. $ always works for me and then you'll be encouraging the behavior you want. Good luck.

I might have answers to a few of your queries - here u go...

Earned leave is provided for a particular number of days worked in the organisation - in simple words it is earned by working in the organisation. It could range anywhere between 1 Earned leave for working 20 - 30 days.

If it is 1 for 20 days worked - there will be 18 ELs per yr; in the other case, if it is 1 EL for 30 days worked, there would be 12 ELs per yr.

It is a kind of reward leave for the employee, and it DOES NOT lapse. It could be encashed (after accumulation of 30 ELs, as in our company) or settled in Full & Final payment (when the employee leaves the company).

Apart from this, there are two other kind of Paid leaves - Casual Leave and Sick leave. It is the company's decision on the numbers. According to Industry standard - All these leaves (Earned, Casual & Sick) could be summed up to 30 in all. The number could differ based on a lot of reasons.

The casual would lapse by the yr end, where in Sick is carried forward. Lapse of the sick leave could never be fair for the employee who's not been sick...:)

I think you could refer to some Law books - and get to know the "Act" which is applicable to ur company. Might help.

Would be glad to clarify further if the need be...

And my uncalled two cents - HR person should stay away from frustrations as much as is possible:) All the best...



My organization does not distinguish between personal time and sick leave. A full time employee accrues PT/SL at a rate of 4 hours per working month, or 48 hours per year. After 12 months, we use calendar, the remaining PT/SL rolls over and the employee can accrue up to a maximum of 96 hours of PT/SL. In October, the company will automatically pay out all but 48 hours of PT/SL. This policy encourages the employee to not call in sick just to use the hours and will always leave an adequate number of hours for the employee to use. Now, when an employee calls in sick, they have no choice but to use the sick leave and can not intentionally build up their nest egg. This approach appears to work well and our employees are satisfied. There are many different approaches to this issue and many are equally workable. Hope you can find one that works best for your company. 8)

When it comes to leave policies, your first task is to look at your labor laws. Get what is required as minimum.

Then ask your top management what they have in mind. You should design you policies based on what they like to implement within your organization. You can develop as many as you want, but if your top guys don't like them, you can't implement them.

When you know what is required by your laws and your top management frame of mind, LOOK OUT for the best practices on leaves being implemented by your industry within the area where your company opeates. Write your policies from these data/ information.

There are many types of leaves and so many ways of developing

policies and procedures that can govern each type of leave.

My outfit is in POLICY DEVELOPMENT and we have developed and written so many "leave policies" already, mostly for big multinational companies. That's why I am not suggesting any specific way of doing it.

We have a client whose quantity and type of leaves made me wonder whether their employees were hired "to work" or to "take leaves".

If you still need help, inspite of the many suggestions given you above, then you need EXTERNAL CONSULTANTS like us to help you.

Otherwise, you will continue being frustrated and it is not a good experience for new HR Practitioners. Besides, its christmas time and you are supposed to be happy nowadays.

Maybe the best for you is simply BUY our Leave Policy so you will know the best practices in each kind of leave that your company would like to implement. Spend a little and BE HAPPY!

Best wishes.

Ed Llarena, Jr.

Managing Partner

Emilla Consulting

thanks so much for your reply....i was able to 'resolve' the situation for the moment. and now i'm in the process of redesigning the entire process we have in place to be effective 1/1/05. the replies of everyone were very helpful. i felt validated! :P
i'll be back to visit very soon!
Hi Navneet,
That was a good writeup on Leave Policy just a little query you talked about the fact that all the leaves should sum up to 30 per yr according to industrial law can you give little more information on this......
[If it is 1 for 20 days worked - there will be 18 ELs per yr; in the other case, if it is 1 EL for 30 days worked, there would be 12 ELs per yr.
It is a kind of reward leave for the employee, and it DOES NOT lapse. It could be encashed (after accumulation of 30 ELs, as in our company) or settled in Full & Final payment (when the employee leaves the company].
You are absolutely correct, but I would like to know, if an employee acumulated 30 days EL in -2005. Please tell me how many days EL he can encash {i.e. Full Leave or 50% or any other statutory rule}
Hi I would like to know after accumulation of EL , how many days EL we can encash. Urgent Regards kanaka
Usuall every employee is supposed to get a paid leave for every twenty physical working / man days.
But weather paid leave & Vacation leaves can be clubbed???? it depends on the policy maker. But, most of the organisation do not entertain these clubbings...
Dear All

I do not see any difference in cubbing the type of leaves. What is more important is the misutilisation of leave. If the philosophy of leave is to provide benefit of pay while not physically present on the job then there comes no question of paid leave or earned leave or privileged leave or sick leave or casual leave etc.

Leave before being named is leave it self which recognizes with the fact that the individual is not physically present at his / her place of posting but getting pay for that day.

In no legislation it is defined that you cannot club types of leave. It is only our understanding to the leave policy made and implemented in an organisation / establishment / industry. If a person has exhausted his predecided entitlement of Sick Leave and unfortunately falls sick then if leave balance of Earned leave or Casual leave is available and we do not allow paid leave to individual. In this case i do not see any fun of making entitlement for one leave and denying the same in any other case at the time of its requirement.

Suppose in above type of case , casual leave get lapsed at the end of the year and individual was forced for LAP for his sickness, the whole purpose of the leave get defeated. We should not defeat the purpose.

Flexibility is required but with complete awareness on consequences of misutilisation. We should make our people so competitive so that they should understand the objective of the rules / legislation. If we are taking that course seriously then no authority would like to challenge the case based on case to case basis.

So finally in my opinion we should take care of legislation with clarity in mind for its objectives.

Anil Anand
Dear Aneesha,
Further to your discussion I will add few points how to give benifits to emploees with regard to leave?
1.There is no policy as per my knowledge that sick leave can be carry over to next year in many companies and there is no such regulatory act to do so
2.To avoide this confusion you can give all your employees a global leave with out any difference so that employees are not forced to call for sick.
3.This type of leave can be aviled as and when employees werre in need of it with the permission from there reporting authority. can carry forward these leaves @ only 13 per year to avoide more accumilation.
5.By doing this you will be mottivating employees to get the leave benifit which is given by company.
Hope this information will be use ful to you
All the best
Soumya Sudhindra
leave policy is nothing, it is the welfare part for employee but its obligatory for employer too (01 day for every 20 days work). We should draft such a policy which suits organisation as well as individual.
Hi...everyone...I am new too....
not that frustated...
I just want a format where there will be Leave policy mentioned through which I can make the employees also happy and the company should also never think that it will harm the organisation....So,can anybody help me out...
Hi All could anyone Please tell me what is the leave policy in uttar pradesh.pls send me Notification if u have..... Thanks & Regards Braham Prakash Compliance- Executive
We are only 6 employees in a company and don't have any leaves. Leave without pay is the policy in our company. I have completed 18 months here and still I have no leaves. I would like to know the rules and regulations which a company should accept.
Smita Rane
I am working as an HR in a startup IT company based in Kerala which is one month old. I would like to prepare a leave policy. Please help.
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