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Hi All,
I have just recently joined a Software company based at UK . We are about to make some amendments in the present Leave Policy. Please put in some thoughts about what could be the Leave policy in software company.? At present we have total 20 Leaves in a financial year- Jan- Dec. We have a policy of encashment which is not more than 10 leaves in any given year. We are considering 2 Leaves per month, Whosever takes more than 2 leaves, Its considered as LWP. But still the management thinks that there should be some changes in the policy as the employees are taking it easy as whatever the leaves they wil ltake in excess of 2, they wil get the encashement of 10 leave at the end of the year. ALso LWP and Leave encashment is calculated on the Gross Salary.
Please suggest your valuable inputs for the same. Awaiting a quick response.
Thanks in Advance.

From India, Vadodara
Hello friend,
I hope that company is thinking of leave rules in India. If so please find suggested leave rules in attached word file. However if you want to frame leave rules for UK -you may need to study similar industries in UK.
Hope you will find the attachment useful. You may take discuss this within HR and some more depratmental heads to refine and finalize a proposal. This can then be put up for approval of top management

From United States, Greensboro

Attached Files
File Type: doc leave__rules_-_reference_878.doc (42.5 KB, 2183 views)

Hi Nisha,
If you are providing 2 days of leave in a month then it comes to 24 leaves in a year. And there is no any bifurcation of leave structure, as it is not divided in casual or sick leaves, then it may be termed as All Purpose Leave, which is very much in system these days..
Make Policy stating clearly that any leave must be availed with the prior permission of seniors as well as more than 2 leaves in a month shall not be entertained except in emergency only.
Moreover, clarify them that only balanced leaves of the calender year shall be encashed at the end of calender year.. Otherwise encashment of 10 extra leaves at the end of year will lead to 24+10 = 34 number of leaves in a calender year..
Hope it must have helped you to solve your query to an extent.
Amit Seth.

From India, Ahmadabad
Dear Nisha

Better bifurcate leave. Check Shops and Establishment Act amd if the law provides for separate Casual Leave and Earned Leave, provide accordingly

I suggest the following in your leave policy

1. Casula/Sick leave say 12 days in a year

2 This should be restricted to 2 days in a month and if it is more support with medical practitioner

3. This will lapse every year

4.Prior approval for casual leave

5.Provide for earned leave for 12 days in a year

6 Will get credited at the end of the year prorata basis.

7.This will be allowed only three times in a year

8. Allow carry forward for three years This a legal requirement

9.Allow encashement and one condition should be that he or she must leave behind atleast 5 days of Earned leave

10 Encashment should always be in Basic plus DA (If Da is paid) only and not on gross. This must be strictly adhered to.

Many manufacturing companies underwent struggle before frezing on all these issues and IT Companies should encah on the knowledge available on this area


From India, Chennai
Thanks Amit and Siva, for the valuable inputs. I would like to know that what is the trend in the software companies, If you can put the generallized leave policy, It would be better be easy for us to bifarcate our requirements for the same. Please suggest.

From India, Vadodara
Thank you Nisha,
In general most of the IT companies follow a structure of -
PL or EL - 16 or 18 days
CL - 8 days
SL - 8 days.
And one can avail the same on pro-rata basis only.
And generally upto 15 PL can be carried forward to the next year, if not availed. Moreover SL can also be carried forward to the next calender year but it will not be encashed at time of encashment.
Now a days Leave encashment is done at the time of separation from the company. But still some encash the same at the end of calender year.
Amit Seth.

From India, Ahmadabad
Dear Nisha
There is not much of differen ce between software or service or manufacturing in this regard
You also need to provide some basic as per law
Ideally stick to shops and establishments act for leave
Provide leave encashment in such a manner only limited leave is encashed every year

From India, Chennai
HI Seniors,
Please provide me atleast some feedback, as I need to frame the policy as soon as possible. Please let me know if there are any drawbacks in the existing policy as mentioned in my previous post.
Thanks in Advance.

From India, Vadodara
Hi Friends,
I have just recently joined in a company as HR Operations.
We are about to make some policies related to "Attendance Management" and "Leave Management" .
So can you suggest me how to prepare the Attendance policies and Leave policies.

From India, Hyderabad
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