Navigating Leave Policies: Are Our Leave Adjustments and Benefits Compliant?

We are a company in Nagpur. We are giving 10 days as SL/CL in a year which cannot be carried forward. We are also providing a total of 10 National Holidays. We provide 30 days as PL for 12 months worked. We used to adjust this PL against any leave taken by our employees over the 10 allotted.

1) Are these 10 CL/SL paid or unpaid? We are not deducting any salary for these 10 days.
2) Anything over 10 days, we were adjusting it with the PL. That is, for every month worked, an employee earns 2.5 PL. Is this adjustment allowed?
3) Is PL mandatory?
4) Is maternity leave mandatory? If so, how much and how should we compensate for it?
5) If PL is mandatory, when an employee wishes to encash, how is this figure calculated? I know it is based on the basic salary, but is it the basic salary of the current encashment month or any other?

Please provide me with assistance on this. I have high hopes from all the members of this site.

Dear Himesh,

The adjustment of CL/SL against PL is allowed. The following calculation may be done to arrive at the encashment figure:

PL Encashment = Basic/30 * No. of PL

Maternity leaves are inevitable if the company employs female employees. In my company, we have a policy of giving 120 days of maternity leave to female employees upon the submission of a complete medical report. For more information regarding the act, you may visit the following link: http://www.vakilno1.com/bareacts/mat...,<br /> Pankaj

Thank you, Pankaj.

The link for the site does not work. If maternity is compulsory, then how is it calculated? Is the full salary to be paid or just the basic amount? Also, is PL compulsory?

1) Are these 10 CL/SL days paid or unpaid? We are not deducting any salary for these 10 days. There is no need to reduce any salary if you provide CL/SL.

2) For any period exceeding 10 days, we were adjusting it with the PL. For every month worked, an employee earns 2.5 PL. Is this adjustment permissible? Yes, you can make adjustments in PL based on your company's policy for acquiring the minimum PL.

3) Is PL mandatory? Yes, PL is mandatory.

4) Is maternity leave mandatory? If so, for how long and how should we compensate for it? ML is compulsory for 90 days twice a year. You are required to provide the salary for those days when the employee is on ML.

5) If PL is compulsory, then when an employee wishes to encash it, how is this figure calculated? I know it is based on the basic salary, but is it the current month's basic or any other? Encashment = number of balance PL * (monthly basic / 30)

Ok, I got it. PL is compulsory. If an employee is taking more than 10 days of allotted leave and if I deny adjustment with PL, is it allowed?

What do you mean by minimum PL? My PF advisor has asked me to change the way I calculate PL. Now, he said I should calculate it by taking the number of days the employee has worked in 3 months, dividing it by 14. Do this for 4 quarters, and the maximum total you will get is 21.

Is PF to be deducted on PL? Because he says it is compulsory!

Hey Chitra, I got your reply in my messages box as well. Thanks, quite a few things are getting clearer for me.

Also, can you tell me how salary is calculated? For example, I am paying somebody 25,000. Now, I am considering that as payment for 30 days. No matter that the month has 4 Sundays, 4 Saturdays (half-day working only), and maybe 2 national holidays. So, should I give him salary depending on the number of days he has physically worked?

Minimum PL means, as per your company policy, how many PL he can avail at one time. You can't deny any person for the adjustment of PL. I don't have an idea about what calculation he is referring to, and PF should not be deducted from PL encashment.

No, it depends on the total number of days in the month, not on his physical presence. You can deduct the salary only if he doesn't have leave balance and he takes leave. Otherwise, not.

Chitra

Dear Hil,

Any leave adjustments and encashment depend on the Act to which your firm or company belongs. Actually, PL encashment is done based on the current basic salary of the employee. The formula is as follows: (Basic Salary / 26) multiplied by the number of days of PL to be encashed.

You can either consume or encash PL as per the requirement until the employee has a balance. One more thing... I think you cannot combine CL with PL, and PL must be taken for a minimum of 3 days (I think)...

Joseph

Hi, is CL/SL payable, or should it be deductible from salary? Also, if an employee can take a minimum of 3 PL at a time, that means he can take the same only after eligibility, right? Meaning if he is working from Jan 07 to Dec 07, then he can basically avail this PL in parts from March 08 onwards, right?

Hi!

If any person has a balance in CL/SL, then you need not deduct any amount from his salary. If a person has a balance of PL in his account, he can take it anytime required. Only if he is a newly joined employee and you give PL of Jan 07 to Dec 07 in his account in Jan 08, then he can even take the leaves in Feb 08.

Chitra

Yes, if you have female employees, then maternity leave is compulsory. There is no special calculation for that; 90 days twice a year are given. You have to pay the whole salary normally as you would when working. In addition to that, a sum amount (Rs 1000/-) is also given as a maternity bonus.

Chitra