Crafting a Fair Sick Leave Policy: How to Balance ESI Coverage and Employee Benefits?

Dear All,

I am framing a leave policy for my company and need clarification regarding Sick Leave. We are planning to provide 6 days of Sick Leave per year. I was advised not to allocate Sick Leave for employees covered under ESI, but instead, add those days to any other type of leave offered.

This approach seems advantageous to employees covered under ESI compared to those who are not covered. Employees under ESI receive the same number of days off as those not covered under ESI and can also benefit from leaves claimable through ESI.

Kindly guide me on this.

Regards,
Uma

Hi,

Sick leave is generally not given to employees covered under the ESI Act as they are entitled to payment during those days from ESI. However, for single-day sickness, there is no payment received, which makes it a disadvantage for the employee. This fact has to be borne in mind, and rules framed. Many companies are giving it uniformly to all employees to avoid classification on this ground.

HRG-Rajaram

Dear Uma,

Kindly determine the following before implementing the policy:

1) Why do you need a separate sick leave provision? (You can have only one form of leave, and the employee can use it as he/she likes.)

2) Why have you made it 6 days and not some other number? Don't you feel it is too little for people who really suffer from illness? (It ideally should be between 12 to 15.)

3) Do you want to keep a provision for accumulation? If yes, how much? Whether the excess will be encashable or not?

Ideally, you can accumulate SL ranging from 30 to 90 days. This will ensure employees who are dedicated and hardworking avail proper leave in cases of serious illness. Encashment should be present to prevent misuse of sick leave.

4) Whether absence arising out of a workplace accident should be kept out of the purview of sick leave, and special leave will be granted.

5) What is the period of sick leave for which the employee needs to submit a Medical Certificate from a Doctor? (You will have to determine the kind of Doctor, i.e., MBBS, Homeopath, Unani, Ayurvedic, whose certificate should be allowed. Usually, it is determined as 3 days or more and the Certificate from an MBBS (Allopathy) doctor.

6) ESI-covered employees should not be given Sick Leave, and if you want to add the Sick Leave, add it to the other category.

Hope I have not confused you.

Kind Regards,

SC

Dear All,

I have drafted a leave policy for my company and I am posting the same for your kind review. Please do give me your valuable feedback and comments so that I could refine the policy further.

Thanks,
Uma

Dear Uma,

I have made necessary suggestions and comments, and highlighted them in red and yellow. You have not kept SL right? Revert back with comments.

Regards,
SC

Dear SC,

Thank you for the review. It has helped me to see certain aspects that I had overlooked before. I need a few more clarifications on what I have entered in purple in the Word document. Kindly go through and revert.

Yes, I have not taken SL. Generally, those who are covered under ESI are not given SL, and there are a few others who have crossed the ESI coverage limit and would need SL. I wanted to keep the policy uniform. We have plans to bring in Mediclaim benefits for those who are not covered under ESI, and those who are covered will avail ESI benefits.

Regards,
Uma

Dear Uma,

I have put my comments in orange. Revert back for further assistance.

Regards,
SC