Setting Up HR in a Pharmacy: How Do I Handle Leave Policies and Overtime?

Hello everyone!

I joined Cite HR last month and also joined a new retail company as AM-HR. Last month, my new company is a Pharmacy company, and I have to set up the HR Department for my company. Seniors, please guide me on what to do. I am facing difficulty with the Leave policy because our company comes under HEALTH CARE & MEDICINES.

What should be the number of C.L., S.L., E.L. for a retail chain pharmacy, considering the working hours? If working hours are more, what is the procedure for calculating overtime? Can we open Pharmacy stores on national holidays because we come under health care and medicines? Seniors, please suggest to me.

I am confused and need suggestions from my Cite members and seniors.

Regards,
Ady

Hi Ady!

Welcome to the site, HR, and congratulations on the new job. You will definitely get your solutions from this site. Just go through the Shops and Establishment Act of your concerned state, and you will get all the details.

Thanks,
Mohit

Hi Ady,

For setting up an HR department, the following things should be considered:

1. Making personal files for all employees.
2. Give them employee codes like AP0001 and 0001 - you can add the first two alphabets of your company.
3. Maintain an attendance register or start a punching machine system for attendance.
4. Make job profiles for every employee.
5. Set working hours at stores and their weekly off days.
6. Create policies like dress code, attendance policy, leave policy, and an employee handbook. You can find policy formats in Cite HR.

Start with this. If you encounter any difficulties, please email me at mohit_gujral2003@yahoo.com.

Thanks,
Mohit Gujral

Dear Ady,

Leave policy can be the same as it is for manufacturing units because there is no significant difference in terms of leaves. So, as usual, you can provide 7 CL, 7 SL, and one EL every 20 working days.

Regarding working hours, you first need to differentiate between workmen and staff in your company. Overtime can be given to workmen, and you can offer compensatory time off to staff members for any additional work. For this, you need to establish compensatory time off rules. Overtime can be calculated as follows: Basic salary/26/8*OT hrs*2 (you have to pay double OT, which is why it is multiplied by 2).

Yes, you can open on national holidays.

If you have any further queries, feel free to ask.

Thanks,
Navneet Singh

Dear Adhy,

Congratulations on your new role! This is Hema. I work for a retail firm as an HR professional. According to Tamil Nadu rules and regulations, we have 12 Sick Leave (SL) days, 12 Casual Leave (CL) days, and 12 Earned Leave (EL) days.

Since your retail chain falls under the healthcare and medicines category, you are allowed to keep your store open all 365 days. However, you will need to obtain approval from the labor officer.

Best regards,
Hema

Dear Navneet and Hema,

Thank you for your valuable replies!

Can I take EL 7 for the whole year, or do I have to take 1 EL for every 20 days of working in manufacturing companies? Please suggest.

Thanks a ton.

Regards,
Ady

Dear Adhy,

I think earned leave differs from every organization. Some companies give earned leave on completion of the probation period.

Explained below is the leave policy followed in our organization:

Calculation of earned leave will be as per the calendar year (Jan - Dec). An employee joining the organization any time during the calendar year will be given leave for the remainder of the calendar year on a pro-rata basis, but this is applicable only for sick and casual leave. Earned leave will be credited to the employee only on completion of a year with the organization, i.e., 12 days will be credited.

Up to a maximum of 10 days of unutilized earned leave may be encashed at the end of each calendar year (Dec 31).

An employee can maintain a balance of a maximum of 24 days of earned leave. Sick and casual leave cannot be carried forward to the next year and will lapse at the end of the year.

For any clarification, please feel free to revert back.

Regards,
Hema

Dear Ady,

Regarding Earned Leave (EL), it is calculated based on the calendar year (Jan-Dec). If an employee joins on the 1st day of Jan and has completed 240 working days in the organization, they are entitled to EL. If an employee joins in the middle of the calendar year, they are entitled to EL only if they have worked for 2/3 of the remaining working days.

EL can be accumulated subject to a maximum of 30 days for adult workers and 40 days for child workers. If an employee wants to go on leave and management refuses to sign the leave, then there is no limit for accumulation.

If you have any further queries, please revert back.

Thanks & Regards,
Navneet Singh

Thank you, everyone, for your valuable contributions.

I am handling HR at a retail company in Mumbai. I am having difficulty formulating a leave policy. My CEO wants to provide paid leaves (CL, SL, and PL) to employees only after they complete one year of service in the organization. Additionally, there are no fixed holidays on public or bank holidays.

Please guide me on the statutory requirements for a leave policy in Mumbai for a retail setup. Also, how can I convince my CEO that most companies offer paid leaves (CL and SL) after an employee is confirmed/completes probation? I would also like to know which public holidays are compulsory and how many such holidays are optional.

What leave policy can I suggest to the CEO?

Please help.

Regards,
Tarun G