New Leave Policy and Record Format: How Are You Managing the Changes in Your Company?

Hi all,

I've prepared a very simple and easy leave record format for my company.

There has been a change in the leave policy with the start of this financial year, which states that all employees shall be entitled to 18 (eighteen) days of leave in each calendar year adjusted on a pro-rata basis as per the duration of his/her service. At the end of the leave period (31st Dec), a maximum of 7 days of leave can be carried forward to the next leave calendar. Subject to availability, a maximum of 7 days of leave will then be encashed based on Basic salary and HRA.

Earlier, we used to get 2.5 leaves every month, making it 7.5 for three months (Jan, Feb, Mar).

So the calculation for April onwards is 13.5 + 7.5 - total leaves availed in Jan, Feb, and Mar.

Hope this will be of some use, especially for those who are new to HR.

Hi Ditti,

It is really very simple and useful. I want to use your Leave Record Format to maintain our leave record.

Regards,
Subhra

Dear Diti,

As per your leave policy, an employee can forward a maximum of 7 days' leave to his credit at the end of the year. You must be aware that an employee can have a maximum of 30 days of leave to his credit under the Factories Act. According to the Factories Act, earned leaves are calculated on a calendar year basis. Previously, you were granting 30 days of leave per year, i.e., 2.5 days per month, but now you will only allow 18 days of leave. It appears that you are altering the service conditions without prior notice to the employees. It is also unclear whether your unit is covered under the Shop Act or the Factories Act, 1948. If your unit falls under the Industrial Disputes Act, 1947, then a notice period of 21 days is required for such changes. Please look into this matter and examine it.

Submitted for information only.

Regards,

R.N. Khola

(Labour Law & Legal Consultants)
09810405361

Hello Mr. Khola,

My company is covered under the Shops and Establishment Act and is based in Noida, Uttar Pradesh. I am well aware that in that case (coverage), legally an employee should get 40 days of leave in one calendar year (15 EL, 15 SL, and 10 CL). All the employees were informed in March '09 about the changes and were communicated through meetings and conference calls (the meeting was headed by the Head of HR). Also, the decision to shorten leaves has been made by the management; I am just following that. :neutral::neutral: Anyway, thanks for the suggestion.

Regards

Hi Akram,

Leave is governed by different laws and is also determined based on working days. For example, under the Factories Act 1948, the calculation is as follows:

- Earned Leave: Working days / 20
- Casual Leave: Working days / 40

Working days should be counted excluding holidays.

Regards,
Santosh

I would be very grateful and thankful if you could clarify the following:

1. If an employee takes leave on Loss of Pay (LOP) on Saturday and Monday, does Sunday also count as LOP? If so, is it legally correct?

2. If an employee leaves the job after completing the probation period of one year, having waited for more than 3 months and is yet to receive written confirmation from management regarding the extension or confirmation of service, is the employee entitled to Sick Leave (SL) and Earned Leave (EL) when receiving the full and final settlement?

3. Is it mandatory to serve one month's notice given that the validity of the appointment order expired 3 months ago, and there has been no communication from the management after the completion of probation?

Kindly provide clarification.

Thank you, and I remain,

Regards,
K.C. Seshadri

Hi, I went through the leave format, and it's really good. Could you please tell me if it can be used in a public school? How many standard leaves should be there as we are a new school and planning to provide all leaves to our staff? Please help me determine how many leaves should be allocated for ad hoc, probationary, and confirmed staff in teaching and non-teaching roles.

Regards, Parulamar

I would like to inquire about the number of leaves allowed in a year for EL, SL, and CL.

Regards,
B.L. Sharma
HR & Admin Executive

Mr. Khohla would like to understand from you that in my company, we have a policy where employees are required to consume their PL & CL throughout the entire year, or it will get lapsed. Please guide me, can this be illegal?

Thanks,
Raj

You are responsible for granting earned, casual, and sick leaves to the employees/workers. If your unit is covered under the Maternity Benefit Act, 1961, then you are also required to grant maternity benefits/leaves as per this Act.

Regards,
R.N. Khola

In my opinion, we are not allowed to ask the employees to consume PL during the year as they can accumulate their EL up to a certain limit as allowed under the law applicable to your company. First, see which of the Acts relating to the grant of PL is applicable and see up to what extent an employee can accumulate their PL to their credit. In general, the law relating to the grant of CL says that CL, if not availed, will lapse at the end of the year. Therefore, see which of the Acts is applicable to you and then go through provisions relating to the grant of casual leaves.

R.N.Khola

I would like to understand from you that in my company, we have a policy that employees are required to consume their PL and CL in the entire year, or it will get lapsed. Please guide me, can this be illegal?

Thanks,
Raj