Curious About Leave Policies and Encashment? Let's Discuss the Basics!

Hello,

Please tell me the standard leave policy (CL, SL, EL). I have read articles, but I did not find a standard policy. Also, please tell me about the encashment of leaves.

Thanks in advance...

Ankit Gupta

Dear Ankit,

There cannot be a standard leave policy because while framing the leave policy of the company, you have to take care of state leave rules as per the provisions of the Shop Act, Factories Act, and factory rules. The factory/establishment that may be complying with Delhi rules may not fit the rules of UP.

As per the Delhi Shop and Establishment Act:
- Privilege Leave: 15 days
- Casual and Sick Leave: 12 days

Whereas, as per the UP Shop Act:
- Privilege Leave: 15 days
- Casual Leave: 10 days
- Sick Leave: 15 days

Now, see how much difference there is. These are the minimum leaves one has to provide. How can one form a standard policy?

Thanks,
J. S. Malik

Dear Ankit,

I'm with Malik. There won't be any such formal document, but a few things must be followed as per the laws and acts:

1. PL/EL: If the company operates for 5 days a week, then 1 earned leave for every 30 days. If the establishment operates 6 days per week, then 1 and 1/2 per 30 days, which means 1 earned leave for every 20 service days.

2. Sick leave is a must: The minimum number of leaves is 12, and the maximum is subject to management decision.

3. Maternity and Paternal Leaves are as per the 1961 act.

Regards,
Shiv

Dear Chetan,

As per the Bombay Shops and Establishment Act, you are required to provide 21 paid privilege leaves. There is no provision for sick and casual leave.

Thanks,
J. S. Malik

Dear Ankit,

Leave encashment policy also varies from company to company. Most companies follow the policy of encashing leave after the accumulation of 45 days of earned leave.

Regards,
Amit Seth

Please tell me the number of EL/PL/CL/SL as per the Uttarakhand State Shop & Establishment/Factory Act.

What if a company is not providing the exact number of SL and leaving all SL matters to be decided by the management on an individual case basis? Is it correct? Can anyone challenge it, and if yes, on what basis, especially in Uttarakhand State?

Regards, MMP

Dear Ankit,

Although there is nothing called a standard policy, policies vary from company to company and place to place. However, to help you form a leave policy, I am enclosing a file herewith that you may use as a reference to create a policy according to the needs of your company and the applicable laws in your state.

Prashant

Dear Malik sir,

Please tell me the standard leave policy (CL, SL, EL). I have read articles, but I did not find the standard policy from the Haryana Factory Act.

Dear All,

Can anybody tell me the number of leaves for Andhra Pradesh? Also, are these numbers constant or do they vary from time to time?

Understanding Leave Rules in the Hotel Industry

I want to know about the rules of leave in the hotel industry. I joined in May 2015. After one year, I asked my management for Earned Leave until December 2015. However, they rejected my request and informed me that I am entitled to Earned Leave after one year, like in May 2016. Today, I requested my management for my leave salary again. They only provided me with payment for 10 days of leave. I am confused as I have been working with them until December 31, 2016, which is 20 months, yet they only granted me 10 days of Earned Leave. They mentioned that this is the government rule. I would like to understand if this is correct or incorrect.

Thank you.