How Can I Convince Management to Rethink Our Demotivating Leave Policy Change?

Hi all,

I am in a dilemma. As per our organization's policy, we provide 35 annual leaves to employees post-confirmation on a pro-rata basis. Now, I want to change it to CL, SL, and PL format. Since our organization does not offer cash or kind privileges to our employees, I suggested having alternate Saturdays off for employees. However, the hitch is that the directors feel it might be too much and want to reduce the number from the annual leaves, resulting in 24 Saturdays being deducted from the 35 total. This sounds quite demotivating, doesn't it?

Kindly suggest how I can convince them otherwise.

Hi,

Maybe you can keep 20 days PL and 10 days SL. This is the general practice in most companies. A few companies also grant 7 CLs. It is at the company's discretion how they choose to provide it.

It is unethical to substitute annual leave for Saturdays. I think you should candidly explain this to the management and try to convince them.

Regards,
Smita

Hi Jhuma!

Leave is not a matter of right; it is a privilege. Your employees are already enjoying the same, and if you want to provide something extra to your employees, you may consider other means of staff welfare. Moreover, I also agree with Smita for not substituting annual leave with Saturdays.

Rgds, Prodyut

Jhuma,

You may like to consider the following before you make your proposal:

1. What is the legal requirement for the number of days of leave that needs to be given based on your type of industry and location?
2. Providing CL, SL, and PL is a good idea.
3. In these current times of recession, what will bring you the competitive edge: productivity or absence from work?
4. Based on your current setup and business needs, you may choose to provide a little more than what is required as a minimum by law.

Hope this helps... Cheers,
Neetal

In my point of view, you can classify the leaves as follows:

6 - CL's
6 - SL's
24 - Saturdays off (or) PL's

It could help you a bit.

Hi Jhuma,

All suggestions are very good and may be implementable. However, what we are practicing in our company is as follows:

1. CL per year 12 on a pro-rata basis.
2. SL for ESI-exempted employees - 7 days in a year on a pro-rata basis.
3. EL - More than 240 days working / 17 (Statutory is 20). We are giving slightly more.

In this regard, we are maintaining statutory compliance, and as a manufacturing sector, we are not receiving any complaints from staff and workmen.

Regards,
Sanjay
Sr. Executive - HR
Lokesh Machines Ltd. - Hyderabad

In case of minimum leave, you should provide leaves as per the following details: Casual: 7 Sick: 7 (if not covered under ESI) PL/EL: 15.

If you reduce 24 from your current 35 leaves, it will remain only 11, which is very less. You should let your boss know the minimum leaves under the Factories Act.

Also, for getting alternate Saturdays off, you can conduct a benchmarking study from your region/industry and present it to management. Keep it as an employee engagement initiative. I suggest not mixing it with leaves as per the act.

Regards, Ila

All the leaves in a company except Maternity Leave are given on a pro rata basis for those who join or resign during the year. Usually, the following leaves are given to employees:

CL - 10 (unavailed CLs lapse at the end of the year)
SL - 10 (can be accumulated but may not be encashable)
EL/PL - 4-8 for each quarter (can be accumulated and encashed)

You can give 10 CL, 10 SL, and 16 EL/PL to your employees.

Regards,
Sachin Jayaswal

If your company is working as per the Factories Act, Shops and Commercial Establishments Act, etc., there are some guidelines to provide Privilege Leave/Annual Leave to confirmed employees. Casual Leave and Sick Leave can be decided by the company.

Reducing non-working Saturdays from Annual Leave is not practical. PL/AL - 18 days (4.5 for a quarter), SL - 9 days (3 for a quarter) would be fine.

Look at the organizational gains and losses with giving additional 2 days off in a month. Based on that only, you will get your answers.

Saurabh

In our factory, we are offering 30 PL days in a year. An employee should take these leave days three times only. Additionally, we provide leave encashment facilities. Sick leave is allotted as 10 days per year, while Casual leave is also set at 10 days annually, not exceeding this limit. Furthermore, leave should be granted based on the employee's joining date.

Kind Regards, Bolbanda Chetananand

Hi Juma,

Wow, 35 annual leaves is a great number. My previous company had a total of 30 leaves - 15 days sick leave (SL) and 15 days vacation leave (VL). However, this can be earned after every month, which is 1.25 SL and 1.25 VL per month. As an organization, you can make changes as needed, but there are limitations. One should also consider the existing labor policy regarding leaves.

Hope this helps.

Best regards,
16949... D)

In other companies I have worked for, they also have Emergency Leave, which comprises any of the following: Birthday leave, etc. :)

Thank you all for your help! Your suggestions are greatly appreciated. I am considering dividing the employees into 2 teams and offering either the 1st and 3rd or the 2nd and 4th Saturday off. Do you think this would be a good idea? It would help in keeping the office open all 6 days.

Hi, I am working in DSCL Sugar.

In my company, the leave rules are as follows (Yearly):
- CL: 06
- ML: 10
- PL/EL: 14 (01 PL/EL = Actual 20 days of working. This means if an employee works for 280 days out of 365 days, then they can avail 14 PL in a year but in three installments. It is also important to note that the employee can avail PL/EL after working for 240 days in that year.)

Hi,

I am working in a Real Estate firm in Kolkata which comes under the Shop & Establishment Act. In our organization, the leave policy is as follows:
- CL: 7 days
- SL: 8 days
- PL: 15 days (after completing 1 year of service with the company) for a confirmed employee. A probationer is not eligible for any leaves. PL is encashable and accrual.

Is this policy acceptable, or do you suggest any modifications?

Seniors, please suggest.

Waiting for a reply.

Priyanka

Dear All,

If the employee is covered under ESI, he is not eligible for SL. Why? How can we give leave if he/she is sick?

Akil

Dear Priyanka,

Why is a probationer not entitled to CL & SL during the probation period? Is he/she not considered an employee under the State Shops Act? Please review your State Act and inform us which section of the Act prohibits probationers from availing CL & SL.

Regards,

R.N.Khola

Hello sir,

How much total leave (CL, PL, EL, etc.) is available to an employee? Does this depend on the employer, or are there any rules for leaves? Which leave can I encash if not taken? Our company only provides 8 SL. Can I challenge the company's rule by any act? Please guide me.

Thanks,
Kalpesh

Dear Kalpesh,

First, examine which of the different leave-related enactments are applicable to your establishment/unit for the grant of CL, SL, and EL, etc. You have not provided any details regarding the establishment/unit where you are working. No suggestions can be given by the members in the absence of complete details.

Regards,

R.N.Khola