Sick Leave Policy Confusion: Does the 90-Day Cap Reset Each Year or Not?

Hi,

As per the policy of our company, Sick Leave can be accumulated for a maximum of up to 90 days, but it is not encashable. My query is whether, after 90 days, it should start again as a new cycle, i.e., from zero for the new calendar year, or if the balance will remain at 90 and the additional 6 Sick Leave days for the new calendar year will be lapsed. Please revert with your valuable inputs.

Thanks & Regards,
Priti

The balance will remain at 90, and the additional 6 SL for the new calendar year will lapse.

Hi,

The balance of 90 days of leave will remain the same. Additional leave may be encashed as per your standing orders or policy.

Thank you.

If it is not encashable, then what difference does it make if you allow employees to carry forward their sick leave? Anyways, after retirement or resignation, it will lapse. Keep it as simple as possible.

As per your company policy, the maximum leave accumulation shall be 90 days. It means that on January 1st every year, the leave accumulation shall be 90 days, and any leave beyond 90 days can stand cancelled or, if possible, encashed.

Ask the employee to ensure he has only 84 days as of December 31st of any year. Then, you can add another 6 days for the upcoming year on January 1st. This means advising them to utilize at least 6 days for employees whose leave balance is 90 days before December 31st of every year.