How Do You Create an HR and Leave Policy for a Private Company? Seeking Guidance!

Please tell me how to formulate an HR Policy in a private company and about the leave policy too. How many total leaves can be given to an employee in a year?

Reply to me soon.

Regards,
Archana

Privilege Leave (PL), Sick Leave (SL), Casual Leave (CL) limits are set at the discretion of the company. The parameters differ from company to company and country to country. It also depends on the work culture of the organization. Each organization sets a limit on the number of CL, PL, and SL for the employees. Within the set limit, when employees take the leave, they get counted as PAID LEAVE. Any day exceeding the limit set results in a PAY CUT for the employee. It is not necessary that every organization will provide all three leave facilities for its employees. Some may simply offer CL and SL, while some may prefer to grant only SL. All decisions are at the discretion of the organization. Leave Encashment Allowance is also at the discretion of the company.

Thanks and Regards,

CA Rajesh Balsara
+91 98670 90679

Dear Archana,

Please find attached the documents herewith for your reference.

Regards,
Narendra

If your company is covered under the "Shop Act," then 12 days of CL, SL, PL are allocated for each employee every year.

If your company is covered under the "Factories Act," then PL should not be less than 20 days every year, provided that the employee has not availed any unauthorized leave during the preceding year of service.

SL is advised to be carried forward, whereas the remaining CL should be encashed at the end of every year, and PL can be accumulated to a certain extent or encashed at the choice of the employee.

Hello, Dear All,

Trainee employees can be eligible for earned leave after completing their training period when they are on probation.

Regards,
Sarjerao

Dear Archana,

If your company is covered under the "AP Shops & Establishment Act 1988," your employees are entitled to get 12 days of CL and 15 days of Earned Leaves. If your company does not come under ESI purview, they are eligible for 12 days of SL. However, if the company comes under ESI, employees who are drawing above 10,000/- are eligible for getting 12 days of SL.

Good input by Mr. Narendra,

Thanks,

Dear Archana,

It's better to create an HR manual or company policy with all mandatory inputs required as per your company standard. It's better to refer to Mr. Narendra's posting for your guidance.

Regards,
Ramnath

Hi,

Please confirm the leave policy during the probation period of 6 months. Are employees eligible for CL and PL only? EL can be availed after 240 working days.

Thank you.