How Should We Structure Our Leave Policy? Seeking Advice on Weekends and Leave Types

We are a Content Solutions company registered under the Bombay Shops and Establishments Act and located in Mumbai. We have a 5-day week and 12 sundry holidays available to our employees.

What kind of minimum leave policy structure can be initiated? Should we include weekends? Should we segregate across CL/PL/SL?

Dear Member,

Every employer should provide a minimum of one day off in a week. However, any 3 days before or after Sunday can be substituted for this (Cannot be varied every time as per convenience).

This cannot be included in CL/PL/SL.

For every employee who has worked for a minimum of 240 days in a year or 180 days in the case of mine/organizations having less than 6 working days in a week will be eligible for Paid leave @ 1 leave for every 20 days worked in the case of an adult worker / 15 days in the case of a child worker, i.e., 1.25 leave per month or 15 PL IN A YEAR.

The said leave should be given on a pro-rata basis if the employee joins in the middle of the month.

PL can be availed after the completion of the first year of service.

Apart from this, 12 CLs are given to the employee (one per month) or 7 CLs and 5 SLs are given, which is again equal to 12 leaves in a year.

Hence summarizing, you should frame a policy that allows employees:

1. 12 CL or (7 CL + 5 SL)
2. 15 PL
3. a minimum of 1 day off in a week.

For more guidelines, please refer to the Bombay Shops and Establishment Act.

Regards,

Santosh.

Dear Santosh,

Can you please advise me on how many leaves, i.e., PLs, can be carried forward and for how many years? I am working on structuring a leave policy where not a single leave should be carried forward to the next year. If there are any balance leaves (PLs) pending, we will encash them at the end of the year.

Kindly advise if I can proceed with this approach.

Thanks & Regards,
Ruchi Thakkar