How to Create a Fair Leave Policy for a 5-Day Workweek with Rotating Saturday Shifts?

Hi All,

I am working with an MNC handling the Admin & HR department. My organization operates for 5 days, i.e., from Monday to Friday for Management staff, and the Technical staff works on Saturdays. However, in the technical department, there are only 3 employees, and from last month, the boss has allowed flexibility for any of them to work on Saturdays, rotating the duty.

I would like guidance on how to frame a casual leave and sick leave policy concisely for this organization. I need to present this to my Area Director. I am seeking advice on the rules for establishing a leave policy. If the organization operates for 5 days a week, how many public holidays should be granted?

Please respond to me as soon as possible as I need to complete this task by next week.

Regards,
Preeti.

Dear Preeti,

Kindly frame your query in proper English. As an HR professional, please avoid using SMS style while communicating in professional circles.

Regards,
SC

Dear Preeti,

For framing leave rules, you have to refer to three documents. The first is the Shops and Establishment Act and the rules made therein if you are working in an office. If you are working in a factory, it has to be the Factories Act. It will tell you about the EL/PL (some people call it EL and some PL).

The second is Standing Orders applicable to your industry. If you do not have Certified Standing Orders, you have to refer to Model Standing Orders. SOs will tell you about CL and/or Sick/Medical Leave.

What is left is the Holidays. Sometimes, SOs refer to Holidays also. If not, then every State Govt. comes out with a notification as to the minimum number of Holidays a Pvt. Establishment has to declare.

So now you know about all kinds of leaves and Holidays. The thumb rule is that you cannot give fewer leaves or holidays than what is provided in the statute. But you can always give more or the same. The decision whether to provide more has to be purely yours. For this, better refer to what your neighboring companies are doing and what your competitors are doing and then decide.

KKT

Hello KKT,

Thanks a lot, but if you can elaborate, it will be more helpful. Is there any website from where I can come to know about the Establishment Act, or can I get this information from our company's C.A.?

Regards,
Preeti

Dear Preeti,

You may not get this information from your CA, and I am not aware of any website. But you can buy the 'Shops and Commercial Establishments Act' (this is the correct name) from any of the bookshops that keep books on Law.

KKT

Hi KKT,

I had a word with my C.A., and she informed me that it is not helpful for creating a leave policy as the Shop and Establishment Act is related to the business and the buying of a shop or showroom. Please explain how it will be useful, or kindly suggest any other ideas.

Regards,
Preeti.

Dear Preeti,

This is precisely the reason I had told you that CA will not be helpful in this regard. It is just like asking a Civil Engineer about the problem of your car's engine. If you work in a manufacturing unit where some product is manufactured, the Factories Act provides legal guidelines about safety, leaves, weekly offs, shift timings, welfare measures, etc. But if you are working in an office or a shop, the guidelines are provided in the 'Shops and Commercial Establishments Act'. This Act is not for buying shops, etc.

KKT

Dear All,

I am working as an HR Officer in an NGO (Non-Government Organization). I have been tasked with framing the Leave Policy for my organization. Please help me in designing the policy as I am very new to policy formulation and implementation. Your assistance would be greatly appreciated. Thank you for your guidance.

Hello Preeti,

What you can do is:
1. EARNED LEAVE - One day per 30 days worked. That is 12 days in one year. This can be encashed if not availed.
2. CASUAL LEAVE - Five days in one year.
3. HOLIDAYS - You can declare about 8 holidays for major festivals, of which 26 Jan and 15 Aug are compulsory. Depending on your staff's religious mix, you can select the other 6 holidays.
4. Anyone exceeding the above limit will be termed as extraordinary leave and will not be paid for.

Riyaz

Hi Preeti,

Find enclosed one of the sample formats of the Leave Policy. I hope it will help you in framing the same at your end.

Regards,
Amit Seth