How Should We Handle a New Leave Policy That Limits Taking All 30 Days at Once?

Hi SR.,

My company is planning to revise the leave policy by amending it in a way that from now on, if any confirmed employee wants to avail leaves in one go, he/she cannot do so. The company will now keep their 30 leaves, and employees can avail leave on a prorated basis only.

Please advise.

Regards, Trapti

Dear Tripti,

First, examine which Act is applicable to your establishment for the grant of earned leaves, and thereafter, go through provisions relating to eligibility, grant, and accumulation of earned leaves before changing your leave policy. At the same time, if your unit is covered under the Industrial Disputes Act, 1947, then also go through section 9A for effecting such change.

With Regards,
R.N.Khola

Hi SR.,

My company is planning to revise the leave policy by amending it in a way that from now on, if any confirmed employee wants to avail leaves in one go, he/she cannot do so as the company will now limit their leaves to 30. Employees can avail leave on a pro-rata basis only.

Please advise.

Regards,
Tripti

I agree with Mr. Khola; you must see the labor laws before implementing any changes. For further suggestions, please inform us whether your company is engaged in manufacturing or some other activity.

Manish Gupta

Thanks, everybody,

Our company is a software company and is under the Shops and Establishment Act. The reason behind the new leave policy is that most of the employees are leaving after getting their increment due to the current market status.

Dear Tripti,

If your employees are leaving your establishment, it may indicate that you are not paying salaries at par with the market. There could be other reasons as well. If you are covered under the Punjab Shops & Commercial Establishment Act, 1958, as applicable to the State of Haryana, then refer to section 14 on 'Leaves' for your query. Do not implement policies that contradict the law.

With Regards,
R.N. Khola

You are right, Mr. Khola. However, we also offer a very competitive compensation package. Unfortunately, a few employees have developed the practice of seeking good increments and then leaving the company.

Please put your queries properly. Please give all details and facts to elicit a proper response.

I am not able to establish any relation between your proposed Leave Policy and employees leaving your organization or a high attrition rate.

Thanks & Regards

Thanks everybody, Our company is a software company under the Shop and Establishment Act. The reason behind the new leave policy is that most employees are leaving after receiving their increment due to the current market status.

The company can keep the permitted E.L.s of the employees in its account for leave encashment. However, it cannot deny employees from going on leave based on reserves.