Hello everyone,
Is it Mandatory for any company to carry forward the unused paid leaves of an employee to the next year? Or...does it differ from company to company?
We are a pharmaceutical KPO. We had a policy of carry forwarding leaves to the next year in case they are unused at the end of the calendar year.
We also had an option to encash the number of paid unused leaves above 30 at the end of the year. However, excess of 60 shall lapse.
But the employees have started taking short leaves instead of using their paid leaves. Short Leave means they exit early or come late for an hour or so and compensate it later in the week.
This ways many of them have accumulated their paid leaves and have reached to number of 40 -50 unused paid leaves.
This has led to the situation wherein the company needs to pay them the salary for 10-20 days, in case they ask for encashment.
Now, we have decided to amend the policy of carry forward of paid unused leaves to the next year to motivate them to use their leaves instead of accumulating.
One more question, can we tell the employees that the unused paid leaves at the end of the year shall lapse or are we bound to encash them at the end of the year?
Your suggestions/comments will be very useful.
Thanks.
Is it Mandatory for any company to carry forward the unused paid leaves of an employee to the next year? Or...does it differ from company to company?
We are a pharmaceutical KPO. We had a policy of carry forwarding leaves to the next year in case they are unused at the end of the calendar year.
We also had an option to encash the number of paid unused leaves above 30 at the end of the year. However, excess of 60 shall lapse.
But the employees have started taking short leaves instead of using their paid leaves. Short Leave means they exit early or come late for an hour or so and compensate it later in the week.
This ways many of them have accumulated their paid leaves and have reached to number of 40 -50 unused paid leaves.
This has led to the situation wherein the company needs to pay them the salary for 10-20 days, in case they ask for encashment.
Now, we have decided to amend the policy of carry forward of paid unused leaves to the next year to motivate them to use their leaves instead of accumulating.
One more question, can we tell the employees that the unused paid leaves at the end of the year shall lapse or are we bound to encash them at the end of the year?
Your suggestions/comments will be very useful.
Thanks.