Creating a Fair Leave Policy Across India: How to Handle Different State Holidays?

I want to formulate a leave policy for a company that has branches all over India. The problem is that each state has its own list of holidays, which are different from each other. The company wants a uniform number of days off for all employees throughout India.

I want to formulate a leave policy for a company that has branches all over India. The problem is that each state has its own list of holidays, which are different from each other. The company wants a uniform number of days of leave for all employees across India.

Please let me know if you need any further assistance with this policy.

First of all, decide the number of leaves you want to give in a year. Assign leave against every festival. For example, if you have set ten leaves, in Delhi, there are 10 festivals, so one leave is given on every festival. In Mumbai, there are only 5 festivals, so assign 1 leave against each festival, and the remaining 5 leaves they can avail anytime during the session, but one leave at a time. This may help you while making your policy.

Regards

I feel your email is unclear regarding holidays and employee leaves. Formulating a leave policy falls under the company's standard administrative leave policy, which is applicable to all branches across India.

Leave Policy Overview

The leave policy governs earned leaves (ELs), casual leaves (CLs), sick leave, and all other authorized leaves (e.g., maternity) of the employees in accordance with the Government Act. Every company must observe holidays based on state/local festivals. Therefore, we cannot have a unique policy for these holidays other than the national holidays.

Best Regards,

You need to understand that local establishments/offices of your company in different states are governed by local state law. Apart from certain festivals being different, the Local Shop and Establishment Act/state Holiday and Festival Acts provide for compulsory holidays on certain dates. For example, 1st Nov is a holiday in many states as it is the date on which these states came into existence. The same treatment applies to 1st May, etc.

You can have the number of holidays the same in the company but NOT the dates.

Dear Sirs,

I have a problem with employees taking more than the paid leave allowance, i.e., 30 days per annum, on various pretexts.

1.) Apart from deducting the salary for the extra days, are there any other options available?

2.) Can a policy be implemented to address this issue?

Please advise.

William
william@chintels.com
m-9891660642

Dear All,

As Mr. N. Sarma has pointed out, please let there be no confusion between holidays and leave (such as casual leave, earned or privilege leave, sick leave, maternity leave, etc.).

Formulating New Leave Rules

For formulating new leave rules for one's company, I would suggest studying P. Muthuswamy's (popularly known as Swamy's Publications) Government of India leave rules, which are considered the most ideal leave rules and framed after due consideration of many aspects. Companies may make necessary changes suitable to their needs and give their own number of leave days per year to their employees, but let the base be GOI leave rules, in my personal opinion. The GOI has also now started paternity leave of 15 days. To boost the morale of their employees, I suggest the private sector may also follow suit and offer paternity leave for the first two children. This could be an additional or alternative perk.

Holiday Considerations

Except for statutory holidays (such as Maharashtra Day on 1st May in Maharashtra state, 15th August, and 26th January, etc.), an employer may differ their holidays with those of the concerned state. There is absolutely no problem with it, except in the case of statutory holidays. However, in such cases, the employer may lose access to banks on public holidays on those specific days in particular states. I suggest that HR departments willing to formulate standard holidays on an all-India basis may prescribe the following days as compulsory for all offices in all states and leave the remaining holidays to be selected by their branch offices in the states, and then communicate the holiday lists to other branches. This way, there will be uniform holidays on the maximum number of days.

- Dussera (Vijaya Dashami) (two days Navami and Dashami for Durga Pooja)
- Diwali (two days Lakshmi Puja and Padwa)
- 26th January
- Mahashivaratri
- Holi
- Gudi Padawa/Ugadi/Cheti Chand
- Ram Navami
- Narali Poornima or Rakhi Poornima
- Janmashtami

For employees belonging to minorities, optional holidays may be offered instead of closing the entire establishment on their important festivals. In central government offices, such holidays are referred to as restricted holidays. GOI employees are entitled to 2 restricted holidays (RH) in a calendar year, over and above the 16 compulsory holidays. Each employer may decide the number of holidays in a calendar year and choose those dates from the festivals of the states. Branch offices in Maharashtra may prefer holidays on Ganesh Chaturthi and Anant Chaturdashi days. Branch offices in Gujarat may prefer a holiday on Uttarayan (Makar Sankranti/Pongal day, mostly falling on 14th January).

Regards,
Shyam Agrawal

Addressing Excess Leave in the Workplace

Regarding the questions raised by Mr. William in his posting above, I have to say that deducting salary for excess leave availed is not a solution to the problem. This will create many problems in the future, such as arriving at qualified service for gratuity and payment of pension under the Employees' Pension Scheme, 1995, etc. The Government of India ensures that no day in one's service remains unregularized.

The best policy in the private sector would be, in my opinion, to regularize the excess leave as leave due and provide the employee with a salary for such excess leave. This approach will benefit employees who cannot keep the date due to circumstances beyond their control. However, if the employee habitually avails excess leave, the concerned HR may issue a warning for the future. If there is no improvement, the HR may regularize such excess leave as leave without pay. This period may impact pension computation, gratuity, etc., as leave without pay is not considered qualified service.

The employer may only resort to regularizing excess leave if the employee is a habitual absentee and unable to justify their absence to the satisfaction of immediate superiors. In other cases, excess leave or absence may be regularized as leave due.

Regards,
Shyam Agrawal