New Company Leave Policies: How Many Paid Days Off Should We Offer Employees?

anju.sharmasas@gmail.com
Dear seniors, please provide me with some information regarding leave policies as our company is new and there are no established guidelines for employee benefits. Kindly advise on the number of leaves employees are entitled to take in a month without any deductions from their salaries.

Thank you,

Regards,
Anjana
HR Executive
Chandigarh
ragunathbala
Here is the leave details yearly:

Leave Policy

1. Policy Statement & Objective
2. Leave Year and Applicability
3. Privileged Leave
4. Casual Leave
5. Sick Leave
6. Maternity Leave
7. General Rules
8. Off Days and Holidays
- 9.1 Weekly off days
- 9.2 Paid Holidays
- List of Paid Holidays

Policy Statement & Objective

Encourages its employees to take a break from work as this provides for a healthy and efficient staff. The Leave Policy sets out the various types of leaves that an employee is eligible for and outlines the procedures for taking leave.

Leave Year and Applicability:
- Leave year is from 1st Jan - 31st December.
- The different types of leaves covered under this policy are:
- Privileged leave (PL)
- Casual / Sick leave (CL/SL)
- Maternity Leave (ML)
- The policy is applicable for all permanent employees. For employees who are working part-time, the privilege leave and sick leave entitlement will be calculated pro-rata.
- This policy is not applicable to consultants engaged with the company. For consultants, the leave will be in accordance with the individual contract signed with them.
- In the event of an employee leaving the service of the organization by way of resignation or attaining the age of retirement or otherwise, except as a result of disciplinary proceedings, he/she shall not earn Privilege Leave during the notice period that the employee needs to serve, in case of a resignation.
- All leaves should be applied in the "Standard Leave Form" available with HR or through the online application.
- A minimum of 10 days/year leave by everyone is intended.

Privileged Leave:
- Eligibility:
- All permanent employees of the company are eligible to avail privilege leave.
- Privileged leave is calculated for a period of one calendar year (January to December).

- Entitlement:
- 12 days leave per calendar year for Permanent Employees. This leave is calculated at the rate of 1 day for every 20 working days served. The holidays or the normal weekly off days will not be counted as leave even if included within the total leave period. No leaves will be credited in advance.
- Privilege Leave is exclusive of official and weekly offs provided only proceeding/succeeding days are taken as PLs.

- Accumulation:
- This leave may be accumulated up to a maximum of 45 days. Accumulated leave of 45 days will be encashed at the rate of basic pay only.
- At the time of resignation of service or retirement, the balance privilege leave will be encashed at the basic pay rate as on the day of retirement/last working day in case of resignation.

Casual Leave/Sick Leave:
- Eligibility:
- All permanent employees are eligible to avail Casual/Sick leave.
- Casual Leave/Sick Leave for the calendar year, i.e., from January to December.

- Entitlement:
- All Permanent Employees are eligible for 1 day Casual Leave/Sick Leave for every 20 actual worked days. An employee is eligible for a maximum of 12 days Casual Leave/Sick Leave in a calendar year.
- Casual Leave cannot be availed for more than 3 days continuously.
- If an employee avails more than 12 days Casual Leave/Sick leave during the calendar year, excess leave will be deducted as PL or if PL is not available, they will be unpaid leave.
- Adjustment of CL/SL for more than 6 days against PL is with the discretion of management designed only to help personal emergencies of the employees.
- Half Day CL can be taken as needed.
- All leaves should be applied for in advance unless circumstances are such that it is not possible to do so. In such cases, a telephone call or an email to the concerned Reporting Authority or in his/her absence to the concerned Department/Divisional Manager as intimation should serve the purpose.

- Accumulation:
- Casual Leave/Sick Leave cannot be accumulated or encashed or carried forward to the next calendar year.

- Leaves for Employees on Probation:
- Employees on Probation are eligible for 2 days CL/SL for every 20 actual working days.

Maternity Leave:
- Eligibility:
- Maternity Leave is a statutory leave.
- Married and expecting women employees are eligible to avail maternity leave.
- The Employee should have completed 6 months of service with the company to be eligible to avail maternity leave.

- Entitlement:
- Maternity leave can be availed only twice during the service of the Employee.
- Maternity leave can be availed for a maximum period of 90 days. Unavailed maternity leave is not adjusted against the privilege leave balance of the employee or any other leave.
- The Employee will receive the full amount of salary during the period of maternity leave, this will be the salary last drawn by the Employee before going on Maternity Leave.
- If the employee wants to extend the duration of leave beyond the stipulated duration (i.e. max of 90 days), the employee may extend the leave by utilizing her entitled privilege leave with prior permission of the concerned Department/Divisional Manager.

- Process:
- A written application for the maternity Leave, along with the doctor's certificate should be submitted by the Employee at least one month prior to the start of maternity leave. This application should also mention the dates and duration of the leave period as well as the joining date. The application should be forwarded to HRD after the Department. Format of the application is available with HRD.

General Rules:
- All applications for leave must be made on the prescribed Leave Card available with the HR Department, which has to be duly approved and signed by the immediate supervisor or email to HR using (Std Forms) folder on the server. Please consult HR if you cannot access the HR folder (Std Forms).
- It is the Employee's individual responsibility to ensure his/her Leave Card is duly updated every time leave is availed.
- It should be a very rare instance that an employee is not allowed to avail his/her leave, due to exigencies of work. Leave should be planned in such a way that it does not affect productivity or, while on a project, does not affect the project work/delivery deadlines.
- If leave is not sanctioned and an Employee remains absent on those days, then the absence will be treated as unauthorized "Leave without Pay", irrespective of working days or holidays, i.e., any holiday sandwiched between 2 days of Leave Without Pay will be included in the Leave availed.
- The Employee should check the Leave balance before applying for the same.
- During the leave period (but for the "Leave without Pay"), the Employee shall be entitled to the same salary as was admissible to him/her on the day immediately preceding the date of commencement of the leave.

Off Days and Paid Holidays:

Weekly Off Days
- The working week will be of five days for all employees normally Monday to Friday.

Paid Holidays
- All permanent employees are eligible for paid holidays in a calendar year.
- Paid holidays are selected on the basis of national/international holidays/local festivals celebrated, depending on the location of the offices. Therefore, holidays may be different days at other locations.
- The total number of holidays will be decided by the Company every year.

*The following are the holidays for the calendar year:*

Month | Festival | Date | Day

Regards
arya22
I have created a formula for leave calculation. I hope it will work in your organization. If you can provide your valuable hints or ideas to add to this, you are welcome. Please go through the attachments.

Thanks,
Anjani Singh
1 Attachment(s) [Login To View]

sumitk.saxena
Dear Anjana,

Greetings for the day. As you mentioned, there is no leave policy in this newly established company. Please take note that in a year, employees are entitled to 15 earned leaves/privilege leave, 7 casual leaves, and 7 sick leaves with wages in a calendar year.

Earned/Privilege Leaves

Earned/privilege leaves should be availed after completing 240 days of service by an employee, allowing for 1 leave every 20 working days.

Casual and Sick Leaves

Additionally, there are 7 casual leaves and 7 sick leaves per year, which can only be provided to those not availing ESIC facility.

Thanks & Regards,

Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]
zenith_amrita
In a year, you have:
- 7 casual leaves
- 5 sick leaves
- 18 paid leaves

You can adjust according to that. In a month, a person can take 1.5 days as paid leave. If they take 2 sick leaves in continuation, then they have to submit a medical report.

Regards,
Amrita Tripathi
HR Executive
Mideast Pipeline Products Pvt Ltd.
tan_malick@yahoo.com
Leave Policies in Pakistan for Small and Medium Organizations

There are so many kinds of leaves, but it varies from company to company. In Pakistan, we are implementing the following leave policies in small and medium organizations, not multinational corporations:

- Casual leave: 10 days (Expires at the end of the year)
- Sick leave: 8 or 10 days (Can be accumulated up to 45 or 55 days or more)
- Earned/Annual leave: 14 or 30 days but after completing the year uninterrupted (Accumulation can be 90 or 120 days or more)
- Maternity leave: 45 days prenatal, 45 days postnatal (90 days total)
- Accidental leave (Long) without pay if group life insurance is applicable
- Study leave without pay
- LFA (Leave Fare Assistance): 14 or 21 days with basic or gross pay

There are many other types of leaves where CBA or Trade union agreements exist.

Sincerely,

Tanveer Ahmad Malik
Manager HR
siba
The number of leaves purely depends on the company; however, the minimum leave as per the Factories Act will be one leave for every 20 working days of the previous calendar year.

Thanks
Regards
BCRADS
For some reason, no one has mentioned paternity leave. It can be anywhere from 3 days to 2 weeks.
mula
Hi All, kindly help me with an email format for the strict adherence to leave policies for all employees. Also, I would like to know more about HR email formats that can be sent to employees.

Thank you.
tinni01
Thank you for your valuable suggestion. Any employee can take 7 CL and earn 1 EL for every 20 working days. However, there is confusion regarding whether an employee covered under ESIC is eligible for SL. Can you please clarify this?

Thanks,
Nilanjana.
jagtar-singh1
How many CL and SL allotments are there when a new employee joins in June and another in July? How many leaves are allotted to every employee? Please clarify this, and what is the calculation and method of this clause.

Regards, JAGTAR
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute