Struggling with Leave Policies in West Bengal IT Firms? Need Help with Legal Requirements and Suggestions?

kapoorshi
I am working as an HR Executive in an IT software company in Kolkata. Can somebody help me in formulating the Leave Policy for my company? Please suggest the types of leaves and encashment policy for the same. As per the Indian Labour laws and West Bengal Shops and Establishment Act, how many leaves are mandatory for an organization?
p_priya
Mailing across the leave policy for West Bengal Company.

LEAVE POLICY

1.0 OBJECTIVE:

To provide guidelines on leave entitlements of employees.

1.2 Leave Year: The leave year is the Calendar Year, i.e., January 1st to December 31st. All calculations for the purpose of leave will be based on the leave year.

1.3 TYPES OF LEAVES:

- PRIVILEGED LEAVE (PL)
- CASUAL LEAVE (CL)
- SICK LEAVE (SL)
- LEAVE WITHOUT PAY (LWP)
- UNAUTHORIZED LEAVE (UAL)
- COMPENSATORY OFF (CO)

2.0 PRIVILEGED LEAVE (PL):

2.1 All employees of the Company are entitled to 14 working days of Privileged Leaves for every completed year of service, credited on a pro-rata basis, i.e., Number of days worked/365 days * 14 (total leave entitlement for the year).

2.2 Out of the Privileged Leaves credited for the year, any un-availed Paid Leave will be carried forward to the next year. However, PL can be accumulated or carried forward subject to a maximum of 28 days. Any PL over and above the accumulated days will lapse.

2.3 Encashment

Encashment of accrued leave will be available to employees upon separation (if it is not adjusted against the notice period), retirement, or death. Leave encashment is done on Basic salary.

2.4 Privileged Leaves cannot be clubbed with Casual leaves.

3.0 SICK LEAVE:

3.1 All employees of the Company are entitled to 7 working days of Sick Leave. SL can be accumulated or carried forward subject to a maximum of 28 days. Any SL over and above the accumulated days will lapse.

3.2 In the event of long sickness beyond leave entitlement, the Management will decide whether the leave will be with pay or without pay.

3.3 In case of illness, the employee has to inform their reporting manager of the contingency on the same day and submit an application to HR upon return.

3.4 In the event of medical absences exceeding three days, an employee is required to submit a qualified physician's certificate.

4.0 CASUAL LEAVE:

4.1 All employees of the Company are entitled to 10 working days of Casual Leave. CL cannot be accumulated or carried forward.

An employee can take a minimum of ½ day CL and a maximum of 3 days at a stretch, i.e., one cannot apply for more than 3 Casual Leaves (CLs) at a stretch.

5.0 Holidays (National & Festival):

These are in addition to the above-mentioned leaves. Please refer to the Holiday List for the Year.

HOLIDAY LIST FOR THE EMPLOYEES

List of Holidays 2012

1. Netaji's Birthday - 23-Jan, Monday
2. Republic Day - 26-Jan, Thursday
3. Holi - 8-Mar, Thursday
4. Bengali New Year - 15-Apr, Friday
5. Independence Day - 15-Aug, Wednesday
6. Id-Ul-Fitr (Ramzan) - 20-Aug, Monday
7. Mahatma Gandhi's Birthday - 2-Oct, Tuesday
8. Mahalaya - 15-Oct, Monday
9. Astami - 22-Oct, Monday
10. Mahanavami - 23-Oct, Tuesday
11. Dushera - 24-Oct, Wednesday
12. Laxmi Puja - 29-Oct, Monday
13. Id-Ul-Zuha (Bakrid) - 27-Oct, Saturday
14. Kali Puja/Diwali - 13-Nov, Tuesday
15. Muharram - 25-Nov, Sunday
16. Guru Nanak's Birthday - 28-Nov, Wednesday
17. Christmas - 25-Dec, Tuesday

6.0 COMPENSATORY OFF:

The Compensatory Offs/Extra Hours of Work do not apply to any Supervisory cadre or above.

Compensatory off is granted or allowed within the month in which the weekly off was due to the employee. Compensatory Off must be availed at the latest within the next two months immediately following the month in which the compensatory holidays had become due; otherwise, unavailed Compensatory off will lapse.

Not more than 2 Compensatory OFFs can be availed at a stretch.

Compensatory off cannot be clubbed with the CL or SL.

7.0 UNAUTHORIZED LEAVE:

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 unauthorized Leave Without Pay will be included in the Leave availed.

If you remain absent from work without authorization or reasonable explanation for more than three consecutive days, it will be presumed that you are no longer interested in working for the Company and have abandoned its services.

8.0 LEAVE WITHOUT PAY:

In case an employee has applied for leave and does not have the leave balance, then the excess leave days shall be considered as LEAVE WITHOUT PAY.

9.0 PROCESS

9.1 The employee has to fill the Leave Form/Email and obtain approval from their HOD before proceeding on leave. Approval should generally be obtained 15 days in advance if leave is desired for more than 2 days.

9.2 The department manager/HOD is the authority to sanction leave. The email should be directed to HR after approval of the HOD.

9.3 Leave will include weekly off days and holidays, falling before, after, or during the vacation.

9.4 Long Leave (more than 10 days) is meant to be availed on a planned basis in the interest of smooth and uninterrupted working of the department. You are therefore advised to consult with and get the agreement of your functional head in your vacation planning exercise at least 3 months prior.

9.5 Employees who have not completed six months with the organization/not confirmed are not entitled to any leave.

9.6 It is important to note that, as a general rule, all leave should invariably be availed on a planned basis with prior supervisory approval. Employees who report absent without sufficient cause will attract the Leave without Pay principle and face disciplinary action.

9.7 In the event of long illness/leave beyond entitlement, the decision for leave without pay or leave with pay will be subject to approval by the Functional Head or HR Manager.

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 their absence, to the concerned Department/Divisional Manager as intimation should serve the purpose.

Regards,
Priya

HRD
Corporate House; Kolkata.
cnmullick
Hi Priya, I am reaching out to inquire about the leave policy for the West Bengal Company. Is the leave policy in compliance with the West Bengal Shops & Establishment Act, and can it be applied to all organizations under its purview, including proprietorship firms?

Thank you.
sd15
Hi Priya, is this applicable to all private limited companies in Kolkata? My company does not follow any rules or policy. They deduct salary for a single absence—can any steps be taken?

Regards
jake-altschwager
What would be the standard leave policy for contractual employees in a Private Limited IT company?

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The standard leave policy for contractual employees in a Private Limited IT company typically includes provisions for annual leave, sick leave, and other types of leave as mandated by local labor laws or company policies.

Contractual employees may be entitled to a set number of days off per year, which could vary based on their length of service or employment contract terms. It is essential for the company to clearly outline these details in the employment agreement to avoid any misunderstandings or disputes regarding leave entitlements.

Additionally, the leave policy should specify the procedure for requesting and approving leave, whether there are any restrictions on taking leave during peak business periods, and how unused leave will be handled at the end of the contract period.

Overall, the leave policy for contractual employees should aim to strike a balance between meeting the operational needs of the company and providing employees with adequate time off to rest and rejuvenate.
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