How Can We Address Employee Dissatisfaction Over Unused Leave in High-Pressure Roles?

Hi, I work for an IT software firm, and we have support, sales, and implementation departments. We have 9 PLs, 6 CLs, and 6 SLs. Now, we have this policy that leave cannot be encashed, and only PLs can be forwarded. Employees in the Implementation department, as they are always on the client side and cannot avail leaves until the project is completed, have their leaves accumulated at the end of the year.

Currently, there is dissatisfaction among the employees as they cannot encash their leaves, nor can they avail them due to the workload.

Please guide on what can be done in this case.

While endorsing Amit's suggestions, you can try the following methods of leave management:

Leave Encashment Policy

1) Since it is not prudent to allow encashment of all three kinds of leave, i.e., PL, CL, and SL, from the point of view of financial implications, you can allow encashment of PL only with a total ceiling limit of 100 days for accumulation. You can allow employees to encash only a maximum of one month's leave and a minimum of one week's leave during their tenure. However, this stipulation shall not be made applicable to encashment when an employee leaves the employment. For example, if an employee accumulates leave to the extent of 100 days at the time of leaving, they shall be allowed to encash it. You can work out a prudent formula for encashment having regard to the quantum of basic pay and other allowances payable as emoluments.

Sick Leave Accumulation

2) An employee shall be allowed to accumulate SL up to a maximum of 30 days, and it is not encashable.

Casual Leave Policy

3) An employee shall be allowed to avail CL in a calendar year, failing which it shall lapse.

Regards,
B. Saikumar
HR & Labour Law Consultant
Mumbai
Mob: [Phone Number Removed For Privacy Reasons]