How Can We Prevent Unnecessary Leave Usage at Year-End Without Penalizing Employees?

Hi, in my organization, every confirmed employee gets 10 Privilege, 5 Casual, and 5 Sick leaves in a year. We work 5 days a week and have 12 company-approved holidays. My question is, at the end of the financial year (March), employees who have a balance of CLs/SLs tend to apply for leaves or take sick leaves so that they do not lapse. We only carry forward PLs. Can you suggest ways we can implement in our leave policy so that operational requirements are met and employees do not take unnecessary leaves or compensate the employee for leaves not taken or lapsing?

Leave Calculation and Accumulation as per the Shop and Establishment Act

As per the Shop and Establishment Act, all leave has to be calculated based on the calendar year. Additionally, Casual Leave (CL) and Sick Leave (SL) will lapse at the end of the calendar year. For Privilege Leave (PL), you can accumulate up to 30 days, and anything above this will lapse.

Regards.

Thank you, Trisha_HR. Good to know that I am on the right track. But how do we discourage employees from taking all their CL/SLs in one month (March)? They know that CL/SL won't be carried forward and want to utilize the leaves.

Leave Calculation Based on Calendar Year

As Trisha has informed, the leaves are to be calculated as per the calendar year and not the financial year. Please enlighten your staff about this fact. They may start consuming their balance leaves in the month of December.

Regards,
Ajay Bajaj

Company Leave Policy Implementation

Company policies may be framed in such a way that employees are not adversely affected. In my company, unavailed Casual Leaves (CLs) are encashed in the January salary, while Sick Leaves (SLs) are carried forward.

Regards,
Pon