How Can We Create a Fair Leave Policy for All Departments in Our IT Company?

Dear Seniors,

I work as an HR in a growing IT organization where the team is divided into Development, Testing, and Support. We do not have a paid leave policy structure. The company director has granted 5 days of work for the testing and development teams. For others, it's the 2nd and 4th Saturday working arrangement. If the testing and development team works on Saturdays, they get paid for the whole day; if they don't come on Saturdays, there are no salary deductions. However, others do not receive such benefits. Now, since others who are affected have raised this issue, we need to establish a department-wise leave policy.

As the HR of the company, I aim to provide equal benefits to all employees. Please help me in structuring a department-wise leave policy and suggest equal benefits for everyone.

Regards,
Jagruti

There should not be any differentiation in the leave policy. The same policy should be applicable to every employee. According to the Shops and Commercial Establishment Act, every employee is entitled to Earned Leave (EL) - that's 1 EL for every 20 days worked, and 10 Casual Leave (CL) per year. If any employee works on a holiday, they should be compensated. Otherwise, the Labour Department shall take action on the matter.

I don't understand this policy. Why do you bifurcate the leave policy? I think rules must be the same in one company. Otherwise, it makes the worst impact.

Dear Jeevarathnam & Madhuri, Thank you for your quick response. Please assist me in drafting a policy that would be most suitable for everyone.

Regards,
Jagruti

I think if your company starts a 5-day workweek for all, and if someone comes in on Saturday or Sunday for official work (with senior permission), then you can offer them a comp-off facility. When you are creating this policy, consider all viewpoints and prepare it carefully because it's a sensitive issue. Sometimes, people don't need money; they need time off.

As suggested by Madhuri, if anybody works on a holiday, they should be compensated on any other working day. One EL (Earned Leave) is applicable for every 20 days worked, and there are also 10 CL (Casual Leave) days available per year.

Thank you.

This suggestion was forwarded but not accepted. Instead, I was asked for a department-wise leave policy. It's so unfair, but I need to find a way out of it. Please help.

In such cases, you should prepare a leave policy for each department. Highlight the benefits and drawbacks of each department's leave policy. Then, try to come to a resolution. After all, it's the company's decision.

Equal Working Days and Hours for All

Working days and hours should be equal for everyone. If you require the testing team to work on two Saturdays (if it is a 5-day working week), consider implementing benefits such as compensatory offs. This way, they will feel appreciated for their work on Saturdays while others utilize their weekly offs at home.

Benefits Based on Work Requirements

In different industries, roles receive benefits based on their work requirements. For example, salespeople often have flexible timings, numerous incentives, and perks due to the nature of their work that may involve odd hours. However, leave policies should be the same for all employees and should not vary based on departments.

Incorporating Suggestions into Company Policy

To persuade your management, you can incorporate the aforementioned suggestions into the company policy.

Regards,
Saunee

Every company must provide leave benefits to every employee because it is their right. According to me, 1.5 days off per month is appropriate as per industry standards for all departments.

Saturday Leave Policies

Another important aspect concerns Saturday leave policies. In most IT companies, they either offer Saturday-Sunday off or the alternative option is to alternate Saturdays. It is crucial that company policies are consistent across all departments. As an HR professional, it is our primary responsibility to ensure equal treatment for all employees.

I hope this information is helpful.

Regards,
Sneha

Since the company has declared a 5-day workweek for all testing and other departments, it should be made applicable to all staff members. Depending on the number of people working on these days, a holiday/leave policy has to be drafted. The Shops and Establishments Act makes it clear that the working hours declared and submitted to the department must be uniform throughout the organization. If the number of people in the two shifts is clearly indicated, a draft policy could be created.

Thanks,
Raj

As per my experience in HR practice, a leave policy can be framed to be the same for every department and every employee who is on the payroll of the organization. It typically includes 10 CL for the year and 1 EL for each 20 days of working. Additionally, if any employee works on an off day or holiday due to an emergency, they are allowed to take leave as compensation. It is true that the leave policy, once set for any company, is applicable to each and every employee regardless of their level, grade, or department. I hope this information will help you when you prepare the leave policy.

Regards,
Vivek Saxena
[Phone Number Removed For Privacy Reasons]

As per the law, something not legal does not always become illegal. However, exceptions arise in between. If your management is prepared to face all the loss-benefits regarding the leave policy as directed by them, then you should not worry.

Points to Consider:

1. Maintain a written record of discussions as much as possible.
2. Present the pros and cons of department-wise leave policy.
3. Have informal discussions with department heads to gather their opinions.
4. Minimize the differences between the standard policy and department-wise leave policy by utilizing various flexible conditions.

Advantages of Following the Above Points:

1. The management will become more practical in its approach.
2. Employees can be convinced in a more effective manner.
3. Any issues can be resolved more easily.
4. You will have more confidence in policy implementation and control.

Best of luck.

As far as earned leave and CL are concerned, they should be provided according to the Shop and Establishment Act. For the Testing and Safety Department, they are eligible to avail weekly holidays, which is their right as well. If the Factories Act is not applicable, earned leave and casual leave should be provided.

I don't understand why there is such partiality and discrimination. Equal benefits should be provided. If the above department's employees are required to work on weekly holidays, they should be compensated with extra amounts or given compensatory-offs.

Regards, V. Subbarao [Phone Number Removed For Privacy Reasons]

Leave Policy Considerations

Leave policy cannot be department-wise. It will be uniform for everybody as far as possible. You are saying that one group is provided continuous holidays on Saturdays and Sundays. The other group is provided only 2nd and 4th week Saturdays as holidays. This can be done based on the requirement of their work or exigencies of work in such departments. We cannot say that it is not correct. It is right from the perspective of the employer. You may feel that it is wrong, but the final deciding authority is the employer. He is right—there is nothing wrong with it.

Regards,
D. GURUMURTHY
LL. HR. IR. Consultant, Hyderabad.