Is It Essential for Businesses to Have a Formal Leave Policy, or Is Management Discretion Enough?

Leave Policy Implementation Inquiry

Please help me out. If there is no leave policy in the firm and in the near future we will implement the policy depending upon management discretion. Currently, leave is deducted if any staff member takes leave even after completing the probation period of 6 months. However, in some cases, genuine reasons are considered, and the salary is not deducted. I would like to know if it is necessary to have a leave policy for employers in any business or if it is completely at the management's discretion.

Regards,
Shraddha Jadhav

If you are covered under the Bombay Shop & Establishment Act, then you have to give a minimum of 21 leaves per annum. If you are covered under the Factories Act, then for every 20 actual working days, you must provide 1 day of Earned Leave.

The firm I am working for is covered under the Companies Act of 1956. Therefore, I understand that there is no specific leave policy outlined in this act, and I am aware of how to establish one. However, my question is whether it is mandatory to have a leave policy in place, regardless of the nature of the employer's business, or if it is entirely at the discretion of the management.

Regards,
Shraddha Jadhav

Hello seniors, I am new in HR and working in a well-known trading company in Faridabad. My query is, can we make leaves (Earned Leave) a part of CTC under the heading of Leave Encashment? Please help me out.

Thanks,
Rishipal