Small Business Expansion: How Do You Create a Fair Leave Policy for Your Team?

Dear All, I am working in a firm with fewer than 10 employees. We are planning to expand, so I now require a good leave policy. Currently, we receive one paid leave every month, which is added to our salary. There are no fixed holidays or leave policies in place.

Request for Guidance on Creating a Leave Policy

Can someone please guide me on creating a good leave policy?

Thank you.

Leave policy should comply with the provisions of either the Shops and Establishment Act or the Factories Act of your state (hopefully, it is Gujarat). First, familiarize yourself with the provisions of that act and then design the policy. You can offer more or fewer days of leave, based on your discretion.

Secondly, ensure compliance with the National Holidays Act of your state by providing a minimum of 10 closed holidays per calendar year.

Regards,
Dinesh V Divekar

Dear Zalak, there are no good or bad leave rules. Leave rules must adhere to the minimum leave as per the provisions of the law. I can email you a set of leave rules. My email address is [Email Removed For Privacy Reasons]. Please send me a test email, and I will forward a set of rules that can be modified to suit your requirements.

Regards,
Col. Suresh Rathi

Dear Zaluk, please look into the leave policy. Total leaves are 25 days apart from the list of holidays. Five days are casual leaves. If any employee joins in the midst of the year, please go through the below calculation. For example, if he/she joins in April, it would be 10/12 * the number of working months in the year.

Five days are sick leaves. If any employee joins in the midst of the year, the above calculation will apply the same.

Privilege Leaves

Fifteen days are privilege leaves. Every employee has to work 240 days in the last year to be able to apply for PL in the present year (for every 20 days worked, they can get 1 PL).

Employees can encash privilege leaves; we do not have this kind of benefit in casual or sick leaves.