How Do I Create a Fair Leave Policy for a Startup with Limited Leave Options?

I am working as an HR executive in a software company in Bangalore. It's a startup company, and the director wants me to formulate a leave policy. I want to know how many CL, SL, and EL I can provide to my employees and what the eligibility criteria are to avail these leaves. Also, please let me know about maternity leave and the eligibility criteria for it.

My boss doesn't want to provide more leaves, so please inform me about the minimum and maximum number as well.

Thanks,
Neha

Are you looking for the leave policy as per the industry or as per the act?

Leave Policy Under the Shops & Commercial Establishments Act

As per the statutory act under the Shops & Commercial Establishments Act, every employee is eligible for 1 earned leave (EL) for every 20 days he/she works in a calendar period. This may amount to 14 EL per calendar year. Casual leave (CL) is 10 per annum, but if management wishes, more leaves can be offered. There is no mandate for sick leave (SL), but some organizations do offer it.

Let me know if you need more information or clarification on the leave policies.

Please find the link below that will answer all your queries: https://www.citehr.com/428995-leaves...ml#post1939959. I have posted multiple links to my post in the above link which were discussed on Citehr.

Thank you.

Please let me know what the eligibility criteria are for availing maternity leave benefits. It's urgent.

Regards,
Neha

Hi,

For EL, the rule is 1 EL for every 20 days. Should I include Saturday and Sunday in this?

Regards,
Neha

No, it is calculated based on the number of working days. This means that per year, it is calculated as 365 days minus the number of weekends, festival holidays, national holidays, and the leaves he/she has availed.

If you have any doubts, please do not hesitate to call me.

Regards

Leave Policy Statement - The policy is to facilitate employees to avail leave in order to ensure a balance between personal and professional life.

Eligibility - All permanent employees

1. If your organization is covered under the Shops and Establishment Act then: CL - 12 days, SL - 12 days, PL - 12 days (PL is credited after completion of 1 year).
2. If your organization is covered under the Factories Act - PL - Maximum 15 days (1 day for every 20 working days).
3. PL and SL can be accumulated up to 3 or 4 years.
4. Unavailed CL will be lapsed at the end of the year.
5. CL should not be combined with any other leave, i.e., SL or PL.
6. PL will be allowed thrice or more (maximum 5) in a year.
7. More than PL accumulated leave will be encashed.

The above are minimum. If your organization is willing to consider more leave, then it is suggested:
1. PL - 30 days
2. SL - 12 days
3. CL - 12 days
4. National and Festival Holidays - Minimum 9 days, Maximum any number.

Regards,
[Email Removed For Privacy Reasons]

Hi, Leave is calculated for a period of one year (January to December). If, for example, an employee joins in March, how should we calculate their leave entitlement?

Additionally, how many Sick Leave (SL) and Earned Leave (EL) can we carry forward?

Regards, Neha