New HR Executive Seeking Advice on Creating Leave Policies and Understanding Comp Off

Hi All, I have joined as an HR Executive in a small software company. In this company, I am the only HR personnel. Currently, there are no HR-related policies in place. Recently, I encountered a significant issue within the organization due to the absence of a leave policy. I seek guidance on how to establish a leave policy and the process involved. Additionally, I would appreciate clarification on the following queries:

1. What is Comp Off?
2. How many paid leaves should be allocated to an employee annually?

I kindly request your assistance in addressing these matters. Thank you for your help.

It all depends upon your management's views, settlement arrived with the Employees' Representative, if any, etc.

Types of Leave

Generally, Casual Leave (C/L), Sick Leave (S/L), and Privilege Leave (P/L) will be allowed. For example, C/L = 4 Days in a Year; S/L = 8 Days; P/L = 28 Days or P/L = 1 Day for every 20 working days, etc. Some companies have more C/L and less S/L.

Casual Leave (C/L)

C/L is generally availed for emergencies, not exceeding 2 days in continuity as prior permission is generally not obtained. Leave due to emergency, for example, a relative dies or an accident occurs on the way, etc.

Sick Leave (S/L)

Sick Leave should not exceed 3 days at a stretch; more than 3 days requires a medical certificate to avail of this facility (no statutory rule), just a check for the cap above 3 days. Sick Leave - Permission in advance is also possible, for example, planned surgery next week, etc.

Privilege Leave (P/L)

P/L requires advance intimation and planning. It can be accumulated and encashed once a year or totally during retirement (tax-free during retirement). Every year, your accounts have to give provision for the notional value against the leave days in safe.

Compensatory Off

Compensatory Off is off against a day where the employee worked more than the actual requirement. Generally, try to offset this against another leave day; do not allow accumulating this after 2/3 months. As soon as the additional work is over, take a credit slip and give credit, and subsequently offset this against the off within 2/3 months.

Leave Combinations

C/L should not be clubbed with any other leave type as this is very casual and instant in nature. S/L and P/L can be combined for leave utilization. Comp. Off is like a Joker Card. You can fix this on a Friday working if Saturday and Sunday are weekly off. Then, for example, Mon-Next Tues Leave... then Mon-Thurs = 4 Days P/L. Fri-Comp. Off; Sat-Sun = Weekly Off; Mon-Tues = 2 days P/L again. This is a very specific benefit of Comp. Off. Two days saved for the employee to his account.

Additionally, Maternity Leave, ESI Leave, etc., on grounds of statutory norms have to be followed.

Hope this is enough to bring on Leave Basics.

Regards,