How Can We Create a Fair Leave Policy to Retain Talent in Our Growing IT Company?

Hello Everyone, I am working as an HR manager in a small but growing IT company based in Noida, and I am the only HR personnel here. We employ only experienced candidates, and the probation period is six months for every new employee. As per our current leave policy, employees under probation are not entitled to any leave whatsoever, while confirmed employees are granted 15 CLs and 7 medical leaves.

Current Leave Policy Challenges

I am looking to create a new leave policy as our current one is making it challenging to retain talented individuals in our organization. I am considering implementing earned leave while also taking into account leave allotment for employees under probation.

I would greatly appreciate your suggestions on how to formulate an effective leave policy.

Regards

You may frame the leave policy as per the state's Shops and Establishments Act. This is the minimum requirement.

You can take your State's Shops and Establishment Act as the base to provide minimum leave. However, you are at liberty to provide better benefits like providing leave during probation, etc. You can provide the following kinds of leave:
1) Earned leave
2) Casual leave
3) Sick leave
4) Leave without pay (extraordinary leave).

You can make a provision for allowing employees to avail casual leave and earned leave on a pro-rata basis in case of need during probation.

Regards,
B. Saikumar
HR & labour law advisor
Mumbai

Thank you, Mr. Sai and Mr. Kpsanjiv, for reverting. I am planning to implement the following types of leave:

1) Earned leave
2) Casual leave
3) Sick leave
4) Leave without pay (extraordinary leave)

After studying the leave policies of different companies, I am considering providing 1.5 leave days as earned leave to every permanent employee (who has served 1 year already), along with 10 casual leave days and 7 sick leave days. Additionally, I am thinking of giving 1.5 casual leave days and 1 medical leave day to all employees in probation on a quarterly basis.

For example, an employee joining us on January 1st will receive 1.5 casual leave days and 1 medical leave day, while an employee joining us on February 1st will be given 1 casual leave day and 1 medical leave day, and so forth. The leave policy will follow the calendar year, starting from January and ending in December.

Please suggest any corrections or improvements that could be made.

Kind regards,
Mohd. Fazil

Dear Fazil, The attached write-up would give you a broad view of various models followed in India. I would suggest that, taking a cue from this, you also consult other sister concerns in your sector, especially in the IT area, and better model your policy on those lines so that you'll fall in line with those firms as well. All the best.

Regards, Kumar S.

Leave Policy Compliance in Construction Industry

I am working in a construction company as an HR. In my company, we give 16 paid leaves to employees after confirmation and 13 national and local holidays. Is that fine? I have read that, as per the Shop Act, employees should get a minimum of 21 paid leaves in addition to national holidays. Please suggest a good option so that I can implement it in the company.

Regards,
Anushka

Introducing a Leave Policy for a Partnership Firm

Hello HR Gurus,

My name is Rushin Joshi, and currently, I am working with a partnership firm as an HR & Admin Executive. In this firm, I am the first HR person; before me, there was no HR Department. Now, I am focused on my query.

Leave Policy Query

I want to introduce a leave policy according to the partnership firm.

1. Number of months for the probation period?
2. Is it mandatory to provide paid leave during the probation period?

After Probation

1. Number of Paid Leaves/Sick Leave/Casual leave or any other leaves allowed?
2. Mode of compensatory off/additional pay:
- Working on Sunday.
- Working on public & National Holidays. Is it mandatory?

Looking forward to your kind reply.

Regards,
Rushin Joshi
HR & Admin

Introduction of Leave Policy in a Partnership Firm

Hello HR Gurus,

My name is Rushin Joshi, and I am currently working with a partnership firm as an HR & Admin Executive. In this firm, I am the first HR person; before me, there was no HR Department. Now, I am focused on my query.

Query on Leave Policy

I want to introduce a leave policy according to the partnership firm.

• Number of months for the probation period?
• Is it mandatory to provide paid leave during the probation period?

After Probation

• Number of Paid Leaves/Sick Leave/Casual leave or any other leaves allowed?
• Mode of compensatory off/additional pay:
a) Working on Sunday.
b) Working on public & National Holidays. Is it mandatory?

Waiting for your kind reply.

Regards,
Rushin Joshi
HR & Admin

Please use this attachment and also go through the earlier posts on the subject.
Kumar..s.

I am working as an HR professional at an online company where the total employee strength is 100, and I need to revise the leave policy. Can you please advise me on how many CL, ML, and EL I should allocate to employees? Currently, our policy offers 6 CL, 6 ML, and 12 EL (after completing 1 year).

Regards,
Vaidhai

Sir, I am working as an HR in the construction industry and would like to know how many minimum leaves I can avail for the year. As per the act, it was shown that the minimum leave should be 21 per year, is it?

Regards,
Shital

I have a very simple question. Is it necessary to fill out the leave form if you are not provided with paid leaves as you are new to the company?

You must frame your leave policy considering the Shops and Establishment Act. According to the Noida Shops and Establishment Act, there must be 15 SL, 10 CL, and 15 EL. A minimum of these leaves should be a part of the policy.

I am working in a small IT company. Currently, we are providing 15 paid leaves to confirmed employees on a pro rata basis and 10 national holidays. Is this okay? Please guide me on how to set the leave policy in my company as there is currently no such policy defined.

You can actually give 24 total leaves for the year to employees on a pro-rata basis: 12 casual leaves and 12 paid leaves. Regarding other holidays, an organization can choose to keep 10 to 15 holidays per year.

Thank you,

Hi,

I'm Bharti, working as HR at an export company (organic foods) with a minimum staff of 10-15 members. I want to prepare some leave policies over there, suggest me for that.

Also, suggest me some HR initiatives to be made as there are no rules and procedures.

Hi Sudha,

I am working as an HR in a BPO (E-Commerce Company) with a team of 100 members. I have noticed that employees are taking numerous leaves without approval, which is affecting my work. I am looking to establish some leave policies to address this issue. Can you suggest some guidelines for this?

Additionally, there are currently no set rules and procedures in place. I would appreciate any HR initiatives you could recommend for implementation.

Regards,
Sudha
HR

Hi All,

I am Jose, working in an IT company with 50 employees. I just wanted to know if an employee goes on medical leave for 3 months or requests more, will that employee's job be continued? Can anyone tell me for how many months the employee can take medical leave?

Regards,
Jose