New Leave Policy In A Small Size It Company - DOC Download

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.

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.

Dear Fazil,

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.

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.

Kumar S.

I am working in a construction company as an HR. In my company, we give 16 paid leaves to employees after confirmation & 13 national & 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

As per the Bombay Shops and Establishment Act, an employee is entitled to 21 days of annual leave and a minimum of four national holidays.

B. Saikumar
Mumbai

Thank you, Mr. Kumar, for the informative document. I am also working on the company's increment policy. In our IT company with over 40 employees, we provide salary increments twice a year. The issue we face is that during increments, employees often request unjustified raises, prompting management to assign me the task of developing a standardized increment policy. I seek your assistance in drafting this policy and would appreciate guidance on the factors to consider.

Dear Fazil,

In the private sector, particularly in many partnership or proprietorship firms, the policy of granting increments to employees really has "NO policy" for the simple reason that they are empowered to do as they please since they are the owners. I have observed that in some firms, increments are given twice or thrice a year, while in some cases, there are no increments at all. However, in Pvt. Ltd. Companies, the situation is slightly better, but still not guaranteed. On the contrary, in privately held public limited companies, state/central companies, and government departments, procedures are more transparent. They adhere to a system of "time scale." As you may be aware, when a person is selected and appointed, their appointment letter specifies their salary scale (e.g., Rs.10,000-1000-25,000=15 years), including the minimum basic pay, annual increment, and maximum basic pay. This means that an individual will progress in salary up to a certain point unless they are promoted to a higher grade with a higher time scale. Under this system, there is no room for demands for higher or more frequent increments. Employees also know when they are entitled to their yearly increment. However, there is a caveat. "Increment is not a right but should be earned by meeting minimum performance thresholds. There are cases where annual increments are withheld or deferred until employees enhance their performance levels to the satisfaction of the management. Moreover, some managers have the authority to provide more than one increment in a year to exceptional performers. These policies alleviate the pressure on management from demands for higher increments. However, this is contingent upon a performance appraisal that determines whether an increment is granted.

In your particular situation, as you mentioned, an "unjustified raise" is rarely given. If you do not have a grading system such as poor, average, above average, satisfactory, good/very good, and outstanding in your appraisal process, it would be advisable to implement one to prevent such demands. Simultaneously, it is beneficial to recognize individuals who deliver outstanding performance, unexpected favorable outcomes, significant cost savings, innovative ideas, etc. This recognition will boost your organization and help you retain talented personnel, thereby keeping your attrition rate in check. Depending on your specific circumstances and requirements, you should formulate your policy.

Regards,

kumar.s.

Thank you, Mr. Kumar, for the valuable points you made. I am also considering sharing the company's productivity and profitability with our employees. This transparency will provide them with a clear understanding of the increments they receive. Our company is a private limited IT firm, and I believe that any changes in the percentage of increments offered to employees will directly impact the company's overall productivity and profitability, in addition to individual performance.

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 Dept. Now I am focused on my query.

My query is, 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.
a) Working on Sunday.
b) Working on public & National Holidays.
Is it mandatory?

Looking forward to your kind reply.

Regards,
Rushin Joshi
HR & Admin

Hello,

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

I am working in a Social Sector Organization, and I am not able to understand whether to follow the Factories Act rules for making a leave policy or if there is any other subsystem for NGO organizations.

I would also like to learn the difference between Holidays and Leaves. Is there any rule in the government for getting a certain amount of holidays in organizations.

Hello all,

I need your help. I am working in the automobile sector as an HR. I am the first person responsible for framing the leave policy. Now, please suggest what will be the best policy.

We have a dealership of Renault cars. We have a showroom with more than 40 employees working there.

Thank you.

Sir,

I am working in the construction industry and would like to know the leave policy for the same i.e. PL, CL, SL. How much should I apply?

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

Sir,

I am working as an HR professional in the construction industry and would like to know the minimum number of leaves I can avail for the year. According to the act, it is stated that the minimum leave entitlement should be 21 days per year. Is this correct?

Attribution: https://www.citehr.com/441569-new-le...#ixzz3EKajoqlW

I have a very simple question... Is it necessary to fill 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.

Can anybody please send me the leave policy for a private hospital attached to a private medical college in India? Here, our employees receive only 1 CL per month, and no other leave is entertained. Also, which employment acts are applicable to hospitals in this context?

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

Can anyone help me with what the leave policy and compensation policy are for a media company in Mumbai?