Is It Legal for a Joint Venture to Offer Different Leave Entitlements to Similar Staff?

I want to know if a company can differentiate between staff in the calculation of leave entitlement and accumulation of employees when all work the same hours. We are a joint venture company, and the staff who joined directly from the primary company were given 4 additional days of annual leave as entitlement (i.e., 25 days per year as against 21 days per year for the others). Now, the HR has sent out a notification that staff who were appointed directly after the JV was formed can accumulate leaves up to 26 days, while those who were a part of the earlier company are entitled to accumulate up to 30 days. Is this legal?

Regards

Leave Carry Forward and Encashment Policies

Yes, it's legal to carry leave up to 30 days, and the same can be encashed. Anything beyond that will lapse. Accumulation of Earned Leave (EL) more than prescribed by the Factories Act and Shop Act automatically lapses, as per the interpretation of both provisions. However, if any employer wishes to provide additional benefits to their employees, they can create specific rules and policies for encashment. It entirely depends on the will and wish of the employer.

Regards

Different sets of leave rules are possible for different categories of employees. Such policies are common in many companies, especially in the mining industry. There are varying maximum limits for the accumulation of leave as well. It is not wrong to have these variations, provided that they are formulated and implemented for operational convenience as a personnel policy in any specific establishment. This is particularly important in joint ventures where two or more entities merge, essentially reorganizing and re-implementing existing policies in a new structure. In such cases, we may encounter disparities between the groups, not only in leave rules but also in other benefits such as overtime, provident fund, pension, perks, fringe benefits, and more.

Regards,
kumar.s.

Based on Omani Law, the first three years require 15 days of annual leave to be provided, and thereafter, 30 days.