How Should I Handle Employees Taking Leave Without Prior Approval? Seeking Advice on Alternatives and Warning Letters

Hi, I work in a small IT company (based in Gujarat) with about 35 employees. We have a policy that allows employees to take 2 days off each month under the condition that:

1. The total working hours are compensated, and
2. The leave is approved by the immediate supervisor at least a day in advance.

Recently, some employees have been taking leave without prior approval, relying on compensating the working hours as justification. My boss has instructed me to issue warning letters to employees who take leave without approval. I have reservations about this approach but am unsure of alternative solutions.

Alternative Solutions and Warning Letter Content

Is there a different course of action we could take? If not, what should be included in the content of the warning letter? Can I simply state, "This is a warning letter as you took leave without approval"?

Thank you, Megha.

Leave Policy Compliance and Disciplinary Action

If your policy clearly mentions that leave can be availed with prior permission from the reporting officer, employees are expected to take permission before they take leave, even if they have complied with the first requirement of the leave, i.e., compensating the working hours. However, if the employees were not informed of these conditions, it is advisable to send a circular stating that "some employees are availing leave as a matter of right without getting it approved, and such practice would be viewed seriously in the future." Once this communication is given, employees will become aware of the conditions attached to leave. If, even after this communication, any employee takes leave without intimation, you can initiate disciplinary action.

Post Script: Legal Considerations for Leave

The Shops and Commercial Establishments Act (of your State) under which your firm is registered should have provisions pertaining to casual leave, sick leave, and earned leave. These leaves are not subject to any condition regarding compensating for hours at the office. Though prior intimation can be made a condition for availing earned leave, CL (Casual Leave) or SL (Sick Leave) can be availed without prior intimation, for which intimation on the day of its availing would be sufficient. Therefore, if you do not have any CL, SL, or EL (Earned Leave) but your leave is restricted only to the one stated in your post, i.e., 2 leaves per month subject to the fulfillment of the condition that the employee should have worked for the time allotted, then your policy will not have any legal validity.

Regards,
Madhu.T.K

I appreciate what Mathu T K wrote. I would like to add about office discipline. Although employees have the right or privilege to avail leave, it is expected that they should take it with prior permission. In case of unavoidable circumstances where leave is required without prior permission, the employee should intimate their reporting officer as early as possible. If such kind of discipline is not adhered to by the employee, then it will be very difficult for any company to manage day-to-day activities.

Regards,
nk panchal

There is nothing left after the clear insight provided by Mr. Madhu TK. I would only like to ask you to speak to your Head and give him a brief that there are laws which are mandatory to be followed. On one hand, it is a matter of deep concern, and on the other hand, it gives you the opportunity to rectify what is wrong in the system and may prevent the company from landing in legal trouble.

Unauthorized Absences and Communication Protocol

If leave is taken without informing the Head of Department (HOD) or Approval Authority, then the leaves are considered "unauthorized absences." If permission is granted by the HOD or Approval Authority but not communicated to the HR Department, then appropriate action shall be taken against the HOD or Approval Authority. These leaves cannot be considered as absences because the employee's leaves/Leave Without Pay (LWP) were permitted by the HOD or Approval Authority; hence, the employee is not at fault.

Compensation for Leave Hours: A Critical View

Prior intimation and permission are reasonable. However, the requirement to compensate for the working hours lost due to leave is barbaric. It is essentially equivalent to providing no leave to employees.

Regards,
Varghese Mathew