New to HR in India: How Do I Create Leave Policies for a Japanese Trading Company?

I have recently joined a Japanese company that has just established its business in India. We have set up our office and warehouse together on the same premises. The company initially plans to trade automobile products only, and in due course, we may also set up a manufacturing unit.

Preparing Company Policies

As we have started hiring people for our company, I now have to prepare the company policies. Can anybody suggest to me what leave policy we need to follow? As per my understanding, our company falls under the Factories Act.

I would appreciate it if somebody from a similar industry could share the employee manual containing detailed descriptions of all the policies.

When establishing HR policies for your newly established trading and manufacturing company in India, it is crucial to adhere to the Factories Act regulations. Here are some steps to consider when formulating your leave policy:

1. Understand the Factories Act: Familiarize yourself with the specific provisions of the Factories Act that pertain to leave entitlements for employees in a manufacturing setup.

2. Types of Leave: Determine the types of leave your company will offer, such as annual leave, sick leave, maternity/paternity leave, and any other special leave categories mandated by the law.

3. Leave Entitlement: Define the number of days or hours employees are entitled to for each type of leave. Ensure compliance with the minimum requirements set forth in the Factories Act.

4. Leave Approval Process: Establish a clear procedure for requesting and approving leave. Outline how far in advance employees should submit leave requests and the process for handling urgent leave situations.

5. Carry-Forward and Encashment: Decide whether unused leave can be carried forward to the next year or if there is an option for encashment. Ensure this aligns with legal requirements and company practices.

6. Public Holidays: Specify how public holidays are treated concerning employee leave. Clarify if these days are separate from annual leave or included within it.

7. Communication: Communicate the leave policy effectively to all employees. Make the policy easily accessible and address any questions or concerns they may have.

By following these steps and customizing the leave policy to suit your company's specific needs and the regulatory framework, you can establish a comprehensive and compliant policy for your employees.