Navigating Excess Leave: What Are the Legal Steps When Employees Take Too Much Time Off?

I have joined a small software company where the office has a staff of 9 employees. There are rules regarding taking leave, but I am unsure about the policies for excess leaves. Can anyone inform me about what to do according to the laws if an employee takes excess leaves?

If you take excessive leave, they will be without pay. If any person takes excessive leave on numerous occasions, especially without approval, then you have the right to terminate him. Being a very small organization, most of the laws relating to industrial disputes do not apply. However, follow the proper termination procedures as have been discussed in this forum.

Excess leaves are not allowed, but in an emergency, you can avail them with permission. The company can impose LOP (Loss of Pay) or you can work extra to compensate.

Loss of Pay and Termination Policies

Loss of pay for the days on which excess leave is taken cannot be considered a punishment in the form of Leave Without Pay (LWP) for days worked. Termination on grounds of habitual or repeated absenteeism is allowed.

1. Then, how will it be calculated, sir? As employees are allowed to take 18 leaves in a year, what action should be taken if an employee takes 25 leaves or more than that?

2. Can you please explain the meaning of loss of pay with an example?

Leave Credit and Deduction Policy

1. Total leave is credited to the account of each employee on January 1 based on the number of days worked in the previous year.

2. As the leaves are used, they are deducted from the balance.

3. If an employee is absent when there is no more leave pending in their account, then they do not get paid for that day. When computing the salary for the month, the salary is deducted for those days.

Leave Policies and Disciplinary Actions

If an employee absents himself from duties, he may be permitted to avail of various leaves, e.g., privilege leaves, casual leave, sick leave, etc., provided these leaves form a part of the agreement between the management and the union of workers. Otherwise, in the event of the applicability of The Factories Act, only privilege leaves are provided for in the act. However, I am aware of practices in various companies where all the above three types of leaves are included in the agreements.

Any employee remaining absent from duties after exhausting all the days of leaves provided in the agreement is deemed to have remained absent without leave. Such frequent absence without leave amounts to misconduct under the Industrial Standing Orders Act and renders the delinquent employee subject to disciplinary action. The procedure for initiating and conducting disciplinary action MUST be observed before inflicting any punishment on the delinquent employee.

In the case of small companies where statutes do not apply, the management of the company must formulate rules to this effect and make them a part of the appointment order while recruiting the employee.

The original post was for an organization with a total of 9 employees. There will be neither an agreement with the union, nor will standing orders apply. He has to proceed simply as provided by the local shop and establishment act.

Steps to Address Unapproved Leaves

Step 1: If an employee is taking leaves without approval, it can be imposed as Leave Without Pay (LOP).

Step 2: If that employee is taking leaves without the approval of the immediate supervisor/line manager, then HR has to send an email to his/her personal and professional email IDs, asking about his/her uninformed absence and explanations on his/her third day of continuous absence without information, copying the email to his/her immediate supervisor/line manager.

Step 3: After sending an email as in Step 2, HR has to try reaching that employee on his/her contact number, as well as the emergency contact given by that employee.

Step 4: If the Step 2 email is not responded to by that employee within 24 hours and he/she is unreachable, then HR has to seek the approval of his/her immediate supervisor/line manager to terminate the employment of that employee with the company.

Step 5: Now, HR has to send a warning email to that employee, copying his/her immediate supervisor/line manager, stating a time limit of 24 hours and mentioning that "Failure to provide an explanation will lead to the termination of employment."

Step 6: If the email is responded to, then no problem as a warning has already been given via email. If not, then HR can directly terminate the employment of that particular employee.

Note: Excess leaves in case of emergency can be taken post-approval of the immediate supervisor/line manager, explaining the sensitivity of the situation to his/her immediate supervisor/line manager.