Leave Policy Confusion: Can We Restrict Paid Leaves and How to Handle Sick Leave?

Hi, we are a small IT company in Gujarat. We are in the process of implementing a new Leave Policy. What we are planning to do is give 7 Casual Leaves, 12 Holidays, and 13 Paid Leaves.

Leave Policy Dilemma

Now, here is my dilemma: Management wants to make a provision that Paid Leaves (PLs) are available only to the employees who have completed 1 year with us. Also, while Casual Leaves (CLs) would be on a pro-rata basis, PLs will be credited to their account at the beginning of each year and can be carried forward if unused.

Questions on Leave Provisions

I have a few questions: What exactly does PL mean? Can we keep such provisions as mentioned above? Does Sick Leave come under PL, or do we have to provide for them separately? I hope I am clear in my doubts!

Thanks.

Megha, PL stands for Privileged Leave or Paid Leave. These are usually earned leave, i.e., one has to work to earn them. It is usually disbursed on a monthly basis rather than credited at the beginning of the year. So, PL will be gradually added, and when they complete 1 year, they will be eligible for a complete 13 PL days every year.

Suggestion for Leave Management

I would suggest that you impress upon your management to club all leave (except for holidays) together. In your case, PL and CL equal 20 days. The advantage of this is that HR and the reporting manager won't have an additional burden to account for what would be CL and PL.

PS: Do you have PL in addition to your mentioned paid leave and CL?

Hi Ukmitra,

As I have mentioned in my post, we are planning for 7 Casual Leaves, 12 Holidays, and 13 Paid Leaves. Over and above the CLs and the PLs, there would be Public and Festival Holidays.

Do we need to include more?

Regards,

Thank you for the clarification. First, you have to separate Holidays from CL and PL in the definition of your leave. Holidays, Public Holidays, and Festivals are separate and not part of your Leave policy.

Leave Policies in India

Leave policies in India are governed by Section 79 of The Factories Act, 1948, and the Shop Establishment Act. If I am not mistaken, Gujarat has adopted the Bombay S&E Act.

Here are some links with excellent information on leave policies:

- http://indiankanoon.org/doc/982016/ - Section 79 in The Factories Act, 1948
- http://m.paycheck.in/main/labour-law...s/leave-policy - Paycheck.in - Leave Policy in India, Maternity Leave, Paternity Leave
- http://www.paycheck.in/main/labour-l...ays/paid-leave - Paycheck.in - India, Paid Leave, Sick Leave, Earned Leave, Maternity Leave in India

In your case, I suggest implementing Annual Paid Leave as per the Factories Act 1948. This PL can be credited every month except for LWP (Leave without pay) days. CL may be credited at the beginning of the year without the carry-forward option.

I hope this information is helpful.

I understand your queries and concerns. Please understand that while implementing the Bombay Shop and Establishment Act, you also need to know that after completion of 240 working days in an organization, a person is entitled to 21 days of paid leave.

Considering the same, my advice is to make sure that you implement the correct leave structure. You can go ahead with either 21 paid leaves, 7 casual leaves, and 7 sick leaves, or you can club them all together to make it 30 paid leaves, of which you can make it mandatory for the employee to take all casual, sick, or paid leaves from the said quota itself.

For any queries and details on the notification, please email me at [Email Removed For Privacy Reasons] or call me at [Phone Number Removed For Privacy Reasons].

Regards,
Dr. Urjit Kavi
Ph.D. in HR, PGDBM in IR & PM, MBA in HR & Ops.

Understanding Privilege Leave (PL)

In the context of a leave policy or human resources, "PL" commonly stands for "Privilege Leave." Privilege Leave is a type of leave granted by an employer to employees, allowing them to take time off from work for personal reasons such as vacation, personal appointments, or any other personal matters. It's a form of paid leave that employees accrue over time, usually based on their length of service or as per company policies.

Privilege Leave may also be referred to as Paid Time Off (PTO) or Annual Leave in some organizations. The specific terms and conditions regarding accrual, utilization, approval process, and carry-over of Privilege Leave typically depend on company policies, employment contracts, or applicable labor laws in the respective region or country.