Is Combining Privilege, Sick, and Casual Leave a Fair and Legal Move? Seeking Your Thoughts

We are revisiting our Leave policy and plan to combine Privilege Leave, Sick Leave, and Casual Leave. I need input on the following lines:

1. Is it a fair idea to combine the leaves?
2. Does our law permit such combining? (Can we seek permission from the judiciary system as a special case?)

I look forward to valuable input from everyone.

Thank you in advance.

Regards,
Bhavin Vahia

It's a welcome move. Make a single leave policy 'All Purpose Leave.' We also follow this approach.

You can combine Casual Leave and Sick Leave. We have the option to do this, so both put together it's 12 days. However, you can't add Privilege Leave to this.

I have a different opinion. As you are aware, the HR department plays a vital role in getting such leave sanctioned. If not sanctioned, it constitutes leave without pay.

Importance of HR Control in Leave Sanctioning

To emphasize the seriousness of such leave and to have HR control, we need to have an example:

Case 1: An employee taking leave of a shorter duration for which a phone call would be sufficient. But how do we handle it if someone goes on leave for more than 5 days on short notice (without any prior intimation)?

Adhering to Traditional Leave Intimation Practices

Why not stick with the old formula of requiring intimation for a particular type of leave?

- PL: Intimation of 1 month in advance (varies from department to department, e.g., marketing, production, accounts).
- CL: Intimation on mobile.
- SL: Intimation on mobile but with medical proof.

Following such a procedure would instill seriousness in utilizing leave and maintain discipline in the organization. I have observed organizations where senior personnel frequently took PL (short leave) without proper intimation.

Encouraging Leave Utilization for a Healthy Work Environment

For a healthy environment, we make it compulsory for employees to exhaust CL & SL; otherwise, it would lapse. This would also provide monetary control over the HR fund.

Regards, Arjun Pandav

You can combine CL & SL. The new system should be called CS (Casual & Sick Leave), which should be a maximum of 12 days per annum. Apart from this, there should be Paid Leave or Earned Leave, which should be a maximum of 24 days per annum. I hope this leave structure will help to resolve your issue.

As Mr. Arjun Pandav said, we have to make it compulsory for employees to exhaust CS; otherwise, it will lapse.

Regards,
P K Sudarsan
Senior Executive HR

The answer with reference to legal requirements depends on whether you are a factory or come under the Shop and Establishment Act, which state you are in, and whether the standing orders apply to you.

As Mr. Banerjee rightly said beforehand, it is advisable to check the relevant Act/Rule of your state.

Dear Bhavin,

Points to Consider When Making Leave Rules

While making the leave rules, the following points may be included:

1. The sanctioning of leave is at the discretion of the immediate superior, except in the case of Sick Leave (SL).
2. Casual Leave (CL) and Privilege Leave (PL) require prior sanctioning, while Sick Leave does not.
3. More than three days of Sick Leave require documentary proof.
4. Casual Leave cannot be clubbed with any other leave under any circumstance, and the maximum one can avail at a time is three days only.
5. If all Sick Leave is exhausted, Earned Leave (EL) can be sanctioned as Sick Leave, and the same can be combined with Sick Leave if it is exhausted during the leave period.

These are only guidelines being followed in my company and approved by the Regional Labour Commissioner (RLC).

Regards,
Santosh

We are a factory based in Gujarat, and model Standing Orders are applicable to us.

Regards,
Bhavin Vahia

In that case, the only rule that directly applies as a limiter is to provide one day of leave for every 20 days of work (including weekly off, paid holiday, and approved leave). Higher leave and better provisions are, of course, allowed. In view of this, the suggestions given by members are, of course, correct. You will need to make the changes in the standing orders and get the same certified to implement your new/proposed leave rules.

Combining Leaves: Legal Considerations

No law prevents you from combining leaves. However, this should be permitted under special circumstances and generally requires pre-approval.

Regards

Application of the Factories Act

In the first place, provisions of the Factories Act shall be applicable to the workers of the factory.

Judiciary Permission

Secondly, there is no system of taking permission from the judiciary.

Policy Formulation for Managers

Thirdly, you can formulate the policies and guidelines for managers and include them as terms and conditions in the appointment letter being issued.

Regards,

Factories Act: Annual Leave with Wages

Sec 79. Annual leave with wages

(1) Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of:

- If an adult, one day for every twenty days of work performed by him during the previous calendar year.
- If a child, one day for every fifteen days of work performed by him during the previous calendar year.

Explanation 1: For the purposes of this sub-section:

- Any days of lay-off, by agreement or contract or as permissible under the standing orders.
- In the case of a female worker, maternity leave for any number of days not exceeding twelve weeks.
- And the leave earned in the year prior to that in which the leave is enjoyed.

These shall be deemed to be days on which the worker has worked in a factory for the purpose of computation of the period of 240 days or more, but he shall not earn leave for these days.

Explanation 2: The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave.

So, paid holidays and approved leave are counted in days worked. Since the worker needs to be paid for the weekly off, as per the Factory Act and Payment of Wages Act, that also is to be counted as worked.

Sir, 01 day Leave = 20 days working.

My question is: 20 days working including weekly off, holidays, festivals, or excluding the same. Kindly clarify.

20 days of working would include weekly off, holidays, and festivals.

Explanation

"The leave admissible under this sub-section shall be exclusive of all holidays whether occurring during or at either end of the period of leave. So, paid holidays and approved leave are counted as days worked. Since the worker needs to be paid for the weekly off, as per the Factory Act and Payment of Wages Act, that also is to be counted as worked."

Regards,
Arjun Pandav9

I doubt leave can be earned on the days not physically worked. Of course, for the computation of eligibility of 240 days, all the off days, paid leave, etc., can be taken into account. The relevant provision of the Factories Act has already been posted by our respected member Mr. Saswat Banerjee. Please advise.

Regards,
T M Rao

There is no statutory position or Act governing the leaves of Casual Leave (CL) and Sick Leave (SL). However, there is a statutory provision for Privilege Leave (PL) in the Factories Act. The PL procedure is clearly outlined in the Act.

Consequently, CL and SL can be combined, and PL can also be combined in continuation of CL and SL at the management's discretion, with the aim of enhancing employee facilities and fostering cooperation. There are no strict rules regarding this.

Regards,
D. Gurumurthy
HR, LL, IR Consultant
Hyderabad.