Working Hours And Leaves For A Private Limited Company

Hi Seniors,

I am an HR Executive in a startup firm registered under the Shop and Establishment Act. We are in the process of forming the policies for leaves and working hours. So, I would like to know about the rules applicable for leaves and working hours for a Private Limited Company. Specifically, I would like to know:

- Types of leaves?
- Rules about managing different leaves and working hours?
- Any other rules to be followed regarding leaves and hours?
- A reliable Payroll Software as well.

Thanks,
Anshika

Hi Anshi, Most of the leave and working hour policies for private limited companies in India are common to all the states. Having said that, some state-specific policies include holidays on that particular state day, e.g., 1st May is a holiday in Maharashtra state on account of Maharashtra Day.

Types of Leaves

The three main bifurcations for leaves are:

1. Casual leave (short leave taken for personal reasons)
2. Earned leave (long leave taken for a vacation)
3. Sick leave (self-explanatory and unplanned)

A company should provide a minimum of 18 leaves per year per employee apart from public holidays, which are generally 12 per year (optional and could be more).

Mandatory Public Holidays

The four mandatory public holidays that should be given in every company are on account of Republic Day, Independence Day, Gandhi Jayanti, and the particular state day in which the company is based.

Leave Carry Forward

Leaves could be carried forward to the following year or restricted to the same financial year, depending upon the discretion of management.

Working Hours

Ideally, 9 working hours along with a 1-hour break are followed in every company. It could be 8, depending upon the discretion of management, but not more than 9. Work hours could be from 9 to 6 or 10 to 7, depending upon the staff's convenience (thanks to the employee-centric nature of organizations these days).

Weekly Off

One weekly off is compulsory, though many companies provide two, or a second off every alternate week. This also falls under the discretion of management.

These are a few generic leave and working hours policies. I hope it helps you in drafting your organization's policies effectively.

In case it's too much of a botheration for you (which I assume it will be), an excellent option to handle your tedious payroll and other HR processes is sumHR. It is a new-age HR and payroll software that comes at a surprisingly low cost. Most SMEs in India are streamlining their HR activities hassle-free. You can take a quick look at our happy customers at https://www.sumhr.com/customers-and-testimonials/.

Some of its features include:

1. Leave tracking and active attendance monitoring.
2. Monthly payroll processing.
3. Company social network called streams for employee engagement.
4. Cloud-based, hence safe storage of data and easy accessibility from any server.

Click to learn more about us: https://www.sumhr.com/ or call me on [Phone Number Removed For Privacy Reasons].

Regards,

Thank you for the response!

The office is situated in Madhya Pradesh. I would also like to know about a few good and reasonably priced payroll software options.

Thanks,
Anshika

In our organization, we are currently using Spine Payroll, which is very reasonable and user-friendly software with an excellent customer support team. I have attached some information files that I received from the Spine company. You can go through them and contact them directly.

Thank you for the response. The information is very helpful.

I would like to know if the rules applicable to a company depend on the number of employees it employs.

Thank you.