Confused About Leave Policy Options and Probation Rules? Need Your Guidance!

Hi friends,

We are a company with 30 employees. We are planning to implement a leave policy starting this year. I am a bit confused. We have decided to provide 28 total leaves annually, with two options available:

Option 1: (18 PL + 10 CL / SL)
Option 2: (15 PL + 13 CL / SL)

Could you please advise me on which option is better?

I also have the following doubts:

1) Should employees on probation be allowed to take PL or CL for the initial 6 months?
2) We have decided to allow accumulation/encashment for PL. What is the maximum allowed accumulation limit, and based on what criteria should it be encashed?

I am really getting confused. Can anybody guide me?

Regards,
Rashmi
hr@etpl.co.in

Hi Rashmi,

The (18 PL + 10 CL / SL) combination looks better. Employees are not required to give an advance notice for availing CL, so it's better to keep the numbers low. It would even be better to further bifurcate CL and SL.

As far as your query no. 1) is concerned, employees on probation are permitted CL.

Regards,
Leena

Hi Rashmi,

Generally, we provide 10 official leaves and 16 to 18 earned leaves in a year, totaling 26 to 28 days. Only earned leaves can be encashed. To do so, firstly, individuals should have more than 30 days of leave balance. When they wish to encash their leave, it can only be done once a year, specifically at the end of the financial year (March). They need to submit an application stating the number of days they would like to encash. This process takes place in April, which marks the beginning of the next financial year.

For individuals in their probation period, they are granted official leave. During the probation period, they receive one day of leave per month. These leaves cannot be carried forward to the next month nor can they be encashed.

Thank you.

Hi,

I understand that your company/office is covered by the Shops & Commercial Establishments Act applicable to your state. Since the question of "earned leave" is covered by that act, you should first comply with the provisions of the act and then think of anything else!

While you must check the provisions as stipulated in the act applicable to your state, it is a general provision that for every 60 (sixty) days worked, an employee is entitled to 5 (five) days of earned leave. There are other provisions that I could narrate, but it is in your own long-term interest that you should study these and then raise doubts or seek an explanation from others!

No law, including the Shops Act, provides for any leave other than earned leave. So it will have to be your organizational policy to decide the quantum and rules of administration of other leaves.

After your study of relevant provisions, you may not even need assistance, but if you do, raise a query, and we will be glad to help!

Regards,

Samvedan

January 2, 2006

Dear,

May I suggest having only one type of leave and also fixing a minimum percentage of that leave which would lapse unless one avails it. There is no need to have multiple types of leave, adding to the burden of keeping different accounts. All your statutory requirements, be it the Shops & Establishment Act or the Standing Orders, can be met in this way. We should encourage people to avail leave. Otherwise, they keep on taking short leaves (say 2-3 hours) and accumulate their leaves, making it really difficult to enforce discipline. I am told the international practice these days is to keep all the leave under one head.

Regards,
Nair K K

Dear all,

Earned Leave in India is governed by statute, so we do not have the option to explore and exercise various permutations. I would suggest you go through the local Shops and Commercial Establishment Act for Earned Leave. As far as other leaves are concerned, organizations can decide on their own. However, the benchmarks are as follows:
- SL: 7-10 days
- CL: 7-10 days

Please feel free to revert back in case of any queries.

Dhole

Dear All,

Can anyone provide me with information on the leave policy followed for front-line sales and service executives in telecom companies such as Bharti, Tata, Reliance, Hutch, Aircel, Escotel, Idea, etc.? (Working days - 6 days a week)

Regards,
Sathya