Is It Legally Required to Separate Casual, Sick, and Earned Leaves in Our Policy?

Hi All,

I wanted to check if it is a mandate to have both Casual/Sick Leave and Earned Leaves. We have decided to have 30 leaves in a year but do not want to classify them under separate heads. Will this have any kind of legal implication?

I would appreciate your inputs on this.

Regards,
Shikha

Dear Shikha,

You have to bifurcate all 30 leaves into different categories like CL, SL, and EL. This is a legal requirement, and you need to describe it in your company's standing order.

Thanks,
Sandeep Sharma

Purpose of Availing/Granting Leave

The purpose of availing/granting leave to employed persons is manifold. For instance, earned leave or privilege leave is on completion of the minimum qualifying period of work and/or proportionately thereof availed for rest, recuperation, annual break, or to attend to personal work, etc.

Whereas sick leave is to cover the period of authorized absence from duty on account of medical unfitness for duty, duly certified/supported by a valid certificate issued by a medical practitioner or civil assistant surgeon. Casual leave, on the other hand, is availed to attend to unforeseen events/situations. That is the reason the laws prescribe certain norms in our society. Trust the distinction is understood.

Regards,
Harsh K Sharan Kritarth Team, Bengaluru Office, 5.10.15

Legal implication of leaves is governed by the Factories Act if your establishment is a factory, and by your state's Shops and Commercial Establishment Act if it is not a factory, plantation, or mine.

Certainly, such a practice will amount to willful non-compliance or contravention of the leave provisions of the Labour Law applicable to your establishment, about which there is no mention in your post. I think the reply of Harsh K. Sharan clearly brings out the purpose behind the classification of leave allowed to the employees. Besides, certain types of leave like E.L. or P.L. have surrender value for encashment for their unavailed portion at the time of normal termination of employment, thereby forming part of terminal benefits. Leave, being one of the conditions of service, should be devised in the leave policy of the establishment strictly in accordance with the leave provisions of the law applicable to your establishment in respect of all aspects like classification, accumulation, etc. Of course, you can bestow your employees with more leave benefits than the legal stipulations but not less in any manner.