How Can We Introduce CL, PL, and SL into Our Leave Policy While Staying Legal?

Hi Brinda,

I am Brinda, working as an HR Executive in an engineering company. I would like to know about leave rules and the leave policy. Until now, we didn't have any bifurcation in leaves; that is, in a year, an employee is eligible for 30 days, which means 2.5 days of leave per month.

Now, our management wants to introduce CL, PL, and SL into the leave policy. I would like to know how we can frame a leave policy according to the law and circulate the same to employees.

I would appreciate it if anybody helps me in this regard.

Have a nice day!

Regards,

Brinda Shah

Hi Brinda,

There is a lot of stuff available on this forum. If you search for the Leave rules or leave policy in the search column, you will find the information. But shortly, I will provide you with the answer –

In the Factory Act, the provision and rule for the PL is given as follows: For adults - for every 20 working days, 01 day PL should be given. Considering 365 days in a year and deducting 52 weekly offs and 10 paid holidays, the PL calculation is as follows:

365 - 52 - 10 = 303 days are the actual working days. Therefore, 303/20 = 15.15 days. You can provide 15 days PL based on the above calculation.

If your company has already granted a total of 30 days leave and wishes to maintain the same, you can allocate the leave as follows: CL - 07 days, SL - 08 days, and PL - 15 days. To implement the above, you need to establish the leave policy and rules.

Thanks,
Amit Shah

Dear Brinda,

Amit is right. Minimum 27 leaves are there as per law, but if your organization is giving 30, it is good. It seems your organization is employee-oriented, which is very good. According to Amit, PL=15 is okay. CL=6 and SL=6. This is the minimum requirement; above this, you can add any number of leaves, and that is optional. So go ahead and use Amit's concept as per 30.

Always,

Nirmal Kumar Sahu

Thanks a lot, all.

As I am new to this group, I thought that there would be minimal replies, but I am so happy to receive this prompt reply.

Mr. M. Peer, thank you for that wonderful data. I will prepare the leave policy and share the same with you to rectify if it requires any changes.

Thanks.

Hi,

The leave is from the Factories Act or other Acts like S/E, Motor Transport, or Mines Act. Normally, an employee is eligible for leave after completion of one year of continuous service. For eligibility, he has to work 240 days in a year. Now, you can calculate one day of leave for every 20 days of work. For sick leave, those who are under ESIC will get the same benefits, and those out of ESI can accumulate 15 days per year, with 1/2 day accumulation.

For CL (Casual Leave), it depends on the company and may be 5 to 7 days in a year. PL (Privilege Leave) is different from CL, which stands for Casual Leave, and SL is for Sick Leave.

Thank you.

Dear All,

I agree with Sidcci (Don't know exactly what your name is!!!!). According to the Factories Act, a year consists of 240 working days. As per the policy, 1 day leave is granted for every 20 days of work for an adult, and 1 day leave is granted for every 15 days of work for a child. This is for PL (Paid Leave)/EL (Earned Leave) (Both have the same meaning).

Regarding Sick Leave (SL) and Casual Leave (CL), refer to your standing order act (if applicable) for the details provided. If nothing has been mentioned in your standing orders, then you can keep CL & SL at around 5-7 days each or even more. However, if you choose to do this, you will also need to make necessary changes to your standing orders.

Regards,
Nilendra

My full name is Siddharth, but I go by Sid. I am the Corporate Head of CCI Logistics Limited.

Hi Mr. Peer Mohamed Sardhar,

Thank you very much. The posting is really useful for everyone who truly wants to work on their company's leave rules.

Regards,
Lalitha

Dear all,

I have two issues.

I worked for a company from Feb 2008 to July 2009. I have accumulated around 15 days of leave. When I resigned, they said leaves cannot be encashed. Am I eligible for that amount? Can you please provide a reference to the relevant acts?

In the new company, they offer 18 days of leave per year. Is the company following the law? This leave entitlement includes sick leave and casual leave. Is this correct? What is the minimum number of days that the company should provide? This is a software company.

Dear friend,

You have provided an example based on the Factories Act. I would like to know if there are any specific or fixed rules applicable for construction companies to allocate PL. Could you please inform me?

Thank you.

Dear friend, you have given an example according to the Factories Act. I would like to know if there is any specific or fixed rule applicable for construction companies to allot PL. Please inform me.

Dear NAK,

This is to inform you that none of the labor laws relating to the grant of E.L. or P.L. are applicable to construction sites. In my opinion, there are two laws relating to the grant of E.L., i.e., the Factories Act, 1948, and the State Shops Act; however, in your case, both Acts are not applicable. Offices on construction sites may be covered under the Shops Act of the respective State if the area where the office is located is subject to the applicability of the Shops Act.

Regards,
R.N. Khola
(Labor Law & Legal Consultants)
09810405361

Can anyone give me valuable information regarding Leave Rules and its calculation? Number of EL, CL, HPL, and SL, and the maximum limit of EL and HPL that an employee can avail leaves during the whole service period. What is the difference between EL and HPL, and which is more beneficial for employees?

Hi there, I heard that there is a practice of EL/AL to be given in Karnataka per year, totaling 18 days, i.e., 1.5 days per month. Can anyone provide clarity on this?

Regards, Sindhu