How to Manage Year-End Leave Balances When Employees Can't Take Time Off?

Hi All,

I have one query regarding the balance leave of employees. We have a startup company with 20 employees, and we provide 21 leaves in a year. At the end of the year, if an employee has leave balance, only 5 leaves will be carried forward to the next year, and they need to utilize those leaves in the first quarter. Currently, our employees have their balance leave, but due to project dependencies, they can't take leave until December. Can anybody guide me on what can be done in such a case?

Dear Abha,

It depends completely on the state you belong to and the rules that are applicable to you, such as the Factories Act or Shops Act. If I'm not wrong and you are from Mumbai, then as per the Shops Act, the leave carry forward limit is 42 days, and below that, you are not supposed to consider it as lapsed as per the act.