Leaves Policies - what are the rules about clubbing different types of leaves?

shwetagaikwad
I am an HR Executive in a startup, and we are in the process of forming HR Policies. I need to know the policies and rules related to leaves in a private company. Specifically, I want to know:
- How many of each kind of leave?
- What are the rules about clubbing different types of leaves?
- Any other general rules to follow regarding leaves?

Please help me out. I am in urgent need and a new member of Cite HR.
Srinath Sai Ram
Dear Shwetha,

Before moving forward with the formulation of the Leave Policy, please review the applicable acts, i.e., The Factories Act, 1948, and the relevant rules if you are registered as a Factory. Alternatively, review the applicable Shops & Commercial Establishments Act and Rules, with specific reference to Leave. You have not provided information about the registration particulars of your Establishment.

Thank you.
KK!HR
Please clarify whether you are a factory or an office. I presume you to be the latter; in that case, please consult the Bombay Shop & Establishment Act 1947 for leave provision. In the case of a factory, the provision regarding annual leave in the Factories Act 1948 needs to be complied with. In both cases, the provisions given in the Industrial Employment (Standing Orders) must be followed if you are covered under it. Please see the applicability of these statutory provisions and prepare your policy. You can seek guidance from established industries' practices. Feel free to seek clarifications thereafter.
manojkamble
Dear Shweta,

As rightly said by Mr. KK and Mr. Srinivas, it is hard to clarify the policy of leave without knowing the type of your organization and the act it falls under. If it is as per the Factories Act, then one leave for every 20 days worked is considered in the EL. If it comes under the Shops Act, then 21 days per year are applicable for staff. For more details, please provide your query with brief information.
venkateswaraniyer
Dear Sir,

I want to know whether the leftover earned leave, after encashment of 8 days, which is accumulated to a maximum of 60 days, will become lapsed if it crosses the 60-day limit. I am working at a Club in Hyderabad.
KK!HR
Please specify the problem. It is not clear regarding the limit of EL accumulation.

The next question pertains to the practice in your organization. Is EL credited in advance? If so, the advance credit could exceed by one credit. For instance, if the maximum leave accumulation is 60 and leave credit (e.g., 15 days) is provided in advance, then the limit could be exceeded by 15 days, i.e., it can go up to 75 (60 + 15). If the leave is not availed or encashed by the end of the advance credit period, the 15 days of advance credit will lapse.
Arthome
Thank you for the kind information. I would like to know about the leaves or holidays in the hotel industry.
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