Simplifying Leave Policies: Can We Combine All Types into a Single Annual Leave?

Hi, I am Satyanarayana,

I would like to know whether it would be permissible to allow leave on an annual basis without giving separate nomenclature like CL, HPL, Annual leave, Sick leave, etc. My intention is to give, say, 50 days leave to the employees on an annual basis without specifying that 12 days are CL, 2 days RH, 30 days EL, etc. I think this simplifies the record-keeping as well as motivates employees.

Can I get advice, please?

Satyanarayana

Hi,

It won't make sense. Moreover, if you have a clear bifurcation, you can even draw attrition analysis. You can track from the CL or SL, employees who are frequently absent.

Thanks,
Fayeg

Dear Sathya,

Greetings.

Leave cannot be given on an ad hoc basis.

Earned leave: This leave has to be given as per the Factories Act, which is one day for every 20 days of service. It cannot be accumulated for more than 30 days.

Casual Leave: The purpose of this leave is of a casual nature and cannot be carried forward to the next year. It may be up to 10 days if you wish. However, some companies have a policy of encashment for the balance of Casual Leave.

Sick leave: For those who do not have ESI Facilities, sick leave is allowed, and the reason for this leave must be on health grounds.

Hence, my advice is for you to bifurcate your said leave into various components as above. Otherwise, it is difficult to convince and operate the leave account of employees.

Cheers,

Trisha
HR Professional

Hi Satyanarayana,

Leaves cannot be bifurcated as such. Only paid leaves can be carried forward to the next year. When you combine all these leaves, the carried-forward leaves will be high in number, resulting in a cost. The same scenario applies to the encashment of leaves. Ultimately, it becomes a mess at the end of the year.

Regards,
Deepthi