Planning Annual Leave Policy: How Would You Structure Leave Days and Holidays?

I'm planning the leave policy for our company. Kindly provide inputs or corrections on the following annual leave details:

1. Casual Leave - 12-15 Days
2. Sick Leave - 12-15 Days
3. National Holidays - 3 (Republic Day, Independence Day, and 2nd October)
4. Indian Festivals - Are they mandatory? If yes, how many days?
5. Maternity Leave - 12 Weeks

Understanding Leave Policies

Before you venture into the new leave policy, you need to ascertain the position in the applicable Standing Orders or the Shop & Establishment Act, as the case may be. You need to follow the provisions. In case they are not applicable, you will have to check the position in the neighboring establishments and try to follow the same.

National and Festival Holidays

Some states like Kerala, Tamil Nadu, Maharashtra, etc., have the National & Festival Holidays Act, so it has to be followed for deciding the quantum and the necessary number of days. Many states have declared 1st May & 14th April as National holidays.

Maternity Benefit Amendment Act 2017

As per the Maternity Benefit Amendment Act 2017, maternity leave has been increased. The duration of paid maternity leave available for women employees has been extended from the existing 12 weeks to 26 weeks. This benefit could be availed by women for a period extending up to a maximum of 8 weeks before the expected delivery date, and the remaining time can be availed after childbirth. For women who have 2 or more surviving children, the duration of paid maternity leave shall be 12 weeks (i.e., 6 weeks before and 6 weeks after the expected date of delivery).

Maternity Leave for Adoptive and Commissioning Mothers

Maternity leave of 12 weeks is to be available to mothers adopting a child below the age of three months from the date of adoption, as well as to the "commissioning mothers." The commissioning mother has been defined as a biological mother who uses her egg to create an embryo planted in any other woman.

You may consult the provisions applied and decide the matter.

Hi Umang, I presume your query is related to your unit located in Rajasthan. If so, you have to model your policy in accordance with the Shops & Commercial Establishments Act of Rajasthan, as pointed out by Mr. KKHR. Regarding maternity leave, the Maternity Benefit Act should apply in full. Similarly, for National and state holidays (paid), you should adopt the notifications issued by the Rajasthan state government every year.

You should first examine whether your establishment is a factory or commercial establishment and follow legal provisions related to leave matters under them.

The Acts specify minimum mandatory requirements, and you can opt to provide better benefits.

There are four national holidays - 26th Jan, 1st May, 15th Aug, and 2nd Oct (Gandhi Jayanti) - which are mandatory.

Regarding Maternity Leave (ML), you must comply with the amended law as highlighted by other colleagues.

Some State Shops and Establishments Acts/Rules stipulate a minimum number of leaves - Earned Leave (EL), Casual Leave (CL), Sick Leave (SL), and Paid holidays, for example, in Maharashtra State. Check if your state Act applies to you and ensure compliance.

In addition to legal requirements, another principle to consider in formulating a leave policy is regional industry practices. Therefore, make sure to investigate this aspect.

Regards, Vinayak Nagarkar
HR and Employee Relations Consultant