Navigating Leave Policies: Can We Legally Require Employees to Use Earned Leave Before Emergency Leave?

We are a Mumbai-based IT company also running BPO and KPO under the Bombay Shops and Establishments Act. We have a total of 21 leaves: 13 earned leaves (EL) and 8 emergency leaves (2 per quarter).

Can emergency leave be called CL?

Can we mention in the leave policy that an employee has to utilize their EL first and only then the emergency leave? Is this legally right? We are operational and do not want to encourage employees to take unnecessary leave.

Leave policy for new employees

New employees cannot avail of EL before six months, so they have to take emergency leave. If I am sick for three days, will these leaves be deducted from EL? Is any leave more than one considered EL? All planned leaves are considered EL, whether it is one or more than one. Any unplanned leave is considered an emergency.

**Location**: Mumbai, India

emergency leave, Country-India, City-India-Mumbai, leave policy, new employees, IT company,

In the context of the Bombay Shops and Establishments Act and employment practices in Mumbai, India, it is essential to clarify the terms and conditions regarding earned leave (EL) and emergency leave (CL).

- Emergency Leave vs. Casual Leave: While emergency leave can be commonly referred to as Casual Leave (CL) in many organizations, it is crucial to define these terms clearly in your company's leave policy to avoid any confusion among employees.

- Utilization of Earned Leave (EL) and Emergency Leave: It is legally permissible for a company to establish a policy that mandates employees to utilize their earned leave (EL) before availing emergency leave. This practice is often implemented to ensure that employees utilize their entitled paid time off effectively.

- Legal Compliance: To ensure the legality of such a policy, it is recommended to align it with the provisions of the Bombay Shops and Establishments Act and any other relevant labor laws governing leave entitlements in Mumbai, India.

- New Employees and Leave Entitlement: As per your description, new employees may not be eligible to avail earned leave (EL) until completing six months of service. In such cases, emergency leave can be provided as a temporary measure to cover unplanned absences.

- Leave Deduction: When an employee is sick for three days, the leave deduction should follow the company's leave policy. Typically, in scenarios where an employee exhausts their earned leave (EL), any additional unplanned leave taken would be deducted from other leave categories, such as emergency leave.

- Leave Classification: It is common practice to categorize planned leaves as earned leave (EL) and unplanned or emergency leaves separately. This classification helps in managing and tracking different types of leaves effectively.

By clearly outlining these policies in your company's leave policy document and ensuring alignment with relevant labor laws, you can establish a transparent and compliant framework for managing employee leave entitlements.