How Do You Create a Fair Leave Policy for a 24/7 IT Startup in Kerala? Seeking Advice!

Hello Everyone, I am working as an HR Generalist in a small but growing IT company based in Kerala, and I am the only HR personnel here. We employ both experienced and junior candidates, and the probation period for every new joiner is three months. Currently, the casual leave entitlement is 12 days per annum. The technical team operates 24/7, creating challenges in formulating the leave policy. I seek your suggestions to develop an effective leave policy. It would be greatly appreciated if anyone could provide a sample.

Thanks in advance!

Kerala Leave Policy Considerations

Since you are based in Kerala, you need to follow the provisions regarding leave as given in the Kerala Shop & Establishment Act. Take them into account and, depending on your situation, you can add to the benefits provided therein. The leave policy can then be drafted accordingly.

Thank you, sir. Adding to that, we are in an expansion stage where we are hiring employees out of state as well. Which laws should be followed in this case?

You have to follow the rules declared by the respective state governments regarding the staff deployed there. For all the Kerala-based employees, follow the Kerala rules.

How is it possible to formulate a common policy for employees in India by considering all the state policies? Is there any standard?

Dear friend,

At present, there are 28 states and 8 union territories in India. To my knowledge, most of them have their own separate State Shops and Establishments Acts as the subject of labor falls under the Concurrent List. Even though the Model Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2016 has been cleared by the Union Cabinet, it will not become a law binding all states as it is just a model legislation. You may go through Section 11 of this Act, which deals with leave and holidays. As far as I know, only four states have come forward to adopt this Act. Therefore, it will be very difficult to scan all the state laws and fix the leave at the maximum scale now itself, though it is the correct method to be adopted.

My suggestion would be to follow the Kerala State Act with the condition that leave benefits would vary according to the place of posting outside the State of Kerala as per the state law applicable to that particular place.

Dear colleague,

If one follows the governing principle of uniformity in matters of leave entitlement (quantum), accumulation allowed, combining with other types of leave, and weekly/festival holidays, and procedure for availing it, it will lend great strength in smooth operations.

In case of pan-India operations, do some research on leave entitlements under the respective State Shops Act in which you have operations. Then formulate a uniform leave policy by choosing the highest quantum of leave under each type, i.e., PL, SL, CL, and holidays. This will greatly facilitate smooth inter-state transfer of employees.

Maternity leave is uniform under the MB Act, and you need to follow it as provided.

You also need to keep in view region and industry practices while formulating the leave policy apart from the ESI Act if applicable.

Regards,

Vinayak Nagarkar HR and Employee Relations Consultant