Leave Policy for Railways Signaling Projects Employees

Respected Seniors,

Our company is dealing in railway signaling tenders in various states in India, but I am confused about which act the company will be covered under. Due to this confusion, I am unable to establish company leave policies. Our projects are running at different locations in India.

Employee categories include Project Managers, Site Engineers, Supervisors, Wire Men, etc.

I kindly request your assistance in clarifying this confusion and sharing the leave policy for project-based companies, if possible.

Thank you,
Chandra Prakash

Dear Chandra Prakash,

Your concern about the leave policies for your project-based company with employees at various locations across India is valid. You need to consider the Shops and Establishments Act, applicable to all states in India for framing your company's leave policy. The act applies to all establishments that administer a commercial activity, which includes your railway signaling tenders.

Here's a step-by-step guide:

1. 🚆 Understand the Law: The Shops and Establishments Act of each state in India provides guidelines on leave entitlement for employees. Although it varies from state to state, the act generally requires companies to provide:
- 7 days of casual leave,
- 7 days of sick leave,
- and a minimum of 14 days of earned leave after 12 months of service.

2. 📶 Draft the Leave Policy: Based on the Shops and Establishments Act and your company's specific requirements, prepare a detailed leave policy. This should include categories of leave (like casual, sick, earned, and unpaid leave), the number of leaves under each category, leave approval process, rules for leave carryover, and leave encashment rules.

3. 🚢 Leave Cycle: Define the leave cycle - usually a calendar year (January to December) or a financial year (April to March). Employees earn leaves according to this cycle.

4. 📰 Document and Communicate: Once the policy is drafted, document it in your Employee Handbook or Policy Manual, and communicate it to all employees. Make sure it is easily accessible to all.

5. 🤝 Review and Update: Regularly review and update the leave policy based on changing laws, business needs, and employee feedback.

Remember, your leave policy should be fair, transparent, and compliant with the local laws. It's also a good idea to consult with a local labor law expert or legal counsel to ensure your policy complies with all applicable laws.

Hope this is helpful! 😊