How to Justify Removing Casual and Sick Leave in Favor of More Privilege Leave?

I have created a leave policy for my company as per the Shop and Establishment Act for different states. Employees are entitled to 18 privilege leaves with a carry forward of 45 days per year. My boss wants to increase the privilege leave to 21 days and reduce the carry-forward leaves to 15 days, but I haven't found any support for this change. Casual leave and sick leave have been eliminated by my boss, who now wishes to allow only privilege leave for employees. She has tasked me with finding a way to justify her decision. Can anyone help me with this?

Hi, leave policy should be followed as stipulated in the respective Act, and leave rules cannot be formed based on the whims and fancies of your superior. You need to caution your boss that removing CL & SL will be a violation of labor laws.

Dear Member, First, examine each and every state S&E Act applicable in your case for the grant of minimum statutory CL, SL, PL, and accumulation of PL. If you want to grant all these leaves as per the applicable S&E Act, then there is no need for making a leave policy. But if you are interested in granting better leaves in place of statutory leaves, then you should declare it for all affected employees.

Submitted, please.

Regards, R N KHOLA

Hello Devina, Under the Shop & Establishment Act, 18 days of earned leave (EL) is acceptable. However, 8 days of casual leave (CL) must be granted in addition to EL. You can find supportive posts on the same in Cite HR itself.

Regarding EL encashment
The unused EL should be encashed at the end of the prescribed period. It cannot be done halfway through.