Leave Policies Across India: Should They Be Uniform or State-Specific?

Hi friends, I work in Chennai as the Head of HR with many locations across India. Should we follow the same leave policy for all locations, or does it vary state by state, especially in Madhya Pradesh? Please share your views.

Regards,
S. Hema

Hi, I would suggest having a minimum of 2 types of leave.

Types of Leave

In case you wish to offer 15 days (let's say) in a year, divide them into the following parts:

Mandatory Offs
1. Republic Day
2. May Day
3. Independence Day
4. Gandhi Jayanti

Company-Declared Offs (indicative, not compulsory)
5. New Year
6. Ganesh Chaturthi
7. State Formation Days/State-specific festival (particular to the state)
8. Diwali
9. ID
10. Christmas

Optional Offs: 5 days

Having optional offs will provide you with ultimate flexibility in terms of leave application across states and even from the employee's point of view, it's beneficial.

Hope this helps.

Thanks.

Hi, I suggest you follow the leave rules as per the respective State Act. Leave rules as stipulated in Tamil Nadu will not be the same in other states. Therefore, it is better to follow leave rules as per the respective State Act.

Hello, I would also suggest preparing the leave policy according to state rules and requirements because major festivals can vary from state to state.

You can refer to the Industrial Establishments National & Festival Holidays Act in respect of all states where your company has a presence. While national holidays remain the same, festival holidays may change. This is in respect of holidays.

Regarding leaves, you may refer to state acts and devise your leave policy accordingly.

In the case of a factory for all locations and for workmen, it can be as per the Factories Act, which is common all over India. Annual leave is 1 day for every 20 days of work, which is a minimum statutory requirement. As per S.O., there may be casual leave and medical leave (if not covered under ESIC). In the case of the S & E Act, it should be as per state rules. For management staff, it may be uniform all over India as per the organization's leave policy. Paid festival holidays and national holidays are again state-specific.

Regards,
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
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