How Can I Create a Fair Leave Policy for Remote Employees in India?

Hi, I am the only HR of a company whose operations are in Canada, but we have 16+ employees in India working remotely. I need to form a new leave policy that is in the interest of employees and the employer. The company follows the Canadian calendar for 10 holidays. We work in night shifts, Monday to Friday.

Current Leave Policy Overview

The previous leave policy allowed for 1 leave earned after 6 months of probation and 2 special paid leaves. There is no provision for medical leave or any other type of leave. For employees on a 6-month probation, only after completing probation are they entitled to 1 month leave each month. We have an Indian payroll for Indian employees.

Request for Assistance

Please help me formulate a new, better, and more effective leave policy with clear rules and regulations.

In respect of your employees working in India, the leaves applicable for the sector in India will be applicable to them. The work-from-home arrangement is new, and therefore, there is no written law for it as of now. Therefore, the place of working is considered an extension of the workplace. In such a scenario, the leave rules applicable to the industry in the particular place apply to the employees.

I believe that yours is not a factory or plantation because they cannot have a work-from-home arrangement. Then it should be an establishment coming under the scope of the Shops and Commercial Establishments Act. The law relating to shops and commercial establishments is a state enactment, and as such, it will differ from state to state. You have to refer to that state's Shops and Establishments Act for clarity regarding leaves applicable.

In no way can you decide the leaves after the probation is over. Under all Shops Acts, there are three types of leaves: Casual Leaves, Sick Leaves, and Earned Leaves. The first and second types of leaves are available to an employee during the first year of service itself. That means you cannot restrict the leaves during the probation period. Moreover, leave on account of medical emergencies is a right of employees, and that cannot be ignored. Again, after one year of joining, every employee should be entitled to a certain number of earned leaves. For details, please refer to the state Act.

Adding to that:

Indian Office and Compliance

Do you have an Indian office, or is everyone paid directly by the Canadian company? If you have an Indian office, then the shop and establishment rules and labor laws will apply based on the state where the office is.

Legal Implications of Leave Policies

If you do not give leave according to the law, your company can be prosecuted.