Understanding Annual Leave Policy Calculation and Implementation

I have joined a new company as Admin Manager. Please help in calculating leave eligibility of an employee who joined on 1st September 2006. How many days of annual leave he can avail as on 31st March 2008?
Company Policy about annual leave read as - “each staff, on completion of one year, shall be entitled to twenty eight (28) days of annual leave, which will be credited at the beginning of the year. The leave year shall be the financial year i.e from April of a year to March of the following year”.
Please help!
Raj

Dear Raj,

His leave cycle starts from the day he joined and is credited into his account based on a pro-rata basis. So, if the same is prevailing in your organization, then by 31st March 2008, his leave shall be calculated on a pro-rata basis. As per the period, it would be approximately 14 days from the previous year and 28 days from this financial year, totaling 42 days.

Regards,

Amit Seth.

Thank you, Amit, for your comments.

I am just confused as our Accountant is saying that the person is completing one year on 1st September 2007, and his eligibility for Annual Leave starts from 1st September 2007. Thus, he can get 14 days in 2007-08 and no leave for 2006-07.

Regards, Raj

We have our own Pvt. Ltd. company. We are a 10-year-old company. We do not have any earned leave/sick policy until today. Now, we want to implement a leave policy in our company. Can you help us?

Thank you.

Hi,

I hope you have a leave policy in place. In case you do not, please refer to the 'Workmen Compensation Act' or the 'Factories Act of 1948'. Meanwhile, you need to ensure your company is compliant with the relevant Act (based on the type of business, factory, or industry).

According to the Factories Act of 1948, section H addresses leaves. An employee who completes 26 days of work (not exceeding 48 hours of continuous work with a mandatory holiday of 4 weeks in a row) should be granted 1.5 days of Annual Leave / Earned Leave (18 days per annum). Public holidays should not be included in this calculation. The mentioned provision represents the minimum leave entitlement. Your company's management has the discretion to set Annual Leave / Earned Leave / Paid Leave, which can exceed 18 days per year.

For more details, you can refer to the Bare Act. Subsequently, you can create a leave policy tailored to your company and its business nature. This policy can be formalized as a standing order and registered with your local labor officer.

I trust this clarifies any doubts you may have.