Crafting a Leave Policy for Construction Workers: What Are the Legal Requirements?

Hi,

I am working in the construction industry. We are civil contractors exclusively for one of India's leading real estate developers. We want to formulate a leave policy for our employees. Can I get any guidance for the same?

I would like to ask the following questions:
1) In which act do construction industry workers fall?
2) What are the minimum requirements for CL/SL/EL in the construction industry?

Hi,

Find enclosed one of the sample formats of the Leave Policy document. I hope it will help you to formulate the same at your end.

Regards,
Amit Seth

Dear AMIT,

I was going through the leave policy document. Please refer to section 6 - leave for probationers. Normally, no leave is to be availed during the probationary period, but let's assume the appointment order says leave on a pro-rata basis for probationer X. What does it mean? Pro-rata, as I understand, is the CL of 12 days in a year spread uniformly over the year. Am I right? Suppose X takes leave with the consent of the concerned official, will it be okay? Will it be leave with pay or without pay? Let's presume X is a senior-level employee undergoing probation because of company policy.

Regards,
RGS.

Dear RGS,

These days, most companies provide 7 days of leave during the probation period, calculated on a pro-rata basis. Pro-rata means that if someone has 12 CL in a year, then after one month of service, they will be eligible to take a leave. In other words, after every length of service, a certain number of leaves will be credited to their account. They may avail all their CLs only after one year of service.

I hope this explanation gives you a clear idea.

Regards,
Amit Seth.

Hi,

A query: Suppose an employee takes a leave from Monday. Do we include Saturday and Sunday in his leave period or not?

Regards,
Paramdeep

Thank you, Abhinav! 😄

No, Paramdeep. If one asks for leave on Monday, then only one day of leave will be calculated. However, if one takes leave on Saturday as well as Monday, then Sunday will also be included as part of the leave.

Regards,
Amit Seth.

Dear Amit,

Thank you very much for the prompt answer. Do you mean to say that if X has completed, let's say, 4 months as a probationer, he is entitled to 4 CLs (paid leave) as of that day?

Is the leave policy more or less the same for both manufacturing and service sectors?

Regards,
RGS.

Hi All,

I have a query: is leave accumulation or carry forward a legal requirement, or does it vary from company to company?

Regards, Aanchal

Dear Aanchal,

According to the Factories Act, up to 30 days of leave can be carried forward to the next year. Actually, paid leaves can be carried forward or encashed after the close of the calendar year. BTW, it varies from company to company.

Regards,

Amit Seth.

Dear Amit,

Thank you for the reply. Ours is a service industry, and the Factories Act is not applicable. Is it a requirement under any other Act/Rule?

Regards,
Aanchal

Dear Mr. Amith,

Thank you for your valuable information regarding our pharmaceutical industry policy. Currently, there are 9 SL and 7 CLs, with SLs carrying forward to the next year cumulatively up to 36. Additionally, PL (similar to our EL) accumulates up to 80, after which we encash 30 ELs. This process is cyclical within our industry.

Could you kindly confirm if the above understanding is correct?

Thank you.

Yours sincerely,
Sreehariraju

Hi,

As per the law, maternity leave should be given to a female employee who completes 80 days preceding the date of delivery in the current organization. I read a policy which says the employee must have completed 2 years to become eligible for maternity leave. Please clarify the flexibility with respect to maternity leave.

Regards,
Kamini

Dear Kamini,

The policy which you read is wrong. To get maternity benefits, one will receive them through ESI if covered under ESI; otherwise, the Maternity Benefit Act of 1961 will apply.

Dear Anchal, for your establishment, the Bombay Shops and Establishment Act will apply.

Thank you.
J. S. Malik