Leave Policy Structure and Encashment: Analysis of Legislative Compliance

prachi_jain
Hi, Group.

I have designed a leave policy for my company that needs to be implemented. However, my problem is that I am a little confused and want to know what kind of policy structure prevails these days.

Please help me in this regard and send me your policy structure.

Please help.

Prachi
rashmitat
Hi Prachi,

Can you please let me know what kind of organization you are working in? Well, I am attaching a leave policy which is in ISO format. Please go through this; if this helps, I will be happy. Additionally, I am attaching a policy that is followed in the Software and IT industry.

Regards,
Sharmila Thakur

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loveleen15782
Dear All,

Before I could put any query regarding the leave policy, I got a great amount of valuable information from all of you. First of all, I would like to thank you for the same. However, I still require information from all of you.

I have a query related to encashment of privilege leaves. Suppose we make a policy that 15 PL/EL shall be considered:

1. After completion of one year of service, one is entitled to PL.
2. If leaves taken together for 6 days, they shall be considered as PL.
3. The total leaves that can be accumulated are 15 X 3 = 45 (for three years), and any extra leaves shall lapse.
4. Leaves shall be encashed at the time of termination of service.

Now, I request understanding on the following:

Regarding Point 1 - when we say after completion of one year, then the next year, the leaves to be granted would be 15 or 30. As last year PL leaves have not been given, it means that in the first year of employment, only SL (7) and CL (8) are being allowed. Does this go against any legislative law/labour law/shop establishment act?

Regarding Point 3 - Suppose an employee has the maximum PL accumulated, and at the time of withdrawal from service, he is required to give one/two months' notice or one/two months' salary in lieu of it. Can he leave the organization at that point in time since he has those leave banks available to him?

Please let me know of any other repercussions that can arise regarding the leave policy.

Regards,
Loveleen
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