Managing Employee Leave Deduction and ESI Benefits in Compliance with HR Rules

I am working for a Pvt Ltd company. I have been moved to the HR department from Administration. Now, I have to familiarize myself with HR rules. We provide employees with 16 PL, 7 CL, and 10 SL. One employee took 21 SL last month, so I deducted 11 days from their salary. The employee also has access to ESI benefits. Was it the right decision to deduct from their salary since they are on the payroll? I hope I won't face any issues for not adjusting the leave balance with other types of leave. Can someone provide a solution for this, or should I consider adjusting it in the upcoming month?

Hi,

If your organization does not have a rule of clubbing/suffixing leaves, then you should have deducted his leave from other leaves. But if your organization maintains a very strict rule of not clubbing or prefix or suffix, then you did the right thing. If both the things are not mentioned in your organization laws, then on humanitarian grounds, deduct his leave from other leaves, provided he gives enough supporting documents about his sickness, like a medical certificate stating his sickness from-to date and other check-up documents. 21 days seem to be long enough for a serious illness. Check the genuineness. I hope you won't find difficulty now. What do you say?

Regards,
Moushmi

Hi,

Based on what you have stated, you have done nothing wrong. Let me tell you why I say so!

The balance in the leave account belongs to the employee, and he has the exclusive right to decide its utilization. Employers may NOT "adjust" various accounts UNLESS specifically authorized by the employee, the law, or any agreement. Leave accounts are like bank accounts. The banks may not alter any entries in your account except under authority or exceptional circumstances authorized by the law of the land!

Having said that, if the employee is covered under ESI, did he produce the Sickness "Information Slip" and the "Continuation Certificate" or the "Fitness Certificate" from his ESI panel doctor? You know, he is obliged to do all this. In any case, even if the documents were submitted on time and were "proper," all absences against ESI certification are shown in company records as ESI leave, and he is NOT to be paid by the company nor is any leave to be sanctioned to him for such a period. If he applies and asks for an adjustment of the absence against any kind of leave lying to his credit, he is either ignorant of ESI law and procedure or is cheating the ESI corporation because for the period he was on ESI certified leave, he would be paid by the ESI corporation "Sickness Benefit," which is approximately equivalent to 5/8 of his salary per day!

If you provide more facts, the advice will be more focused and accurate!

Regards,

Samvedan

June 21, 2006

Hi,

Upon reviewing the discussion, I believe the employee should be encouraged to claim benefits from ESIC since the company is contributing 4.75% of their salary to the corporation for such circumstances.

Regards,