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Hi,

I am working as an HR in an IT company. I have started the HR department here. I need to revise the Leave Policy here. The existing leave policy is as follows:
- No paid leaves during the Probation Period (6 months).
- After completion of the probation - 16 paid leaves, divided as follows:
- 8 CL divided on a monthly prorata basis: Can be carried forward or reimbursed at the end of the year.
- 8 ML divided on a quarterly prorata basis: Cannot be carried forward or reimbursed at the end of the year. ML can be availed only if an employee submits a Medical Certificate.
- Compensatory Offs for people who work on any Holiday.
- I wish to introduce Privileged Leaves (PL) for employees who have completed 1 year of service with the organization. Kindly suggest calculations based on the working days of the last year.

Kindly suggest improvements in the existing policy and calculations for PL/EL leaves.

Regards,
Bhavna

From India, Delhi
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Hi,

You can credit 6 CL & 6 SL for an employee at the beginning of every year. Suppose an employee joins in March, then you can credit on a pro rata basis, i.e., counting from March - Dec = 10 days. 5 CL and 5 SL. If they join in April, then it would be April - Dec = 9 days. You can divide it as 4 CL and 5 SL. Usually, sick leaves are given more preference. After completion of one year, you can credit 12 EL.

Hope this information will be useful. Any clarifications needed, get back to me.

Regards,
Kavitha

From India, Madras
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Ryan
90

Hi,

Some questions:

1) What is ML? Is it Maternity Leave? This is my understanding of the term ML. You will need to build in a provision for this leave in your policy. Similarly, some companies offer 5 days of paternity leave. You may want to include this in the policy as well.

2) What is the logic for giving PL after 1 year of service if your probation period is 6 months? I think you can do leave encashment based on the basic salary. Others may suggest alternatives.

Regards,
Ryan

From India, Mumbai
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Hi,

You may amend your leave policy by providing:
- 6 sick leaves
- 6 casual leaves
- 24/18 earned leaves in a calendar year.

If an employee joins in between, it can be calculated on a prorate basis. Earned leave can only be availed by the employee in the next calendar year and can be calculated based on basic and DA.

Sick leave (SL) and casual leave (CL) can be taken after completing xx days in the organization.

Suggestions from HR members are welcome.

Sashmita

From India, Delhi
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Dear Ryan,

Thanks for replying.

ML means Medical Leave. Yes, I will be including the Maternity and Paternity Leaves as well.

PL, i.e., Privileged Leaves - I wanted to assign this after a year as an incentive for completing a year. That means as soon as an employee completes a year, they start receiving extra leaves, thus reducing salary deductions.

Please suggest if this could be a good idea.

Regards, Bhavna

From India, Delhi
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Hi Bhavna,

Thank you, Kavitha. It really helped me. Can you please explain the calculation of earned leave (EL)? What if someone completes a year of service in the middle of a financial year? Should we still give 12 EL?

Regards,
Bhavna

From India, Delhi
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Dear Bhavna,

Referring to the discussion held in the thread, I could understand that 12 EL in a year would mean 1 leave per month. This has to be awarded on a pro-rata basis, since the name is privileged leave (or earned leave). This means that we can avail of these leaves only if we earn them by working in the company. So if any employee leaves during the tenure of 1 year, he may be awarded leaves on a pro-rata basis.

Another method of awarding PL could be: You can start accumulating PL or EL (12 in a year) for the employee right from the day he joins the org, but the employee can avail of it only after their probation (6 months) or after one year of completed services in the company. This would create a good balance in the employee's leave account. If you may want, you may arrange such leaves only to be carried forward and not encashed at the close of the year.

Regards,
Parul

From India, Delhi
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Dear Bhavna, EL calculation can be calculated as follows: = (basic + DA)*no. of EL/ 26 Hope I am clear. Regards, Sashmita
From India, Delhi
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Hi Bhavna,

For example, if an employee joins in the month of May '07, we will credit him 12 EL's once he completes one year, that's on May '08. Starting in Jan '09, we can credit him the EL's on a pro rata basis, that is from June to Dec = 7 days. So, in Jan '09, we will credit him 7 EL's. From Jan '2010, he will be part of our regular crediting. Hereafter, every Jan, we can credit him 12 EL's.

If you require any clarification, let me know.

Regards,
Kavitha

From India, Madras
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Hi Bhavna,

CLs are encashable in good companies. Use this point as a real incentive for industrious staff who don't take leaves. An added plus would be not to encourage unnecessary leaves. Don't hold back employee benefits like leaves; it's not a good strategy. If people are happy working with you, they will turn up every single day.

Additionally, consider adding flexi-offs. For example, if your organization or a certain department works all seven days, then give them the freedom to pick their weekly off. This approach will reduce any form of leave to a bare minimum or even zero in the majority of cases.

Best regards,
Surya

From India, Delhi
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Hi Bhavna,

Thank you for your message. Regarding the crediting of ELs, would it be possible to credit ELs only in January and not immediately once the employee completes a year?

For example, if an employee completes a year in May 2008, should they not be entitled to avail one leave every month from June 2008 onwards on account of EL?

Best regards,
Kavitha

From India, Delhi
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Hi Bhavna,

Thank you for your message. As per our policy, CLs are encashable and can also be carried forward. What should we do with the balance of Sick Leaves and Earned Leaves at the end of the year? Implementing flexi offs sounds like a good idea; we will try to implement it.

Thanks and regards,
Surya

From India, Delhi
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Hi,

As per law employees should get minimum 15 days of earned leave in a year & 12 days of CL/SL in a year. CL & SL are generally pro-rate.

Maternity & Paternity Leave (as per law)

Gazetted / national holidays & restricted Holidays (national holidays are fixed, you may increase the list but canกฆt decrease)

You may change the names of the leave and call them whatever you want to.

Generally ELกฆs & SLกฆs are carried forward to next near & CLกฆs not. ELกฆs are calculated only against employees present and deducted for his absence period or leave without pay period.

You can limit the maximum accumulation for the leaves which are carried forward to next year and also give the option of encashment of ELกฆs.

Generally companies bind their employees as follows:

„X You canกฆt take more than 3 CLกฆs consecutively

„X You canกฆt take less than 3 ELกฆs

„X For availing more than 3 SLกฆs you need to get a medical certificate.

„X ELกฆs & CLกฆs canกฆt be clubbed together.

„X SLกฆs & CLกฆs can be clubbed together.

„X Sundays & Holidays in between the leave days will be sandwiched & counted as leave period only etc.

Based on management discretion, the above may be changed for the employees of talent pool of the organization.

Try to give them as much flexibility as possible keeping in mind the notorious members also who proceed on leave and keep on extending their leaves, utilize all of them and sends you his / her resignation thereafter.

You may devise some extraordinary leave or special kind of leave for members going that extra mile e.g. 1 day off for blood donation etc.

Do not forget to keep the option of leave without pay to meet some emergencies.

You canกฆt decrease the number of leaves specified by the Government but increase as much as you want.

EL Calculation:

(Total no of days of employees presence / Total no. of working days in a year) * (no. of EL's provided by the company)

Hope this will help you.

Sweety Singh

From India, Delhi
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Hi Bavana,

If your company is small, then introduce 15 PL on the following basis:

Working Days (WD) means physical work done by the employees in the last year.
Calendar Year: 1 Jan to 31 Dec
If WD <= 240, then 0 Leave
If WD > 240 & <= 260, then 12 Leave per year
If WD > 260 & <= 280, then 13 Leave per year
If WD > 280 & <= 300, then 14 Leave per year
If WD > 300, then 15 Leave per Year

Max Working days will be 365 - 62 (52 Weekly off + 10 National Holidays) = 303

If you need further help, feel free to email me at vikram.dalvi@rediffmail.com.

With Regards,
Vikram Dalvi

From India, Mumbai
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Hi, From my understanding, EL is calculated as 1.5 days for every completed month of service and for the purpose of encashment, it is calculated on the basis of Basic salary Thanks Sherine
From India, Bangalore
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Hi ,

Please check if useful...

Leave Rules

Purpose of this document:

This document is aimed to bring in clarity on the existing leave rules and make necessary modifications / inclusions wherever necessary.

Applicability:

 To all full-time associates of XXXX Ltd.

 This document supercedes all the previous releases about Leave rules of XXXX Ltd and shall come in to force from the date of release.

 Changes to this policy will need expressed approval of Executive Vice President – HR & CA.

Type of Leaves:

1. Casual Leave

2. Privilege Leave

3. Maternity Leave

4. ESI Leave

5. Special Sick Leave

6. Education Leave

7. Leave on Loss of Pay

General Guidelines:

 Associate should obtain prior approval of leave from his/her immediate superior.

 Where prior approval could not be obtained due to exigencies, the same has to be obtained with in a reasonable time.

 Associates availing Special Sick Leave or Educational Leave will have to submit necessary documents in proof along with leave application. Immediate superior after considering the genuineness of the issue has to make recommendation to Head of the Group / SBU / Dept. The same shall be sanctioned by the Head of the Group / SBU /Dept and Dy. General Manager HR jointly.

 Year is to be reckoned as 1st Jan – 31st Dec.

 Clubbing of different types of leaves is allowed.

1. Casual Leave:

Eligibility:

 All Full-time associates of XXX Limited

 Eligibility starts from Date of Joining.

Quantum of Leave:

 12 days per year.

 Associates joining us on any date other than 1st Jan would be eligible for CL on pro-rata basis.

Others:

 Intervening Paid Holidays / Weekly Off during the CL's period will not be counted as CL. In other words, an employee who avails CL on Saturday and on Monday will be debited with only 2 days CL in his credit and Sunday will not be considered as CL.

 Unavailed CLs cannot be carried forward to next calendar year.

 Unavailed CLs cannot be encashed.

2. Privilege Leave:

Eligibility:

 All Full-time associates of XXX Limited

 Eligibility starts on completion of 1 year of service with the company.

Quantum of Leave:

 20 days per year.

 Immediately on completion of 1-year service, an associate's leave account will be credited with 20 PLs and thereafter will be regularized to calendar year.

Availing Privilege Leave:

 It is mandatory for every associate to avail at least 10 days (at least one instance 5 consecutive working days) of PL in a year. This provision is brought in to encourage people to take break from the work schedule and also to give the other team members a chance to exhibit their abilities.

 While carrying forward un availed PL, irrespective of the fact whether an associate availed 10 days PL or not, short fall (if any) for 10 PL shall be deducted from the balance.

 This mandatory clause shall not be applicable to those associates who are on on-site assignment for minimum period of three months in that calendar year and on return they did not have minimum three months time to avail 10 PL.

 Intervening Paid Holidays/Weekly Off during the period will be counted as PL.

Encashment of PL:

Voluntary Encashment:

• All associates are entitled to encash PL over and above 20 days once in a calendar year subject to minimum of 7 days.

Automatic Encashment:

 For associates in and up to PM Level - PL balance in excess of 45 days in an associate's account will be automatically encashed.

 For associates in and above AGM Level - PL balance in excess of 90 days in an associate's account will be automatically encashed.



Rate of Encashment:

 Basic pay as on previous 31st December divided by 30 days multiplied by the number of Privilege leave to be encashed.

Payment:

Voluntary Encashment:

• Duly filled and signed Application for voluntary encashment should be submitted in the month of March to HR and the payment shall be made along with April month salary.



Automatic Encashment:

 HRD Dept. will take stock of all associates' PL balance as on 31st Dec and will process automatic encashment along with April salary every year.

3. Maternity Leave:

Eligibility:

 All Full-time female associates who are not covered under ESI Act.

 Eligibility starts after 6 months from date of joining.

Quantum of Leave:

 12 weeks

 All 12 weeks have to be utilized at once and the expected Date of delivery should fall during the period of leave.

 It is advisable to plan the leave in such a way that

 Leave period starts at least 3 weeks prior to Dt. Of delivery and

 Leave period ends at least 3 weeks after Dt. Of delivery

 In case of miscarriage, associate will be eligible for an additional 4 weeks leave.

 Associates having two or more than two children shall not be eligible for maternity benefit.

4. ESI Leave:

Eligibility:

 All associates who are covered under ESI Act.

 Eligibility starts from Date of joining of an associate.

Pay while on ESI Leave

 An employee who has availed ESI leave will be paid for that period by the ESI, as per ESI Act. No salary will be paid by IEL during ESI leave.

 For further details regarding the benefits that can be availed, please contact Mr. Parthasarathy, in HRD.

Other formalities:

 Associate who has availed ESI Leave has to submit all necessary documents in proof of treatment undergone by authorized ESI personnel.

5. Special Sick Leave:

As a goodwill gesture, it has been decided to extend Special Sick Leave to all associates (who are not covered under ESI) who were affected by serious diseases (to be read as those which are non recurring) or accident.

Sanction of leave is discretionary and the authority to sanction lie with Head of SBU & Dy. GM - HR.

Quantum of Leave:

 12 days per year

6. Education Leave:

To encourage continuous learning and acquisition of knowledge in their relevant function / skill, It has been decided to extend Education Leave to all associates.

Eligibility:

 Only full-time and confirmed associates are eligible.

Quantum of Leave:

 15 days for calendar year.

 This leave can only be availed for attending the classes (in case of distance learning) and / or writing the examinations relating to the course. (The Leave period should match with the date of examination / classes)

Indicative list of academic programs that can be pursued:

LoB / Dept Designations Degrees permissible for Educational Leave

CSD DET, GET, JCE, CE, SCE, TL, GL, PPE, PPL AMIE, BE, B.TECH, ME, M.TECH, PhD

PE, PL, SPE, SPL, SI, SSI, APM, PM, CM AMIE, BE, B.TECH, ME, M.TECH, MBA, PhD

PSD Trainee, Jr. Conslt, Conslt, Sr. Conslt BE, ME. M.SC(Remote Science, Geology, Geography Only), PhD

PL, APM, PM BE, ME. M.SC(Remote Science, Geology, Geography Only), MBA, PhD

SWD&S SWE, SSWE, TL, SQAE, SSQAE BE, B.TECH, ME, M.TECH, PhD

PL, APM, PM BE, B.TECH, ME, M.TECH, MBA, PhD

ENGG DE,SDE, TL BE, B.TECH, ME, M.TECH, PhD

PL, APM, PM, Consultant, Sr. Consultant BE, B.TECH, ME, M.TECH, MBA, PhD

Sys Admn All positions BE, B. Tech (ECE, E&E, Systems), PhD

MKTG,HR,

F&A, Admn All positions MBA, CA, CWA, CFA, PhD



7. Leave on Loss of Pay:

 Leave granted on extraordinary grounds without salary to an associate who does not have any leave to his / her credit. This is allowed only once in a year up to a maximum of 10 days.

 Leave on Loss of Pay may be granted only in genuine cases where the sanctioning authority is convinced with the reasons given for the leave.

8. Unauthorized Absence:

The following absences shall be treated as unauthorized absence:

 Absence for which no leave application has been submitted for sanction of leave.

 Any absence for which leave application has been submitted (irrespective of the type of leave), but not sanctioned by the authorized person.

Unauthorized Absence constitutes a major misconduct and attracts disciplinary action.

From India
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Hi,

You can credit 6 CL & 6 SL for an employee at the start of every year. Suppose an employee joins in March, then you can credit on a pro-rata basis, i.e., counting from March to December = 10 days. 5 CL and 5 SL. If they join in April, then it would be April to December = 9 days. You can divide it as 4 CL and 5 SL. Usually, sick leaves are given more preference, and after completing one year, you can credit 12 EL.

Hope this information will be useful. Any clarifications needed, get back to me.

Regards,
Kavitha

From India, Madras
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Dear Friend, Find the attachment of Leave Policy Regards, Chandra
From India, Bangalore
Attached Files (Download Requires Membership)
File Type: doc leave_policy_190.doc (66.0 KB, 127 views)

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Dear All,

Please let me know: We have three kinds of offs - Earned Leave, Weekly Off, Comp Off. I want to know whether all three of them can be clubbed together.

For your information, I am aware of the rule that any off falling in between an Earned Leave period will be considered as Earned Leave. Does the same apply to Comp Off?

Kindly help...

Regards,
Parul

From India, Delhi
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