Madhura Pujari
I am working as an HR for a company. I have never been involded in designing the policies from scratch.
I am stuck up at 2 points
1) How do I decide how much should be the notice period for employees in my organisation.
2) I need to design the leave policy. How can I decide how many should be early leaves for my organisation? Should it be 12,20 or anything else. How do I come to that exact figure?
Kindly help.
I am working for IT Industry
With best regards,
MADHURA

From India, Mumbai
Sharmila Das
990

Dear Ms. Madhura Pujari,

Review the Organizational needs and the performance required by the employees for that industry type. All policies and procedures are decided only on the basis of the employment situation.

Decide on the time period as it varies by sector and employer; however the standard notice period in copious firms is One Month. If the employer chooses the employee to work and relinquish the duties -- requires certain amount of time. You may check with the management for having a modus operandi (notice) to follow.

The leaves depend state to state and the type of act that your industry is registered under, in case of the Shops Act,

Casual Leave - It is calculated in a calendar year. Casual leave is given for 12 days and shall be calculated in pro-rate basis if any employee joining in the middle of the calendar year. Casual leave cannot be taken twice a month or more than 3 days at a stretch nor can be clubbed with other leave at the same time. Unutilized leave would be lapsed at the end of the year

Sick Leave - It is calculated in a calendar year and 12 SL days can be alloted to employees. Any employee joining in the middle of the calendar year shall be taken on pro-rata basis. Any sick leave beyond 3 days at a stretch, need to be accompanied by a medical certificate from an authorized Medical Doctor/Practioner. Unutilized leave would be lapsed at the end of the year

Earned Leave - Those who are in continuous service in the preceding 12 months (should work not less than 240 days) are eligible for 30 days [varies exclusing the National & Public Holidays] E.L. during the subsequent year. If a person joins in the middle of the Calendar year, he is not eligible for Earn Leaves until completion of 12 months service. Earned leave can be encashed if it is unutilized only at the aend of the calendar year.

Earned Leave under The Factories Act, 1948; for every 20 days worked one day leave is provided. It is also necessary for the company to carry forward only up to 30 days ELand the balance leave above 30 days to be encashed on basic salary. The Factories Act has the provision of Earned / Annual Leave and doesn't has the provision of Casual/Sick Leaves. Please refer to section 79 (Annual Leave with wages).

From India, Visakhapatnam
dixonjose02
118

While agreeing with all points of Sharmila, i would like to add that in case you r working on 5 days/week, the EL given is normally 21 days for a year.
From India, Mumbai
Ashutosh Thakre
273

In regards to the Notice Period, you could decide depending upon the seniority of the employees. Higher the seniority, the more time required for knowledge transfer, as with seniority it is the person knowledge that is more important than the paper knowledge. Therefore you could have 1 month of junior level and 3 months for senior level. This could also be viewed from as more the knowledge, more the notice period
From India, Mumbai
madhu_ratna
2

Hi Madhura,

Leave policy depends on two things:

1. How many paid leaves is the organisation willing to give per employee on annual basis?

2. What is the designation and experience of the employee?

I see that the previous suggestions are sensible and hence would recommend you to think over on the same.

As far as notice period is concerned, think about it on the following parameters:

1. What is the attrition rate (rate at which employees are quitting their job)?

2. How important/easy it is to find a replacement?

In cases of high attrition, you will need to recruit more people than required, so as to strike a balance. For this, you should check the time required by an employee to get past the training stage and be job ready. Here, the time factor has to be taken into consideration.

The second point speaks on the qualities of the job and how easy is it to find a person of similar expertise. Accordingly, you should fix the notice period and be very firm about the same at the time of recruitment itself.

I hope this is helpful

From India, Bangalore
Madhura Pujari
Dear Sharmila Ma’am thankyou so much for all detailed explanation. Also thankyou all others for putting your valuable inputs. It will surely help me a lot to design the policies.
From India, Mumbai
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