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Hi all,

I have designed a leave policy for my company. My company is involved in diversified businesses such as construction, financing, film production, and IT. I have created this policy with the help of leave policies available here on this site and with my professor's guidance.

Kindly go through the policy and let me know the flaws in it and provide me with feedback. I have only covered the staff of different companies and not the laborers.

Thanks,
Preeti

From India, Mumbai
Attached Files (Download Requires Membership)
File Type: doc leave_policy_607.doc (27.5 KB, 9762 views)

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Hi,

I feel the policy should also talk about Leave without Pay. Under what circumstances will that be encouraged, etc.

There is a typographical error under the Sick Leave. It should be SL.

The policy can also talk of clubbing two different leaves, whether it is allowed or not. Normally, the clubbing of CL, SL, or EL will not be entertained.

These are just my views.

Cheers,
Poorna

From India, Madras
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Hello Preeti,

I have reviewed your "Leave Policy," but I believe there are a few things missing, such as Maternity Leave, Paternity Leave, Leave Accumulation Limits for each category, and Leave encashment details.

For now, these are the only points I can suggest. Please consider adding them to make it perfect.

Regards,
Deepak Parbat

From India, Pune
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Hi Preethi,

Very recently, I have also joined as an HR Executive in a manufacturing company. I am a new user of this site. I don't know how to use this site in-depth. I have been given the task of formulating a good leave policy at the earliest. Please forward the same if you find it's appropriate and applicable.

From India, Bangalore
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Hi,

I have one suggestion.

As far as Annual Leave is concerned, you have covered all the employees. As a general rule, annual leave will be eligible for those who have completed a minimum of 240 working days in one year of service.

Regarding Casual Leave, it has to be given from January to December every year and must be used before December without the option to carry it over.

This is my suggestion.

Thanks,
S. Vaitheeswaran

From India, Bangalore
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Dear Preeti,

First, let me introduce myself. My name is Ankit Verma, and I am working in an MNC company while pursuing an MBA from Amity University (Noida) in Material Management.

I have read the policy that you have put in place, but I noticed that there is no mention of online leave application forms.

Some companies are adopting this system because it is more relevant for employees. For instance, if an employee needs to take a day off, they can fill out the designated online leave approval form created by the company. They can then submit it to the signing authority. However, if the signing authority is also on leave that day, what should the employee do?

Having an online system in place would simplify this process. The employee could simply enter their employee code and password and submit the request to their immediate boss through the online system. This approach would streamline the process for both employees and their supervisors as it eliminates paperwork and the need for physical movement.

I kindly request you to include this in your policy. Your policy is good as it stands.

E-mail: ankitkrverma@yahoo.ca

Thank you.

Ankit Verma

From India, Bangalore
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Hi Preeti,

Nice attempt. Please find my observations as follows:

1. The policy should ideally not have ambiguity and should not leave things to personal perception. The document has many instances where ambiguity needs to be addressed.

2. As pointed out by another learned member, the document does not address all aspects of the leave policy. You should include details about maternity leave, paternity leave, leave credit and entitlement, advance leave, sick leave, leave without pay, company holidays, holidays during the leave period, etc.

3. The policy should also suggest the number of leaves given per month and then per year so that any confusion could be avoided.

Regards,
Pankaj Sethi

From India, Delhi
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Your locations are not notified. However, in general, the statutes providing the different leaves suggest the calendar year, which you also mentioned, but the same is from January to December.

Under the Factories Act, PL/EL can be accumulated up to 30 days. Under local level laws applicable to commercial/production sectors, CL and SL are 7 days each per year. Apart from the provision of national festival holidays, maternity leave should also be referred to.

BSHARI

From India, Chandigarh
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Hi,

Maternity Leave, Paternity Leave. Then you can add Compensatory Off, which means if the employee is working on a weekly off or doing double duty, then he or she can avail Comp Off (CO) within 60 days. Birthday leave can be added.

Regards,
Deepti

From India, Pune
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hi all hr expert I want to know what r diferent slab of PT as per Act e.g 0-4000 CTC then PT will be 175 (I think So Not sure) Plz reply me soon Regards Deepti
From India, Pune
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Hi Preety,

The policy is good and is almost a standard one. What sort of systems are in place for your HR Information system? How do you manage the leave management system, manually or automated?

In case you are not using HRIS, do you have any plans to go for automation in the near future? If so, please get back to me so that I can refer a good HR and Payroll software for your company.

Best of luck.

Regards,
Sreekumar J.

From India, Bangalore
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Hi Deepthi,

You will find details of the PT slabs from the website of Commercial Tax belonging to Maharashtra. It varies from state to state. For example, in Andhra Pradesh, it is as follows:

0-5000: no PT
5001-6000: 60rs
6001-10000: 80rs
10001-15000: 100rs
15001-20000: 150rs
More than 20000: 200rs

Please let me know if you need any further information or assistance.

Thank you.

From India, Hyderabad
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as per factory act a person who completed his 240 days & its period is 1 st jan to 31st dc if your comapny cover in s& e act you can give u sl , pl & other
From India, Surat
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Hi preethi I find some corrections. calender year is from Jan to Dec and financial is April to March. So decide the appropriate month correct accordingly. sree
From India, Madras
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Hi, I want to prepare the Leave Policy for my Construction Organisation. Over all staff in my Organisation is 1000. Regards, Anand
From India, Mumbai
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Hello All,

I am in the process of drafting a policy on leave encashment. I kindly request you all to share any relevant information on this topic. I have reviewed the existing policies posted here, but they focus more on general leave policies rather than specifically on leave encashment. Your assistance in moving forward with this policy would be greatly appreciated. Please respond to this message.

Thanks & Regards,
Reshmia

From India, Bangalore
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Hi Preti, Policy must be clearly mention in Tabulate form that how many CL, PL, SL are available per year. Rgards Anand
From India, Mumbai
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I have to prepare a leave policy for a financial institution. What are the special laws related to that and can the leave policy provided here be used? Also, what are the various laws that we should keep in mind while making the leave policy?
From India, Delhi
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you have done a good endevour but despite of lacking some important inclusions. on the whole, you made a good policy but chances of improvements are always there.
From Pakistan, Karachi
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Hi Preeti,

You missed out on mentioning maternity leave. Please also include details on how the leaves can be encashed, whether at basic or gross salary. Additionally, consider including information on bereavement leave, specifying for whom and under which circumstances it is applicable.

Regards,
Neha

From India, Chandigarh
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[
Important Leave under the A/c. of.......

  • PL ( Privilege Leave ) - This is being accounted on the presence of the employee.
2.5 days for every month of working of the employee generally getting sanctioned. If the employee is on leave more than 7 days in any month accordingly it would calculated. At the end of the year the balance PL in any employee's account, could be carried away for the ensuing year. For this also there is a norm which is fixed by the company, that at any point of time an employee cannot accumulate for some fixed days leave in his account and it could be encashed as per the rules of the company. For example : If an employee is having more than 100 days PL at his account, and if the company rules tells that no employee can keep their leave more than 90 days and this employee encash the 10 days. PL always applied well in advance and you cannot telephone and ask for PL.
  • CL (Casual Leave) As you know, it is fixed one and Company may fix it about 10 to 12 days as per the company norms. This is nothing but emergency leave and you may inform on that also. But most of the companies will not sanction more than 2 days leave. If you want more than 2 days leave you may go for PL.
  • Medical leave. This is also goes with company rule.
  • ML : (Maternity Leave): As you know this is belonged to Women area. It should be given 90 days on any kind of company. This lelave could be taken by any women permanent employee at the attainment of delivery time. Some company may give still one or two more months as per the employee's health. Recently there was Central Govt. rule recommending all the companies to sanction 6 months ML. Some of the companies are considering whereas most of the company give 3 to 4 months normally.
    If the concerned employee is still in need of leave she may go for loss of pay for 2 to 6 months keeping her employment in the company's rule.
  • Paternity Leave: Maximum 6 days and this could be taken at a stretch by any male employee at the time of deliver of his wife. Some company gives this and some company may not give also. This goes as per the Company's rule.
  • Leave with our Pay: On any condition, any employee can opt this leave showing the valuable reason viz., due to the health condition of self or any family member. Company will have to decide on this.
The above are the important kind of leave are being carried out by any kind of company.

LEAVE POLICY:
Types of Leave:
Casual Leave
Sick Leave
Earned/Privilege Leave
Maternity Leave
Extra Ordinary Leave

In this list all 5 are Paid leave & No.4 & No.5 are Statutory Leave.

Casual Leave: As per shops & establishments act, 12 days leave per yr has to be given to an employee as a part of welfare measure.

Jan 26, Aug 15 and Oct 2 are statutory Holidays for any Industry. But for steel, chemical and production industry are given exemption that if they do not able to give holiday on those days, they can be given on other days.

An employee should not apply for leave both on Saturday and Monday, either of the days can be applied. Otherwise Sunday is also considered as CL. Except maternity leave all the other leaves are taken from the calendar year.

Absconding: Not intimating to the dept about the leave.
Extra Ordinary Leave: If the employee is really in a problem, then they can apply for EOL when all other leaves have been exhausted.

Format:
Company Name
Name…………Emp code, Dept
Please grant me leave CL/SL/PL/ML/EOL from…to…. Reason for leave…………….Address…………… Signature of Emp Dept Head HR Dept
…………………………………………………………….
For HR Dept Use

Remaining Leaves
CL-SL-PL-ML-EOL
Earned / Privilege Leave: These leaves are given based on the number of days worked.
For every 20 days of the month – 1 day is statutory

For other 10 days – ฝ day or 1 day depends on the company.
Employee should take approval 15 days in advance. If the leave is approved, Sundays and holidays are also considered.

3 yrs leave can be carried forward.
(Basic + DA/26)*No. of leaves remained will be paid at the time of Retirement if an employee do not use these leaves.

Maternity Leave: To Married women employee these leaves are given and are compulsory if the pregnancy is confirmed.

3 weeks after conceiving.
6 to 9 weeks after delivery.
Total salary should be paid for these leaves.
In case of miscarriage/abortion 3 weeks leave should be given.
50% of the salary can be claimed from ESI.

We cannot suspend / dismiss / terminate when an employee is on leave.

From India, Mumbai
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In our organization, we follow the following steps:

1. HR tries to contact the person. If no reply is received, then a show-cause mail/letter is issued for unnotified absence.

2. If the reason is genuine, then fair enough; if not, then a warning letter is issued.

3. If an employee repeats the same behavior three times in one year, they receive a warning letter from the HOD. Additionally, if decorum is not maintained thereafter, a day's pay is deducted for each such absence.

Regards,
Neha

From India, Chandigarh
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