Leave Policy Transition and Employee Feedback
We are a 10-year-old Bangalore-based organization with 30 employees. The leave calendar operates on a financial year basis, i.e., April to March.
Previous Leave Policy (Till June '16)
- Leave (Combined balance for CL & SL): 32
- Optional Holiday: 2
- Declared Holiday: 10
At the end of the financial year, the entire balance of leaves was carried forward (up to a maximum of 42, which is 32 Leaves + 2 OH) and accumulated year on year. As a result, some employees had an overall balance of leaves as large as 20 to 40.
Revised Leave Policy (From July '16)
- CL: 24 per annum
- SL: 8 per annum
- OH: 2 per annum
- Declared Leaves: 10 per annum
At the end of the financial year, only 12 CL can be carried forward each year (not accumulated year on year). For the transition of the leave policy, employees were informed in July '16 that by the end of March '17, the unconsumed leave balance would lapse, except for 12 CL. Their current leave balance was shared with them to plan their leaves for the coming 8 months. For this reason, management is reluctant to encash the leave balance until March '17 and plans to start afresh in April '17.
Employee Feedback
1. By lapsing the unconsumed SL, the company is penalizing employees for being healthy.
2. Employees suggest maintaining a common balance for CL & SL (32) and carrying forward 18 leaves per year.
As per my understanding of the Shops & Establishment Act, Karnataka, it is mandatory for an organization to provide an SL balance to its employees, and SL cannot be carried forward.
Queries
1. Request guidance on the right approach to this transition.
2. Please suggest how to decide on the number of leaves that can be carried forward.
3. What is a better option: yearly encashment of balance leaves or leave encashment upon leaving the organization?
4. Any suggestions regarding the leave policy are welcome.
Thanks
Regards, Krati
From India, Gurgaon
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1We are a 10-year-old Bangalore-based organization with 30 employees. The leave calendar operates on a financial year basis, i.e., April to March.
Previous Leave Policy (Till June '16)
- Leave (Combined balance for CL & SL): 32
- Optional Holiday: 2
- Declared Holiday: 10
At the end of the financial year, the entire balance of leaves was carried forward (up to a maximum of 42, which is 32 Leaves + 2 OH) and accumulated year on year. As a result, some employees had an overall balance of leaves as large as 20 to 40.
Revised Leave Policy (From July '16)
- CL: 24 per annum
- SL: 8 per annum
- OH: 2 per annum
- Declared Leaves: 10 per annum
At the end of the financial year, only 12 CL can be carried forward each year (not accumulated year on year). For the transition of the leave policy, employees were informed in July '16 that by the end of March '17, the unconsumed leave balance would lapse, except for 12 CL. Their current leave balance was shared with them to plan their leaves for the coming 8 months. For this reason, management is reluctant to encash the leave balance until March '17 and plans to start afresh in April '17.
Employee Feedback
1. By lapsing the unconsumed SL, the company is penalizing employees for being healthy.
2. Employees suggest maintaining a common balance for CL & SL (32) and carrying forward 18 leaves per year.
As per my understanding of the Shops & Establishment Act, Karnataka, it is mandatory for an organization to provide an SL balance to its employees, and SL cannot be carried forward.
Queries
1. Request guidance on the right approach to this transition.
2. Please suggest how to decide on the number of leaves that can be carried forward.
3. What is a better option: yearly encashment of balance leaves or leave encashment upon leaving the organization?
4. Any suggestions regarding the leave policy are welcome.
Thanks
Regards, Krati
From India, Gurgaon
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As per the Karnataka Shops and Commercial Establishments Act, 1961, only two types of leave are entitled:
Types of Leave
Privileged Leave/EL: 20 days—one leave for every 20 working days. Conditions are as per the link given below.
Sick Leave: 12 days on medical grounds. No CL. Accumulation is permitted up to a maximum of 30 days.
HR Indya | Leave Rules
The leaves are calculated as per the calendar year.
Now, coming to your query, it is easy to frame rules that provide benefits over and above what is prescribed in the State Rules. However, when changes are made to align them with State Rules, employees may feel cheated. My suggestion is to implement rules as per state guidelines. Encash accumulated leave and start afresh.
Regards,
Col. Suresh Rathi
From India, Delhi
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Types of Leave
Privileged Leave/EL: 20 days—one leave for every 20 working days. Conditions are as per the link given below.
Sick Leave: 12 days on medical grounds. No CL. Accumulation is permitted up to a maximum of 30 days.
HR Indya | Leave Rules
The leaves are calculated as per the calendar year.
Now, coming to your query, it is easy to frame rules that provide benefits over and above what is prescribed in the State Rules. However, when changes are made to align them with State Rules, employees may feel cheated. My suggestion is to implement rules as per state guidelines. Encash accumulated leave and start afresh.
Regards,
Col. Suresh Rathi
From India, Delhi
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Leave Policy.doc