Dear Sir/Madam, I am working for an MNC with two offices based out of Gurgaon and Bangalore, and its headquarters in Italy. We are in the process of allocating standardized EL, SL, and CL for the two locations based on state regulations/norms. We have allocated the leaves accordingly, but when we compare with other organizations in the vicinity through a survey, we notice variations in their leave structures. I am seeking expert guidance on the following queries that have arisen:
Standard process for leave allocation
1. Is there a standard process defined for leave allocation in a state/company?
Factors to consider in leave allocation
2. What are the factors we should consider while working on this?
Making leave allocation workable across divisions
3. How can we make the leave allocation workable and common across all divisions to avoid comparisons?
Thank you in advance.
From India, Bengaluru
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Standard process for leave allocation
1. Is there a standard process defined for leave allocation in a state/company?
Factors to consider in leave allocation
2. What are the factors we should consider while working on this?
Making leave allocation workable across divisions
3. How can we make the leave allocation workable and common across all divisions to avoid comparisons?
Thank you in advance.
From India, Bengaluru
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Dear friend, Since India is a Union of States, any business venture with a pan-India presence must comply with various Central and State Labour Laws, totaling approximately 149 in all. These Labor Laws can be broadly categorized into six major heads, namely:
1. Laws related to specific types of establishments or Establishment-specific Laws such as the Factories Act, 1948, the Mines Act, 1952, State Shops and Establishments Acts, etc.
2. Laws concerning Industrial Relations like the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, the Industrial Disputes Act, 1947, the Maharashtra Recognition of Trade Unions & Prevention of Unfair Labor Practices Act, 1971, etc.
3. Monetary Legislations or Laws related to Wages such as the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, etc.
4. Social Security Legislations like the Employees Compensation Act, 1923, the Employee State Insurance Act, 1948, the EPF Act, 1952, the Payment of Gratuity Act, 1972, etc.
5. Laws related to Equality and Empowerment of Women including the Maternity Benefit Act, 1961, the Equal Remuneration Act, 1976, the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, etc.
6. Laws related to deprived and disadvantaged Sections of Society such as the Contract Labor (Regulation & Abolition) Act, 1970, the Bonded Labor System (Abolition) Act, 1976, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, the Child Labor (Prohibition and Regulation) Act, 1986, etc.
As you are aware, the conditions of service such as working hours, leave, and holidays vary from establishment to establishment based on its type or nature of work. Consequently, the types and scales of leave are solely dependent on the type of the establishment. If your company is an Indian wing of a Multi-National Corporation situated in multiple states with manufacturing units across the country, the leave provisions for those employed in such units, regardless of location, can be uniform as all are considered factories under the Factories Act, 1948. However, if some are establishments under a specific State's Shops and Establishments Act, the scale and types of leave cannot be uniform as they vary according to the states of their locations. For instance, workers in factories are entitled only to Annual Leave with Wages, whereas those in establishments receive Casual Leave, Sick Leave, and Earned/Privilege Leave, similar to Annual Leave with Wages.
To achieve standardized leave provisions at the company level for facilitating the inter-unit shuffling of employees due to work exigencies, determine the highest leave scale and establish it as the company scale. In your situation, uniformity of leave scales can be ensured at least based on the class of employees considering the statutory scales applicable to them. Keep in mind that statutory standards are always the minimum and can be enhanced through collective bargaining between labor and management. I trust that you can develop an effective standard process.
From India, Salem
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61081. Laws related to specific types of establishments or Establishment-specific Laws such as the Factories Act, 1948, the Mines Act, 1952, State Shops and Establishments Acts, etc.
2. Laws concerning Industrial Relations like the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, the Industrial Disputes Act, 1947, the Maharashtra Recognition of Trade Unions & Prevention of Unfair Labor Practices Act, 1971, etc.
3. Monetary Legislations or Laws related to Wages such as the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, etc.
4. Social Security Legislations like the Employees Compensation Act, 1923, the Employee State Insurance Act, 1948, the EPF Act, 1952, the Payment of Gratuity Act, 1972, etc.
5. Laws related to Equality and Empowerment of Women including the Maternity Benefit Act, 1961, the Equal Remuneration Act, 1976, the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, etc.
6. Laws related to deprived and disadvantaged Sections of Society such as the Contract Labor (Regulation & Abolition) Act, 1970, the Bonded Labor System (Abolition) Act, 1976, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, the Child Labor (Prohibition and Regulation) Act, 1986, etc.
As you are aware, the conditions of service such as working hours, leave, and holidays vary from establishment to establishment based on its type or nature of work. Consequently, the types and scales of leave are solely dependent on the type of the establishment. If your company is an Indian wing of a Multi-National Corporation situated in multiple states with manufacturing units across the country, the leave provisions for those employed in such units, regardless of location, can be uniform as all are considered factories under the Factories Act, 1948. However, if some are establishments under a specific State's Shops and Establishments Act, the scale and types of leave cannot be uniform as they vary according to the states of their locations. For instance, workers in factories are entitled only to Annual Leave with Wages, whereas those in establishments receive Casual Leave, Sick Leave, and Earned/Privilege Leave, similar to Annual Leave with Wages.
To achieve standardized leave provisions at the company level for facilitating the inter-unit shuffling of employees due to work exigencies, determine the highest leave scale and establish it as the company scale. In your situation, uniformity of leave scales can be ensured at least based on the class of employees considering the statutory scales applicable to them. Keep in mind that statutory standards are always the minimum and can be enhanced through collective bargaining between labor and management. I trust that you can develop an effective standard process.
From India, Salem
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Employees' State Insurance General Regulations 1950.pdf