Are Indian companies allowed to change leave policy with immediate effect, which can cause employees to lose some of the accumulated earned leave without any option even to encash them ? Of course availing them can cause disruption to the day to day activities for the company.
Thanks
From India, Hyderabad
Thanks
From India, Hyderabad
No. Leave is a condition of service. Before changing any service condition you should take the employees in to confidence. It is okay with Managers and persons having supervisory roles. But it should not be the case with employees who are within the purview of Industrial Disputes Act. As per ID Act, section 9A, any change in service condition without giving 21 days' notice will be illegal. Moreover, any change should be corresponding to the relevant Acts, Factories Act, Shops Act etc
From India, Kannur
4193From India, Kannur
Dear Ramu,
Please confirm what changes you would like to bring. What were the provisions earlier and what provisions you wanted to introduce or curtail.
Leave policy has flow from either Factory Act or Shops and Establishment Act of the respective state. Nevertheless, there are few companies that provide benefits on and above what is mentioned in either of the act. Were doing something similar and would you like to withdraw those additional benefits. Please elucidate.
Thanks,
Dinesh Divekar
From India, Bangalore
Please confirm what changes you would like to bring. What were the provisions earlier and what provisions you wanted to introduce or curtail.
Leave policy has flow from either Factory Act or Shops and Establishment Act of the respective state. Nevertheless, there are few companies that provide benefits on and above what is mentioned in either of the act. Were doing something similar and would you like to withdraw those additional benefits. Please elucidate.
Thanks,
Dinesh Divekar
From India, Bangalore
Dear colleague,
Generally speaking, any unilateral reduction in the benefits currently enjoyed by any category of employees with is unfair unless there is survival of the organisation is at stake.
As regards adverse change in leave benefits, to a workman category ,will not only be unfair but also can be declared illegal if the same is lesser than Minimum quantum provided under FA and Shops Act as well as the change is made without giving notice of change under ID Act.
Any change contemplated in service conditions , requires taking affected employees into confidence by appropriate communication and earning their acceptance. If any unilateral or high-handed approach is adopted, it is bound to cause large scale dissatisfaction leading to employee turnover, fall in productivity , work stoppages and generally lowering the morale of the employees.
Regards,
Vinayak Nagarkar
HR-Consultant
From India, Mumbai
Generally speaking, any unilateral reduction in the benefits currently enjoyed by any category of employees with is unfair unless there is survival of the organisation is at stake.
As regards adverse change in leave benefits, to a workman category ,will not only be unfair but also can be declared illegal if the same is lesser than Minimum quantum provided under FA and Shops Act as well as the change is made without giving notice of change under ID Act.
Any change contemplated in service conditions , requires taking affected employees into confidence by appropriate communication and earning their acceptance. If any unilateral or high-handed approach is adopted, it is bound to cause large scale dissatisfaction leading to employee turnover, fall in productivity , work stoppages and generally lowering the morale of the employees.
Regards,
Vinayak Nagarkar
HR-Consultant
From India, Mumbai
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Leave Policy.doc