Hi, I am Archana working as a Hr with an IT company. I wold like to know a few details on the legally accepted Leave policy. Currently, we have provided 12 days of PL and 15 days of CL/FL/SL bifurcated as CL -5,SL-6 and FL, family leave - 4.Is this legally correct? Next, what is the maximum no. of PLs' that an employee can accummulate in an year? Can we put a clause saying that beyond 60 days of privilige leaves, all leaves will be lapsed and cannot be carried forward? Do we have to provide encashment to the employees in case they cannot avail leaves due to heavy work loads. PLease revert immediately. Thanks, Archana
From India, Bangalore
From India, Bangalore
Dear Archana CL will be 07 SL will be 14 PL/EL will be calculate on working day 01 for every 20 days accummulation limit 45 (but can be more if management refuse to grant) Laws are silent on encashment, it should be by employment/service rule or standing order. PL/EL will not be lapsed. If u wants in detail pls feel free to ask.
From India
From India
Dear All,I think u all are confusing in the various policies of the company.As all the I.T. companies come under the Shop & establishment act, therefore the leave policy should be framed according to keep this law in mind.According to this law shop & establisment act,( leave rules derived from the factory act provision) an employee is entitled for:-CL=SL=12*cl cannot be taken more than 3 at a time while in case of sickness he can avail his 12 leaves ata time.For Ex-if employee apply for 2 cl, if approved than all balance i.e. CL=Sl=10 (both are directly proportional to each other).Pl=15, 1 for every 20 working day.No such guideline in law for accumulation.In some companies people are accumulating leaves up to 90 days while in tatas they are accumulating up to 210 days.It depend on the type of Management but we have to adhere all the norms.Hope this will help u.Plz feel free for further ClarificationRegardsRanjeet
From India, New Delhi
11From India, New Delhi
Dear Archana, For legally accepted leave policy you have to refer the Shops & Establishment Act of the Concern State. Please make a note that it is a state labour Law. Regards, Dilip.
From India, Mumbai
From India, Mumbai
Hi, Just wanted to ask if in case, the particular company A is having offices in various states, and its corporate office is in Bombay, then for that company the leave rules shall be as per the Maharashtra Shops and Estb. Acts?. If no, then can the leave policy be as per the standing orders. If so, then what would be the basis of the decision. Swati
From India, Bangalore
From India, Bangalore
Dear Swati, Please make a note that whereever we have a branch office in other state then we have to take a seperate Shop & Establishment Registration Certificate for that Branch office in that state and once we take this certificate the provision of shop and establishment act of that particular state applies, hence every state will have separate leave policy and leave record also need to be kept as per respective shop and establishment act. To avoid this you can go for exemption and make provision of leave with minimum uniform average leave after considering the all shop & establishment act where you have possibilities of branches and the same can be mentioned in the standing order (For Technical/Bargainable/worker categories Staff) or HR Manual Managerial Staff. Also make a note that standing order is a central act with state rules and generally applicable to Factories. Regards, Dilip
From India, Mumbai
From India, Mumbai
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Leave Policy.doc