Dear Seniors,
I need to solve a situation which was suppose to be solved 4 yrs ago by a senior person of the company.It was informed to the senior that their would be no leaves carried froward or encashment
but this was not informed to the staff. Now this person has left and it is news to all(staff & Directors).What would be the best way to solve this issue as their are staff members with abt.102 leaves accumulated.
From India, Mumbai
I need to solve a situation which was suppose to be solved 4 yrs ago by a senior person of the company.It was informed to the senior that their would be no leaves carried froward or encashment
but this was not informed to the staff. Now this person has left and it is news to all(staff & Directors).What would be the best way to solve this issue as their are staff members with abt.102 leaves accumulated.
From India, Mumbai
Hello AnuGD,
What does the Paperwork say in this matter? There must be definitely some record of the decision & more importantly, the reasons considered at that point of time.
If you are clear of such aspects, it would be easier to handle this issue now.
Also, you mentioned ".....solved 4 yrs ago......". what do you mean by this statement?
Also, 'who' informed the senior?
Have BOTH the senior & the person who told him/her about this left the company?
Rgds,
TS
From India, Hyderabad
1637What does the Paperwork say in this matter? There must be definitely some record of the decision & more importantly, the reasons considered at that point of time.
If you are clear of such aspects, it would be easier to handle this issue now.
Also, you mentioned ".....solved 4 yrs ago......". what do you mean by this statement?
Also, 'who' informed the senior?
Have BOTH the senior & the person who told him/her about this left the company?
Rgds,
TS
From India, Hyderabad
Hi,
There was no paperwork done. As the directors had a meting with the HR head and was told that the staff should take their accumulated leaves which they are entitled too as they were very clear that there will be no encashment or carry forward . How ever many leaves an employee had was suppose to be exhausted during that year.The Hr head was suppose to give a circular to inform the staff but instead only thing told to the staff in a meeting was that their would be no encashment on leaves accumulated.
The directors just came to know that the instructions they had given were not followed. Now I have to put forward what are the possible ways that the staff can be compensated. Cash against leaves is being considered but is there any other way?
Regards,
From India, Mumbai
There was no paperwork done. As the directors had a meting with the HR head and was told that the staff should take their accumulated leaves which they are entitled too as they were very clear that there will be no encashment or carry forward . How ever many leaves an employee had was suppose to be exhausted during that year.The Hr head was suppose to give a circular to inform the staff but instead only thing told to the staff in a meeting was that their would be no encashment on leaves accumulated.
The directors just came to know that the instructions they had given were not followed. Now I have to put forward what are the possible ways that the staff can be compensated. Cash against leaves is being considered but is there any other way?
Regards,
From India, Mumbai
Hello AnuGD,
'Cash against leaves' is a viable option, IF there's no cash-flow problem in your company.
If, either, you want to avoid any cash outflow OR just don't want to go for the 'Cash against leaves' option for whatever reason, another option could be to re-introduce the 'carry forward' option, with limitations [a max limit of leaves that can be carried forward].
But you haven't answered my query reg the 'reasons' for the decision by the Directors 4 yrs ago--they must be still around. It's quite possible that a temporary cash-flow problem at that point of time could be the reason--which can be now normalized.
One more option--to avoid any backlash from the employees, for no fault of theirs', could be have a ONE-TIME 'Cash against leaves' option considered & then the future policy made clear to them now.
There's also an important point for the Management--usually all high-level meetings end with a Minutes-of-Meeting made & circulated. Obviously, this seems have NOT been done or there's no such practice in your company [had it been there, someone who attended the meeting would definitely have noticed then itself]. Just checkout & correct the situation--before another such situation repeats for any other issue.
Rgds,
TS
From India, Hyderabad
'Cash against leaves' is a viable option, IF there's no cash-flow problem in your company.
If, either, you want to avoid any cash outflow OR just don't want to go for the 'Cash against leaves' option for whatever reason, another option could be to re-introduce the 'carry forward' option, with limitations [a max limit of leaves that can be carried forward].
But you haven't answered my query reg the 'reasons' for the decision by the Directors 4 yrs ago--they must be still around. It's quite possible that a temporary cash-flow problem at that point of time could be the reason--which can be now normalized.
One more option--to avoid any backlash from the employees, for no fault of theirs', could be have a ONE-TIME 'Cash against leaves' option considered & then the future policy made clear to them now.
There's also an important point for the Management--usually all high-level meetings end with a Minutes-of-Meeting made & circulated. Obviously, this seems have NOT been done or there's no such practice in your company [had it been there, someone who attended the meeting would definitely have noticed then itself]. Just checkout & correct the situation--before another such situation repeats for any other issue.
Rgds,
TS
From India, Hyderabad
Dear TS,
Thanks for your opinion. The directors are still there.The reason for such a decision was that they wanted the employees to be motivated and take the off and spend quality time with family and enjoy work as well.
Yes I do agree that minutes of meeting should have been made.But I too don't understand why it was not done.I feel that probably some amount can be paid and some leaves can be carried forward for next year and the employee can exhaust it next year.
Thanks for helping out.
Rgds,
Anu
From India, Mumbai
Thanks for your opinion. The directors are still there.The reason for such a decision was that they wanted the employees to be motivated and take the off and spend quality time with family and enjoy work as well.
Yes I do agree that minutes of meeting should have been made.But I too don't understand why it was not done.I feel that probably some amount can be paid and some leaves can be carried forward for next year and the employee can exhaust it next year.
Thanks for helping out.
Rgds,
Anu
From India, Mumbai
Dear Anu,
Why are you saying that there is no rule or law ? There happens to be numbers of laws which are relating to different types of leaves such as Factories Act, 1948, The Maternity Benefit Act, 1961, State Shops & Establishment Act, State NFH & C & S Act etc. We are to examine which of the Act(s) is/are applicable to the establishment & then adhere to the statutory requirement of that particular Act. If none of the Act is applicable for grant of leaves then of course leaves Rules should be framed for its applicabilty.
R.N.KHOLA
From India, Delhi
Why are you saying that there is no rule or law ? There happens to be numbers of laws which are relating to different types of leaves such as Factories Act, 1948, The Maternity Benefit Act, 1961, State Shops & Establishment Act, State NFH & C & S Act etc. We are to examine which of the Act(s) is/are applicable to the establishment & then adhere to the statutory requirement of that particular Act. If none of the Act is applicable for grant of leaves then of course leaves Rules should be framed for its applicabilty.
R.N.KHOLA
From India, Delhi
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg