Dear T.Sivasankaran, Gia & members,
Could you all pl throw some light on best practice we can follow having credited 1.5 leave per month which means management wants to give only 18 leaves per annum & hence there are no PL/CL/SL in the company. How should same be managed & executed.
From India, Ahmedabad
204Could you all pl throw some light on best practice we can follow having credited 1.5 leave per month which means management wants to give only 18 leaves per annum & hence there are no PL/CL/SL in the company. How should same be managed & executed.
From India, Ahmedabad
I am not aware of provisions of Shops t in Gujrat. Combining all leave is possible as long as you give better benefits. I will discuss with reerence to Tamilnadu Shops Act This will throw some light and you can apply for your State
1. Tamilnadu Act provides for 12 days of earned Leave 12 days of Casual leave arned leave is and 12 days of Medical leave with pay
2. Earned leave is credited after one year.But, Medical and Casual leave are credited in the same year.
3. Earned leave is allowed to be accumulated upto 24 days. CL and ML lapse at the end of the year.
4. In Tamilnadu it is mandatory to give 36 days of leave in a year. If covered under ESI, we can reduce it to 24 days even though law does not specify so.
5. If it is factory, maximum leave is 15 days in a year
6. One need to examine the Shops Act in their State and draft policy.
7 If Gujarat provides for 12 plus 12 as in Tamilnadu excluding medical, then minimum leave you need to provide will be 24 days in a year
8. It is mandatory to provide for earned Leave which can be accumulated say atleast for two years.
I do come across with many BPOs resorting to one day or 1.5 day leave per month and this also lapses every month.They always justify saying that they need to deliver and can not accept absenteeism All State Govts and Central Govt are not implementing this vigorously. In our days, in Manufacturing, we used to engage temporary workers and will not give them leave. It used to be the practice in 50s and 60s. Then the Unions stated demanding and Govt officials were very strict. Even today, in Manufacturing industries, this is followed in general.
I would like summarise as under:
1. Legally it is not correct to give leave lesser than as provided in law
2. Legally it is not correct not to allow accumulation at least for two years.
3.But practically many organisations are practicing this now especially in BPO/IT sector (Not big players)
4.Since there is no unionisation and since the Govt is not insisting on this right now, you can do this and risk involved is low
As a lawyer, I would advise no.
As a practical HR consultant I would suggest you to consider 2 days per month. Allow accumulation of 12 days for the next year
Indirectly, allowing accumulation acts as one of the factors in reducing attrition rate
T Sivasankaran
High rate of at
From India, Chennai
1. Tamilnadu Act provides for 12 days of earned Leave 12 days of Casual leave arned leave is and 12 days of Medical leave with pay
2. Earned leave is credited after one year.But, Medical and Casual leave are credited in the same year.
3. Earned leave is allowed to be accumulated upto 24 days. CL and ML lapse at the end of the year.
4. In Tamilnadu it is mandatory to give 36 days of leave in a year. If covered under ESI, we can reduce it to 24 days even though law does not specify so.
5. If it is factory, maximum leave is 15 days in a year
6. One need to examine the Shops Act in their State and draft policy.
7 If Gujarat provides for 12 plus 12 as in Tamilnadu excluding medical, then minimum leave you need to provide will be 24 days in a year
8. It is mandatory to provide for earned Leave which can be accumulated say atleast for two years.
I do come across with many BPOs resorting to one day or 1.5 day leave per month and this also lapses every month.They always justify saying that they need to deliver and can not accept absenteeism All State Govts and Central Govt are not implementing this vigorously. In our days, in Manufacturing, we used to engage temporary workers and will not give them leave. It used to be the practice in 50s and 60s. Then the Unions stated demanding and Govt officials were very strict. Even today, in Manufacturing industries, this is followed in general.
I would like summarise as under:
1. Legally it is not correct to give leave lesser than as provided in law
2. Legally it is not correct not to allow accumulation at least for two years.
3.But practically many organisations are practicing this now especially in BPO/IT sector (Not big players)
4.Since there is no unionisation and since the Govt is not insisting on this right now, you can do this and risk involved is low
As a lawyer, I would advise no.
As a practical HR consultant I would suggest you to consider 2 days per month. Allow accumulation of 12 days for the next year
Indirectly, allowing accumulation acts as one of the factors in reducing attrition rate
T Sivasankaran
High rate of at
From India, Chennai
Hi :
I think you should do some research of the leave policy applicable in a same sized and service line as your organisation. You can use it as a yardstick to formulate your leave policy. Mr Sivashankaran has already elaborated on every aspect from the legal perspective.
I work in a IT company in Maharashtra. Our employees are entitled for 12PL/EL, 6 SL, 6 CL. We follow the calendar year and CL/SL gets lapsed at the end of the year. The leaves are credited every month and not given in advance.
Hope the above info will be useful.
From India, Pune
I think you should do some research of the leave policy applicable in a same sized and service line as your organisation. You can use it as a yardstick to formulate your leave policy. Mr Sivashankaran has already elaborated on every aspect from the legal perspective.
I work in a IT company in Maharashtra. Our employees are entitled for 12PL/EL, 6 SL, 6 CL. We follow the calendar year and CL/SL gets lapsed at the end of the year. The leaves are credited every month and not given in advance.
Hope the above info will be useful.
From India, Pune
We are in to Biotech and we also follow the same pattern . CL-6 , ML-6, PL-1 per month and max. of 12 days PL they can accumulate for the use of next year . But so far not yet decided on the Encashment of the PL . We have given options to the employees to utilise it when ever they required. So that they can have a break after the busy schedule and relax.
From India, Bangalore
From India, Bangalore
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg