Hi all,
We are a 10 year old Bangalore based organisation with 30 employees. The Leave calendar is on Financial year basis, i.e., April - March.
Till June '16 the Leave Policy was as such:
Leave (Combined balance for CL & SL) - 32; Optional Holiday - 2; Declared Holiday - 10.
At the end of the FY, the entire balance of leaves is carried forward (i.e.,maximum to 42, which is 32 Leaves+2 OH), every year and is accumulated year on year.
As a result, we have a few employees with an overall balance of leaves as huge 20 to 40.
In July '16, the leave policy was revised to such:
CL - 24/annum; SL - 8/annum; OH - 2/annum; Declared Leaves - 10/annum
At the end of FY only 12 CL gets carried forward every year (not accumulated year on year).
For the transition purpose of the leave policy, the employees were informed in July '16 that end of Mar '17, the unconsumed leave balance will lapse, except for 12 CL and their current leave balance was shared with them to plan their leaves for the coming 8 months. And for the same reason, the management is reluctant to encash the leave balance till March '17 and start afresh in April'17.
Now, we have received feedback from the employees:
1.) By lapsing the unconsumed SL of the employees, the company is penalizing the employee for being healthy.
2.) Let the employees have a common balance like earlier of CL & SL (32) and carry forward 18 leaves per year.
As per my knowledge of the Shops & establishment Act, Karnataka, it is mandatory for an organisation to give a SL balance to its employees. And also SL can not be carried forward.
Queries:
1.) Request you to guide with a right approach to this transition.
2.) Also, please suggest how does one decides on the number of leaves that can be carried forward.
3.) What will be a better option - yearly encashment of balance leaves or leave encashment of leaving the organisation.
4.) Any suggestions with respect to the leave policy is also welcome.
Thanks
Krati
From India, Gurgaon
1We are a 10 year old Bangalore based organisation with 30 employees. The Leave calendar is on Financial year basis, i.e., April - March.
Till June '16 the Leave Policy was as such:
Leave (Combined balance for CL & SL) - 32; Optional Holiday - 2; Declared Holiday - 10.
At the end of the FY, the entire balance of leaves is carried forward (i.e.,maximum to 42, which is 32 Leaves+2 OH), every year and is accumulated year on year.
As a result, we have a few employees with an overall balance of leaves as huge 20 to 40.
In July '16, the leave policy was revised to such:
CL - 24/annum; SL - 8/annum; OH - 2/annum; Declared Leaves - 10/annum
At the end of FY only 12 CL gets carried forward every year (not accumulated year on year).
For the transition purpose of the leave policy, the employees were informed in July '16 that end of Mar '17, the unconsumed leave balance will lapse, except for 12 CL and their current leave balance was shared with them to plan their leaves for the coming 8 months. And for the same reason, the management is reluctant to encash the leave balance till March '17 and start afresh in April'17.
Now, we have received feedback from the employees:
1.) By lapsing the unconsumed SL of the employees, the company is penalizing the employee for being healthy.
2.) Let the employees have a common balance like earlier of CL & SL (32) and carry forward 18 leaves per year.
As per my knowledge of the Shops & establishment Act, Karnataka, it is mandatory for an organisation to give a SL balance to its employees. And also SL can not be carried forward.
Queries:
1.) Request you to guide with a right approach to this transition.
2.) Also, please suggest how does one decides on the number of leaves that can be carried forward.
3.) What will be a better option - yearly encashment of balance leaves or leave encashment of leaving the organisation.
4.) Any suggestions with respect to the leave policy is also welcome.
Thanks
Krati
From India, Gurgaon
Dear Krati,
As per Karnataka Shop Commerical Establishment Act 1961 only two types of leave are entitled.
Privileged Leave/EL--20 days-one leave for 20 working days. conditions are as per link given bellow.
Sick leave -12 on medical grounds.
No CL
Accumulation permitted -max 30 days.
HR Indya | Leave Rules
The leaves calculated as per calendar year
Now coming to your query, it is easy to frame rules which give benefits over and above what is prescribed in State Rules but when changes are made to align them with State Rules employees feel cheated.
My suggestion is that implement rules as per state rules.
Encash accumulated leave and start afresh.
Regards,
Col.Suresh Rathi
From India, Delhi
As per Karnataka Shop Commerical Establishment Act 1961 only two types of leave are entitled.
Privileged Leave/EL--20 days-one leave for 20 working days. conditions are as per link given bellow.
Sick leave -12 on medical grounds.
No CL
Accumulation permitted -max 30 days.
HR Indya | Leave Rules
The leaves calculated as per calendar year
Now coming to your query, it is easy to frame rules which give benefits over and above what is prescribed in State Rules but when changes are made to align them with State Rules employees feel cheated.
My suggestion is that implement rules as per state rules.
Encash accumulated leave and start afresh.
Regards,
Col.Suresh Rathi
From India, Delhi
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Leave Policy.doc