Dear Seniors,
I am Asmita, working with an IT company in Pune. We are standardizing our processes, and I have queries regarding leave calculations.
Let's consider the first scenario:
If an employee takes leave on Friday, and Saturday & Sunday are weekly off, and then takes leave again on Monday, should we count Saturday & Sunday as leaves?
Moving on to the second scenario:
If an employee goes on continuous 10 days of leave, should we also count Saturday & Sunday as part of their leave, or only consider the working days?
I would appreciate your guidance on the current trend for leave calculation in IT companies.
Thanks in advance.
From India, Pune
Acknowledge(0)
Amend(0)
1I am Asmita, working with an IT company in Pune. We are standardizing our processes, and I have queries regarding leave calculations.
Let's consider the first scenario:
If an employee takes leave on Friday, and Saturday & Sunday are weekly off, and then takes leave again on Monday, should we count Saturday & Sunday as leaves?
Moving on to the second scenario:
If an employee goes on continuous 10 days of leave, should we also count Saturday & Sunday as part of their leave, or only consider the working days?
I would appreciate your guidance on the current trend for leave calculation in IT companies.
Thanks in advance.
From India, Pune
Acknowledge(0)Amend(0)
Hi Asmita,
The leave calculation is purely based on your company's leave policy. Few companies have a policy to count Saturday and Sunday as leave if that is going to be a Privileged leave. Few companies do not consider Saturday and Sunday for leave calculation. To streamline this, you should have a clear Leave Policy in your company.
Regards,
Priya
From India, Bangalore
Acknowledge(0)Amend(0)
The leave calculation is purely based on your company's leave policy. Few companies have a policy to count Saturday and Sunday as leave if that is going to be a Privileged leave. Few companies do not consider Saturday and Sunday for leave calculation. To streamline this, you should have a clear Leave Policy in your company.
Regards,
Priya
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Asmita,
Every company has its own leave policy, but in general, if a person takes leave for Friday, and Saturday & Sunday are weekly offs, and he'll join his duty on Monday, then Saturday & Sunday will not count as leave. If he does not come on Monday as well, then Saturday and Sunday will count as leave.
Continuous 10 days leave: Any weekly off will count as leave.
Thanks
From India, Hyderabad
Acknowledge(0)Amend(0)
Every company has its own leave policy, but in general, if a person takes leave for Friday, and Saturday & Sunday are weekly offs, and he'll join his duty on Monday, then Saturday & Sunday will not count as leave. If he does not come on Monday as well, then Saturday and Sunday will count as leave.
Continuous 10 days leave: Any weekly off will count as leave.
Thanks
From India, Hyderabad
Acknowledge(0)Amend(0)
Thanks Priya. but, to streamline our policy & to define it clearly. I need to know what other companies are doing? Let me know how do u calculate in your company in such scenario?
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Dear Asmita,
As a standard process, you have to consider the weekly off as leave if the employee is taking preceding and succeeding leaves to the weekly off. It's normally termed as 'SANDWICH LEAVES'. You can include/frame the policy with respect to this.
From India, Pune
Acknowledge(0)Amend(0)
As a standard process, you have to consider the weekly off as leave if the employee is taking preceding and succeeding leaves to the weekly off. It's normally termed as 'SANDWICH LEAVES'. You can include/frame the policy with respect to this.
From India, Pune
Acknowledge(0)Amend(0)
Dear Asmita,
As everyone specifically mentioned, the leave policy is an internal matter for every organization. However, an IT company falls under the Shop & Establishment Act. Accordingly, sandwich leave should be counted as 4 days off, which include Friday, Saturday, Sunday, and Monday. In an IT company, there are Compensatory Offs, so Saturday and Sunday are excluded.
Mostly in IT organizations, there is 1.6 days of Paid Leave for every completed month of service and 8 days of sick leave, i.e., 2 days per quarter.
As an HR professional, you should always frame policies that are employee-friendly while considering the different Acts.
Thanks and warm regards,
Pranab Kumar
Email: pranab.kumar@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
As everyone specifically mentioned, the leave policy is an internal matter for every organization. However, an IT company falls under the Shop & Establishment Act. Accordingly, sandwich leave should be counted as 4 days off, which include Friday, Saturday, Sunday, and Monday. In an IT company, there are Compensatory Offs, so Saturday and Sunday are excluded.
Mostly in IT organizations, there is 1.6 days of Paid Leave for every completed month of service and 8 days of sick leave, i.e., 2 days per quarter.
As an HR professional, you should always frame policies that are employee-friendly while considering the different Acts.
Thanks and warm regards,
Pranab Kumar
Email: pranab.kumar@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
I've noticed that on this forum, there are a lot of queries about leave and salary calculations. Here is a piece of advice that might hold all HR professionals in good stead. Try to study the legal guidelines. These may be available in the Shop and Establishment format or the Industrial Labour Act format. Do a detailed study of the work environment that you are currently operating in. Draft your leave policies based on the work environment but ensure that you have covered all labor law and legal requirements.
Like they say, there are no free lunches... you need to put in the hard yards!
From India, Pune
Acknowledge(0)Amend(0)
Like they say, there are no free lunches... you need to put in the hard yards!
From India, Pune
Acknowledge(0)Amend(0)
There is no standard rule for considering Sat & Sun or not. It's all based on the HR and management decision, taking the environment and employees into consideration.
I have seen some companies considering Sat & Sun as leaves, some are not. Some give fewer PLs and do not consider Sat & Sun as leaves, while some give more PLs and consider Sat & Sun as leaves.
From United States, Ogden
Acknowledge(0)Amend(0)
I have seen some companies considering Sat & Sun as leaves, some are not. Some give fewer PLs and do not consider Sat & Sun as leaves, while some give more PLs and consider Sat & Sun as leaves.
From United States, Ogden
Acknowledge(0)Amend(0)
Dear Seniors,
Urgent help is required on the computation of Paid/Earned leave encashment. Please refer to Sec 80 of the Factories Act, which states that wages during the leave period should be provided. It includes that a worker shall be entitled to wages at a rate equal to the daily average of his full-time earnings for the days. Kindly advise if wages mean as per Sec 2h[(vi) & 2h of the Minimum Wages Act is the same, or if wage as described in the EPF Act Sec 2b applies. Kindly advise on which wage the employer is liable to pay for encashment.
Regards, Pankaj
From India, Chandigarh
Acknowledge(0)Amend(0)
Urgent help is required on the computation of Paid/Earned leave encashment. Please refer to Sec 80 of the Factories Act, which states that wages during the leave period should be provided. It includes that a worker shall be entitled to wages at a rate equal to the daily average of his full-time earnings for the days. Kindly advise if wages mean as per Sec 2h[(vi) & 2h of the Minimum Wages Act is the same, or if wage as described in the EPF Act Sec 2b applies. Kindly advise on which wage the employer is liable to pay for encashment.
Regards, Pankaj
From India, Chandigarh
Acknowledge(0)Amend(0)
Hi Asmita,
As you have requested, please find below the terms in my company’s leave policy:
1) Casual Leaves, 7 days in a year : Sandwich leave applies (if an employee takes leave on Friday and the subsequent Monday, then even Saturday and Sunday is counted as leave taken, but it does not apply if the employee avail’s leave on Friday and comes to work on Monday)
2) Sick Leave, 7 days in a year : Only working days are calculated for leave (no weekly offs / holidays in between the leaves are counted)
3) Privileged leaves, 21 days in a year: All weekly offs and holidays during the leave period is counted as leave
However, in my previous organization we had all to gather 30 days of Annual leaves in a year (there was no Casual / Sick / Privileged leave split), and only working days were counted.
Hope that helps.. Choice is yours:)
Regards,
Priya
From India, Bangalore
Acknowledge(0)Amend(0)
As you have requested, please find below the terms in my company’s leave policy:
1) Casual Leaves, 7 days in a year : Sandwich leave applies (if an employee takes leave on Friday and the subsequent Monday, then even Saturday and Sunday is counted as leave taken, but it does not apply if the employee avail’s leave on Friday and comes to work on Monday)
2) Sick Leave, 7 days in a year : Only working days are calculated for leave (no weekly offs / holidays in between the leaves are counted)
3) Privileged leaves, 21 days in a year: All weekly offs and holidays during the leave period is counted as leave
However, in my previous organization we had all to gather 30 days of Annual leaves in a year (there was no Casual / Sick / Privileged leave split), and only working days were counted.
Hope that helps.. Choice is yours:)
Regards,
Priya
From India, Bangalore
Acknowledge(0)Amend(0)
Dear All,
Neither will you get this answer in the Factories Act nor in the Shop & Establishment Act. The logic to be used here is based on the employee's payment methodology. If the employee is appointed on a Monthly Salary basis, Weekly offs are indirectly paid holidays in the month. So, if the employee is absent on both days preceding and following a Paid Holiday, the Salary is to be calculated as if he/she was absent for that entire period. For example, if the company's weekly off is Sunday and the employee is absent on Saturday and Monday, it is to be calculated as if he was absent for 3 days and not 2 days.
I hope this is clear now.
Thanks,
Mehul Joshi
Consultant & Designated Partner
Serve HR Corporate Services LLP
From India, Mumbai
Acknowledge(0)Amend(0)
Neither will you get this answer in the Factories Act nor in the Shop & Establishment Act. The logic to be used here is based on the employee's payment methodology. If the employee is appointed on a Monthly Salary basis, Weekly offs are indirectly paid holidays in the month. So, if the employee is absent on both days preceding and following a Paid Holiday, the Salary is to be calculated as if he/she was absent for that entire period. For example, if the company's weekly off is Sunday and the employee is absent on Saturday and Monday, it is to be calculated as if he was absent for 3 days and not 2 days.
I hope this is clear now.
Thanks,
Mehul Joshi
Consultant & Designated Partner
Serve HR Corporate Services LLP
From India, Mumbai
Acknowledge(0)Amend(0)
If an employee applies Casual Leave on Friday & Monday, you need not consider weekly off days as leave. But if any weekly off falls between the earned leave or sick leave, then they are included in the leave period. This is the commonly followed policy in most organizations.
Regarding the number of leave days, YOU HAVE TO PROVIDE THE MINIMUM AS REQUIRED UNDER RULES. IT IS LEFT TO INDIVIDUAL ORGANIZATIONS TO PROVIDE ANYTHING MORE THAN STATUTORY REQUIREMENTS.
From India, Bangalore
Acknowledge(0)Amend(0)
Regarding the number of leave days, YOU HAVE TO PROVIDE THE MINIMUM AS REQUIRED UNDER RULES. IT IS LEFT TO INDIVIDUAL ORGANIZATIONS TO PROVIDE ANYTHING MORE THAN STATUTORY REQUIREMENTS.
From India, Bangalore
Acknowledge(0)Amend(0)
"Mutuality of interest" is the punchline in every employer-employee relationship. A sound, just, and fair leave policy is the aim of all HR professionals. The balance has to be struck between "malafied intentions should not be benefited" versus "bonafied intentions should not be punished." Accordingly, the policy should be designed.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Hello Pankaj.. Generally for daily wages workers, leave encashment is given on "Basic Wage rate". we have such practice in our organization
From India, Nasik
Acknowledge(0)Amend(0)
From India, Nasik
Acknowledge(0)Amend(0)
I observe that the normal view is that in case of casual leave "sandwich" procedure is not followed, but in case of sick and earned leave, "sandwich" procedure is followed. I also understand that there is no law regarding this. However, one knows that Shop & Establishment Acts of different states provide for compulsory grant of earned leave and encashment of the same.
In such a scenario, knocking off weekly off under the "sandwich" procedure may not be correct. A leave granted by a statute cannot be taken away by company practice/procedure. I understand that many informed companies have done away with "sandwich" procedure. However, some factories may follow the "sandwich" procedure by incorporating the same in the Standing Order which is statutorily recognized.
From India, Madras
Acknowledge(0)Amend(0)
In such a scenario, knocking off weekly off under the "sandwich" procedure may not be correct. A leave granted by a statute cannot be taken away by company practice/procedure. I understand that many informed companies have done away with "sandwich" procedure. However, some factories may follow the "sandwich" procedure by incorporating the same in the Standing Order which is statutorily recognized.
From India, Madras
Acknowledge(0)Amend(0)
Hi Asmitha,
The leave policies vary from company to company as per the work environment and working strategies. Yet, legal binding is there regarding the minimum leave that is entitled to employees. As per the Factories Act, for every 20 days of working, 01 day of paid leave/earned leave is entitled. Apart from this, a weekly off is also mandatory. Therefore, when it is stated that for every 20 working days, 01 day of leave is granted, it excludes the weekly off. However, policies can be tailored to suit your firm where employees can enjoy prefixed and suffixed days which fall on either weekly off days or closed holidays. Every HR professional must ensure that leave should adhere to statutory norms and be beneficial to both employees and employers.
Thanks,
Bijay
From India, Vadodara
Acknowledge(0)Amend(0)
The leave policies vary from company to company as per the work environment and working strategies. Yet, legal binding is there regarding the minimum leave that is entitled to employees. As per the Factories Act, for every 20 days of working, 01 day of paid leave/earned leave is entitled. Apart from this, a weekly off is also mandatory. Therefore, when it is stated that for every 20 working days, 01 day of leave is granted, it excludes the weekly off. However, policies can be tailored to suit your firm where employees can enjoy prefixed and suffixed days which fall on either weekly off days or closed holidays. Every HR professional must ensure that leave should adhere to statutory norms and be beneficial to both employees and employers.
Thanks,
Bijay
From India, Vadodara
Acknowledge(0)Amend(0)
HI Pankaj Encashment to be done considering his gross emoluments per day T he Calculation is Wages(Basic+Vad)/30*no.of leaves to be encashed
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear sir,
In May, there are 31 days. Our weekly off on Monday is 4, so we calculate the salary based on 27 days. However, in this month, on May 1st, we have a paid holiday. Can we consider May 1st (Sunday) as a working day? We add +1 day for May 1st to their salary.
Please tell me if 27 working days are okay or if 26 working days are okay?
Regards,
AMIT
From India, Pune
Acknowledge(0)Amend(0)
In May, there are 31 days. Our weekly off on Monday is 4, so we calculate the salary based on 27 days. However, in this month, on May 1st, we have a paid holiday. Can we consider May 1st (Sunday) as a working day? We add +1 day for May 1st to their salary.
Please tell me if 27 working days are okay or if 26 working days are okay?
Regards,
AMIT
From India, Pune
Acknowledge(0)Amend(0)
Hey Asmi,
Sorry for the late reply. If an employee has taken continuous leave along with a holiday, it means that the employee has used one working day of the company. Therefore, Sunday will not be calculated as a holiday.
From India, Pune
Acknowledge(0)Amend(0)
Sorry for the late reply. If an employee has taken continuous leave along with a holiday, it means that the employee has used one working day of the company. Therefore, Sunday will not be calculated as a holiday.
From India, Pune
Acknowledge(0)Amend(0)
Dear amit, understand ur question, replaying the same, have you ask any one about sunday leave, no na then likewise, simply we’ll consider that 1may as lwp.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Some -one will tell me about security/ swipper amc, if any one have referances please forward emmargency.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Leave Policy.doc