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Hi all,

We are in the process of implementing the "Employee Band & Grade Structure" across the organization. We have 30 leaves in a calendar year (Jan-Dec), but there is currently no division for CL, PL, SL. Now, we want to make changes in that regard. Additionally, we aim to differentiate the eligibility for CL, PL, SL based on the band and grade of the employee, while keeping the total number of leaves at 30 constant.

Please guide me on how we should divide the CL, PL, SL leaves among the 30 total leaves and whether we can differentiate leave eligibility for CL, PL, SL based on the band and grade of the employees. Hoping to hear from you soon.

From India, Pune
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Dear Priyanka,

Had you mentioned the type of your establishment, our response could have been more specific. For example, if yours is a shop or establishment within the purview of any of the State Shops and Establishments Act, the total number should be more than 30 or as fixed in the respective State Act. If it is a factory, only leave with wages permissible in the succeeding year is calculated at one day for every 20 days worked in the previous year and not any other kind of leave. Thus, the types and scales of statutory minimum leave benefits vary according to the type of the establishments. Anyway, undoubtedly, all the leave mentioned are leave with wages only. Therefore, if the proposed revision is upward as per the statutory norms, well, you can go ahead. On the contrary, if the reshuffling of the numbers is between the statutory leave and the existing custom-based ones so as to affect the latter, you have to issue a 21-day notice under Section 9A of the Industrial Disputes Act, 1947.

Statutory eligibility norms for the beneficiaries cannot be varied according to your internal band/grade classifications.

From India, Salem
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Dear Umakanthan,

Thank you for your reply.

As requested by you, I am providing you with further details. We are a Private Limited Company, and our current staff is more than 30. Please guide me on how to proceed further based on the above details.

Thanks and Regards,
Priyanka Desai

From India, Pune
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The basic premise defies logic. Why leave entitlement should defer based on Band Pay or Grade Pay? In my opinion all employees should be entitled for same number of leave.
From India, Kochi
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Dear Priyanka, I think I’ve already answered your question. " Private limited Company" refers only to the constitution of the establishment and not its nature or type or classification.
From India, Salem
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