Hello Everyone,
I am working as an HR manager in a small but growing IT company based in Noida, and I am the only HR personnel here. We employ only experienced candidates, and the probation period is six months for every new employee. As per our current leave policy, employees under probation are not entitled to any leave whatsoever, while confirmed employees are granted 15 CLs and 7 medical leaves.
I am looking to create a new leave policy as our current one is making it challenging to retain talented individuals in our organization. I am considering implementing earned leave while also taking into account leave allotment for employees under probation.
I would greatly appreciate your suggestions on how to formulate an effective leave policy.
From India, Mumbai
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3I am working as an HR manager in a small but growing IT company based in Noida, and I am the only HR personnel here. We employ only experienced candidates, and the probation period is six months for every new employee. As per our current leave policy, employees under probation are not entitled to any leave whatsoever, while confirmed employees are granted 15 CLs and 7 medical leaves.
I am looking to create a new leave policy as our current one is making it challenging to retain talented individuals in our organization. I am considering implementing earned leave while also taking into account leave allotment for employees under probation.
I would greatly appreciate your suggestions on how to formulate an effective leave policy.
From India, Mumbai
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Dear Fazil You may frame the leave policy as per the state’s Shops and Establishments Act. This is the minimum requirement.
From India, Chennai
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From India, Chennai
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You can take your State's Shops and Establishment Act as the base to provide minimum leave. However, you are at liberty to provide better benefits like providing leave during probation, etc. You can provide the following kinds of leave: 1) Earned leave 2) casual leave 3) sick leave 4) leave without pay (extraordinary leave).
You can make a provision for allowing employees to avail casual leave and earned leave on a pro-rata basis in case of need during probation.
B. Saikumar
HR & labour law advisor
Mumbai
From India, Mumbai
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You can make a provision for allowing employees to avail casual leave and earned leave on a pro-rata basis in case of need during probation.
B. Saikumar
HR & labour law advisor
Mumbai
From India, Mumbai
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Thank you, Mr. Sai and Mr. Kpsanjiv, for reverting. I am planning to implement the following types of leave: 1) Earned leave, 2) casual leave, 3) sick leave, 4) leave without pay (extraordinary leave). After studying the leave policies of different companies, I am considering providing 1.5 leave days as earned leave to every permanent employee (who has served 1 year already), along with 10 casual leave days and 7 sick leave days. Additionally, I am thinking of giving 1.5 casual leave days and 1 medical leave day to all employees in probation on a quarterly basis.
For example, an employee joining us on January 1st will receive 1.5 casual leave days and 1 medical leave day, while an employee joining us on February 1st will be given 1 casual leave day and 1 medical leave day, and so forth. The leave policy will follow the calendar year, starting from January and ending in December.
Please suggest any corrections or improvements that could be made.
Kind regards,
Mohd. Fazil
From India, Mumbai
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For example, an employee joining us on January 1st will receive 1.5 casual leave days and 1 medical leave day, while an employee joining us on February 1st will be given 1 casual leave day and 1 medical leave day, and so forth. The leave policy will follow the calendar year, starting from January and ending in December.
Please suggest any corrections or improvements that could be made.
Kind regards,
Mohd. Fazil
From India, Mumbai
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Dear Fazil,
The attached write-up would give you a broad view of various models followed in India. I would suggest that, taking a cue from this, you also consult other sister concerns in your sector, especially in the IT area, and better model your policy on those lines so that you'll fall in line with those firms as well. All the best.
Kumar S.
From India, Bangalore
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The attached write-up would give you a broad view of various models followed in India. I would suggest that, taking a cue from this, you also consult other sister concerns in your sector, especially in the IT area, and better model your policy on those lines so that you'll fall in line with those firms as well. All the best.
Kumar S.
From India, Bangalore
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I am working in a construction company as an HR. In my company, we give 16 paid leaves to employees after confirmation & 13 national & local holidays. Is that fine? I have read that as per the Shop Act, employees should get a minimum of 21 paid leaves in addition to national holidays. Please suggest a good option so that I can implement it in the company.
Regards,
Anushka
From India, Pune
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Regards,
Anushka
From India, Pune
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Anushka, as per Bombay Shops establishment Act, an employee is entitled to 21 days annual leave and four national holidays minimum. B.Saikumar Mumbai
From India, Mumbai
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From India, Mumbai
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Thank you, Mr. Kumar, for the informative document. I am also working on the company's increment policy. In our IT company with over 40 employees, we provide salary increments twice a year. The issue we face is that during increments, employees often request unjustified raises, prompting management to assign me the task of developing a standardized increment policy. I seek your assistance in drafting this policy and would appreciate guidance on the factors to consider.
From India, Mumbai
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From India, Mumbai
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Dear Fazil,
In the private sector, particularly in many partnership or proprietorship firms, the policy of granting increments to employees really has "NO policy" for the simple reason that they are empowered to do as they please since they are the owners. I have observed that in some firms, increments are given twice or thrice a year, while in some cases, there are no increments at all. However, in Pvt. Ltd. Companies, the situation is slightly better, but still not guaranteed. On the contrary, in privately held public limited companies, state/central companies, and government departments, procedures are more transparent. They adhere to a system of "time scale." As you may be aware, when a person is selected and appointed, their appointment letter specifies their salary scale (e.g., Rs.10,000-1000-25,000=15 years), including the minimum basic pay, annual increment, and maximum basic pay. This means that an individual will progress in salary up to a certain point unless they are promoted to a higher grade with a higher time scale. Under this system, there is no room for demands for higher or more frequent increments. Employees also know when they are entitled to their yearly increment. However, there is a caveat. "Increment is not a right but should be earned by meeting minimum performance thresholds. There are cases where annual increments are withheld or deferred until employees enhance their performance levels to the satisfaction of the management. Moreover, some managers have the authority to provide more than one increment in a year to exceptional performers. These policies alleviate the pressure on management from demands for higher increments. However, this is contingent upon a performance appraisal that determines whether an increment is granted.
In your particular situation, as you mentioned, an "unjustified raise" is rarely given. If you do not have a grading system such as poor, average, above average, satisfactory, good/very good, and outstanding in your appraisal process, it would be advisable to implement one to prevent such demands. Simultaneously, it is beneficial to recognize individuals who deliver outstanding performance, unexpected favorable outcomes, significant cost savings, innovative ideas, etc. This recognition will boost your organization and help you retain talented personnel, thereby keeping your attrition rate in check. Depending on your specific circumstances and requirements, you should formulate your policy.
Regards,
kumar.s.
From India, Bangalore
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In the private sector, particularly in many partnership or proprietorship firms, the policy of granting increments to employees really has "NO policy" for the simple reason that they are empowered to do as they please since they are the owners. I have observed that in some firms, increments are given twice or thrice a year, while in some cases, there are no increments at all. However, in Pvt. Ltd. Companies, the situation is slightly better, but still not guaranteed. On the contrary, in privately held public limited companies, state/central companies, and government departments, procedures are more transparent. They adhere to a system of "time scale." As you may be aware, when a person is selected and appointed, their appointment letter specifies their salary scale (e.g., Rs.10,000-1000-25,000=15 years), including the minimum basic pay, annual increment, and maximum basic pay. This means that an individual will progress in salary up to a certain point unless they are promoted to a higher grade with a higher time scale. Under this system, there is no room for demands for higher or more frequent increments. Employees also know when they are entitled to their yearly increment. However, there is a caveat. "Increment is not a right but should be earned by meeting minimum performance thresholds. There are cases where annual increments are withheld or deferred until employees enhance their performance levels to the satisfaction of the management. Moreover, some managers have the authority to provide more than one increment in a year to exceptional performers. These policies alleviate the pressure on management from demands for higher increments. However, this is contingent upon a performance appraisal that determines whether an increment is granted.
In your particular situation, as you mentioned, an "unjustified raise" is rarely given. If you do not have a grading system such as poor, average, above average, satisfactory, good/very good, and outstanding in your appraisal process, it would be advisable to implement one to prevent such demands. Simultaneously, it is beneficial to recognize individuals who deliver outstanding performance, unexpected favorable outcomes, significant cost savings, innovative ideas, etc. This recognition will boost your organization and help you retain talented personnel, thereby keeping your attrition rate in check. Depending on your specific circumstances and requirements, you should formulate your policy.
Regards,
kumar.s.
From India, Bangalore
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Thank you, Mr. Kumar, for the valuable points you made. I am also considering sharing the company's productivity and profitability with our employees. This transparency will provide them with a clear understanding of the increments they receive. Our company is a private limited IT firm, and I believe that any changes in the percentage of increments offered to employees will directly impact the company's overall productivity and profitability, in addition to individual performance.
From India, Mumbai
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From India, Mumbai
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Leave Policy.doc