Hello Everyone!

Different companies allocate a different number of leaves in a year. How many leaves should employees be provided in a year? Kindly support it with your train of reason. Also, mention the industry type, location, working hours, and whether Saturdays are off days or not.

Looking forward to all your replies.

Regards,
Shyamali

From India, Nasik

Hello Everyone,

I would like to design a new leave policy and would really appreciate your inputs in this regard. Different companies allocate a different number of leaves in a year. How many leaves should employees be provided in a year? Kindly support it with your train of reason. Also, mention the industry type, location, working hours, and whether Saturdays are off days or not.

Looking forward to all your replies.

Regards,
Shyamali

From India, Nasik

Hi R Devarajan,

Normally, an employee should be given at least 16 days of leave in a calendar year. You may please refer to the Indian Factories Act Section 74, Leave with Wages column. It is stated that every employee should be given one day of leave for every 20 days worked during the month. So, if you calculate the number of leaves during the year, it will total to 15 or 16 days throughout the year. Please note that this leave is separate from the national and festival holidays declared in your company.

If you have any further doubts, feel free to ask me.

Regards,
R Devarajan

From India, Madras

If your organization is in Mumbai, Maharashtra, or Gujarat and registered under the Bombay Shop & Estb Act, you shall provide for 21 days of leave (minimum PL or EL, which shall include your CL and Sick Leave).

In addition, under the National Holiday Act, there are 04 National Holidays (26th Jan, 1st May, 15th Aug, and 2nd Oct).

For Festival Holidays, you can decide (most companies provide 6 - 8 days).

Also, there is a provision in the Bombay Shop & Estb Act under which you can provide leave (An employee who has not worked for one year is entitled to leave with pay for 5 days for every 60 days of work). This provision can be activated if you have to give leave to trainees or those under probation.

Regards,
Jitendra Rami

From India, Mumbai

abg
2

Hi,

Generally, the leave policy differs from company to company. In manufacturing industries, the leave policy gets divided for two sets of employees:

1. Unionized Employee: They are entitled to Privileged leave / Earned Leave as per the India Factories Act, i.e., one leave for each 20 days worked. Casual Leave as per the provisions of Standing Orders and Sick Leave at the discretion of the management.

2. Non-Unionized Employee: They are entitled to 30 Privileged leave in a year if intervening W/O and Holidays during leave availed are counted as leave. If intervening W/O and Paid holiday during leave availed are not counted as leave, 26 or 24 days of Privileged leave is allowed. In some companies having 5 working days, the leave is allowed for 21 days. Apart from this, 07 casual leave or 10 leave is allocated (Refer Standing Orders act). Sick leave is at the discretion of the management.

Additionally, both sets of employees are allowed 6, 7, 8, or 10 days paid holiday as per the policy.

Hope this clarifies.

Regards,

Anand

From United States

Hi,

Is there a law defining the leave for non-unionized workers as well, specifically for the executive and managerial class? Or is the practice of 30 days EL/PL a norm followed in the industry and subject to change at the company's discretion?

Regards,
Puja

From India, Guwahati

Hi Shymali,

Try this...............

Employees are entitled to Casual Leave, Sick Leave, and Earned leave during the course of their employment.

Earned leave:

This is to facilitate the employees to take sufficient rest and break for short spells, and the minimum leave available is 12 days per annum provided the employee has worked for 240 days in the calendar year, i.e., Earned leave is applicable only after one year of service.

Casual leave:

The object of casual leave is to enable an employee to attend to some urgent or unforeseen contingencies, and the leave available is 12 days per annum. For availing CL, the employee shall get the prior approval of the concerned HOD/superior. Casual Leave cannot be carried forward to the next year. Casual leave cannot be taken twice a month or more than 3 days at a stretch nor can be clubbed with other leave at the same time. Casual leave is applicable for all types of employees (including Probationer, Temporary Employee, and Casual Employee).

Sick leave:

This is to help the employee attend to sickness and related disturbances, and the leave available is 12 days per annum. The balance of sick leave at the end of any year can be carried forward to the next year. Any sick leave beyond 3 days at a stretch needs to be accompanied by a proper medical certificate from an authorized Medical Doctor, not below the rank of Assistant Surgeon.

+ National HD/Festival holiday as per the Shops & Est. Act is 11 days.

Total As per the Shops & Est. 11 days

CL 12 days

SL 12 days

PL/EL (after a CL year) 12 days.

With warm regards,

Kugan Paramasivam.

:wink:

From India

Hi Puja!

Each and every employee of the organization covered under the Shop and Establishment Act is entitled to statutory leave as specified in the Act. According to the Delhi Shop and Establishment Act, 15 PL/EL and 12 SL/CL in a calendar year are compulsory. However, in the competition to be the number one company with the best HR practices, companies are now providing 25 to 40 PL/EL and 20 to 24 SL/CL. There is no fixed practice regarding leave or Saturday offs. Companies are putting in a lot of effort to attract high-caliber employees.

The general trend is around 30 PL and 12 SL/CL, with alternate Saturdays off in many companies.

Regards,
Subhash

From India, New Delhi

Hi,

Since I have no idea whether your company is in the manufacturing sector or service sector (including software), I would like to clarify the rules under both sectors.

In case it is a manufacturing company, you need to adhere to the Factories Act 1948 and rules made thereunder.

In case you are a software company/working in the service sector, you need to adhere to the Shop and Commercial Establishment Act of the particular state.

Factory Act applies universally in India (irrespective of state), while the Shop and Commercial Establishment Act is localized.

Please note that leaves as per the act are the minimum number of leaves, and you are free to give more leaves if your organization wishes to do so.

However, there is a word of caution regarding leaves granted by companies. Some companies tend to reduce the leaves at their own sweet will after they announce a higher number of leaves than stipulated under the law, which is in contravention of the law.

Please note that under the law, any facility extended to employees cannot be withdrawn as it becomes a condition of service.

I hope this will help you in framing your leave rules.

Daleep K Parimoo



Thank you, everyone!

Special thanks to Daleep. I am collecting data to find the industry norms because our employees feel that they are being given fewer holidays. I wanted some genuine figures for the state of West Bengal.

Regards, Shyamali

From India, Nasik

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