Hello Everybody,
I am working in an IT Co. Its a small company. I am working as HR and admin person. I have to prepare the leave policy for the employees. Please help me for the same. What all points should i consider and is there specifications for the IT Co. leave policy? Rules for the leave. And each and every minute details is required. Its very urgent so please help me as soon as possible. Awaiting for your guidance/help.
Best Regards,
Nisha.
From India, Rajkot
1I am working in an IT Co. Its a small company. I am working as HR and admin person. I have to prepare the leave policy for the employees. Please help me for the same. What all points should i consider and is there specifications for the IT Co. leave policy? Rules for the leave. And each and every minute details is required. Its very urgent so please help me as soon as possible. Awaiting for your guidance/help.
Best Regards,
Nisha.
From India, Rajkot
Dear Nisha,
Leave policy is a vague term you are using. It's different for resource, desk and higher management. Generally it's 18 days paid leave in a year, Keeping 1.5 days as leave per month. This is also called as earned leave.Now fixed leave will be 6 National holodays and 4 regional holidays. In total an employee can avail total of 28 days of leave Paid.
Regards,
Sourabh
From India, Mumbai
Leave policy is a vague term you are using. It's different for resource, desk and higher management. Generally it's 18 days paid leave in a year, Keeping 1.5 days as leave per month. This is also called as earned leave.Now fixed leave will be 6 National holodays and 4 regional holidays. In total an employee can avail total of 28 days of leave Paid.
Regards,
Sourabh
From India, Mumbai
Hello Sourabh,
Thank you very much for the information on leave. It proved a great guidance for me. But can you please tell that is this applicable for IT Co even as my company is an IT Co. Awaiting for your reply.
Regards,
Nisha.
From India, Rajkot
Thank you very much for the information on leave. It proved a great guidance for me. But can you please tell that is this applicable for IT Co even as my company is an IT Co. Awaiting for your reply.
Regards,
Nisha.
From India, Rajkot
Dear Nisha,
Yes, that Leave rules mentioned by saurbh is alos applicable on IT CO.
But I am not agree with saurbh, that in my veiw that as per Act :
Employee is elegible for 1 Earned Leave for every 20 days worked. Its Maximum limit is 15 days in a calender year.
7 Causal Leave is also mandatory to provide emplyees.
In case of exemption of ESIC, 7 Sick Leave is also mandatory to provide the employee.
Hope its satisfactory.
regards
amit jain
From India, Delhi
Yes, that Leave rules mentioned by saurbh is alos applicable on IT CO.
But I am not agree with saurbh, that in my veiw that as per Act :
Employee is elegible for 1 Earned Leave for every 20 days worked. Its Maximum limit is 15 days in a calender year.
7 Causal Leave is also mandatory to provide emplyees.
In case of exemption of ESIC, 7 Sick Leave is also mandatory to provide the employee.
Hope its satisfactory.
regards
amit jain
From India, Delhi
Hello Amit,
Yes, I am completely satisfied with your guidance. Thank you very much for solving my queries. I have got 1 query that are the sick leave earned leave? Awaiting for your reply.
Regards,
Nisha.
From India, Rajkot
Yes, I am completely satisfied with your guidance. Thank you very much for solving my queries. I have got 1 query that are the sick leave earned leave? Awaiting for your reply.
Regards,
Nisha.
From India, Rajkot
Hello Nisha
you have to calculate as per Labour act and PF official guidence orelse they will raise some issue in this regarding.hence pl follow as per labour act.
EL (earned leave)-12 days per Annum
CL (cashual leave ) 12 days per Annum
SL (Sick leave) 12 days per Annum
Thanks
D.Sudhakar
From India, Madras
you have to calculate as per Labour act and PF official guidence orelse they will raise some issue in this regarding.hence pl follow as per labour act.
EL (earned leave)-12 days per Annum
CL (cashual leave ) 12 days per Annum
SL (Sick leave) 12 days per Annum
Thanks
D.Sudhakar
From India, Madras
Leave:
All permanent staff will be entitled to avail of leave as per the policy existing at the time. Staff will be entitled to the following:
Leave No.of days
Casual Leave 10
Sick Leave 15
Privilege Leave 30
Maternity/Miscarriage Leave 90
The leave accounting year will be from 1st January to 31st December.
5.2.1 Casual Leave (CL) is taken for personal reasons or emergencies:
All permanent staff will be entitled to 10 days CL during a calendar year for personal reasons that are of an urgent or of unforeseen nature (Please refer annexure 7 for leave format).
Staff on probation will be allowed 1 CL on a monthly basis.
CL cannot be availed for more than 2 consecutive days at a time. However, Sunday and holiday in between the 2 CL taken will be considered as 3 PL.
CL shall not be granted in combination with any other leave. During CL if staff takes any other leave, the earlier CL shall automatically turn into the leave applied for.
If the staff does not have any balance CL to his credit, the excess leave will be adjusted against the balance PL.
It is expected that the staff should seek prior permission from the sanctioning authority before taking CL. However, in an emergency, if this is not possible, the staff will intimate the sanctioning authority either orally or through any other person, of his/her absence from duties, the reasons thereof and of the probable duration of such absence.
All staff must ensure that in case of emergency the authority and/or Office is intimated within next 1 hour from the commencement of office timings i.e. by 11:30 a.m.
If the staff reports 45 minutes late to the office or leaves 60 minutes early it will not be taken into account unless it occurs twice or more in a week. In that case, ½ CL will be deducted.
If the staff reports 45 minutes late due to elements of uncertainty e.g. train delays, strikes, monsoon, etc., it will be given due consideration
If more than 3 leaves is availed at a time for personal reasons it will be considered as PL only.
Absence from duty without satisfactory reasons or information to the Office, as also, absence without any CL to the credit will be treated as leave without pay.
If the staff claims ½ CL on Saturday (after 2:30 p.m.) and reports to the office on Monday (after 2:30 p.m.), the Sunday falling in between 2 days will be considered as CL. However, if the staff reports to the office on Monday at 10:30 a.m. and claims ½ CL on Monday after 2:30 p.m. the Sunday falling in between will not be considered as CL.
Unavailed CL during the year will not be carried forward to the subsequent year. Unavailed CL will not be encashed or converted to any other leave.
No compensatory leave will be granted if staff has worked on holiday, off day or worked late except to support staff. One hour after normal working hours will be considered for calculation of overtime. Refreshments and local conveyance will be provided. The method of overtime calculation will be:
OT amount = present salary drawn - divide by 30 days divide by 8 hours
x number of hours worked
5.2.2 Sick Leave (SL) is taken for illness only:
All permanent staff will be entitled to avail 15 days SL on full emoluments during a calendar year (Please refer annexure 7 for leave format).
SL will be granted to new staff only after confirmation and for the first calendar year of service it will be on pro-rata basis.
Claiming of ½ SL is permissible.
Unavailed SL balance at the end of a calendar year may be accumulated to a maximum of 240 days only.
SL for more than 2 days will be only considered on production of a medical certificate. If the certificate is not submitted in time, the management reserves the right to convert the SL into PL.
All staff will inform the office on the day on which he/she is not well. If additional SL is required, then the staff should inform the office every alternate day.
No medical certificate needs to be produced when SL is taken for a single day.
If the staff does not have any balance SL to his credit, the excess leave will be adjusted against the balance PL.
SL of ½ will not be given and will be treated as ½ CL only.
Unavailed SL will not be encashed or converted into any other leave.
5.2.3 Privilege Leave (PL) is granted for Holidays or Personal reasons:
All permanent staff will be entitled to 30 days PL with full emoluments during a calendar year on the pro-rata basis as tabled below (Please refer annexure 7 for leave format).
No.of days worked including holidays & leaves availed for the month PL earned for a month
0-5 days 0
6-10 days 0.5
11-15 days 1.0
16-20 days 1.5
21-25 days 2.0
26 and above 2.5
Mention about minimum PL at a time and maximum at a time to be taken
PL may be availed of only on completion of the probation period. The date of appointment will be taken into account for the calculation of PL (including probation).
All staff desiring to avail of PL will give not less than 15 days notice in writing of his/her intention to avail such leave except in urgent and unforeseen circumstances. However, in case full PL cannot be granted to staff due to pressure of work, the staff can encash the leave or carry it forward to the next year.
If staff after proceeding on PL desires an extension of PL, he/she should request the office well in advance in writing, to the management.
If the staff remains absent from duty beyond the period of leave originally sanctioned or subsequently extended, he/she shall lose his/her lien on appointment unless resumes the duty within 8 days of sanctioned leave and explains the reason for inability to resume duty. The staff who loses lien but reports for duty within 15 days from the expiry date of PL shall be kept on the waiting list if he/she requested in writing. Staff not reporting for duty within 15 days of the expiry of the PL shall be treated as having abandoned the job. However, the notice pay will be adjusted by the management at the time of finalising full & final benefits of the staff.
LTA (Leave Travel Allowance) can be availed only with PL taken. However, if LTA amount is taken as taxable allowance then minimum 5 days of PL is not required to be taken.
More than 3 leaves availed at a time for personal reason will be considered as PL only.
Leave taken for appearing for examination will be considered as PL only.
Thus, the PL Encashment Scheme will stand modified as follows:
1. The system of accumulation / encashment of Privilege Leave will be prospectively discontinued with effect from 1st January, 2010. Thus, PL for the year 2010 and onwards will have to be utilized by the staff within that year itself.
2. However, in case of extreme necessity, if the institution is unable to grant PL to the staff, the institution will allow carry forward to the subsequent year only, after which the same will lapse. This carry forward has to be resorted to by the institution only on exceptional basis and not as a rule.
3. All the unutilized PL accumulated upto 31st December, 2009 can be utilized in the subsequent years, but encashment will be permitted only at the time of retirement / resignation of the staff.
4. If any staff faces difficulty on any specific issue, the concerned institution may refer it to management.
Encashment of Privilege Leave:
During service, if PL accumulated is more than 90 days, then staff will be allowed to encash the PL, provided the amount to be encashed should be budgeted during the year by the Board.
During service, after encashing the leave, the staff should have a minimum PL balance of 30 days to his/her credit.
The encashment of Privilege Leave during the period of service is taxable and should be calculated as below :
PL encashment Amt = last salary drawn x number of PL to be encashed
30
As per expert opinion of Mr.V.H.Patil, at the time of retirement or resignation, encashment of Privilege Leave is tax exempted upto a maximum of Rs.3,00,000/- or actual paid whichever is lower (On the basis of 30 days PL a year) and the earned leave to be encashed must not not be for more than 300 days (i.e 10 years PL). The salary should be based on average salary drawn by the employee during 10 months immediately preceding his retirement or resignation is to be used to calculate enchashment as below:
PL encashment Amt = Average salary of last 10 months x number of PL to be encashed
30
If PL exceeds 300 days at the time of retirement/resignation, it can be encashed but it will be taxable.
5.2.4 Maternity/Miscarriage Leave (ML) is taken for Maternity:
All the permanent female staff will be eligible for Maternity Leave for a period not more than 90 days at a time on production of a medical certificate from a Gynecologist.
All the permanent female staff will be eligible for Miscarriage Leave for 5 days with respect to confinement on post-natal period or at the time of miscarriage/abortion on production of a medical certificate from a Gynecologist.
The Maternity Leave facility will be granted only once in 2 years and will be allowed on 2 such occasions during the entire service with the organisation.
From India, Mumbai
All permanent staff will be entitled to avail of leave as per the policy existing at the time. Staff will be entitled to the following:
Leave No.of days
Casual Leave 10
Sick Leave 15
Privilege Leave 30
Maternity/Miscarriage Leave 90
The leave accounting year will be from 1st January to 31st December.
5.2.1 Casual Leave (CL) is taken for personal reasons or emergencies:
All permanent staff will be entitled to 10 days CL during a calendar year for personal reasons that are of an urgent or of unforeseen nature (Please refer annexure 7 for leave format).
Staff on probation will be allowed 1 CL on a monthly basis.
CL cannot be availed for more than 2 consecutive days at a time. However, Sunday and holiday in between the 2 CL taken will be considered as 3 PL.
CL shall not be granted in combination with any other leave. During CL if staff takes any other leave, the earlier CL shall automatically turn into the leave applied for.
If the staff does not have any balance CL to his credit, the excess leave will be adjusted against the balance PL.
It is expected that the staff should seek prior permission from the sanctioning authority before taking CL. However, in an emergency, if this is not possible, the staff will intimate the sanctioning authority either orally or through any other person, of his/her absence from duties, the reasons thereof and of the probable duration of such absence.
All staff must ensure that in case of emergency the authority and/or Office is intimated within next 1 hour from the commencement of office timings i.e. by 11:30 a.m.
If the staff reports 45 minutes late to the office or leaves 60 minutes early it will not be taken into account unless it occurs twice or more in a week. In that case, ½ CL will be deducted.
If the staff reports 45 minutes late due to elements of uncertainty e.g. train delays, strikes, monsoon, etc., it will be given due consideration
If more than 3 leaves is availed at a time for personal reasons it will be considered as PL only.
Absence from duty without satisfactory reasons or information to the Office, as also, absence without any CL to the credit will be treated as leave without pay.
If the staff claims ½ CL on Saturday (after 2:30 p.m.) and reports to the office on Monday (after 2:30 p.m.), the Sunday falling in between 2 days will be considered as CL. However, if the staff reports to the office on Monday at 10:30 a.m. and claims ½ CL on Monday after 2:30 p.m. the Sunday falling in between will not be considered as CL.
Unavailed CL during the year will not be carried forward to the subsequent year. Unavailed CL will not be encashed or converted to any other leave.
No compensatory leave will be granted if staff has worked on holiday, off day or worked late except to support staff. One hour after normal working hours will be considered for calculation of overtime. Refreshments and local conveyance will be provided. The method of overtime calculation will be:
OT amount = present salary drawn - divide by 30 days divide by 8 hours
x number of hours worked
5.2.2 Sick Leave (SL) is taken for illness only:
All permanent staff will be entitled to avail 15 days SL on full emoluments during a calendar year (Please refer annexure 7 for leave format).
SL will be granted to new staff only after confirmation and for the first calendar year of service it will be on pro-rata basis.
Claiming of ½ SL is permissible.
Unavailed SL balance at the end of a calendar year may be accumulated to a maximum of 240 days only.
SL for more than 2 days will be only considered on production of a medical certificate. If the certificate is not submitted in time, the management reserves the right to convert the SL into PL.
All staff will inform the office on the day on which he/she is not well. If additional SL is required, then the staff should inform the office every alternate day.
No medical certificate needs to be produced when SL is taken for a single day.
If the staff does not have any balance SL to his credit, the excess leave will be adjusted against the balance PL.
SL of ½ will not be given and will be treated as ½ CL only.
Unavailed SL will not be encashed or converted into any other leave.
5.2.3 Privilege Leave (PL) is granted for Holidays or Personal reasons:
All permanent staff will be entitled to 30 days PL with full emoluments during a calendar year on the pro-rata basis as tabled below (Please refer annexure 7 for leave format).
No.of days worked including holidays & leaves availed for the month PL earned for a month
0-5 days 0
6-10 days 0.5
11-15 days 1.0
16-20 days 1.5
21-25 days 2.0
26 and above 2.5
Mention about minimum PL at a time and maximum at a time to be taken
PL may be availed of only on completion of the probation period. The date of appointment will be taken into account for the calculation of PL (including probation).
All staff desiring to avail of PL will give not less than 15 days notice in writing of his/her intention to avail such leave except in urgent and unforeseen circumstances. However, in case full PL cannot be granted to staff due to pressure of work, the staff can encash the leave or carry it forward to the next year.
If staff after proceeding on PL desires an extension of PL, he/she should request the office well in advance in writing, to the management.
If the staff remains absent from duty beyond the period of leave originally sanctioned or subsequently extended, he/she shall lose his/her lien on appointment unless resumes the duty within 8 days of sanctioned leave and explains the reason for inability to resume duty. The staff who loses lien but reports for duty within 15 days from the expiry date of PL shall be kept on the waiting list if he/she requested in writing. Staff not reporting for duty within 15 days of the expiry of the PL shall be treated as having abandoned the job. However, the notice pay will be adjusted by the management at the time of finalising full & final benefits of the staff.
LTA (Leave Travel Allowance) can be availed only with PL taken. However, if LTA amount is taken as taxable allowance then minimum 5 days of PL is not required to be taken.
More than 3 leaves availed at a time for personal reason will be considered as PL only.
Leave taken for appearing for examination will be considered as PL only.
Thus, the PL Encashment Scheme will stand modified as follows:
1. The system of accumulation / encashment of Privilege Leave will be prospectively discontinued with effect from 1st January, 2010. Thus, PL for the year 2010 and onwards will have to be utilized by the staff within that year itself.
2. However, in case of extreme necessity, if the institution is unable to grant PL to the staff, the institution will allow carry forward to the subsequent year only, after which the same will lapse. This carry forward has to be resorted to by the institution only on exceptional basis and not as a rule.
3. All the unutilized PL accumulated upto 31st December, 2009 can be utilized in the subsequent years, but encashment will be permitted only at the time of retirement / resignation of the staff.
4. If any staff faces difficulty on any specific issue, the concerned institution may refer it to management.
Encashment of Privilege Leave:
During service, if PL accumulated is more than 90 days, then staff will be allowed to encash the PL, provided the amount to be encashed should be budgeted during the year by the Board.
During service, after encashing the leave, the staff should have a minimum PL balance of 30 days to his/her credit.
The encashment of Privilege Leave during the period of service is taxable and should be calculated as below :
PL encashment Amt = last salary drawn x number of PL to be encashed
30
As per expert opinion of Mr.V.H.Patil, at the time of retirement or resignation, encashment of Privilege Leave is tax exempted upto a maximum of Rs.3,00,000/- or actual paid whichever is lower (On the basis of 30 days PL a year) and the earned leave to be encashed must not not be for more than 300 days (i.e 10 years PL). The salary should be based on average salary drawn by the employee during 10 months immediately preceding his retirement or resignation is to be used to calculate enchashment as below:
PL encashment Amt = Average salary of last 10 months x number of PL to be encashed
30
If PL exceeds 300 days at the time of retirement/resignation, it can be encashed but it will be taxable.
5.2.4 Maternity/Miscarriage Leave (ML) is taken for Maternity:
All the permanent female staff will be eligible for Maternity Leave for a period not more than 90 days at a time on production of a medical certificate from a Gynecologist.
All the permanent female staff will be eligible for Miscarriage Leave for 5 days with respect to confinement on post-natal period or at the time of miscarriage/abortion on production of a medical certificate from a Gynecologist.
The Maternity Leave facility will be granted only once in 2 years and will be allowed on 2 such occasions during the entire service with the organisation.
From India, Mumbai
Hi Nisha, IT company comes under Shop Act. As per Shop Act you have to give 21 leaves in a year (Bifercation of SL/EL/CL is not manditory)to the employees. Regards, Rajesh Auchare
From India, Mumbai
From India, Mumbai
Hello Nirav,
Thank you very much for the guidance that you provided. The attachment is very helpful to me. Just now i am preparing it for my company so if any query will be there i will come back to you.
Regards,
Nisha.
From India, Rajkot
Thank you very much for the guidance that you provided. The attachment is very helpful to me. Just now i am preparing it for my company so if any query will be there i will come back to you.
Regards,
Nisha.
From India, Rajkot
Dear Sudhakar,
What you have stated is news to me. I am really baffled.
Can you please tell us which labour Laws are you referring to. There is nothing known as Labour Act and for your information PF Act does not deal with Leave.
Please validate your own information before advising others. You are only succeeding in confusing and misleading colleagues who are seeking correct information.
Kinldy refrain from offering advice if you are not sure about what you are saying.
Vasant Nair
From India, Mumbai
What you have stated is news to me. I am really baffled.
Can you please tell us which labour Laws are you referring to. There is nothing known as Labour Act and for your information PF Act does not deal with Leave.
Please validate your own information before advising others. You are only succeeding in confusing and misleading colleagues who are seeking correct information.
Kinldy refrain from offering advice if you are not sure about what you are saying.
Vasant Nair
From India, Mumbai
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Leave Policy.doc