Dear Senior members of CiteHR,
Request a judicious response from you all in regards to the issue mentioned below:
We are an IT org. with 125 manpower. Our existing leaves are bifurcated into 12 CL, 5 PL (Privilege Leave), 1 RL (Religious/Restricted leave) and 15 SL per year for executive, lower mgmt people (total 33 leaves) and 24 CL, 5 PL, 1 RL and 15 SL for middle and higher mgmt people. (total 45)
CL, Comp offs and PLs are encashable at the finanicial year end which is on the basis of gross salary. Only PLs can be forwarded if not encashed.
My queries are:
1. Is this policy ideal as per industry standards? is it adhering to statutory compliance?
2. I think leaves should be encashed on the basis of basic salary and CLs do not get encashed, it get lapsed at the end of year if not utilized. Is it so?
3. I have proposed for a new policy which is 30 days consolidated annual package leave (2.5 per month) flat for everyone across the org. This will decrease logistics handling for HR to some extent, and encashment amount will also become less at the year end. Is it feasible to have this structure in a company like ours? What can be its pros and cons?
If I'm wrong please suggest some options for an apt leave policy.
Waiting for ur answers.
From India, Pune
2Request a judicious response from you all in regards to the issue mentioned below:
We are an IT org. with 125 manpower. Our existing leaves are bifurcated into 12 CL, 5 PL (Privilege Leave), 1 RL (Religious/Restricted leave) and 15 SL per year for executive, lower mgmt people (total 33 leaves) and 24 CL, 5 PL, 1 RL and 15 SL for middle and higher mgmt people. (total 45)
CL, Comp offs and PLs are encashable at the finanicial year end which is on the basis of gross salary. Only PLs can be forwarded if not encashed.
My queries are:
1. Is this policy ideal as per industry standards? is it adhering to statutory compliance?
2. I think leaves should be encashed on the basis of basic salary and CLs do not get encashed, it get lapsed at the end of year if not utilized. Is it so?
3. I have proposed for a new policy which is 30 days consolidated annual package leave (2.5 per month) flat for everyone across the org. This will decrease logistics handling for HR to some extent, and encashment amount will also become less at the year end. Is it feasible to have this structure in a company like ours? What can be its pros and cons?
If I'm wrong please suggest some options for an apt leave policy.
Waiting for ur answers.
From India, Pune
Dear,
In my view u should encash PL rather than CL.
first time i have seen PL is under 10..but again leave policy varies to org.
as u r saying u have proposed a new policy with 30 days of leave.
my suggestion--> PL-18, CL-6, SL- 6
and u can acuumulate PL up to 30/35/40.
It was just a suggestion. People might have diff. perception here. so it is up to u.
Regards
Vipin8)8)
From India, New Delhi
In my view u should encash PL rather than CL.
first time i have seen PL is under 10..but again leave policy varies to org.
as u r saying u have proposed a new policy with 30 days of leave.
my suggestion--> PL-18, CL-6, SL- 6
and u can acuumulate PL up to 30/35/40.
It was just a suggestion. People might have diff. perception here. so it is up to u.
Regards
Vipin8)8)
From India, New Delhi
Dear Anu,
I agree with Vipin, 5 days of PL is to less. You can have 12 days of PL. 1 PL for each complete month. 6 days of CL and 6 days of SL.
Unutilised CL should lapse. SL can be carried forward and can be accumulated for 30 days but should not be encashable.
PL can be accumulated for 30/40/45 days and can be encashed.
Regards!
KP
From India, Calcutta
I agree with Vipin, 5 days of PL is to less. You can have 12 days of PL. 1 PL for each complete month. 6 days of CL and 6 days of SL.
Unutilised CL should lapse. SL can be carried forward and can be accumulated for 30 days but should not be encashable.
PL can be accumulated for 30/40/45 days and can be encashed.
Regards!
KP
From India, Calcutta
Dear Anu,
This is my view,
1. If your leave management process is manual, go for standard leave policy across all levels so that handling becomes easier. If Leave and attendance software system is in place, then you may have different categories based on level, left to management decision.
2. You can have 18 days Privilege Leave/Paid leave per annum (1.5days per month), Casual leave 6 days and Sick Leave 6 days.
3. Define a policy to en-cash only Privilege/Paid leave. Leave encashment on gross pay will result in huge cash outflow to the organization. It’s better to have on basic pay.
4. If you define sick & causal leave policy as non en-cashable & non-carry forward then there will be mass people availing leave at the end of leave year (calendar/financial year) which will result in loss of productivity. So Sick leave can be made carry forward upto a defined period or certain number of days and laspses at the end of defined period/days.
Regards,
Lakshmi.
From India, Bangalore
This is my view,
1. If your leave management process is manual, go for standard leave policy across all levels so that handling becomes easier. If Leave and attendance software system is in place, then you may have different categories based on level, left to management decision.
2. You can have 18 days Privilege Leave/Paid leave per annum (1.5days per month), Casual leave 6 days and Sick Leave 6 days.
3. Define a policy to en-cash only Privilege/Paid leave. Leave encashment on gross pay will result in huge cash outflow to the organization. It’s better to have on basic pay.
4. If you define sick & causal leave policy as non en-cashable & non-carry forward then there will be mass people availing leave at the end of leave year (calendar/financial year) which will result in loss of productivity. So Sick leave can be made carry forward upto a defined period or certain number of days and laspses at the end of defined period/days.
Regards,
Lakshmi.
From India, Bangalore
Hi Anu,
As you are telling that you want to implement 2.5 days flat leaves per month in a year 30 days now you want to implement that one first you have to calculate the production hours first then take decision as per my calculation if you have 8 working hours per day that means you loose 20 hours you loose and that to in your organization if you have 6days working days then it is not big issue for you to allot 2 days leaves per month. if you have 5 days working days then your production will decrease half of the week. then it is cause you to big loss for the production and that in this recession time it is very very big loss for you
From India, Hyderabad
As you are telling that you want to implement 2.5 days flat leaves per month in a year 30 days now you want to implement that one first you have to calculate the production hours first then take decision as per my calculation if you have 8 working hours per day that means you loose 20 hours you loose and that to in your organization if you have 6days working days then it is not big issue for you to allot 2 days leaves per month. if you have 5 days working days then your production will decrease half of the week. then it is cause you to big loss for the production and that in this recession time it is very very big loss for you
From India, Hyderabad
Thanks a lot Siva kumar for your response. We are working 6 days a week with 9 hours Mon-Fri and Saturday 6 hours. However alternate saturdays are week off. As per your analysis it should work. What say?
Even Lakshmi has shared a brilliant idea on this. Since we handle leave mgmt system manually, was wondering if the "All purpose leave" policy (30 or 24 days/year) can work and as far as I know its one of the latest trends which lot of Companies across the Service Industry is following.
Best Regards,
Anu
From India, Pune
Even Lakshmi has shared a brilliant idea on this. Since we handle leave mgmt system manually, was wondering if the "All purpose leave" policy (30 or 24 days/year) can work and as far as I know its one of the latest trends which lot of Companies across the Service Industry is following.
Best Regards,
Anu
From India, Pune
If you worked out that it is good and the policy is also work and at the time of allotting leave to the employees you need to consider the task and what is the stage if it is in crucial time for the project it is very important ok
From India, Hyderabad
From India, Hyderabad
Dear Anu,
Very Nice Leave policy for an employees and not good for employer and also not according to Statutory requirement.
Generally Rule says for every 20 days worked , you shall give one PL or EL( Earned Leave). You can have the encashment of PL for Max. of 30 days/60 days as decided by the management. Leave encashment is normally calculated only on Basic Salary and not Gross Salary. Its the discreation of the Management to pay on Gross Salary.
CL shall be 06 days per year on Pro- rata basis and not encashable.( 0.5 days /Month) and cannot be carried forward for the next year.
Sick leave is on the discretion of the Management. Its not encashable. For more than 3 days SL, you should demand for the Medical Certificate Proof for genunity.
Regards
Arasu
From India, Bangalore
Very Nice Leave policy for an employees and not good for employer and also not according to Statutory requirement.
Generally Rule says for every 20 days worked , you shall give one PL or EL( Earned Leave). You can have the encashment of PL for Max. of 30 days/60 days as decided by the management. Leave encashment is normally calculated only on Basic Salary and not Gross Salary. Its the discreation of the Management to pay on Gross Salary.
CL shall be 06 days per year on Pro- rata basis and not encashable.( 0.5 days /Month) and cannot be carried forward for the next year.
Sick leave is on the discretion of the Management. Its not encashable. For more than 3 days SL, you should demand for the Medical Certificate Proof for genunity.
Regards
Arasu
From India, Bangalore
Good Wishes Anu,
This is really an interesting question, which makes a note that Hr people should aware of indian employment laws and acts,
According to 1962 Factory law (IT companies comes under) every establishment which works 5 days a week in order to the calculations of working hours 45 hrs per week should allow employee to take 1 day of earned leave after 30 days of service.
The leave policy its a huge one consists of about 8 pages, If can give me your Email ID so that I can Forward the same to you, if not you can send a test mail to
.
Thanks & Best Regards,
Shiva
From India, Bangalore
This is really an interesting question, which makes a note that Hr people should aware of indian employment laws and acts,
According to 1962 Factory law (IT companies comes under) every establishment which works 5 days a week in order to the calculations of working hours 45 hrs per week should allow employee to take 1 day of earned leave after 30 days of service.
The leave policy its a huge one consists of about 8 pages, If can give me your Email ID so that I can Forward the same to you, if not you can send a test mail to
Thanks & Best Regards,
Shiva
From India, Bangalore
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Leave Policy.doc