Hi, I am working as an HR Manager in an IT company. At present, the company's strength is 30. Recently, we came up with a new Leave Policy for our employees. I am sharing our company leave policy here. I have a few questions regarding the same. I would be really thankful to you if you can guide me further and clear my doubts regarding this.

On the 1st of every month, every employee can have an addition of 10 hours for leave.

On accumulation of extra working hours, we can generate a leave of 10 hours.

A person can accumulate a maximum of 200 hours.

The leaves will be of the following types:

a. Full day: 10 hours

b. Half day: 5 hours

c. One third: 3 hours

Please note that as per this Policy, the extra hours would be calculated after 6:45 pm. So, in this system, we will require a minimum of 1-hour attendance. So, if you are moving out at 7:30 pm, then you will not be credited with any amount. The minimum time required to leave the office is 7:45 pm. Also, the hours will be accumulated with a difference of 30 minutes. For example, if you are leaving at 8, that will still be counted as 1 hour. The hours need approval from your TL and HR.

Other than this, there are casual leaves, emergency leave, emergency leave without balance, and leave without pay. For applying to each of these leaves, there is a separate procedure.

My query regarding this is: As mentioned above, on the 1st of every month, there is an addition of 10 hours to every employee's account, which is equivalent to 1 leave. Also, regarding the extra hours, if anyone has 10 extra hours in their account, that will make 1 leave. What about those people who are not sitting for extra time and completing their task on time, leaving the office at 6:30 pm? I just want to ask if 10 hours = 1 leave makes any sense because as per the standard labor laws, an employee cannot work more than 9 hours a day. Kindly help me regarding this.

Another query is that suppose a person has worked continuously overtime and has 10 hours in their account, which makes 1 leave for them. They apply for the leave, and the leave has been approved. However, according to the Weekly rating system (Parameters that we use for rating like Efforts, performance, and Discipline/Attendance) that we follow for appraisal. If a person has taken that leave, although it has been approved, we are still deducting points (presently we are giving a rating out of 5) for that. My team has a query that what is the benefit of those extra hours then, if the points are still being deducted.

I would really appreciate it if you could tell me what should be the best possible route to this and whether we need to change our rating criteria for performance appraisal.

Looking forward to hearing from you soon!

Thanks and Regards

Shruti Verma
HR executive.

From India, Chandigarh
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Dear Shruti Verma,

Your proposed Leave Policy reminds me of the old saying "Old wine in a new bottle!" I don't think it is a leave policy but a policy of compensatory off for overtime work, most probably based on industry practice. Deep down, it is a clever way of depriving the employees of the statutory benefits of overtime wages, which are normally twice the ordinary rate of wages per hour.

Even if your industry wages are far higher than the statutory minimum wages based on collective bargaining, the number of normal working hours per day below the statutory standard, if any, and the rate of overtime wages are always fixed in consultation with the employees.

The proposal mentioned in your second query is a little bit paradoxical. According to this proposal, employees who finish their work and leave at the normal closing hour would be more efficient, whereas those who continue to work beyond the normal working hours at the request of the management and avail proportionate compensatory leave thus earned would perform poorly.

Thank you.

From India, Salem
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Hello UMA SIR, Correctly Said" it is a leave policy but a policy of compensatory off for over time work" "bit paradoxical"
From India, Hyderabad
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This policy may work provided the extra hours worked are counted at double the rate. So, in a week, for 10 hours of extra work, a credit of 20 hours should be given.

Otherwise, the policy is nothing but what Mr. Umakanthanji has correctly commented...

From India, Kolhapur
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