Hi, we are currently framing the leave policy for our newly formed Edtech start-up (15-20 employees) with a registered office in Kerala. The law proposes that 12 casual leaves, 12 sick leaves, and 12 earned leaves (after one year) are to be allotted to employees. Following are my queries.
1. Is it okay to pay only the basic salary (currently set at 60% of CTC) for Casual Leave?
2. Is it okay to reduce the number of Casual Leaves?
From India, Alappuzha
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1. Is it okay to pay only the basic salary (currently set at 60% of CTC) for Casual Leave?
2. Is it okay to reduce the number of Casual Leaves?
From India, Alappuzha
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The leave salary should be based on the gross salary, which is the salary an employee would have earned if they had worked on that day. If an employee is absent from work, the leave without pay should be deducted from the gross salary only, not from the basic pay.
You cannot reduce any type of leave, whether it is casual leave (CL), sick leave (SL), or privilege leave (PL).
In addition to the admissible leaves, your organization must declare 13 holidays with pay every year since you have 20 employees. Out of these 13 holidays, 4 are fixed on specific days: January 26th, May 1st, August 15th, and October 2nd, as they are national holidays. The remaining 9 holidays should be for festivals falling on weekdays and should be fixed in consultation with the employees in the organization.
From India, Kannur
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4761You cannot reduce any type of leave, whether it is casual leave (CL), sick leave (SL), or privilege leave (PL).
In addition to the admissible leaves, your organization must declare 13 holidays with pay every year since you have 20 employees. Out of these 13 holidays, 4 are fixed on specific days: January 26th, May 1st, August 15th, and October 2nd, as they are national holidays. The remaining 9 holidays should be for festivals falling on weekdays and should be fixed in consultation with the employees in the organization.
From India, Kannur
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Leave Policy.doc
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(Fact Check Failed/Partial)-The user's reply is incorrect. According to the law, leave salary for Casual Leave can be based on basic salary. Also, the number of Casual Leave can be reduced as per company policy.