Dear All,
Can anybody tells me about: -
Leave Encashment
Carry forward (Is there any limit how much can be carry forward?)
Either carry forward or leave encashment should be applicable in the Organisation. (If yes, then need the proper reason as per law.)
Am in a IT industry. Can anybody tell me about a good leave policy?
Regards,
Monika
From India, Gurgaon
1Can anybody tells me about: -
Leave Encashment
Carry forward (Is there any limit how much can be carry forward?)
Either carry forward or leave encashment should be applicable in the Organisation. (If yes, then need the proper reason as per law.)
Am in a IT industry. Can anybody tell me about a good leave policy?
Regards,
Monika
From India, Gurgaon
Dear Monica,
I can share what I have implmented in my company which is a mid sized organisation.
Privilege leave entitlement is 15 working days.
Calendar year is the basis for Privilege leave.
Holidays and weekends falling in between the leave period is excluded while computing the total number of days taken as leave.
The leave will be credited in advance on 1st January of every Year.
In the case of those who are joining in the middle of the year the same will be calculated on a prorata basis.
The maximum leave you can carry forward from the previous year is 15 days.
The employees can carry forward any leave balances that they have in one year on to the next year. However, the total of leave being carried forward cannot exceed 15 days. Thus, the employee cannot have more than 30 days leave accumulated against his name at any given time (15 days for that year and 15 days leave carried forward).
The minimum unit for the utilization of privilege leave is half a day.
PL in excess of 2 days must be planned at least 7 days in advance.
Privilege leave will not normally be granted during the notice period, when an employee resigns from the service of the company.
PL taken beyond the entitlement will be considered as loss of pay (LOP).
Encashment-
The leave balance of the previous years can be encashed in the month of January.
In the case of the total number of leave exceeding 30 days for any employee, all the leave over and above 30 days will be encashed by default.
Basic salary will be the basis of Encashment.
PL cannot be clubbed with any other form of leave.
You can formulate your companies leave policy accodingly.
Cheers
Alexy Kuriakose
9886789305
From India
I can share what I have implmented in my company which is a mid sized organisation.
Privilege leave entitlement is 15 working days.
Calendar year is the basis for Privilege leave.
Holidays and weekends falling in between the leave period is excluded while computing the total number of days taken as leave.
The leave will be credited in advance on 1st January of every Year.
In the case of those who are joining in the middle of the year the same will be calculated on a prorata basis.
The maximum leave you can carry forward from the previous year is 15 days.
The employees can carry forward any leave balances that they have in one year on to the next year. However, the total of leave being carried forward cannot exceed 15 days. Thus, the employee cannot have more than 30 days leave accumulated against his name at any given time (15 days for that year and 15 days leave carried forward).
The minimum unit for the utilization of privilege leave is half a day.
PL in excess of 2 days must be planned at least 7 days in advance.
Privilege leave will not normally be granted during the notice period, when an employee resigns from the service of the company.
PL taken beyond the entitlement will be considered as loss of pay (LOP).
Encashment-
The leave balance of the previous years can be encashed in the month of January.
In the case of the total number of leave exceeding 30 days for any employee, all the leave over and above 30 days will be encashed by default.
Basic salary will be the basis of Encashment.
PL cannot be clubbed with any other form of leave.
You can formulate your companies leave policy accodingly.
Cheers
Alexy Kuriakose
9886789305
From India
Thnx a lot ! Alexy.... Its really helpful for me. Tell me one thing that r we bound for following Delhi shops and Establishment Act? MG
From India, Gurgaon
From India, Gurgaon
It depends upon under which act your company is registered. (Factories Act or Shop and Establishment Act)
· For Leave Encashment you can follow your company management policy. In our company we encash the EL/PL keeping 15 days EL/ PL as balance. Some company’s encash EL/PL ones the employee leave the company
· For Carry Forward of EL/PL:
o If you comes under the preview of Shop and Establishment Act
No. of Leave (el/pl) Permissible = 15 days
Minimum Accumulation Limit is 3 years i.e. up to 3 times the period of leave to which the employee is entitled after one year i.e. 45 days)
o If you comes under the preview of Factories Act
No. of Leave (el/pl) Permissible = 20 days
Minimum Accumulation Limit = 30 days
From United States, Rochester
· For Leave Encashment you can follow your company management policy. In our company we encash the EL/PL keeping 15 days EL/ PL as balance. Some company’s encash EL/PL ones the employee leave the company
· For Carry Forward of EL/PL:
o If you comes under the preview of Shop and Establishment Act
No. of Leave (el/pl) Permissible = 15 days
Minimum Accumulation Limit is 3 years i.e. up to 3 times the period of leave to which the employee is entitled after one year i.e. 45 days)
o If you comes under the preview of Factories Act
No. of Leave (el/pl) Permissible = 20 days
Minimum Accumulation Limit = 30 days
From United States, Rochester
hi Monica
Every organization can have leave policies depending on the type of business the organization is engaged into.
However According to the labour law. Every employee in the organization is entitled for the following
Casual Leaves - 4
Sick Leaves - 5
Priviledge Leaves - 21
Casual Leaves can neither be carried forward nor encashed. They lapse if the employees dont use them by the end of the year.
Sick Leaves can be carried forward till they total upto 30, but cannot be encashed. So if you are sick for 10 days you will still be paid the salary for those 10 days. But if you resign your sick leaves will lapse.
Priviledge Leaves are earned leaves. Every employee accumulates 1.75 leave per month only after working for the whole month. Thus if anyone works for 12 months 12-1.75 = 21 Leaves. Since these leaves are earned leaves they are encashable as well as they can be carried forward. However an employee can carry forward PRIVILEDGE LEAVES only till they total upto 42, after which they are encashed at the rate of basic.
All leaves are credited to the employees account from the date of joining but an employee is eligible to use the CL & SL only after completion of 6 months or on confirmation whichever comes earlier.
Leave are credited proportionately to the employee account when employees join in between the year.
Hope this helps you to some extent.
bye
wish you all the best
vrush
From India, Pune
Every organization can have leave policies depending on the type of business the organization is engaged into.
However According to the labour law. Every employee in the organization is entitled for the following
Casual Leaves - 4
Sick Leaves - 5
Priviledge Leaves - 21
Casual Leaves can neither be carried forward nor encashed. They lapse if the employees dont use them by the end of the year.
Sick Leaves can be carried forward till they total upto 30, but cannot be encashed. So if you are sick for 10 days you will still be paid the salary for those 10 days. But if you resign your sick leaves will lapse.
Priviledge Leaves are earned leaves. Every employee accumulates 1.75 leave per month only after working for the whole month. Thus if anyone works for 12 months 12-1.75 = 21 Leaves. Since these leaves are earned leaves they are encashable as well as they can be carried forward. However an employee can carry forward PRIVILEDGE LEAVES only till they total upto 42, after which they are encashed at the rate of basic.
All leaves are credited to the employees account from the date of joining but an employee is eligible to use the CL & SL only after completion of 6 months or on confirmation whichever comes earlier.
Leave are credited proportionately to the employee account when employees join in between the year.
Hope this helps you to some extent.
bye
wish you all the best
vrush
From India, Pune
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Leave Policy.doc