Combine leaves into annual leaves

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Hi All,

There has been some discussion on this recently to combine all leaves into annual leaves, due to the new situations or so. Holidays considered separately.

  • Is it a good idea to combine all leaves (EL, CL, SL) into one bracket of annual leaves?
  • Is this plan following the labour laws?
  • Expecting this not to be completely without loopholes, what are some things that will cause worries later if implemented?

Please advise.

Thank you.
Jyoti

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Hi Jyoti,

While making a leave policy, always consider Respective State Shops & Establishments Act.

For Bombay S & E, Leave with Pay clause says:
WORKED MORE THAN 3 MONTHS: - 5 DAYS FOR EVERY 60 DAYS
WORKED MORE THAN 240 DAYS:- 21 DAYS IN A YEAR
MAXIMUM ACCUMULATION UPTO 42 DAYS

So you can easily club all types of leave.

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Dear @Ankit

  1. Is it mandatory that 21 days leave in a year has to be given?

  2. As per our company policy we have 10 days earned leaves, 5 days casual leave = 15 days + 3 days bereavement leave + 5 days paternity leave. So would it be considered 15 days leave or 18 days leave or 23 days leave per year?

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Hi Shefali,

it’s usually 1 day off for every 20 days, and that is how we calculate the leaves.

i.e min 23 - and beyond that any thing given is as per the company policy, but basic of 23 days should be given and they should be in the consumable format. example: Breavement leave is beyond these 23 days because it doesn’t come under compulsory leave to be taken.

We have a detailed excel sheet that you use for this - Visit this site (https://blog.greythr.com/2020/02/12/state-wise-leave-norms-prescribed-under-shops-and-establishments-act)

And there is a. “Click here” button - click that to get the excel sheet.

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Dear @Dinesh,

Thank you so much for sharing the link!

So, for last 8 years our company (it is private limited entity, area of work: IT / ITES) had not given the leave as per Maharashtra State’s Shop and Establishment Act as our Company Policy about leaves differs . So would this be considered as violation against the mentioned Act?

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Not sure of this, but any ways it’s time to reconsider some of these and take a legal advise with local governing bodies.

Leave on it;s own doesn;t have a strict law in INDIA, and majority of it’s rules are left to companies to decide based on the need. So need not worry now.

But starting from Jan’21 you can see how leave policy can match with compliance and choose the best.

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Thanks @Dinesh

You rock! :+1:t3: :slightly_smiling_face:

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Ha ha thanks a lot @shefalipatil :slight_smile:

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Dear @Dinesh / @Ankit,

Can company holidays like Independence Day, Diwali, Christmas, etc. be considered as a part of Earned Leaves?

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Hi @shefalipatil

Independence Day, Republic Day, Gandhi Jayanthi cannot be combined with Leaves. They are fixed Holidays and need to be kept separate from Leaves

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Dear @Ankit,

Thank you!

What’s about other holidays like for example Diwali, Holi, Christmas? If as per the S & E Act, let’s say 18 days Earned leave is to be given. Then if there are such 10 holidays (excluding national holidays like Independence Day, Republic Day, Gandhi Jayanti), then can be they considered in Earned leaves?

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Leaves like Diwali, Holi etc are considered public holidays and leaves are paid leaves as per company policy, for some who work on Diwali are given comp offs

Regards,Ashish Shenoy
Head Of Human Resources.

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Hi,

No, we cannot.

They are Holidays.

Leaves are Earned Leaves as per S&E Act

LEAVE WITH PAY
WORKED MORE THAN 3 MONTHS: - 5 DAYS FOR EVERY 60 DAYS
WORKED MORE THAN 240 DAYS:- 21 DAYS IN A YEAR

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Hi @shefalipatil

Actually we will not be able to do so, because Holidays and Leaves (which employee earn for every 20 woking days) are kept different.

So these cannot be clubbed - Other than rules to avail - carry forward / encashment etc everything company can decide.