Blogs By Govind Sharma - Doc Download

Such type of deduction in the pay is against Shops and Establishment Act and also against payment of Wages Act.
Only if employee utilize leave more than the entitled then you may deduct it.
Even if we do not talk about the law, the impact of deduction is always negative on employee and today when people have wider options open, this can lead to dissatisfaction and finally attrition.
The company should have a fair leave policy.
Govind

Dear Amarjeetji,
The situation is completely different here. you are commenting by focussing completely on medical / sick leave for which I agree but there are companies who apply this rule to every leave an employee has taken.

Hi Govind / Amarjeet,
Thanks :)
Would you please suggest me with the proper leave policy structure so that I can discuss with the management.
Regards,
Abdul

No my dear friend! You have mis-understood the things. Paid leave is the right of an employee. It has nothing to do with the deduction of salary as far as the employee is having the paid leave in his account. The all above discussions are for the leaves other than the paid leaves. Paid leaves are to be given to the employee as a matter of right without any deduction but of course the sanctioning of leave should be prior of availing and on a reasonable cause. However the cause of leave is a debatable issue but prior permission should be made must in your service rules in order to stop the habit of availing leave for not so urgent nature of work.
Thanks & Regards,
Amarjeet Singh
DGM HR & Legal.

Hi Abdul,

For leave structure, you can go for traditional method of CL, SL and PL and you can give it a modern look like:

21 PL in a year

07 SL in a year

05 CL in a year.

PL is encashable leave, again you can divide it is encashable leave and non-encashable leave. This will have two effect

1. Employee can do work-life balance because as they know that certain leaves or not cashable so they will utilise it.

2. It will save company's money.

You can make following rule

SL can be taken when employee is sick. For continuous sickness for more than 2 days, production of medical certificate from an MBBS and above doctor is mandatory- so people may not misuse it.

CL can be taken with intimation of at least 24 hours in advance - with or without approval

PL Can be taken only after approval and need to intimate at least 15 days in advance.

The encashable and non encashable leave you can divide gradewise

Suppose you have 21 PL so for the lower level, the encashable leave can be 17, for assistant manager and manager level, it can be 12 for HOD level it can be 8

You make leave policy in such a way that employee will get leave on pro rata basis and only allowed to take earned leave. Also, during probation, allow them to take only SL. They can take PL and CL only after completing probation although they will earn it. or you may allow to take maximum 1 PL in a month.

shall you need any further details, please revert.

Govind

I have some query. We are planning to have one type leave 20 days per year. In that we wanted to have maximum 10 days can be encashed. No sick leave and no other leaves. We have probation period for 6 months. Is there any body having this type leave in your company. Please advise in this regard.
Padma

ok in our company. its is 12 leaves inclusive of 6CL and 6SL.
No carry forward option. Calender year basis January to December. year End we will do LOP- loss of pay. And then if any employee has taken more than 3 leaves per month it is LOP in some cases with approvals form manager.

Hi Padma,
Its fine if you have that kind of structure. Only change it to 21 days or check your state Shops and Establishment Act/ Factory Act rules wherever applicable that how many days minimum leave it mandates
Yes, many companies follow this kind of structure, specially MNCs too.
Govind

Hi Ajay,
Your leave system and policy violates labour laws (Shops and Establishment Act/ Factories Act)
Kindly check it.
From your leave structure, it seems you do not have PL. Kindly refer my earlier replies and postings. PL is mandatory in every state. Second, the PL is earned leave. Suppose, if an employee has worked for 3 months and @ 1.8 PL per month, he has earned 5.4 leave and at the 4th month he takes 5 leave, you mean to say you will deduct 2 days salary?
So you need a healthy, balanced and energetic manpower or a slave?
It seems instead of strategically planning, you are punishing employee and discouraging from taking leave. Instead, you can set a scientific performance management system where you can utilise the manpower assets in better manner
Regards
Govind

Hi All,
My company is a software development company with 35 employees- chennai. At present we are giving CL-6,SL-6 days, as a private limited company how many leaves we can provide to the employees.
Kindly suggest me some ideas, thanks in advance.