Forced Earned Leaves

A company in the financial services industry wants to have compulsory shutdowns twice a year for 5 days each, where employees' earned leave will be debited. Does this contravene any labor laws? Can the shutdown be prefixed twice a year and announced in the HR manual under the leave policy?

May we know what the eligibility is for Earned Leave privilege for your employees? This could be clearly understood with that information. However, 10 days have passed; what balance will be left for enjoying the EL? Please let us know. Probably, those who wish could reply better.

Hello,

This practice cannot be followed as there is no provision for the same under the Shops & Establishments Act of any state. The company cannot force EL deduction because of their policy, as such leaves are earned based on the last financial or calendar years. Also, the same cannot be made a service condition by laying it out in the HR manual or Employee Manual.

Regards

The total eligibility is 15 days of earned leave in a year – 10 days of CL and 5 days of sick leave.

Dear,

In my point of view, an employer can force their employees to avail Compulsory Earned Leave only on the following terms and conditions. It should be linked with your LTA scheme (Leave Travel Assistance plan). It should be only once a year. For the same, employees will get a sum amount as Travel Advance or reimbursements. Other than the above reason, the employer has no right to cut the earned leave for any reason whatsoever. If your HR Manual states any specific reason for the same, please share it with us so our seniors can guide you with more appropriate suggestions.

Prabu.B

Company does not have a proper attendance management system leading to the accumulation of leaves. The attrition rate is high. Employees encash their earned leaves when they leave, which increases expenses and liabilities, hence the idea of "Compulsory Shut down."