Leave Policy Structure / Draft

Ashwini Mhapankar
Dear / Madam,
I am working as a Sr. Executive HR & planning to draft a New Leave Policy with the Company Its a pvt ltd engineering firm.
I know what points i need to add in it but i want a structure or a draft which i can follow while drafting this.
I need this on very urgent basis so please help me with a structure or draft of a leave policy for reference.
Thanks & Regards
Ashwini Mhapankar.
krishna.hn69
Dear Ashwini,

Find the Leave policy as below.

Leaves

The company recognises the need of every employee to take time off from work once in a while and at the same time it needs to keep the business running with minimal impact on its operations. Keeping this in mind the leave policy has been defined to bring in predictability in the availability of employees and minimize the impact on its operations while enabling the employees to take time off.

This is applicable to all regular employees.

The company allows for the following categories of leaves:

Earned Leaves (EL)

Casual Leaves (CL)

Sick Leaves (SL)

An employee is paid full salary for the leaves availed on the above 3 categories up to the total allowable limits.

Long absence from work is not encouraged but may be approved on an exceptional basis by the management. Any long absences from work should be planned, discussed and approved by your manager well in advance.

If an employee goes on leave without applying or getting approval or without informing, their absence will be considered as Loss of Pay (LOP). This will impact the Performance Appraisal and performance rating.

5.1 Earned Leaves

Earned Leaves accrue to an employee based on the number of days worked in the previous year. An employee with full attendance (allowing for EL and CL & SL), gets 18 days of EL in a year with pay.

An employee should plan and get due approval in writing in advance from his / her manager for taking an EL. It is expected that these ELs are planned and approved at least 3 weeks in advance. The approval is at the discretion of the reporting manager based on the criticality of work during the period of absence and the ability to manage it with other resources.

Application for Leave should be made in the prescribed format to the reporting manager with a copy to HR.

5.2 Casual Leave

A casual leave is a leave when an employee has to take a day or two off due to unforeseen events.

An Employee is allowed 10 days of Casual Leave in a year with pay. Any CL beyond these 10 days will be treated as Leave without Pay (irrespective of the number of EL balance).

The employee should inform his / her manager as soon as is practically possible about the absence and when they are expected to report back to work.

A casual leave cannot extend for more than 1 day at a stretch. A maximum of 2 casual leaves can be availed in a month. Any CL beyond the above limits will be treated as leave without pay (irrespective of the number of CL and/or EL balance).

Sudden absences for duration more than 1 day due to illnesses may be taken as EL (subject to available days) provided a medical certificate is submitted for the same.

Application for Leave should be made in the prescribed format to the reporting manager with a copy to HR.

5.3 Leave Encashment

The company encourages its employees to avail all their leaves. This should be planned and approved in advance by your reporting manager. Any leaves not availed for more than 2 years will expire automatically.

At times the manager may reject the leaves due to pressing work matters. In the event of two such rejections by the manager, the employee is entitled to encash the leaves to the extent of the number of the days of leaves applied for and rejected. Further, the extent of encashment is restricted to such a number that the leave balance after encashment done not fall below 18 days.
arnab.dasgupta1983
Dear Aswini,
For you Corporate/Branch office please refer to the provision of the "Shop & Establishment Act" for the state(s) concerned.
For your factory sites refer to the "Factories Act".
What ever your company decide upon it has to be in line with these two enactments.
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