Sudipto Choudhury
Hi All,

Please help me out. I work in a IT Company> its a small one with no HR. So i cant consult any one rather than questioning my busy boss. I am a novice in all these leave policies and dont know the exact laws and what benit i must be getting as per law so far leaves are concerned.

Could you please help me out understanding (i have lots of questions and doubts ) the leave rules as per our Comapny's Pro-rata basis.

Please rectify my doubts and notify me where i am going wrong in order to search for some rest from work.

Rules we follow:

1. In a year 13 Festive Holidays.

2. No SL, ML or other *L.

3. WeeklyHoliday - 1 (Sunday) i.e. 6 Working days a week (** But we need to earn these Weekly Holidays as per the Formulae below)

** Weekly Paid Holidays :

Calculation :

1. We earn WEEKLY HOLIDAY as per pro-rata basis. The formula is : On Each Month :

Earned Weekly Holidays = No.Of Sundays/No.of TotalWorkingDays * Total DaysPresent

Sample Data :

Apr-2008 -- 26(TotalWorkingDays)-----24(TotalDaysPresent)---4(sundays)--2--(Absent) -- 4/26=0.15 ---- 0.15*24=3.85

So Instead of 4 Weekly Holidays (sundays) i get 3.85 Weekly Holidays. But i cant work for the 4.00-3.85 = 0.15 on sunday. Hence, i get a nominal without pay if 0.15 from my SALARY.

Please verify if it is ok. I am not expecting much. But the message i receive underlying in this POLICY is that "I CANT TAKE ANY LEAVE IN A MONTH". IF I TAKE ONE DAY LEAVE I WILL BE TAXED!!!! What ever nominal be it.":confused:

But Please Read ON because i would like to relate this earned Weekly Holiday With Earned Paid Leave :

RULE : 1 Paid Earned Leave per 12 days. ( Remember here that this is the only leave that we get, we dont have SL. CL etc.etc.)

So taking again the above data as i worked for 24 days i have eared 2 Leaves:

24/12 = 2

which i have spent also taking leave (which i termed as absent for ease of understanding)

NOW: What balance remains in my hand ?

I have Enjoyed 4 Sundays(our company does not keep office open on sundays) + 2 ELs ====== 6

I have earned 3.85+2 = 5.85 .

So, i am taxed 0.15 from my salary.

This seems nominal but in 12 months if i keep on taking 2 leaves in each month (those who HAD Invented calendars keeps many months with 5 Sundays, and at least 1 month in India with lots of Festive Holidays - where we are more taxed !!) it sums up to :

-5.03

Please refer to the attached XML file. (in a zip file)

My doubts :

If you analyze the data properly you would see that :

a) We are bound to take the Sundays physical holiday. We cant work for some .15/4 day each sunday coming to office to conemnsate the .15. So, this is getting balanced from the earned Leave.

b) Why should the "Paid Earned Leaves" be taxed? This is what i have earned working 24 days!!!!!



*** I feel that the calculation of "Earned Weekly holiday" must not take the "Earned Leaves" into account. This is what making the mess i feel.


1. If i would like to get full payment without any deduction of without-pay in 1 year the maximum no of leaves that i can take in a Year is around 20. (please use the attached xls sheet to test this). So, in a 365 days Year i need to work for 365-(20+13+52) = 280 days. MY QUERY is this conducive to Enployee's Health and properly supply ample refreshment where he has to work atleast 50 hours a week. (this i also question - because someone said that Law says that the maximum limit is 48 hours in a week - Is it true? Could any one send me any reference?)

2. *** Does standard pro-rata calculation provide this kind of calculation of Weekly Holidays? Is there any law of pro-rata calculation? can any one post me a reference to some company's policy with this kind of EARNED Weekly holiday ?

3. *** This setup only encourage enployees to come to work, in fear that even 1 day's leave can hamper their salary. Is this OK? I am not i a querrelling mood. But, i must need to understand it, react to it if do not understand it properly else accept it as its a fate of an employee. Just need t get some expert opinion.

Please do not answer "dude you are asking too much from our employer!" or "baby! this is it!accept!".

I would like someone who can take some time out of his/her precious time and answer to my queries (not in one liner).

From India, Delhi
Attached Files (Download Requires Membership)
File Type: zip LeaveCalc.zip (25.7 KB, 921 views)

Ezekiel
hi Sudipto..
i am not able to understand why u have to earn a weekly holiday.....sunday ( Or any day in a week ) is by default a holiday which should be given to all the employees....no labor law says that we sd earn a holiday ( Sunday) by working for 6 days....
The concept of Pro rata basis for earning a holiday on a sunday is sounding ________
i suggest u talk to the senior members of the company and have a clear idea about the leave policy......

From India, Mumbai
byomjeet
7

Yes, I agree. This s against the law of the land. The senior management of the company should be aare of the Labout Laws and the local Shops and Establishment Act. You may choose to show them these acts and convince them to ammend the leave policy as per the law applicable to your company.
Regards,
byomjeet mishra

From India, Delhi
Madhu.T.K
4246

Dear Mr. Chaudhry,
Your practice of calculation of leave is very complicated and I could not make any basic finding on it. Sorry.
Leave policy is purely an internal matter of an organisation. There is no specific statute to prescribe a leave policy except the provisions in the Factories Act and National and Festival Holidays Act (state Act)
In general, an organisation shall have 3 PAID national holidays(Jan 26, Aug 15 and Oct.2) and festival holidays (some 8 to 12 depending upon the company policy). In addition to these holidays, employees may be granted 12 casual leaves (@ 1 per month). From the second year of service onwards, in addition to CL, employees may be granted Earned Leave @ 1 day per 20 days worked in the preceding year. An employee who had not worked for at least 240 days in the preceding year shall not be eligible for EL. For calculating this 240 days, days of Holidays, CL/ EL days, Weekly Off days, leave due to employment injury etc shall be counted as days worked. These provisions make up with the provisions in the Factories Act irrespective of any dispute whether the said Act applies to your organisation or not.
All employees are eligible for one day of rest in a week and that day shall be paid day. It is very simple, your monthly salary need to be divided by 30 instead of 26 and there is no need to show the weekly off payment separately.
Again, women employees who have worked for at least 80 days are eligible for 3 months (12 weeks, in fact) Maternity Leave. This is as per Maternity Benefit Act.
The rest is at your organisation's choice.

Regards,

Madhu.T.K

From India, Kannur
Sudipto Choudhury
Hi All,
Thanks for your reply.
I am afraid, i do not have any reference or text that i can show to my top management. Actually we dont have any HR or so. We need to talk to the Director who has simself formulated this rule. So its tough to face him without some text in hand.
Could any one please provide me a link or text from where i can know in details all about this.
Another question : Ours is a IT Software company. Do this company fall in the same Law that you are referering?
"Labout Laws and the local Shops and Establishment Act."
We are in Kolkata, West Bengal : Where can i get this local laws?

From India, Delhi
kalpana_t
5

Hi Sudipto,
All IT co's do come under Local Shop Act,and you can get the information on CITE HR in 'download' section or you can just go through the attachment below.
Generally in a IT firm you earn
1.5 leaves per month that is called earned leave,
then u get 12 CL/SL leaves for the whole year i.e 6-SL, 6-CL,
then u have maternity leave and paternity leave.
Earned leaves for the whole year are 18 in total.
Hope this is of some help...
Regards,
Kalpana

From India, Pune
Attached Files (Download Requires Membership)
File Type: doc LABOUR_LAWS[1].doc (208.0 KB, 607 views)

sourabh77
6

thanks for the attachement Kalpana. Hi Sudipto, hope you can use the Labour Law doc attached by Kalpana and discuss with yoiur director regrads Sourabh
From India, Delhi
unusual_indu
3

Hi Sudipto
This the first time I have come across such a weird leave calculation.The other senior members of the team have already updated you on the leave rules so I have nothing more to add but hats off to your CEO/Director who pays salary to his staff after taking into consideration such a cumbersome leave calculation.
All the best to you !
I sincerely hope that the text provided by Kalpana serves as an eye opener for your CEO

From India, Pune
pbskumar2006
590

Dear Friends,
Mr. Madhu says is correct. The leave policy and leave rules are organisations responsibility. So that I posted earlier in this citehr "LEAVE POLICY FOR IT INDUSTRIES" . Please go through at once.
Regards,
PBS KUMAR

From India, Kakinada
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