Leave Policy

 Leave Policy

In case you are working with private companies, leave polices will differ with every company. However, for private companies, it is usually around 20–25 days leaves that can be availed. These will include medical leave, personal leave etc.

As per government policy 21 paid leaves, 12 Medical leaves and 10 government holidays need to provide. Out of 21 leaves only 10 will be carried over to next year and can accumulate only 45 leaves. No leave encashment entitled during employment. If any employees resigns from the organisation the organisation has to pay Leave enchashment upon exit.

Notice period should not be compensated with paid leaves that means should not adjust. On sick leave should produce the valid proof if the employee is absent for more than 2 days, the extra SL will be adjusted with paid leaves, if the PL and sick leaves are not available should be LOP.

The Paid leaves need to credit every month rather than crediting everything on first day of year starting. First nine months 2 leaves PL and 1 SL and next three months 1 PL and 1 SL.

Usually a general leaves are:

  1. Casual leave of 12 days per calendar year, which lapses the unused days on 31 December and freshly credited with 12 days on 1 January. Not encashable on exit.
  2. Earned leave of 1 day for every 11 days of work for employees on probation (first 1 year of service) and then after, 15 days of earned leave credited on 1 January and 15 days credited on 1 July. This is encashable and also can be carried forward upto a maximum of 240 days.
  3. Other usual leaves like Maternity, Medical leave etc.

WP means Leave Without Pay and PL means Paid Leave as known in HR glossary.

LWP or Leave without Pay is a specific type of Leave allowed for employees who doesn’t have any remaining leave balance.

Let me clarify that Say for as an employee you must have some allocated days of leaves apart from the weekend and government holidays. For example in You have Medical leaves = 15 days, Casual Leaves = 10 days and you have Annual / Earn Leave = 12 Days . So all these leaves are employee’s allocated leaves. So in case at any point of the year when you run out of allocated days of leaves but you have serious urgent reason to take leave. In that particular situation you can avail your leaves following the LWP rules. And this rules will allow you to avail leave without pay which means for every single LWP day your one day salary will be deducted.

On the other hand PL or paid leaves are those allocated leaves, for these leaves your organization will not deduct any salaries. Say for example for the country’s government holidays like independent day or may day, those days are off days. And you will not go to your work on these days but still you will get paid. So that is why these leaves are known as Paid Leaves. Apart from these other allocated leaves like Medical leaves, Casual Leaves, Annual / Earn Leaves which have mentioned earlier are also counted as paid leaves.


Comments

Post a Comment

Popular posts from this blog

ESIC from Quora

 ESIC Employees’ State Insurance Act, 1948 (ESI Act) is a social security legislation aimed at providing benefits to employees in case of sickness, maternity, employment injury and certain other related matters. Under this self-financing health insurance scheme, funds are primarily built out of contribution from employers and employees. ESI fund, maintained by ESIC, is applicable to employees earning ₹21,000 or less per month to provide the cash and medical benefits to them and their families. This fund is a contributory fund in which both the employer and employee contribute 3.25% and 0.75% respectively to make it a total of 4%. For ESI calculation, the salary comprises of all the monthly payable amounts such as basic pay, dearness allowance, city compensatory allowance, HRA, incentive allowance and meal allowance. The salary, however, does not include the annual bonus, retrenchment compensation, encashment of leave and gratuity. ESI will be calculated for the total gross salary o...
Read more

Reason for Unemployment

 Reason for Unemployment Apart from luck, recession, education system, fewer jobs in a given sector, I would love to talk about reasons (or what?) why someone (blame oneself) is unemployed in two parts: at the interview, at a job (get fired or leave) At the interview: ·          Less/Zero-knowledge:  One doesn’t have the basics clear and so lacks theoretical and practical knowledge. He/she either remains silent or answers irrelevant even when a simple question is asked by the interviewer and then the interviewer says “We’ll get back to you”. We all know what it means when the interviewer is pissed. ·          You’re unprepared:  You didn’t read the job description, you know nothing about the company or the industry. ·          You’re not networking enough:  Almost all jobs these days are found through networking #reference ·   ...
Read more

Gratuity, PT, PF, ESIC, GST and Shop & Establishment Act and Bonus

Gratuity An amount of  salary (basic salary + dearness allowance) equal to half the months of the year in which service is  given is given as gratuity. For example, on 33 years of service, a gratuity will be equal to the salary of maximum sixteen and a half (16.5) months. Under the gratuity act 1972, every establishment with more than 10 employees has to provide gratuity to its employees. Once a person works for more than 5 years in an organisation, he/she becomes eligible to receive gratuity. It is the sum that is paid to you when you retire or leave an organisation. It is the sum paid to an employee when he/she retires or leave an organisation. The limit on gratuity that can be given to a person is 10 lakhs. Professional tax Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer's sa...
Read more