Leave Rule for a company- a model

A well organised company should have a written leave rule like many other policies and rules. A  well structured organisation only can provide social security to its employees. A comprehensive leave rule is part of that. A sample leave rule is attached.

Leave Rules

                                                               

Objective

<> Company grant leave of absence to all its employees on certain terms and conditions to meet their personal, domestic, social necessities, in case of sickness, disability etc.,

General Rule:

Grant of leave to an employee shall depend on exigencies of the business and shall be at the sole discretion of the Management. Prior sanction of any leave is essential to maintain normalcy in operations.

Unauthorized Leave :

If an employee remains absent without authorization or overstays the period of leave originally granted or subsequently extended for a period of 3 consecutive days or more, he/she shall lose lien on his/her appointment and would be deemed to have voluntarily abandoned his/her services without any further notice.

Procedure for Availing Leaves:

Request for leave should be made in written or by email and the applicant has to ensure that the same has to be approved by the reporting manager in advance. Leave request by SMS cannot be entertained.

Definitions:

·         Leave year means Calendar Year (i.e. January 01 to December 31).

·         Sanctioning Authority: The reporting authority shall be the Sanctioning Authority for all types leaves

Types of Leave :

        1      Earned Leave (EL)

        2      Casual Leave (CL)

        3      Sick Leave (SL)

        4      Maternity Leave (ML)

        5      On-duty Accident Leave (AL)

1.   Earned Leave (EL)

1.1    Eligibility:

Only confirmed employees, who work for minimum 240 days during a Leave Year, shall be eligible for EL in the subsequent Leave Year. The newly appointed employees can avail the EL only on completion of one year in service. In computing these 240 days, the days of absence on account of following will be included:

a)   Days of lay-off

b)   Maternity leave

c)   All authorized EL availed during the said Leave Year.

d)   On duty AL

1.2    Calculation:

Computation of EL shall be as follows:

a.   If an employee has worked 240 days in a calendar year as mentioned above, he shall be entitled for 20 days EL during the subsequent Leave year.

b.   In case, an employee does not work 240 days in a calendar year, he  shall be entitled for pro-rata EL computed on the number of actual working days completed in that year, provided, the employees has completed minimum 2/3 working days of the total working days during the period the employee was employed in that year.

c.   The EL shall be credited to employee’s leave account on 1^st day of January every year. In case of new employees, the EL will be credited on completion of one year in service on pro-rata basis for the previous Leave Year.

1.3    Availing of Leave:

a.   Advance planning of leave shall be essential.

b.   EL may be prefixed or suffixed with SL or weekly off or paid holidays declared by the Company and not with any other type of leave.

c.   Intervening weekly offs or paid holidays declared by the Company shall be counted as EL.

d.   EL can be availed for a maximum number of four occasions in a Leave Year.

e.   EL cannot be availed for less than three days at a time.

f.    EL shall be applied minimum seven days in advance before proceeding on leave.

g.   EL may be approved by the sanctioning authority prior to proceeding on leave.

h.   Advance EL may be permissible on account of unavoidable reasons to eligible employees as per pro-rata entitlement, on number of days worked, at the sole discretion of respective Strategic Business Unit / Corporate Functional Heads.

i.     In case if an employee is asked to report on duty whilst on EL, the concerned employee along with the family (direct dependents) shall be entitled to reimbursement of traveling expenses as per eligibility under Traveling Rules, on submission of supporting documents. Such days of travel in these cases shall be considered ‘on duty’.

1.4    Extension:

In case of extension of EL sanctioned earlier, prior written approval of sanctioning authority is essential. However, in cases f exigencies, sanctioning authority should be contacted well in advance and sought verbal approval for extension of EL granted earlier. The extended leave should then be regularized as per procedure within three days of resuming duties failing which the same will be deemed as not granted and the period will be treated as unauthorized absence.

1.5    Accumulation and Encashment:

a.   Maximum permissible accumulation of EL is 180 days during service tenure with the Company.

b.   On separation from the services of the company, a person is allowed to encash the available EL balance plus the pro-rata EL for the current leave year calculated up to the date of separation. ‘Separation’ for this purpose means superannuation, voluntary retirement, resignation, death during the service and termination from the services of the Company for the reasons other than misconduct. Though the encashment of EL is not allowed in any other circumstances, encashment may be granted in cases wherein employee is unable to avail the EL due to business exigencies and crosses the maximum accumulation limit, subject to approval of the Directors.

c. In case of superannuating employees, pro-rata EL as calculated under ‘b’ above, shall be over and above maximum accumulation of 180 days.

d. Salary for the purpose of encashment means last drawn monthly    Basic salary and all other monthly allowances only.

2. Casual Leave (CL)

2.1       Entitlement:

a.   All employees shall be entitled for 12 days CL for a Leave Year.

b.   Newly appointed employees shall be entitled for CL on pro-rata basis for remaining months during the Leave Year.

c.   Employee superannuating during the Leave Year will be entitled for pro-rata CL up to the date of superannuation.

2.2       Availing CL:

a)   CL can be applied for and granted only in case of unforeseen exigencies.

b)   CL can be availed for not more than three days at a time.

c)   Half-a-day CL is allowable

d)   Intervening weekly offs or paid holidays declared by the Company shall not be counted as CL.

e)   CL cannot be prefixed or suffixed to any type of Leave.

2.3   Accumulation and Encashment:

a)   CL cannot be accumulated. CL not availed lapses automatically at the end of the Leave Year.

b)   In case of superannuation and death during the service period, unavailed CL for the Leave Year shall be encashed.

c)   Salary for the purpose of encashment means last drawn monthly Basic salary and all other monthly allowances only.

d)   In case of separation except superannuation and death during the calendar year, pro-rata leave shall be calculated and payment towards the excess casual leave availed shall be recovered in the full and final settlement.

3. Sick Leave (SL):

3.1   Entitlement:

a)            All employees will be entitled for 12 days SL in a Leave Year.

b)            New employees will be entitled for SL on pro-rata basis for remaining months during the Leave Year.

c)            Employee superannuating during the Leave Year will be entitled for pro-rata SL up to the date of retirement.

3.2   Availing SL:

a)           SL applied for 5 or more days shall be supported by valid medical certificate by registered medical practitioner.

b)           Prior to joining after availing prolonged SL for more 15 days, the employee should submit a fitness certificate from a registered medical practitioner.

c)           Half-a-day SL is allowable.

d)           Intervening weekly offs or paid holidays declared by the Company shall be counted as SL.

e)           SL can be prefixed or suffixed to EL only.

3.3   Accumulation and Encashment:

a)           Sick leave can be accumulated for a maximum period of 60 days during the entire service tenure with the company.

b)           SL shall not be encashed.

c)           Every employee shall be eligible for a medical allowance of half month salary or `.6000.00 whichever is higher and which will be issued along with the salary of every December.

4. Maternity Leave (ML) :

All female employees shall be eligible for Maternity Leave as per the Maternity Benefits Act, 1961. The benefits, procedure, quantum, regulations and rules governing the grant of Maternity Leave to a female employee shall be as per the provisions of the Maternity Benefit Act, 1961.

5. On-duty Accident Leave (AL):

Employee will be eligible for special leave with pay on account of accident while on duty. The duration of the leave shall be at the discretion of the Management based on the merit of the case and authentication by the Company’s Medical Practitioner.

Review and amendment

Management shall review this policy periodically and amendments required, if any, shall be made accordingly.

Residual Power

This policy is basically guidelines and the management reserves the right to withdraw / modify to suit organization’s philosophy at any time without assigning any reason whatsoever.