Leave Policies in India & Leave Management System

By Jiah Abbas
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Leave is given to employees to attend their inevitable circumstances which may not happen on a day when the organization has a holiday.  This leave could be for a festival, an occasion in the family or friends, sickness of a family member, obituary of a known person and such unavoidable circumstance when the employee has to be present for his social obligation. At times the leave request could be a sudden sickness of self or for planned surgery. A responsible employee always makes his seniors and subordinates know whenever the leave requirement is known in advance and case of emergency, he informs them at the earliest opportunity. This helps the organization to take care of the impending requirements with others present in the department.

Leaves vary from an organization to another but they honor the state laws. Grant of leave shall depend upon the policies of the workplace and is at the discretion of the manager/management. Here are the various types of leaves and terminologies used in leave policies:

1.Casual Leave (CL):

Casual leaves are provided to take care of the urgent and unforeseen situations to attend personal matters.  As a responsible employee, one is expected to inform his seniors as soon as the situation arises.   In case of casual leave normally the company’s strict maximum to 3 days in a month

2.Compensatory Offs (Comp offs):

At times the employee is required to work on a weekend or a holiday due to the priority of deliverables to the clients. Employees may be granted compensatory off on any other workday. There are no rules in specific about comp offs except those provided in the policies of the organization by employers.

3.Earned Leave or Privilege Leave (EL/PL):

Earned Leave or privilege leave is provided for planned long leaves for travel, vacation etc.  Being a planned leave the employee conveys in advance to his immediate seniors and takes approval before he proceeds on his leave.

4.Sick Leave or Medical Leave (SL/ML)

Sick leave is provided in case employee gets sick and being an unplanned leave, he informs them at the earliest opportunity.  Medical leave is granted against medical emergencies planned or unplanned.  The number of days varies from one organization to another. Generally, at the end of calendar year any available sick leave will lapse automatically.

5.Maternity/Paternity Leave:

Maternity Leave is covered by Maternity Benefits Act, 1961. This leave is especially available for those women employees who plan to have a baby. The duration of paid maternity leave is 3-4 months and this can be further extended with 2more months of half paid or unpaid leave. (The maternity leave can vary from one organization to another) No deductions can be made from the leave account of the female employee. This type of leave can also be taken in case of miscarriage or abortion but the leave limit in such cases is shorter.

Paternity leave is paid leave given to a male employee when a child is born. While paternity leave is authorised for government employees no law instructs the private sector to make it obligatory. Also, the number of days given as paternity leave varies among organisations.

6.Quarantine Leave: (NEW)

This type of paid leave is granted to an employee only if there is an infectious disease in the family or self of the employee that can be hazardous to the health of other people in the organization.

7.Breavement Leave:

This is also known as compassionate leave. Such leaves are provided to employees in the case of the unfortunate death of a family member (definitions of family member to be mentioned to avail this leave in the policies of the organization). These are not required by law in India. Many IT companies offer such entitlement of 35 days.

8.Study Leave or Sabbatical Leave:

An employee may be granted a study or sabbatical leave to enable him to update his knowledge and experience in a way that he will be of greater use to the Institute after re-joining. (Payment to be made under this leave will be as per the policies of the organization.)

Leave Management System in your HRMS:

Leave Management System allows organizations to manage employee time-off, setup leave policies appropriate to the organizational policies and automate leave requests approval. Leave of an employee is as vital as his salary and perks to him and this must be tracked without any misunderstanding between the HR, employee and his manager.  A leave module comes to help to keep a track of the leave allotted by the organization, its types of leaves, leaves availed, leave history of an employee, leave balances etc.  The PulseHRM leave modules give provision for online application, approvals and get linked to the HR and Accounts department to either deduct or allot reimbursement depending on organizational rules and regulations.

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Other terms integral in leave management system are:

Leave without Pay:

If the employee does not have any unused leave and the situation warrants him to take the leave, the leave is granted by the organization as loss of pay or which may be adjusted against the future leave or as a special case depending on management discretion becomes an integral part of the system.

Leave Encashment:

When an employee avails money in lieu of leave balance to his credit as per the company policies. Most employers provide only basic salary in leave encashment whereas some employers pay at the rate of gross salary.

Leave being a welcome change in the lives of employees, introducing a robustly built PulseHRM, that can help your organization in managing all aspects with regards to human capital.

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