As an employer, it is a statutory and moral obligation to build a leave policy that enables them to take time off when needed. There are distinct sorts of leaves that employers should furnish their employees, in India.
In this very blog, we shall delve into distinct sorts of leaves and the statutory policies controlling the leave policies for employees in India.
Classes of Leaves for Indian Employees
Distinct sorts of leaves granted to Indian employees-
- Sick Leaves: A set of leaves is provided to the employees in India, that could be assistive when they are not fit physically and are unable to work for the company.
- Annual Leaves: Under the Factories Act, 1948 and various State-specific Shop and Establishment Acts, employees who have worked for at least 240 days in a year are entitled to earned leave at the rate of one day for every twenty days of actual work. This roughly amounts to about 15 days of annual leave. However, this is not a fixed entitlement of 15 days across all jurisdictions—it depends on the number of days an employee has worked. Certain state laws clearly specify a 15-day annual leave quota, while others follow the accrual formula mentioned in the Act.
- Casual Leaves: Casual leave provisions vary from state to state and are mainly governed by the respective Shop and Establishment Acts. In most states, employees are generally eligible for around 12 days of casual leave per year. However, in some states, this number may be lower (for instance, around 7 days) or clubbed with sick leave. The Factories Act, 1948, does not contain any specific provision for casual or sick leave
- Maternity Leaves: The same leave is granted to female employees who are expecting a child, and they are granted 26 weeks of maternity that could be used at once or in two phases.
- Compensatory Leaves: Employees who are working beyond their regular schedules have been provided with compensatory leave, such as during weekends or holidays. As per the firm’s policies, the count of compensatory leaves may differ.
- Bereavement Leaves: In the case of an immediate death in the family of an employee, this type of leave is granted.
- Paternity Leaves: There is a common misconception about paternity leave in the private sector. Currently, India does not have any central legislation, such as a “Paternity Benefit Act” that mandates paternity leave for private-sector employees. The 15-day paternity leave entitlement applies only to Central Government employees under the Central Civil Services (Leave) Rules. Private organisations may, at their discretion, choose to provide such leave, but it is not a statutory requirement.
- Study Leaves: If they deserve to pursue further education or pertinent training in their job role, employees are granted study leave. Such sorts of leaves permit the employees to attend their exams, classes, workshops, or training without losing their regular pay or job security.
- Leave under the Factories Act: The Factories Act, 1948, exclusively provides for Annual Leave with Wages (Earned Leave) at the rate of one day for every twenty days worked. It does not prescribe any minimum number of days for casual or sick leave. These leave categories are instead governed by state-level Shop and Establishment laws or the internal leave policies of individual companies.
Indian Laws Regarding Leave Policy
The laws controlling the leave policy in India are the Industrial Dispute Act of 1947, the Factories Act of 1948, the Shop and Establishment Act, the Maternity Benefit Act of 1961, and the Paternity Benefit Act of 2017.
The factory law obligates that employees are qualified to a minimum of 12 days of casual leave, 15 days of earned leave, and 12 days of sick leave in a year. The Shop and Establishment Act differs from state to state, but most states obligate that employees be granted 12 days of casual leave and 15 days of earned leave in a year.
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The Maternity Benefits Act obligates female employees to be granted 26 weeks of maternity leave including nursing breaks and medical allowances. The Paternity Benefit Act obligates paternity leave for dads( male employees) who are authorized 15 days of leave.
The Industrial Disputes Act streamlined the settlement of disputes between employees and employers and ensured that employees could not be terminated at the time of their duration of leave.
Leave Policy Advantages in India
In employee’s prosperity and the growth of the company, a leave policy plays a substantial role.
When the employees are at creative block then they have the choice to take a break if a leave policy is there in a firm and they shall never be exhausted.
It confirms legal compliance, improves productivity, enhances retention, and fosters a team-centric culture.
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The leave policies in Indian private companies include various types of leave such as casual leave, sick leave, earned leave, maternity leave, paternity leave, and study leave. Each type of leave has specific entitlements, procedures, and terms and conditions that are defined in the company policies and employee handbook.
Employers to execute a leave policy, should need to learn the necessity of the employee and as per that alter their policies. They must communicate the employee’s policy, make a system for monitoring their leaves, and ensure the changes with pertinent labour laws in India.
Closure: For the well-being of employees as well as for the company’s growth in India, an extensive policy is crucial. Employers are obligated to furnish the correct number of leaves and follow the labour laws in India to ensure that their employees are not mistreated and work with no stress.
