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A Brief Guide to Law Policies on Leaves with Their Types

All About Leave Policies for Employees

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-

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.

Related: Simple Guide to Tax Rule on Leave Encashment While Job or Quitting

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.

Read Also: Payroll Software Working Strategy for Fast Business Boostup

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.

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