Leaves are regulated under the Shops and Establishments Act and differ from state to state. We help you draft a comprehensive leave policy for your company in India to remain compliant.
Certainty in a company’s employment policies is crucial for a positive and motivated workforce. The leave policy is one of the most referenced documents in any organisation. It should be comprehensive and in compliance with local labour laws applicable in the particular state where the establishment has its office. If an employer has branches or offices in more than one state, a separate leave policy should be drafted for each state.
Though the main objective of drafting a comprehensive leave policy is to follow the local labour laws, it also promotes transparency, improves overall employee satisfaction, and definitely minimises conflicts. Leave entitlement and the provisions with respect to its carry forward, and encashment are generally provided under the Shops & Establishment Act. The rules thereunder provide for the method of availing the leaves.
At Setindiabiz, we have prepared state-specific standard leave policies that you may read by accessing the link provided under the state-wise leave policy section. Our customised leave policy drafting would help you prepare a comprehensive employee leave policy that is fair, compliant, and acceptable to the employees.
The leave provisions differ from state to state owing to the different cultural backgrounds and needs of the local population. In principle, the Shops & Establishment Act, as enacted or adopted by a particular state or NCT, determines the leave entitlement and related provisions. Team setindiabiz helps you prepare a comprehensive leave policy for your organisation that aligns with the organisational objective and complies with local and state regulations.
At Setindiabiz, we offer comprehensive legal services to draft the leave policy of your company with an objective to follow the applicable legal provisions of the state and to ensure that the organisation’s culture or objective is duly reflected in the Leave Plan. Whether the organisation is a startup or a large enterprise, all types of businesses need clarity and transparency in their employment-oriented policies. Therefore, our services are useful to all sizes, industries and jurisdictional requirements. Following should form the content of the leave policy
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We take a consultative and collaborative approach to drafting a comprehensive leave policy for your organisation. The stepwise process of drafting the leave policy can be summarised in the following steps.
A comprehensive and well-drafted leave policy helps follow legal requirements and promotes transparency, satisfaction and employee retention. It also provides the methodologies for availing leave and handling situations by the human resource teams. Following are the key benefits of a written leave policy for your organisation.
A written leave policy is necessary for complying with local and state labour laws, especially the Shops and Establishment Act and rules.
A transparent and well-drafted leave policy fosters a culture of trust and reduces conflicts. Therefore, employee satisfaction increases for good.
The leave policy also provides for the method and process of taking leave and, therefore, streamlines the entire leave application process.
The leave policy must also have a clear position of the organisation to deal with the life events such as maternity, paternity, medical emergencies etc.
In India, there are several types of leave that can be offered to the employee by an organisation. At the same time, some of these leave types are required under law, such as sick leave, casual leave, privilege leave and maternity leave. However, some leave types are offered based on human resources best practices. Following are the most common leave types.
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