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2014-01-09 00:00:00GeneralEnglishHow to Institute a Leave Policy: It is important for your employees to have time off to pursue other recreational activities as well as...https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2017/05/beach-scene.pnghttps://quickbooks.intuit.com/in/resources/general/how-to-institute-a-leave-policy/How to Institute a Leave Policy | Check Different Leaves %%sep%% %%sitename%%

How to Institute a Leave Policy

3 min read

It is important for your employees to have time off to pursue other recreational activities as well as participate in family occasions outside the workplace. Keeping this in mind, it is essential that you have a standardized leave policy in place where employees can avail of time for themselves without decreasing the productivity of your organization and hurting your bottom line. Let us take a look at the different types of leave:

Earned Leave or Privileged Leave:

This is the leave your employee “earns” while working in your company- depending on the policy you put into place, these leaves can either be carried over to the subsequent year or cashed in at the end of the year. While the general amount prescribed by the government varies- the most prevalent figure is 1 day of leave for every 20 worked.

Casual Leave:

This is left that is sanctioned with approval from you, the employer. Casual leave cannot exceed 7 days at a stretch. It is mostly granted in case an employee needs to fulfill a need of a short term nature. Those that exceed their quota of casual leave can be penalized through the deduction of pay. The allotment of casual leave can vary depending on what you as an employer see fit as the quota for casual leave. Employees are not able to carry forward casual leave to the next year.

Sick Leave:

When your employee is unwell, the days they miss are accounted for at sick leave. Those availing of sick leave do not need your approval. As sickness is unpredictable- there will be no prior intimation for those availing of this type of leave.

Those who are unwell for a longer period than their sick leave stipulates cannot be docked of pay if they provide proof in the form of a medical certificate stating their illness. Here are the steps to follow while formulating your business’s leave policy 1. Arrive that the final number of leaves you will allow employees in a year 2. Decide on the allotment of leaves under the categories of earned, sick and casual leave

3. Standardize the Policy across gender- as an equitable employer you should discriminate between male and female employees

4. Determine whether different departments or levels or employments receive different leave allotments. You may want to reward management with more leave

5. Figure out your probation period. Several Companies do not allot leave to their newly joined employees as it interferes with their training. You may choose to put in place a six month probation period in which employees cannot avail of any leave other than sick leave

6. Fix a Maximum Leave number for a month. This ensures that an employee on leave does not drastically impact your productivity for the month as they are only allowed a certain number for that month

7. Fix the Maximum Consecutive days allowed- as with the point above- long stretches of leave can negatively impact your bottom line. Ensure that your employee avails of their leaves but across a period of time and not all in one go 8. Decide Employees leave based on the joining date. In order to be fair to employees who have joined your company earlier in the year- it is important to device the amount of leave based on the date of joining

9. Determine whether you would prefer your employees to accrue their leave. There are two schools of thinking under one when your employee joins they are allotted a certain amount, the other is as they work in your organization they accrue more days of leave

10. Formulate a carryover feature. If an employee has not taken leave they should not be penalized with a loss of that leave.

Fix an amount of that leave that can be carried forward and availed off in the next year.

Follow these guidelines and institute a policy that not only works for your business but for your employees as well- as you know leaves play a large part in job satisfaction and satisfied employees are more productive and better for your business.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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