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Monthly Archives: April 2014

Leave Policy for different sectors in India


What is the general leave policy in India? How many days Earned Leave (EL), Casual Leave (CL) and Sick Leave is one entitled to per year? These questions are often asked by employees/workers working in any organisation or office. Leave is different from holidays and days-off, since it aims to fulfil different objectives of work life sphere. However, there is always a confusion how much leave can one avail, what is one legally entitled to, the consequence of the same on wages/salary etc.

Employment laws set the umbrella framework for deciding different dimensions of leave, like category or types, eligibility, duration etc. Many companies and organizations categorise leaves in different categories like casual leave, sick leave, earned leave, maternity leave, special leaves, loss of pay leave, compensatory leave etc.

In case of employment contacts, where trade unions are involved in deciding employment contacts, leave rules are formulated in consultation with the unions. Such elaborate consultation is specified in The Industrial Employment Standing Orders Act which is formed for enforcement of different conditions of services.

In India, three types of leaves are generally followed namely earned leave, sick leave and casual leave. Different provisions exist under different laws, for different categories of leaves.

Details of each category are elaborated hereunder. While the Act specifies the broad framework, the notified rules under each legislation detail the implementation or applicability of these leave policies.

Quarantine Leave

This leave is usually granted to a concerned employee by reason of presence of an infectious disease in the family or household of the employee, if such disease is considered to be hazardous to the health of other people.

Working Journalist and Other News Paper Employee’s (Conditions of Service) and Miscellaneous Provisions Act, 1955 – Rule 3028

Maximum 30 days of quarantine leave can be availed by the employees covered under this Act.

Sales Promotion Employees (Conditions of Service) Act, 1976 – Rule 1629

An employee covered under this Act can avail maximum 30 days of quarantine leave on recommendations by authorized Medical Attendant or Public Health Officer.
Extraordinary Leave

Working Journalist and Other News Paper Employee’s (Conditions of Service) and Miscellaneous Provisions Act, 1955

Rule 3130

Extraordinary leave without wages may be granted to employees covered under this Act, by the newspaper establishment in which he is employed.

Sales Promotion Employees (Conditions of Service) Act, 1976 

A sales promotion employee may be granted extraordinary leave without wages at the discretion of the employer in special circumstances.

Apprentices Act, 1961 – Section 1531

An apprentice can avail extraordinary leave upto a maximum period of 10 days in a year.
Study Leave/Sabbatical Leave

Study leave/sabbatical leave is granted to an employee to pursue higher studies with a guarantee to resume them in job on completion of the leave. Such leaves are granted to an employee in accordance with company policies and may be paid or unpaid sabbatical leave. The sabbatical leave would be exclusively for scientific or academic work at any relevant institution in India or abroad. The facility of sabbatical leave may be extended to include work on other activities of the innovation chain with industry, consultancy organizations, financial institutions, project engineering firms, technology marketing/transfer agencies, etc.

Working Journalist and Other News Paper Employee’s (Conditions of Service) and Miscellaneous Provisions Act, 1955

Rule 33

The Rule provides for grant of study leave with or without wages at discretion of the employer.

Sales Promotion Employees (Conditions of Service) Act, 1976

Any employee covered under the Act may be granted study leave with or without wages in accordance with the company policies.
Leave Not Due

Where an employee has no leave to his credit and he/she still requires leave, such leave may be granted at the discretion of the employer.
Working Journalist and Other News Paper Employee’s (Conditions of Service) and Miscellaneous Provisions Act, 1955 – Rule 3233

A working journalist who has no leave to his credit may be granted leave at the discretion of the newspaper establishment in which such working journalist is employed.

Sales Promotion Employees (Conditions of Service) Act, 1976 

A sales promotion employee, who has no leave to his credit, may be granted leave not due at the discretion of the employer.
Leave For General/Bye Election For Parliament And State Assemblies34

During the general elections in the country or the state where the employee is residing he is eligible for leave on the polling day. For general elections of Lok Sabha and Vidhan Sabha or any of the bye election one day leave is been declared to all employees for the polling day. (Sec.3A of Karnataka Industrial Establishments (National and Festival Holidays) Act, 1963)35

Under Industries Association Act, 1963 Section 3 (A) also there is a provision for such leave.

For Central Government employees provision for such leave differs for each election details of which can be checked as under given table36 :

II. Bye-Elections –
(i) Lok Sabha
II. (a) Holiday/Closure of offices State Government normally declares a local holiday in that particular area/constituency on the polling day (s) if the election is held on day (s) other than Sunday/or other closed holidays. Central Government offices may also follow the State practice in such cases.

(b) Grant of Special Casual Leave-
Permissible on the same grounds/circumstances as in the case of general elections [of I(b) above.]

(ii) State Assemblies (a) Holiday/closure of offices- In bye-election to State Assemblies, Central Government offices should not be closed. It would be sufficient if only those Central Government employees who may be placed on election duty are permitted to absent themselves from office on the polling day (s). All other employees should be given facility to excise their franchise either by way of coming late to office or by being allowed to leave office early or a short absence on that day, subject to the exigencies of the services.

(b) Grant of Special Casual Leave- Permissible on the grounds/circumstances as in the case of general elections. (of I(b) above.)

III.Panchayat/Corporation. /Municipalities or other- local bodies III. The Central Government-offices shall not be closed. The Government employees who are bonfire voters and desire to exercise their franchise should however, offered reasonable facility, subject to the normal exigencies of service, either by way of coming late to office or by being allowed to leave office early or a short absence on that day.

Innovative Leave

Human Resource department of every company deals with employees and to maintain a healthy and friendly relation with them. They work as a bridge between employees and management. As the competition in the labour market is high to find and retain skilled employees HR department of various companies other than the legal leaves also are coming up with various innovative leaves. Some of the examples of these leaves adopted by different companies to provide benefit to their employees are as follows:

Bereavement Leave37

This leave is a grant paid time off from work to employees for the death of a relative. Employees are eligible for up to 7 days leave, if necessary, in the event of the death of an immediate family member (defined as parents, grandparents, siblings, spouse, children and in-laws). This leave is generally provided for the demise of close relative, and depends on the policies framed by the organisation. This leave is not legally entitled but is an innovative approach of HR policies in some of the private firms.

Birthday Leave38

In Bharti Airtel company a half day leave is been provided to the employee for the celebration of Birthday.

Employee Volunteering Leave39

Employee volunteering leave is a leave been granted to an employee to participate in volunteer for a charity. Bharti Airtel Company provides one day paid leave to its employee for volunteering work.

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Posted by on April 19, 2014 in Human Resource Policies

 

Overtime Pay


Overtime is the amount of time someone works beyond normal working hours; these may be determined or mentioned under various Acts which are applicable for the functioning of that organization. Below given are Acts that have different provisions for overtime payment and their contravention.

Minimum Wages Act, 1948

• Sec. 14 of the Act mentions that any worker whose minimum rate of wages are fixed with wage period of time, such as by hour, by the day or by any such period and if a worker works more than that number of hours, it is considered to be overtime. In case if the number of hours constituting a normal working day exceeds the given limit, then the employer will have to pay him for every hour or for part of an hour for which he has worked in excess at the overtime rate.

• As per the Act it is compulsory to maintain registers and records as Register of Overtime –Form IV. This Register of Overtime contains various details such as name of employee, hours of overtime, date and other such details which are necessary for the records.

• Contravention of any provisions pertaining to fixing hours for normal working day etc., will be punishable with imprisonment upto 6 months or with fine upto Rs.500.

Factories Act, 1948

• Under Sec. 51, 54 to 56 & 59 of the Act details are mentioned regarding the working hours, spread over and overtime.

• Under Sec. 59 it is mentioned that where a worker works in a factory for more than 9 hours in any day or for more than 48 hours in any week, he/she shall, in respect of overtime work, be entitled to receive wages at the rate of twice his/her ordinary rate of wages.

• If in any factory there is any contravention of any of the provisions of this Act or of any rules made there under or of any order in writing given there under, the occupier and manager of the factory shall each be guilty of an offence. If found guilty, they will be punishable with imprisonment for a term which may extend to 2 years or with fine which may extend to one lakh rupees or with both. Even then if the contravention is continued after conviction, then will be punishable with a further fine which may extend to one thousand rupees for each day on which the contravention is so continued.

Mines Act, 1952 • Under Sec. 28 to 30 of the Act it is mentioned that no person employed in a mine shall be required or allowed to work in the mine for more than 10 hours in any day inclusive of overtime.

• Under Sec. 33 it is mentioned that for overtime wages are to be paid at the rate of twice the ordinary rates of wages of the worker.

Bidi and Cigar Workers (Conditions of Employment) Act, 1966

• Under Sec. 17 & 18 of the Act relating to working hours, it is mentioned that the period of work including over time work should not exceed 10 hours in a day and 54 hours in a week.

• Under Sec. 33 if any person who contravenes any of the provisions of this Act or of any rule made there under, then for the first offence will be punishable with fine which may extend to two hundred and fifty rupees (Rs 250). In case of a second or any subsequent offence the penalty would be imprisonment for a term which shall not be less than one month or more than six months or with fine which shall not be less than one hundred rupees or more than five hundred rupees or with both.

Contract Labour (Regulation & Abolition) Act, 1970

• As per Rule 79 of the Act, it is compulsory for every contractor to maintain a Register of Overtime in Form XXIII which will contain all details relating to overtime calculation, hours of extra work, name of employee, etc.

Building and Other Construction Workers (Regulation of Employment Service) Act, 1996

• Under Section 28 & 29 of the Act, it is mentioned that worker who is working overtime will be paid Overtime wages at the rate of twice the ordinary rate of wages.

• If any person contravenes any other provision of this Act or any rules made there under or who fails to comply with any provision of this Act or any rules thereunder shall (if there is no express penalty elsewhere provided for such contravention or failure), be punishable with fine which may extend to one thousand rupees for every such contravention or failure, as the case may be. Incase of a continuing contravention or failure, as the case may be, there would be an additional fine which may extend to one hundred rupees for every day during which such contravention or failure continues after the conviction for the first such contravention or failure.

Working Journalist (Conditions of Service) and Miscellaneous Provisions Act, 1955

• As per Rule 10 of the Act, it is mentioned that a working journalist who works for more than 6 hours on any day in day shift and more than 5½ hours in night shift shall be compensated with rest hours equal to hours for which he/she has worked overtime.

• If any employer contravenes any of the provisions of this Act or any rule or order made there under, he shall be punishable with fine which may extend to two hundred rupees. And whoever has been convicted of any offence under this Act, is again convicted of an offence involving the contravention of the same provision shall be punishable with fine which may extend to five hundred rupees.

Plantation Labour Act, 1951

• As per section 19 of the Act where an adult worker works in any plantation on any day in excess of the number of hours constituting a normal working day or for more than 48 hours in any week, he/she shall, in respect of such overtime work, be entitled to twice the rates of ordinary wages. Provided that no such worker shall be allowed to work for more than 9 hours on any day and more than 54 hours in any week.

• If any person contravenes any of the provisions of this Act shall be punishable with imprisonment for a term, which may extend to three months, or fine, which may extend to five hundred rupees, or with both.

Ref: http://m.paycheck.in/main/labour-law-india/overtime-pay

 
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Posted by on April 19, 2014 in Payroll