Things a CEO should know about Leaves!

Things a CEO should know about Leaves

The real competitive advantage in any business is one word only, which is “people”.

Kamil Toume, Writer and thought leader

As a CEO of a company, your first target audience are your employees as they play an important role towards accomplishing your organisation’s goals. Here we are going to discuss about Leaves. As a CEO there are few things you should know about leaves.

Remember, number of leaves entitlement in a company depends upon the state you belong. Every state has different leave entitlement and leave policies which should be studied before you define leave policy of your company. Also, make sure it is not less than that mentioned by the state’s shop and establishment act. For reference here is a link of Maharashtra shop and establishment act.

Let’s take a look on types of leaves:

All leaves with pay are excluding weekly off and holidays. But then it depends on the Shop and Establishment Act of the state.

1. Casual Leaves: Casual Leaves are leaves without loss of pay. It can also be taken as a Half Day leave. This leave is never clubbed with Privileged leaves, but it can be clubbed with sick leave if the sick leaves are exhausted. It is not compulsion to have casual leaves.

2. Sick Leaves: Sick leave is the leave that an employee can avail in case of sickness of self or relative. Sick leave provides pay to employees when they are out of work due to illness. Number of Sick leaves is fixed by the company/organization in accordance with the State’s Shops and Establishment Act or any other law applicable to it.

3. Maternity Leave: According to the Maternity Benefit Act,1961 female workers are entitled to a maximum of 180 days maternity leave, They will just have to give a prior notice of 1 week prior to the date on which leave is to be affected. The law was amended by the Maternity Benefit (Amendment) Act, 2017 which came into effect on April 1, 2017. It extensively modifies the old Act and is applicable to all mines, plantations, shops, establishments, and factories employing 10 or more employees, whether in the organised or unorganised.

4 .Paternity Leave: There is no provision on paternity leave in Indian labour law for private sector workers. A male civil servant (including an apprentice, probationer) with less than two surviving children, may be granted Paternity Leave for a period of 15 days before or up to six months from the date of delivery of the child.

5. Compensatory Off (CO): If an employee is required to work on any important assignment on a National holiday/ festival / declared / weekly off day, he is eligible for CO on any other working day. Comp Offs are not entitled to encashment.

a) Half day Compensatory Off: Some companies have half day comp off policy. They let employees take half day comp off as per their company.

b) Work on off day: Some companies let employees take a comp off if they work on off day (weekly off, or national holiday) which is pre-informed to the employees.

6. Earned Leaves: Earned leaves or also called as privileged leaves are calculated on month basis but entitled on prorated basis. Earned leaves can be carry forwarded to next financial year. Again, earned leaves type is subject to your company policy.

7. Sandwich Leaves: Some companies have a Sandwich leave policy It states that leaves shall be deducted for even weekly off days or national holidays when in case you are applying for leaves on previous day to it and post that day.

8. Bereavement Leaves: Bereavement Leave is under good example of leave type brought in process by many companies to help the employees cope up from the loss of an immediate family member. It is usually 3 to 5 days of paid leaves.

9. Loss of Pay: Loss pay is counted if an employee does not have any unused leave and the situation warrants to take the leave, the leave is granted by the Company as loss of pay or which may be adjusted against the future leave or as a special case depending on management/ company policy. Some companies consider Loss of Pay when an employee takes un-informed leave and if he/ she forgets to mark the attendance.

10. Remote Work: Remote work is one that is done away from the office in a remote location. This could be either work done from home, or work on field in the case of you are a sales person.

a) Work from home: These days most companies let a lot of people work from home. This is specifically primarily assigned to employees with desk jobs. To learn more about work from home

click on our blog: Decoding Trends: Work from Home b) Sales Duty: Sales duty is assigned to executive who work remotely for your organization. To make it easy to track the sales team record SpiderG App leaves them assign Sales duty on App and maintains an official record for the same.

11. Other leaves: Some companies engage in giving Study Leave, Leave for Voting. It is totally as per their company policy.

Conclusion:Choose what will fit best for your team. Casual Leaves, Earned Leaves, Sick Leaves, Sandwich leaves, Comp offs, Sabbatical leaves and don’t forget National Holidays are mandated. Take help from an HR Consultant/ Legal Consultant to draft the leave policy. You can also try SpiderG to set your policy types and assign the leaves templates to the dedicated staff /groups of staff according to your requirements and company policy.SpiderG is easy as you make changes directly to the templates and it gets auto assigned to the desired group.

Check our other blog- Tips to Invest in Employees and why? We discuss regarding the incentive types in detail.

Harshada Narvekar
Chief People Officer @SpiderG


SpiderG is platform for startups and SMEs to automate their Bookkeeping, Employee management, Collaboration and increase productivity.


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