LEAVE CANNOT BE CLAIMED AS OF RIGHT, BUT……
No doubt leave cannot be claimed as a matter of right and even annual leave cannot be granted to an employee when desired in an emergent situation, what to say of any other kind of leave other than the kind of leave prescribed in the Factories Act. So, a company has the unfettered discretion to follow rigid policies only which are provided statutorily. But some vital aspects need not be overlooked that may cause harm to the interests of the company.
The job of an HRM man is of complex nature and results more in discontentment rather than contentment of the employees of an organization. If he adopts negative attitude, the results are always negative in terms of profitability and efficiency of the organization in terms of employee unrest, strikes, lockouts, resulting in to larger financial and image loss of the company than if the company allows some insignificant benefits to the employees. So, it is necessary for a HR man to be positive. Leave, if allowed to an employee at the time of need definitely creates loyalty amongst the employees and respect for the management. During my service period of 39+ years, I was never bothered by any employee or their unions and they had full faith in my working methods. Even I allowed short leave to employees in addition to their leave entitlements. In turn, no employee refused to work even when I asked to sit after office working hours and they never dared to ask for OT at their own, as they knew wherever justified I would allow OT without their asking. My units had always been giving much better results than all other Units.
Legislative acts provide statutory provisions that a company has to comply with in definite terms. Acts provide for minimum of the facilities that the organizations must have to provide to their employees and rest depends upon the local policy of the management of the organization.
BUT –
Efficiency, excellence and economy should always be the watchword of any organization. But, doubtlessly, both excellence and economy depend upon employee’s efficiency. So, the HR man has to make such a policy on behalf of the management so that employee’s efficiency is not retarded intentionally or unintentionally. An HR man should know that rigidity never pays for ever. It is always against the interest of the organization, as it leads to unrest amongst the workers. So, HRM has to think positively to motivate employees to remain at work and provide efficient and service. So, per force, HR has to think about motivation of the working cadres that contribute to the profitability of the company. Its policy should be of the long term nature and not of the short term nature.
Needless to emphasize, HR and Finance has to go side by side to achieve results for the company. Neither Finance Wing, nor the HR wing alone can contribute efficiency, excellence and economy. The present economic crisis, or the so called recession, has not impacted all the organizations, except a few large scale organizations whose management was corrupt and could not observe ethics of corporate governance. But in the name of recession, every organization is trying to take advantage of that limited recession caused in the handful of organizations due to the unethical acts of their managements. So, I must advise managements not to try taking undue advantage of the so called crisis.
Take the employees and their unions in to confidence to discuss such issues, not in such a way that they should consider that as their birth right to discuss every issue with them, but with the feeling of gratitude that they are getting additional unwarranted service benefit.
Emergencies happen to everyone in his/her life. So, may be to some limited extent, but CASUAL LEAVE IS A MUST for employees.
For sick leave, of course that should not be mandatory. But, if a long hospitalization occurs to an employee, the management must be sympathetic to its employee and members of his/her family to provide adequate means of their livelihood, may be in the shape of half pay, or ex-gratia amount. HR need not take everything on it. Delegation is a must in such cases. Only the immediate supervisor or manager may be knowing the state of affairs of his/her subordinate. So, their recommendation should be taken as a valid ground for grant of such kind of leave or compensation. By making all such provisions you will definitely be winning your employees loyalty. These things are also necessary to attract talents from the open market for better results when they are able to know that your company I would allow them more facilities and benefits than the competitor organizations.
National Holidays are always paid holidays and are to be compensated by OT if the employees are called to work. However compenatory off can be granted in lieu of other holidays on which a worker has been made to work.
SO, HR should always be flexible to adjust itself according to the needs of time and in the interest of the organization! Not allowing CL or SL, of course is inhuman. HR is supposed to take welfare of staff also.
P S Dhingra
Vigilance and Change Management Consultant
From India, Delhi
387No doubt leave cannot be claimed as a matter of right and even annual leave cannot be granted to an employee when desired in an emergent situation, what to say of any other kind of leave other than the kind of leave prescribed in the Factories Act. So, a company has the unfettered discretion to follow rigid policies only which are provided statutorily. But some vital aspects need not be overlooked that may cause harm to the interests of the company.
The job of an HRM man is of complex nature and results more in discontentment rather than contentment of the employees of an organization. If he adopts negative attitude, the results are always negative in terms of profitability and efficiency of the organization in terms of employee unrest, strikes, lockouts, resulting in to larger financial and image loss of the company than if the company allows some insignificant benefits to the employees. So, it is necessary for a HR man to be positive. Leave, if allowed to an employee at the time of need definitely creates loyalty amongst the employees and respect for the management. During my service period of 39+ years, I was never bothered by any employee or their unions and they had full faith in my working methods. Even I allowed short leave to employees in addition to their leave entitlements. In turn, no employee refused to work even when I asked to sit after office working hours and they never dared to ask for OT at their own, as they knew wherever justified I would allow OT without their asking. My units had always been giving much better results than all other Units.
Legislative acts provide statutory provisions that a company has to comply with in definite terms. Acts provide for minimum of the facilities that the organizations must have to provide to their employees and rest depends upon the local policy of the management of the organization.
BUT –
Efficiency, excellence and economy should always be the watchword of any organization. But, doubtlessly, both excellence and economy depend upon employee’s efficiency. So, the HR man has to make such a policy on behalf of the management so that employee’s efficiency is not retarded intentionally or unintentionally. An HR man should know that rigidity never pays for ever. It is always against the interest of the organization, as it leads to unrest amongst the workers. So, HRM has to think positively to motivate employees to remain at work and provide efficient and service. So, per force, HR has to think about motivation of the working cadres that contribute to the profitability of the company. Its policy should be of the long term nature and not of the short term nature.
Needless to emphasize, HR and Finance has to go side by side to achieve results for the company. Neither Finance Wing, nor the HR wing alone can contribute efficiency, excellence and economy. The present economic crisis, or the so called recession, has not impacted all the organizations, except a few large scale organizations whose management was corrupt and could not observe ethics of corporate governance. But in the name of recession, every organization is trying to take advantage of that limited recession caused in the handful of organizations due to the unethical acts of their managements. So, I must advise managements not to try taking undue advantage of the so called crisis.
Take the employees and their unions in to confidence to discuss such issues, not in such a way that they should consider that as their birth right to discuss every issue with them, but with the feeling of gratitude that they are getting additional unwarranted service benefit.
Emergencies happen to everyone in his/her life. So, may be to some limited extent, but CASUAL LEAVE IS A MUST for employees.
For sick leave, of course that should not be mandatory. But, if a long hospitalization occurs to an employee, the management must be sympathetic to its employee and members of his/her family to provide adequate means of their livelihood, may be in the shape of half pay, or ex-gratia amount. HR need not take everything on it. Delegation is a must in such cases. Only the immediate supervisor or manager may be knowing the state of affairs of his/her subordinate. So, their recommendation should be taken as a valid ground for grant of such kind of leave or compensation. By making all such provisions you will definitely be winning your employees loyalty. These things are also necessary to attract talents from the open market for better results when they are able to know that your company I would allow them more facilities and benefits than the competitor organizations.
National Holidays are always paid holidays and are to be compensated by OT if the employees are called to work. However compenatory off can be granted in lieu of other holidays on which a worker has been made to work.
SO, HR should always be flexible to adjust itself according to the needs of time and in the interest of the organization! Not allowing CL or SL, of course is inhuman. HR is supposed to take welfare of staff also.
P S Dhingra
Vigilance and Change Management Consultant
From India, Delhi
Though as per Factories Act, only annual leave is to be provided, however, in respect of those covered under ESI, they are entitled for
Sick Leave for which they get payment also from ESI. As regards CL, Model Standing Orders under Standing Orders Act, provide for CL of 8 days. So, when we go for certification of standing orders, drafted based on model standing orders which we do generally, Certifying Authority makes sure that we provide for CL. Therefore, CL is a provision we need provide for.
In addition, Shops and Establishment Act also provides for CL maximum of 12 days.
Therefore, we need to recognise the principle for extending a particular leave.
As per labour law provisions, no workman can refuse to work on overtime, as long as we comply with the provisions.
DN Rao
From India, Hyderabad
Sick Leave for which they get payment also from ESI. As regards CL, Model Standing Orders under Standing Orders Act, provide for CL of 8 days. So, when we go for certification of standing orders, drafted based on model standing orders which we do generally, Certifying Authority makes sure that we provide for CL. Therefore, CL is a provision we need provide for.
In addition, Shops and Establishment Act also provides for CL maximum of 12 days.
Therefore, we need to recognise the principle for extending a particular leave.
As per labour law provisions, no workman can refuse to work on overtime, as long as we comply with the provisions.
DN Rao
From India, Hyderabad
Dear Pavani,
Mr. Dinghra is right. Also, just because a company is in recession, the leave priveleges cannot be stopped or denied under the Shops & Establishment Act of the pertaining state. OT is not mandatory. CL/SL are compulsory. Many of the members here have suggested the minimum number of leave days allowable under different states.
Leave days cannot be written off but carried forward to the succedding year and accumulated. If things improve next year, take a long leave or encash it. Else the excess days may be wasted.This is the process that has to be done with the approval of management and strictly followed by HR without prejudice.
Regards,
Chandru
From India, Madras
Mr. Dinghra is right. Also, just because a company is in recession, the leave priveleges cannot be stopped or denied under the Shops & Establishment Act of the pertaining state. OT is not mandatory. CL/SL are compulsory. Many of the members here have suggested the minimum number of leave days allowable under different states.
Leave days cannot be written off but carried forward to the succedding year and accumulated. If things improve next year, take a long leave or encash it. Else the excess days may be wasted.This is the process that has to be done with the approval of management and strictly followed by HR without prejudice.
Regards,
Chandru
From India, Madras
Dear All,
Please let me know about the unauthorised letter's signature, if any employee unauthorised absence since last 10 days, we want shoot a letter to him, who is the right person for the signature on that letter. i.e. The Factory Manager is the right person or HR persons should be signed on that letter.
please give the reply on priority, all are requested to please.
manoj kumar
From India, Chandigarh
Please let me know about the unauthorised letter's signature, if any employee unauthorised absence since last 10 days, we want shoot a letter to him, who is the right person for the signature on that letter. i.e. The Factory Manager is the right person or HR persons should be signed on that letter.
please give the reply on priority, all are requested to please.
manoj kumar
From India, Chandigarh
Dear Pavani,
Factories Act 1948 provides minimum coverage for employees. An employer can give extra leave in what ever terms they call it to suit their operation requirements. Maybe you should find out why was the CL, EL and SL created in the first place. This is to justify your action later by saying the entitlement is no more relevant with the current operations. However such entitlement if given may not be easy to take back unless you can replace them with something better or suitable. Good luck
From Malaysia, Kuala Lumpur
Factories Act 1948 provides minimum coverage for employees. An employer can give extra leave in what ever terms they call it to suit their operation requirements. Maybe you should find out why was the CL, EL and SL created in the first place. This is to justify your action later by saying the entitlement is no more relevant with the current operations. However such entitlement if given may not be easy to take back unless you can replace them with something better or suitable. Good luck
From Malaysia, Kuala Lumpur
Dear folk,
I will clarify you on Factories Act. As per the Act, the employer need not provide any sick leave or casual leave. you are liable to give only Earned leave of one day for every 20 days of work done in a calander year. If the worker or employee has not completed 240 days of work, you need not provide any EL to the concerned worker. With respect to with drawal of SL and CL which is already existing - if the employees dont resist, there isno issue, Otherwise they may raise a dispute under sec 2(k) of ID Act in the labour court that you have diprived the facilities which they were enjoying, though they are not entitled (as per stature) and any customery practive will become a rule of right at a later date which all the HR managers have to keep in mind before implementing any welfare in any company. However, is you want to make any changer stated in the Schedure IV of ID act, you may have issue a notice prior to 21 days of such change in the conditions of employment as per Section 9A of ID Act. Therefore, any welfare given already, you can withdraw it provided you give a better welfare than the existing one then the change is possible. Hope you got it. Regards
From India, Madras
I will clarify you on Factories Act. As per the Act, the employer need not provide any sick leave or casual leave. you are liable to give only Earned leave of one day for every 20 days of work done in a calander year. If the worker or employee has not completed 240 days of work, you need not provide any EL to the concerned worker. With respect to with drawal of SL and CL which is already existing - if the employees dont resist, there isno issue, Otherwise they may raise a dispute under sec 2(k) of ID Act in the labour court that you have diprived the facilities which they were enjoying, though they are not entitled (as per stature) and any customery practive will become a rule of right at a later date which all the HR managers have to keep in mind before implementing any welfare in any company. However, is you want to make any changer stated in the Schedure IV of ID act, you may have issue a notice prior to 21 days of such change in the conditions of employment as per Section 9A of ID Act. Therefore, any welfare given already, you can withdraw it provided you give a better welfare than the existing one then the change is possible. Hope you got it. Regards
From India, Madras
Many companies has many practices. Large Business houses use to get signature from the Departmental Heads. Small business establishments use their HR manager's signature. As long as the action is not going to result in capital punishment, any person authorised by the Board of Director can sign. If it is going to end up like Termination then, the signatory should have Board's authorisation for issuing such letters includinga charge memo.
Nagendran B
GM -HR
Same Deutz Fahr - Ranipet
From India, Madras
Nagendran B
GM -HR
Same Deutz Fahr - Ranipet
From India, Madras
You can not change. withdrawing the existing facility if any even it is more than act of any will be treated as change in service condition of the employees. if any one approaching court your management will be punished. Please contact good legal practitioner on labour issues.
regards
Dr. Shiva Prasad
Bangalore
From India, Bangalore
regards
Dr. Shiva Prasad
Bangalore
From India, Bangalore
Unauthorised Absence
Hi Manoj,
This is with reference to your query about unauthorised absence. Doubtlessly, the authority who is competent to sanction leave or the authorised HR personnel is fully empowered to sign the letter of unauthorised absence on report of the immediate superior/foreman of the Unit.
P S Dhingra
Vigilance and Change Management Consultant
From India, Delhi
Hi Manoj,
This is with reference to your query about unauthorised absence. Doubtlessly, the authority who is competent to sanction leave or the authorised HR personnel is fully empowered to sign the letter of unauthorised absence on report of the immediate superior/foreman of the Unit.
P S Dhingra
Vigilance and Change Management Consultant
From India, Delhi
Dear Pavani & Friends: While the factories Act talks of annual leave with wages, the mention of CL, EL etc would be there in your Certified Standing Orders or the Model Standing orders whichever is applicable to you. Sick leave provision is based on ESI Act requirement but even if you are an exempted establishment, the provision has to be complied.Hence the requirement of CL, Annual leave, sick leave are mandatory provisions and cannot be tinkered.
One more important thing; leave is a matter of custom or previlege and any change therein can be made only after giving Notice of Change as per ID Act provision and after following the procedure therein
Regards
KK Nair
One more important thing; leave is a matter of custom or previlege and any change therein can be made only after giving Notice of Change as per ID Act provision and after following the procedure therein
Regards
KK Nair
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