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The biggest problem with Leave and how you can fix it

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Leave is something that continues to be in the grey area for most companies. Many aren’t aware of the regulations set forth by the government. These regulations are meant to draw a balance between work and leisure, which in turn aides productivity.

In this digital India we live in, companies are springing up from every nook and corner. This in turn means that employment is on a steady rise with the new workforce coming into play. So how does this have relevance with ‘leave’? Given the high competition and with companies working over-time to stand out from the rest, leave and other crucial HR tasks are often side-lined. The HR department unfortunately is deprived of time to properly implement policies, let alone compliant ones.

What does the law say?

As with many topics, the law is clear in dictating the mandatory leave to be assigned to an employee. This is covered under the Shops and Establishments Act as well as the Factories Act. It’s a detailed state-wise account of the types of leave, criteria for eligibility and other such regulations. We’re all familiar about how infamously hard it is to get clarity when it comes to compliances. This is the sole reason that majority of the companies out there ignore this and draft their own.

How important is it to get the leave policy right?

In a word, ‘extremely’. Apart from the long term benefits like I covered earlier that stressed on why you should encourage your employees to go on leave, there’s a statutory aspect. Leave regulations are carefully thought up to an almost scientific degree. Each state has their own criteria that’s carefully listed down. The respective Acts are meant to ensure that an employee is not over-worked and gets adequate time for recreation. Much like with any rule, non compliance attracts stiff penalties. One wouldn’t want to be caught out during a surprise audit by a government official so it’s best to comply.

What’s the best way to get on track?

The most obvious way is to make sure you’re 100% compliant, according to the Shops and Establishments Act.

Now I’m compliant, is there anything more I should do?

In addition to abiding by what the law dictates, there’s more that employers can do in order to extract the maximum potential from the workforce.

Expert tips:

  1. Create a clearly defined (and compliant) leave policy
  2. Ensure transparent leave transactions with your employees
  3. Make sure all employees are aware of the policy
  4. Automate your leave accounting and become error-free
  5. Be generous with your policy

To sum up

The biggest problem with leave is the lack of accuracy and compliance. There are simple solutions out there to help automate this process and ensure compliance. Also, it’s good to note that being a little more generous with your policy than dictated by law will go a long way. The new generations are more inclined to value a healthy work-life balance. At the end of it, a happy employee is a productive one. Your first step should be to get a list of the state-wise compliances. Luckily, we’ve got you covered. Stay tuned for a comprehensive guide to Leave compliances under the Shops and Establishments Act. Until then, have a look at how greytHR helps in Leave and Attendance processing.

Leave Processing


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