Annual Leaves – Allow carry forwards or not?

By Sumit Panjabi on December 17, 2012 7 Comments / 3296 views

Hi everyone,

as the year draws to a close, a bunch of my employees are asking if their leaves will be carried forward into the next year. Our current policy does not allow for carry forward.

But that leaves me in a situation that I might have mass leaves being taken between now and end of the year.

What do the most of you guys do? Is carry forward better than non-carry forward?

Look forward for your views

Sumit

Comments

Sumit Panjabi

7 Comments

Shyam Sunder Vyas December 17, 2012, 11:53 am

Put in a clause, that no leave should not be more than x number of days per month and will be subject to approval. then allow them carry forward and if possible make it non-encashable.
Alok Rodinhood Kejriwal December 17, 2012, 11:56 am

awesome problem 🙁
satish v iyer December 17, 2012, 2:00 pm

Hi Sumit,

Leaves rules depend upon what the company formulates. But the company should design the rule policy which can be employee friendly.

Leave Rules:-

(1) No Leave C/F:-

If there are no leaves c/f allowed then it has to be announced in starting of the year.So any employee can plan their leave.So the employee can take the leaves planned according to their work and approved by the senior. Leaves not taken will get exhausted.

(2) Leave Encashment ( following year)

You can ENCASH balance leave with a CAP on maximum number that can be en-cashed.e.g.if there are 30 days for a full year, you can have a upper limit of 15 or 10 days that can be en-cashed at the end of the year.

So balance leaves till 31st march can be en-cashed in the following April or May. So if employee has 30 days for a year and he has taken 20 days, balance 10 days will have to be encashed. So you are paying an employee for not taking leave as he has to work.

(3) Leave C/F

Leaves can be carried forward and accumulated to next year and be added to the leave balance for the employee.

Leave C/F with a CAP on maximum number that can be c/f.e.g.if there are 30 days for a full year, you can have a upper limit of 10 days that can be C/F.But C/F leaves will have to be taken by the employee in future.Or the employer has to ENCASH and paid the C/F leave when the employee resigns. But this can be a big cash out in some point of time.

regards

Satish
Sumit Panjabi December 18, 2012, 8:32 am

Thanks Satish. I did go with a combination of C/F and encashment. And as expected, the team was pretty happy about it 🙂

Thanks for the advice

Sumit
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