Integrated Leave Policy

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1 Integrated Leave Policy "The richest and fullest lives are those that have mastered the balance between work and rest" A relaxed mind and body enhances happiness, energy and commitment levels. Tata Power believes that it is important for its officers to take adequate time off for rest & recreation for rejuvenation and also during significant life events such as parenthood, pursuing a hobby, self renewal through higher studies etc. This policy supports officers to meet their personal, family and health needs by providing rules and guidelines for availing leave thereby being fully ready & motivated to address organizational imperatives with creativity & energy and succeed in their professional pursuit of achieving full potential. This policy is applicable to all officers in the Management cadre and on the permanent rolls of Tata Power, CGPL, MPL, IEL, TPTCL, TPREL, CTTL and PTL. This policy is effective from January 1, 2017 and supersedes all prior policies and communication in the matter. Any exception to this policy requires approval of Chief - HR. Version 1.0 Date of Issue: November 2016 Released by: Chief - HR

2 The leave cycle is from January to December of each calendar year. Officers are eligible for leaves, as follows: Annual Leave (AL) 30 working days with pay, earned in a year; minimum half day can be availed as AL 8 of the 30 days of AL will be credited at the beginning of the calendar year. For newly joined officers, 25% of pro-rated AL for that year will be credited in their leave account at the time of joining. The remaining AL earned in the year will be credited at the beginning of the next calendar year Sick Leave (SL) 10 calendar days with pay, per year; minimum half day can be availed as SL Maximum accumulation of 90 days Medical Certificate to be provided to Reporting Manager for SL of more than 2 days Special Sick Leave is granted in case of any severe long term ailment Mandatory to avail minimum 50% of AL every year Maximum accumulation of 88 days Maternity Leave (ML) Guided by provisions in the Maternity Benefits Act, 1961/ Maternity Benefit (Amendment) Act, 2016, as applicable 26 weeks with pay during maternity Applicable to women officers on completing 80 days of service To be availed as a continuous leave pre & post delivery Extended Maternity Leave (EML) Upto 4 weeks without pay Applicable to women officers on completing 80 days of service To be availed as a continuous leave Can be availed only twice during tenure at Tata Power Adoption and Surrogacy Leave Maximum of 3 months with pay Applicable to women officers on completing 80 days of service To be availed as a continuous leave Can be availed only twice during tenure at Tata Power Paternity Leave (including childbirth, adoption and surrogacy) 7 calendar days with pay Applicable to only men officers To be availed as a continuous leave Can be availed only twice during tenure at Tata Power way 2

3 Marriage Leave 5 working days with pay Applicable to single officers Can be availed upto 1 week before and 1 week after the officer's wedding To be availed as a continuous leave Can be availed only once during tenure at Tata Power Compassionate Leave 5 working days with pay Can be availed in case of death of a close family member i.e., parents, spouse, children or siblings To be availed as a continuous leave Can be availed only twice during tenure at Tata Power Sabbatical Leave For the first 7 years, 30 calendar days for every completed year of service & thereafter 45 calendar days for every completed year of service in Tata Power Group, subject to a limit of 540 days Leave without Pay Eligible to avail the leave on completing 3 years of service in Tata Power group. Can be availed only once in the first 7 years of service. Higher Education Leave Maximum upto 2 years without pay Eligible to avail the leave on completing 2 continuous years of service in Tata Power Group Subject to provisions as detailed in Higher Education Support Policy No commercial activity to be undertaken during the period. Grant of leave on management discretion. Relocation Leave Upto 4 working days with pay Eligible only on transfer to another location Subject to provisions as detailed in Joining and Transfer Benefits Policy Workplace Accident Leave 90 days to 2 years based on severity of accident at workplace with pay Subject to provisions as detailed in Policy on Workplace Accident way 3

4 1. General Guidelines: a. Documentary proof must be submitted by officer to reporting manager while applying for all types of leave except Annual Leave, Compassionate Leave and Relocation Leave. b. Entry into online Leave System must be made and approval received, where required, before proceeding on leave, except in case of (medical) emergency when verbal information to reporting manager must be given as soon as possible. c. In case of self-approval eligibility, advance information must be sent to reporting manager in writing for proper work planning. 2. Annual Leave (AL) a. A new leave category called Annual Leave (AL) is being introduced, which will combine the existing Privilege Leave and Casual Leave. b. Annual leave is leave earned by an officer in respect of period of service with the company and is granted on full pay. c. Officers are entitled to 30 working days of Annual Leave (AL) in a year. AL is calculated on a pro-rated basis. Prorated leave will be rounded off. Minimum half day can be availed as AL. d. 8 of the 30 days of AL will be credited at the beginning of the calendar year. e. For newly joined officers, 25% of pro-rated AL for that year will be credited in their leave account at the time of joining. The rest of the AL they earn during the year will be credited to the officer's account at the beginning of the next calendar year. For example, if an officer joins the organization on 1 st July, he/she will get 4 AL credited to the leave account on 1 st July. Balance of 11 days will get credited on 1 st January of the next year in addition to the 8 days credited for all at the beginning of the year. f. Officers who are retiring will get their entire AL entitlement for the retiring year credited to their account at the beginning of the year. g. AL can be accumulated upto a maximum of 88 days. h. It is mandatory to avail 50% of the ALs credited to the leave account at the beginning of the year or at the time of joining. Any unused leave from this shall lapse automatically at the end of the year. A maximum of 50% of the leaves credited to the officer in that year may be carried forward each year, subject to a limit of 88 days. i. AL can be prefixed and suffixed to holidays and weekends. Intervening weekly offs and holidays will not be counted as a part of AL. j. Leave will be deducted from the leave balance as applicable in the year in which the leave is taken. For example, if an officer (for whom Saturday and Sunday are the weekly offs) applies for AL from December 29, 2016 (Thursday) January 3, 2017 (Tuesday), 2 ALs will be deducted from the 2016 AL balance and 2 ALs will be deducted from the AL balance of k. All leaves should ideally be planned in advance. Officers should apply for leave atleast 7 days in advance, for availing AL of more than 2 continuous days and 15 days in advance for availing AL of 5 days or more. l. Officers who are transferred from other Tata companies can transfer their accumulated earned leaves (not Sick Leave) to the Tata Power Annual Leave account subject to a maximum of 88 days. For such officers, leave transferred from the earlier organization will not be considered for the yearly mandatory leave rule. They have to mandatorily avail 50% of the ALs credited to the leave account by Tata Power at the time of joining. m. Transition Plan in 2017: (i) The accumulated PL balance will be renamed as accumulated AL balance. way 4

5 (ii) On 1 st January 2017, officers who have completed atleast one year of service will be credited 30 days of Annual Leave (22 days of PL from 2016 and 8 days of AL of 2017). Officers, who joined the company after 1 st January 2016, will be credited pro-rated PL earned from 2016 and 8 days of AL for For both the cases, the remaining 22 days of AL earned in 2017 will be credited on 1 st January (iii) Officers are mandated to use 50% of ALs credited to their account at the beginning of the year. Any excess AL may be carried forward to the next year, subject to a maximum limit of 88 days. n. Encashment of Annual Leave : Annual Leave can be encashed at any point in a calendar year, provided a minimum balance of 15 days is maintained, with the following terms and conditions: (i) (ii) (iii) (iv) (v) Only basic salary will be considered for the purpose of calculating leave encashment The formula for encashment is as follows: No of days * (Basic salary/30) * 7/5 The amount received on encashment of AL will be credited after deduction of applicable taxes Any accumulation of AL in excess of 88 days, as on 31 st December of that year, will be encashed automatically at the end of each year and paid in the salary of February of the next calendar year The accumulated AL can be encashed at the time of retirement or resignation Request for Annual Leave encashment should be put through the Saarthi System. [Saarthi My Services Working Time Leave Encashment] 3. Sick Leave a. Officers are entitled to 10 calendar days of Sick Leave (SL) in a year. b. SL is granted at the beginning of the year in respect of completed period of service with the company and granted on full pay. c. SL is calculated on a pro-rated basis. Pro-rated leave will be rounded off. Minimum half day can be availed as SL. d. SL may be carried forward each year, subject to a limit of 90 days. e. Officers who are retiring will get their entire SL entitlement for the retiring year credited to their account at the beginning of the year. f. As per the previous Leave Policy (Leave Policy 2013), officers who had SL balance above 90 days and were frozen in January 2014 can use that SL in case of a medical emergency. If unutilized, the excess SL balance will also be encashed in accordance with SL encashment norms. g. Intervening weekly offs and holidays will be counted as part of SL. h. Medical Certificate has to be provided to the reporting manager, on resuming service if SL of more than 2 days is availed. i. SL can be encashed only at the time of retirement or death whilst in service or voluntary retirement on medical grounds, subject to a maximum of 90 days. j. SL cannot be combined with any other type of leave unless accompanied by a medical certificate. k. The amount received on encashment of Sick Leave will be taxable. The formula for encashment of Sick Leave is as follows: (No of days) * (Basic salary/30) l. Group Sick Leave Officers who join from other Tata group companies can transfer their accumulated Sick Leaves to their Tata Power leave account under the heading of Group Sick Leave, subject to a maximum of 90 days. Such leave cannot be encashed at the time of retirement. Their Sick Leave account will follow all the other rules for Sick Leave. way 5

6 For example, an officer who joins Tata Power from another Tata company has 112 days of accumulated Sick Leave in the previous company. On joining Tata Power, 90 days will be credited to the Group Sick Leave account and 22 days will lapse. 4. Special Sick Leave To help officers recover from prolonged illness, Special Sick Leave is granted as follows: No. of months of leave Salary Quantum 1 to 6 Basic Salary + Monthly Allowances (full salary) 7 to 12 Half Basic Salary + Half Monthly Allowances (50% of full salary) 13 to 18 Quarter Basic Salary + Quarter Monthly Allowances (25% of full salary) 19 to 24 Without Pay a. Special Sick leave will be admissible in cases where an officer is suffering from any major prolonged illness like TB, Cancer, Cardiac, Renal condition, Paralysis or such ailment as may be deemed fit to be included by CMO or major surgery or hospitalization. b. Special Sick Leave will be granted only after all types of paid leave for the year & accumulations are fully utilized. c. After a period of two years if there is no appreciable improvement in the officer s health, necessary steps would be initiated, to retire the concerned officer on medical grounds. d. All applications for special Sick Leave should be recommended by the respective SBU Head and mandatorily certified by the CMO. The final approval is given by Chief - HR. 5. Maternity Leave (ML) & Extended Maternity Leave (EML) a. Maternity Leave will be guided by provisions in the Maternity Benefit Act, 1961/ Maternity Benefit (Amendment) Act, 2016, as applicable. b. In order to be eligible for maternity leave, women officers need to have a minimum of 80 days of continuous service in the 12 months immediately preceding the date of expected delivery or as per the Maternity Benefits Act Rules as applicable. c. A woman officer is entitled to 26 weeks of ML. This leave can be availed up to 6 weeks before the date of delivery and the remaining may be availed after the date of delivery. This leave must be taken continuously without any break. d. In case of miscarriage or medical termination of pregnancy, the officer is entitled to 6 weeks of ML immediately following the day of miscarriage or medical termination of pregnancy. e. In case of illness arising out of pregnancy, delivery, premature birth, miscarriage, medical termination of pregnancy or tubectomy operation, the officer is entitled to leave in addition to Clause 5(c) or 5 (d), as the case may be, for a maximum period of 30 calendar days on production of medical certificate. f. The officer is required to apply for ML at least 2 months prior to the date of commencement of the leave. While applying for ML, the officer should submit a medical certificate verified by the CMO or CMO s representative, to the reporting manager. g. ML must be availed as a continuous leave without any break. way 6

7 h. Extended Maternity Leave (EML) can be availed in continuation with ML or within one year of proceeding on ML. In case an officer is not eligible for ML, then she would not be eligible for EML as well. i. EML would be considered equivalent to Leave on Loss of Pay (LOP). Benefits such as housing, car, etc. can be continued as per eligibilities of the concerned Officer. However, she would need to bear the requisite expenses, deductions, as applicable. j. The officer is required to apply for EML at least 1 month prior to the date of commencement of the leave. k. EML must be availed as a continuous leave without any break. l. ML & EML can be taken in conjunction with AL and Sabbatical Leave. m. Transition in 2017: As of 31 st December 2016, those officers who are on Maternity Leave (ML) shall have their ML extended up to a total of 26 weeks. 6. Surrogacy Leave a. Women officers, on completing 80 days of continuous service in the 12 months immediately preceding the date of expected delivery of child, are eligible for paid Surrogacy Leave of 3 months starting from the date of delivery of the child. b. The required documentation including birth certificate and certification from an accredited Assisted Reproductive Technology (ART) clinic needs to be submitted to the reporting manager while applying for this leave. c. Surrogacy Leave must be availed as a continuous leave without any break and can be availed twice during tenure at Tata Power. 7. Adoption Leave a. Women officers, on completing 80 days of continuous service in the 12 months immediately preceding the date of custody of child are eligible for paid Adoption Leave starting from the day of taking the legal custody of the child as follows: Age of child while availing Adoption Leave Less than 1 year Quantum of leave 3 months 1 year or older 2 months b. Supporting legal documents of adoption of the child should be presented to the reporting manager while availing this leave. c. Adoption leave must be availed as a continuous leave without any break and can be availed twice during tenure at Tata Power. 8. Paternity Leave a. Male officers can avail 7 calendar days of Paternity Leave. b. Paternity leave can be taken up to 2 weeks before expected date of delivery and within 2 months after the child's birth. In case of adoption / surrogacy, the leave can be taken within 2 months of taking legal custody of the child. c. Paternity leave has to be availed as a continuous leave and can be availed twice during tenure at Tata Power. d. In case of adoption, supporting legal documents of adoption of the child should be presented to the reporting manager while availing this leave. In case of surrogacy, the required documentation including birth certificate and certification from an accredited Assisted Reproductive Technology (ART) clinic needs to be submitted to the reporting manager while applying for this leave. way 7

8 9. Marriage Leave a. Single officers are entitled to 5 working days of Marriage Leave. b. This leave can be availed upto 1 week before and 1 week after the officer's wedding. c. This leave has to be availed as a continuous leave and can be availed once during tenure at Tata Power. d. Proof of marriage date must be submitted to the reporting manager while availing this leave. 10. Compassionate Leave a. All officers are entitled to 5 working days of Compassionate Leave to support them during times of bereavement of a close family member. b. This leave can be availed in case of death of a close family member which includes parents, spouse, children or siblings. c. This leave has to be availed as a continuous leave and can be availed twice during tenure at Tata Power. 11. Sabbatical Leave a. Officers are eligible for Sabbatical Leave as follows: Years of Service completed in Tata Power Group For the first 7 years of service From the 8 th year of service onwards Number of days accrued per completed year of service 30 calendar days 45 calendar days For example, if an officer has 10.5 years of service, the officer can avail a maximum of 345 calendar days of Sabbatical Leave. b. Officers are eligible to avail this leave on completing 3 years of service in Tata Power group. c. This leave can be availed only once in the first 7 years of service. d. Reasons for availing Sabbatical Leave may include, but not limited to, family exigencies, personal aspirations, health related reasons, maternity, social service, etc. e. Sabbatical Leave would be considered equivalent to Leave on Loss of Pay (LOP). Benefits such as housing, car, etc. can be continued as per eligibilities of the concerned officer. However, he / she would need to bear the requisite expenses, deductions, as applicable. f. Sabbatical Leave can be availed in conjunction with AL, ML and EML. Sabbatical Leave can be availed in conjunction with SL only in case of any medical exigency. g. Sabbatical Leave is not encashable at any time. h. The officer is required to apply for Sabbatical Leave at least 2 months prior to the date of commencement of the leave. i. The officer going on Sabbatical Leave shall not engage directly or indirectly in any trade /business or undertake any other employment or any conflicting arrangement, whatsoever in nature, within the country or overseas while he / she is on Sabbatical Leave. way 8

9 j. The officer going on Sabbatical Leave would not be eligible for increments and Performance Pay during the tenure of such leave. However, he / she would be paid proportionate Performance Pay for the balance period served in a year before proceeding on Sabbatical Leave or similarly part year after joining, as applicable. k. On joining back, the officer would be re-inducted into the system at the same grade and pay structure as he / she was on before proceeding on the Sabbatical Leave. The roles and responsibilities may however be reassigned, depending on organizational requirements. l. In case the officer after joining back, resigns before serving the organization for the equivalent period as that of the Sabbatical leave taken, the expenses incurred by the company towards housing, car benefits etc. during the period of the Sabbatical Leave will be recovered on a pro rata basis from the officer's Full & Final Settlement. In case the officer resigns while on Sabbatical Leave, then such expenses incurred by the company will be recovered in full from the officer's Full & Final Settlement. m. Any tax implication arising out of this policy would be in the hands of the officer concerned and any tax liability would be payable in advance, before proceeding on Sabbatical Leave, as applicable. n. Process of application: Eligible officers can put up an application for availing Sabbatical Leave stating the period for which leave is requested along with reasons and justification This application needs to be recommended by the reporting manager of the concerned officer Upon recommendation, the application would be reviewed by the Divisional HR representative of the officer and then sent to Chief - HR for approval The concerned officer can proceed on Sabbatical Leave once the application has been approved by Chief - HR for officers in work level MC and below. For officers in work levels MA and MB, the approval shall be conveyed by Chief - HR after formal consent by ED and MD. 12. Leave on Account of Bandh When a Bandh is called /declared by any political party or any other organization, such Bandh day will be treated as a normal working day. If, for any reason, an officer is absent on that day, he/she would be required to apply for leave. If the officer does not have leave to his/her credit, the day of absence would be treated as loss of pay. 13. Leave Balance in case of Deputation When an officer is deputed to another company on an assignment, the leave balance of that officer will be frozen till the assignment is completed and the officer returns to the parent company. During the period of deputation, the officer will be entitled to leaves which are applicable in the company that he/she is deputed to. 14. Compensatory Leaves for working on weekly off An officer is eligible for one Compensatory Leave if he/she has worked continuously for 7 days. This Compensatory Leave must be availed within three days of the weekly off on which he/she has worked. 15. Compensatory Leave / Encashment for working on defined General Holidays / Optional Holidays Officers who work on a defined General Holiday are eligible for a Compensatory Leave. This Compensatory Leave must be availed within three months of the General Holiday on which he/she has worked, else it will be encashed at the daily basic rate at the end of the year and paid by the month of February of the next calendar year. Officers who work on one of the optional holidays can adjust that holiday within the pool of other optional holidays declared by the company in that year. In case they are unable to avail this option till the end of the year, the same will be encashed at the daily basic rate and paid by the month of February of the next calendar year. 16. Public Holidays All officers of the Company are eligible for 12 Public Holidays which are declared at the beginning of the year. way 9

10 17. E muster All officers should mark their attendance through e- muster on Sangam. If an officer has missed out on marking his/her attendance/od/leave, the officer should do so latest by the 15 th of the next month. At the 15 th of every month, any unmarked working days of the previous month will be considered as Unauthorized Leave (UL) and salary of these days will be deducted in the following month s salary. For example, if an officer has forgotten to mark his attendance on e muster on 2 days in April, he/she can do so latest by 15 th May. If the attendance is not marked by 15 th May, then those 2 days will be treated as UL and salary for those 2 days will be deducted from May s salary. 18. Procedure for availing Leave a. The officer should apply for leave through the Leave Request module on 'Saarthi' in 'Sangam'. Where required, the approving authority will receive an intimation to approve his / her subordinate s leave request. b. The officer can proceed on leave only if the application is approved by the approving authority. In case of sick leave, the leave application must be submitted within 2 days of resuming duty. c. In case of compensatory off, the officer will first have to apply for the compensatory leave. Once it gets credited to his/her account, he/she can apply and avail of the same. d. Approval of all leaves is at the discretion of Management. 19. Approving Authorities for various types of Leave Sr.No. Leave Type Approving Authority for officers in: Work Level MD and above Work Level ME (i) Annual Leave, Sick Leave Self-Approval subject to advance intimation to Reporting Manager Reporting Manager (ii) Maternity, Extended Maternity, Surrogacy, Adoption, Paternity, Marriage and Compassionate Leave Reporting Manager (iii) (iv) (v) Special Sick Leave Sabbatical Leave Compensatory Leave subject to adherence of notified procedures Recommendation: SBU Head Validation: Chief Medical Officer Approval: Chief - HR Recommendation: Reporting Manager Approval: Chief - HR Reporting Manager way 10

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