D.

Code: 01

LEAVE RULES

For

EMPLOYEES IN S, E & EQUIVALENT CADRES & THE COVENANTED CADRE based at Units observing 5 or 6-day working

CORPORATE HR & PERSONNEL DEPARTMENT POWAI January, 2006

INDEX

LEAVE RULES

For employees in S, E & Equivalent Cadres and the Covenanted Cadre in Units observing 5 or 6-day working

Page Nos.

Chapter I

General Guidelines

Chapter II

Privilege Leave

2-7

Chapter III

Casual Leave

8-9

Chapter IV

Sick / Maternity Leave

10 - 11

Chapter V

Other Leave (Loss of Pay Leave/Accident Leave)

12

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6-day working

..1..

CHAPTER I GENERAL GUIDELINES FOR UNITS OBSERVING 5 or 6 day working I .1 I.1.1 General These Leave Rules shall cover employees in S, E & Equivalent Cadres and the Covenanted Cadre. Leave will be calculated for the calendar year (i.e. from January to December). Prior intimation/approval is necessary before taking any leave. Regularisation of Absence Request for regularisation of absence should be made as soon as possible but in any case within one month from the last day of absence. If the request for regularisation is not received within one month as above, the same will be treated as unauthorised absence. Leave during Notice Period No leave of any kind will be allowed to be taken during the notice period. Prefix and Suffix Employees can prefix and/or suffix any leave to weekly off/holidays subject to conditions mentioned in each type of leave. Holidays / weekly offs falling in between leave will be treated as leave and will be debited as such. Promotees Employees who are promoted from Non-Supervisory Cadre to Supervisory Cadre will be eligible for 8 days casual leave for the calendar year (including the casual leave availed of prior to promotion). Unconsumed Sick Leave to their credit, if any, at the time of their promotion to Supervisory cadre will lapse on promotion. Unconsumed casual leave, if any, will not be added to PL in the following year for employees who are promoted to covenanted cadre from E-3 / CA-2 / HR-2 grades.

I.1.2 I.1.3 I.2 I.2.1

I.2.2

I.3 I.3.1 I.4 I.4.1 I.4.2

I.5 I.5.1

I.5.2

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6-day working

..2..

CHAPTER II PRIVILEGE LEAVE II .1 of unbroken service. II.1.1 New employees will be eligible to take PL only after completing 11 months of service. Employees will have to take a minimum of 3 days PL at a time Employees will be granted 30 days Privilege Leave (PL) for every 11 months

II.1.2

II.1.2.1 Employees will be allowed to avail of Privilege Leave only three times in the calendar year. II.1.3 II.1.4 PL can be prefixed and / or suffixed by weekly offs / holidays. Holidays / weekly offs falling in between privilege leave will be treated as privilege leave and will be debited as such. Procedure for Application of PL

II.2

II.2.1 Employees should apply for PL at least 15 days before the date of commencement of PL. II.2.2 Granting leave to an employee shall depend on exigencies of work and shall be at the discretion of the Management. II.2.3 If an employee after proceeding on leave desires an extension thereof, application should be submitted through his immediate Superior. II.2.4 Disciplinary action will be initiated against an employee remaining absent without permission, beyond the period of leave originally granted or subsequently extended.

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6-day working

..3.. II.3 Calculation

II.3.1 While calculating PL, absence of all kinds (i.e. PL, SL, LOP, unauthorised absence, leave granted as special sick leave, study leave, accident leave, maternity leave etc.) excluding Casual Leave will be deducted from 365 days. Weekly offs, holidays and Casual Leave availed of by an employee will not be deducted from 365 days for calculating leave accrued. II.4 Overlap

II.4.1 If PL commencing in a particular year is spread over to the next calendar year the entire leave will be debited to the employee's account in the year in which PL commences. II.4.2 However for computation of PL earned during the year, only the number of days' leave availed of in the current year would be taken into consideration. Example: An employee has 220 days PL balance as on 1-1-2005 and proceeds on 40 days PL from 30th November, 2005. The leave calculation will be: PL balance as on 1-1-2005 Less leave commencing in 2005 Leave earned in 2005 will be: Number of days = Less leave actually availed of in 2005

220 days 40 days 180 days 365 days 32 days 333 divided by 11 = 30 days = 180 + 30 days = 210 days.

PL balance as on 1-1-2006 will be

II.4.3 PL earned by the employee in the preceding year shall be credited, on the first of January every year by the concerned HR Department. II.4.4 In the case of new employees, PL will be credited for the first time on completion of 11 months service and will be calculated from the date of joining of an employee. Thereafter, it will be calculated at the end of every calendar year.

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6 day working

..4.. II.5 Accumulation

II.5.1 PL can be accumulated upto 300 days. II.5.2 PL beyond 300 days will be automatically encashed in respect of employees in S, E & Equivalent cadres. II.5.3 Automatic encashment is not applicable for employees in the Covenanted Cadre and PL in excess of 300 days will lapse. II.5.4 At the time of Retirement, PL in excess of 300 days will lapse in the case of employees in S, E & Equivalent Cadres and the Covenanted Cadre. II.6 Resignation: In case of resignation of an employee:

II.6.1 No leave of any kind is allowed during the notice period. If an employee remains absent during the notice period, the absence days will be treated as LOP. II.6.2 As no leave is permissible during the notice period, LTA cannot be claimed during the notice period. II.6.3 The Company will pay salary in lieu of PL due to the employee, if any. However, if the resignation of the employee is before completion of 11 months' service, no leave will be due to him and no leave salary is payable.

II.7

Termination / Discharge

II.7.1 If an employee is discharged or dismissed from service before the completion of 11 months service, he shall be entitled to salary in lieu of PL, as per the provisions of the Factories Act or the Shops & Establishments Act, as the case may be. NOTE : a) b) Leave as per the Factories Act : 1 day for 20 days worked. Leave as per the Shops and Establishments Act : 5 days for 60 days worked. (1 day for 12 days worked).

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6 day working

..5.. II.8 II.8.1 Encashment of PL Employees will be permitted to encash a part of the accumulated PL to their credit subject to the conditions indicated as under: S, E & Equivalent cadres:

II.8.1.1

II.8.1.1.1 The employee must avail of a minimum of six days PL. II.8.1.1.2 Encashment would be in the ratio of 1:1 (i.e. equal to number of days PL availed). II.8.1.1.3 Encashment will be permitted once a year for an equal number of days as the leave availed of, subject to a maximum of 30 days in a calendar year. This will however, exclude the excess PL encashed automatically at the beginning of the calendar year as per the existing provision available for S, E & Equivalent Cadre employees. II.8.1.1.4 The above encashment is subject to an employee having a minimum balance of 30 days' PL to his/her credit in the beginning of the following year, after such encashment. II.8.1.1.5 PL in excess of 300 days' at the beginning of the calendar year, if any, will be automatically encashed and the employee will not be required to proceed on leave. The concerned HR Department will inform the name and other relevant details to concerned Accounts Department advising them to make the payment to such employees. II.8.1.2 Covenanted Cadre:

II.8.1.2.1 The employee must avail of a minimum of three days PL. II.8.1.2.2 Encashment would be in the ratio of 1:3 (3 days can be encashed against 1 day PL taken) II.8.1.2.3 Encashment will be permitted as per the above ratio subject to a maximum of 30 days in a calendar year and also subject to the employee having a minimum balance of 30 days' PL to his/her credit at the beginning of the following year, after such encashment.

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6 day working

..6.. II.9 Procedure for Encashment

II.9.1.1 The employee will have to make a leave entry on SAP-ESS or any other system followed by the OD concerned and send an application for encashment to his/her HR Department stating therein : II.9.1.1.1 II.9.1.1.2 II.9.2 Number of days' PL he/she wishes to avail Number of days of encashment required

The HR Leave Administrator will make the encashment entry in SAP-ESS or any other system followed by the OD concerned and will send an intimation to the concerned Accounts Department for payment based on the following specimen. DATE:______________ To: Salary Section, Concerned Accounts Department Re: Encashment of part Privilege Leave Mr./ Ms. ___________________________ has been granted ______ days Privilege Leave from _________ to __________, both the days inclusive. He / she has also requested for _______ days encashment of leave which may please be paid. _________________ HR DEPARTMENT

II.10 When an employee cuts short his PL and resumes duty early, he/she will make an entry in ESS or any other system followed by the OD concerned for the necessary changes. II.11 If an employee, who has encashed his/her PL, resumes duty earlier, for whatever reason, he/she will be required to pay back to the Company either part or the entire encashment amount, as the case may be, as under: If the employee resumes duty after 3 days' of PL in case of Covenanted cadre employees, and 6 days of PL in case of S, E & Equivalent Cadre employees, but before the expiry of his/her leave period, the Company will recover the amount of encashment for the number of days in excess of the leave enjoyed by him/her. II.12 Where the leave encashment is recovered in full, the employee will be eligible to apply for it again in the same calendar year, provided he / she proceeds on a minimum of 3 or 6 days PL as the case may be.

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6 day working

..7.. II.13 II.13.1 Leave Travel Assistance Employees in S, E & Equivalent cadres as well as employees in the Covenanted Cadre can avail of Leave Travel Assistance if they proceed on PL for a minimum period of six days during the calendar year as per the following procedure:

II.13.1.1 Employee to apply for PL in SAP-ESS or any other system followed by the OD concerned. II.13.1.2 Employee to make an application for LTA to their respective Accounts.

II.14 II.14.1

Advance Privilege Leave For a serious illness, death in the family or for self-marriage, an employee may be granted Advance PL, if so requested. The number of days of Advance PL will be restricted to the number of days PL accrued till the date of proceeding on leave. If the employee leaves the employment before he becomes eligible for PL, the salary paid for the Advance PL availed will be recovered from him. No LTA will be payable on Advance PL.

II.14.2

II.14.3

II.14.4

II.15 II.15.1

Combination of Sick Leave In specific cases Sick Leave may be combined with PL, if medical certificate is produced (i.e. SL can be prefixed or suffixed to PL). However, request for sick leave will not be entertained if an employee falls sick in between his PL. In other words, sick leave cannot be sandwiched in between PL. Such days of sickness will continue to be debited to PL, even if he/she produces a certificate and requests for SL.

II.15.2

II.16 II.16.1

Transferees to S&A Companies Employees who are transferred to Subsidiary/Associate Companies and vice versa will be allowed to carry forward, if they so desire, a portion or entire PL accrued to their credit at the time of transfer, subject to the approval of the transferee Company.

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6-day working

..8.. CHAPTER III CASUAL LEAVE

III .1

Every confirmed employee will be allowed 8 days casual leave in a calendar year.

III.1.1 New employees will be eligible for proportionate casual leave only from the date of confirmation. Example: An employee who is confirmed on 1st April will be entitled to (April to December = 9 months) X 8 days ________________________________________ 12

6 days.

Similarly, an employee confirmed on 1st October will be entitled to (October to December = 3 months) X 8 days _________________________________________ 12

= 2 days.

III.1.2 Not more than 3 days casual leave will be allowed to be taken at a time. III.1.3 Employees can prefix and/or suffix casual leave to weekly offs / holidays, only with prior permission and subject to the condition that the total absence is not exceeding Five days. III.1.4 Holidays / weekly offs falling in between casual leave will be treated as casual leave and will be debited as such. III.1.5 No leave of any kind can be combined with casual leave. III.1.5.1 Unconsumed casual leave will be credited to Privilege Leave at the beginning of the next calendar year only in case of employees in S,E and equivalent cadres. Half day casual leave will, however, not be added to Privilege Leave. Unconsumed casual leave will not be credited to PL in case of employees in covenanted cadre. III.1.5.2 Wherever possible, employees should apply for casual leave in advance. If for some unforeseen reason, an employee avails of casual leave on a particular day without prior intimation, he/she shall apply for the same immediately on resuming duty.

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6 day working

..9..

III.1.5.3 Half day Casual Leave will be granted in the forenoon or afternoon, if so requested by an employee. When CL on working day is combined with a full day CL, it will be treated as 2 full day CL. III.1.5.4 Generally Casual Leave on a working day is not encouraged and employees are expected to use this provision sparingly. III.1.5.5 If an employee presents himself at the work place on any half-day working day and requests for Casual Leave, it will be treated as half-day leave, if sanctioned. III.1.5.6 An employee applying for half day CL in advance for a half working day without physically presenting himself at work place, and if granted an advance, it will be treated as half day CL. Half day CL cannot be combined with any kind of leave and if this is done so, it will be treated as full day leave. III.1.5.7 In the case of employees retiring during the year, the unavailed CL calculated on pro-rata basis till the date of retirement, may be added to unconsumed PL, which can be encashed at the time of retirement. However, the maximum number of days of PL, which can be accumulated, will continue to be 300 days only.

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6 day working

..10.. CHAPTER IV IV .1 Sick Lea v e

IV.1.1 There will be no quantum of Sick Leave and it will be granted solely at the discretion of Management. IV.1.2 One day Sick Leave may be granted upto a maximum of two occasions in a year without producing a Medical certificate. IV.1.3 If an employee requests for one day Sick Leave for the 3rd time in a year, even if supported by a medical certificate, the same will not be granted as Sick Leave, but will be debited to Casual Leave or Privilege Leave whichever balance is available or the absence will be treated as Loss of pay Leave if no CL or PL balance is available. IV.1.4 For genuine and prolonged sickness, employees may be granted sick leave at the discretion of the Management, as under: As far as possible Sick Leave for a prolonged sickness should be based on the recommendations by the Companys Medical Officer. While deciding the number of days Sick Leave to be granted to an employee for such prolonged illness, the following facts should be taken into account: IV.1.4.1 IV.1.4.2 IV.1.4.3 IV.1.4.4 IV.1.4.5 IV.2 Genuineness of sickness Past record of sick leave taken Number of years in S, E & Equivalent cadres & the Covenanted Cadre Recommendation of the Companys Medical Officer Performance of the employee

Maternity Leave

IV.2.1 Female employees, not covered under the ESI scheme, will be granted maternity leave as per the Maternity Benefit Act, as amended from time to time. IV.2.2 Maternity leave will be granted to those female employees upto 2 living children. In other words those female employees who already have 2 living children will not be eligible for maternity leave for the 3rd child. IV.2.3 Maximum twelve weeks maternity leave, on full pay, will be sanctioned, of which not more than six weeks would precede the date of confinement. NOTE: As per the Maternity Benefit Act, as amended on January 10, 1989, no woman shall be entitled to maternity benefit, unless she has actually worked in an establishment for a period of not less than 80 days (inclusive of probationary period) in the twelve months immediately preceding the date of her expected delivery. (Days worked would include days of lay-off and paid holidays)

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6 day working

..11.. IV.3 Family Planning Operation

IV.3.1 Employees who undergo family planning operations (Vasectomy or Tubectomy) will be given special sick leave of three days. However, employees undergoing these operations during their PL will not be eligible for this special leave.

Leave Rules for S,E & Cov. employees based at Units observing 5 1/2 or 6-day working

..12.. CHAPTER V

OTHER LEAVE

V.1 V.1.1

Loss of Pay Leave Leave on loss of pay may be granted at the sole discretion of management.

V.2 V.2.1

Accident (while on duty) Leave Accident Leave will be granted on the recommendation by the Companys Medical Officer only in cases of accident while on duty and not any other accident.

************* 28th January, 2006