Hi All, I wanted to check here, has any of the organizations here applied the concept of unlimited leaves? Would like to understand how are they managing the statutory compliances in this regards?

Statutory compliance from state to state is with the minimum leaves a company is supposed to give, company based on its discretion can give more but cannot go less than what the law states. Further to this there are laws depending on the state which you are in which prescribes limits for carry forward and accrual of earned leaves. Most companies use sick leaves as unlimited without changing earned leaves or casual leaves structure.

My two most recent employers offered unlimited PTO to all of their employees worldwide. Both businesses had employees spread across several different states and cities.

@Akshaja Manoharan can help. Almabase offers unlimited PTO too. I don't believe, there are any compliance-related issues with regards to this.

We give unlimited PTO at Rocketium. Like Rohan mentioned, the employees shouldn't have the paid leaves lower than the standard. Since this purpose os served with unlimited anyway, there are no statutory iussues.

thank you all for your inputs, a quick question, I agree by giving unlimited leaves, we are covering the paid leaves condition, but what about leave encashment in such cases or carry forward?

We do not have leave encashment

C/f would not be a case since you are giving unlimited.

If there is no cash encashment what is the best practice as per the law

https://theshapeofwork.slack.com/archives/C03CYB9103A/p1681137135915829?thread_ts=1681118450.558519&cid=C03CYB9103A @Sai Venkata Vinay Chittuluru didn't get your question here.

Is it mandatory to provide leave encashment Or not, because after providing uncapped leaves, why are we not providing leave encashment for not utilising unlimited leaves

In that case, you cannot cap how many leaves that employee has earned while working. The max carry forward you can do in the state of Karnataka is 45 days and you have to do a minimum of 18 days of earned leave in a year (1 day for every 20 days). Let's say an employee working with you for 6 months technically earns only 9 days of earned leave whereas consumption will be more than that since unlimited. In my opinion you should let earned leaves be with a capping as only your earned leaves are encashed and need to be carried forward. You can do unlimited leaves for either sick or casual leaves as per your company policy. These are not earned leaves and can be reset at the end of the year without encashment or carry forward so it becomes easier to do this.

@Sai Venkata Vinay Chittuluru Leave encashment is not a mandate by law for companies covered under S&E Act.

We offer unlimited PTO at Squadstack and there is absolutely no compliance issue with this. We do however track leaves so that we can nudge folks who aren't taking enough leaves and keep a check in case someone is taking leaves in a manner that affects work adversely.