Företag/Company name Dokumenttyp/Type of document

Volvo Group India Pvt. Ltd./ Volvo Financial Services Policy

India Pvt Ltd./Volvo CE India Pvt Ltd
Dokumentnamn/Name of document Utgåva/Issue Reg nr/Reg. No. Sida/Page

Leave Policy 2.0 <> 1 (7)

Utfärdat av (avd nr, namn, tfn, geogr plac)/Issuer (dept, name, phone, location) Sign Datum/Date Infoklass/Info class

Rewards CoE, India 20 June 2017 Internal

Fastställt av (avd nr, namn, tfn, geogr plac)/Approved by (dept, name, phone, location) Sign Datum/Date Giltig/Valid

HRCC 01 Jan 2021 Validity Date

Table of Contents
1. PURPOSE .................................................................................................................................................................................................. 1

2. DEFINITION ............................................................................................................................................................................................ 1

3. COVERAGE .............................................................................................................................................................................................. 1

4. LIMITATIONS ......................................................................................................................................................................................... 1

5. ELIGIBILITY ............................................................................................................................................................................................ 1

6. OPERATING GUIDELINES......................................................................................................................................................................................... 1

6.1. Earned Leave (EL)/ Privilege Leave ........................................................................................................................1

6.1.1. How to avail Privileage Leave ................................................................................................................................ 2
6.1.2. Carry forward and accumulation ........................................................................................................................... 2
6.1.3. Encashment ........................................................................................................................................................... 2

6.2. Contingency Leave (CL).......................................................................................................................................... 2

6.2.1. How to avail CL ...................................................................................................................................................... 3

6.3. Parental Leave ...................................................................................................................................................... 3

6.3.1. Maternity Leave (ML) ..................................................................................................................................... 3
6.3.1.1. Termination of Pregnancy .............................................................................................................................. 3
6.3.1.2. How to avail ML ............................................................................................................................................... 3
6.3.1.3. Adoption and Surrogacy Leave ................................................................................................ ..........................4
6.3.2. Extended Maternity Leave (EML) ................................................................................................................... 4
6.3.3. Paternity Leave ............................................................................................................................................. 4
6.3.3.1. How to avail Paternity Leave ............................................................................................................................ 4

6.4. Leave Without Pay (LWP) ..................................................................................................................................... 5

6.5. Compensatory Off ................................................................................................................................................ 5
6.6. CSR Time Off..........................................................................................................................................................5
6.7. Celebration Leave .................................................................................................................................................5
6.8. Leave Donation .....................................................................................................................................................6

7. DISCLAIMER ........................................................................................................................................................................................... 6
8. ADVISORY TO EMPLOYEES ............................................................................................................................................................... 6
9. RASIC ........................................................................................................................................................................................................ 6
Företag/Company name Dokumenttyp/Type of document

Volvo Group India Pvt. Ltd./ Volvo Financial Services Policy

India Pvt Ltd./Volvo CE India Pvt Ltd
Dokumentnamn/Name of document Utgåva/Issue Reg nr/Reg. No. Sida/Page

Leave Policy 2 (7)

1. Purpose

The purpose of the Leave Policy is to inform employees of their entitlements and procedure
of applying & availing leave. This is to encourage employees to plan and avail at least a
minimum number of days of leave in a year to rest, relax, recuperate and spend quality time
with the family and to discharge their social obligations.

2. Definition

CL Contingency Leave
HRBP Human Resources Business Partner
HRSC HR Service Center
ML Maternity Leave
EML Extended Maternity Leave
WFH Work From Home
LWP Leave Without Pay
Adoption The act of legally taking a child to be taken care of as ones’ own
child
Surrogacy The action of a woman having a baby for another woman who is
unable to do so by herself

3. Coverage

This policy covers all Office workers of all the legal entities of Volvo Group in India.

4. Limitations

This policy does not cover Industrial Workers, Temporary staff and Consultants.

5. Eligibility:

• The leave policy is applicable to all full time employees in the Office Worker category
of all the legal entities of Volvo Group in India.
• Leave calculation is based on the calendar year - January to December.

6. Operating Guidelines

6.1. Privilege Leave:

Privilege Leave are the days credited to all employees at the beginning of the year so that
they can plan their leaves well in advance. Taking into consideration of 2 days privilege
leave credit per month, 24 days of privilege leave gets credited to a regular employee at
the start of a calendar year

Entitlement of privilege leave for the first year of service would be pro-rated, based on the
date of joining and calculated on number of days of service up to December 31 of the
particular year.
Företag/Company name Dokumenttyp/Type of document

Volvo Group India Pvt. Ltd./ Volvo Financial Services Policy

India Pvt Ltd./Volvo CE India Pvt Ltd
Dokumentnamn/Name of document Utgåva/Issue Reg nr/Reg. No. Sida/Page

Leave Policy 3 (7)

In case of separation for any reason whatsoever, leave would be calculated on pro-rata
basis till the last day of employment.

6.1.1. How to avail Privilege Leave

• To be availed only on prior approval from the Reporting Manager

• Only working days would be considered for calculation of the number of days of
leave availed, excluding any intervening holidays/weekly off.
• While applying for Privilege Leave, it cannot be clubbed with any other type of
leaves, the only exception being Maternity/Paternity Leave
 Contingency and Privilege Leave can be clubbed only in case of
medical condition arising out of hospitalization
• Minimum quantum is ½ a day.
• In case any TD/BA/GF goes for Year-End Block Closure, then those days shall be
adjusted against the Privilege Leave of employees of that TD/BA/GF
 Block closure can be decided keeping the business exigencies in mind and will be
applicable for whole TD/BA/GF and not to only a few employees (sub point)
 If an employee of the particular TD/BA/GF does not have enough
Privilege Leaves to be adjusted with block closure, the Leaves can be
used from next year credit. This will help employees from not going for
Leave Without Pay
 HRBPs to inform HRSC on the decision on block closure well in
advance to adjust the leaves of the employees

6.1.2. Carry Forward and Accumulation of Privilege Leave

The total Privilege Leave accumulation at the start of any calendar year can not be
more than 45 days.

With effect from 1st January 2021, out of 24 days of Privilege Leave credited annually
a maximum of only 9 days of Privilege Leave will get carried forward for a full year of
service, to the next year. This is to encourage employees to take atleast 15 days of
Privilege Leave or the same will get lapsed at the end of the calendar year.

6.1.3. Encashment

Encashment of Privilege Leave is possible only at the time of separation owing to

retirement, redundancy, outsourcing, disability/sick leave, death or due to the fact that
the Volvo Group entity where he/she is employed is sold outside the Volvo Group. The
encashment will have a maximum limit of 45 days and will be done on the employee’s
most recent Base salary (Basic+Flexible Benefits Plan).

If an employee is dismissed during the year due to misconduct and/or violation of

laws/company rules and policies, then no leave encashment shall be payable

6.2. Contingency Leave (CL):

• CL is granted when an employee is unable to perform her/his duties on account of

Företag/Company name Dokumenttyp/Type of document

Volvo Group India Pvt. Ltd./ Volvo Financial Services Policy

India Pvt Ltd./Volvo CE India Pvt Ltd
Dokumentnamn/Name of document Utgåva/Issue Reg nr/Reg. No. Sida/Page

Leave Policy 4 (7)

illness, injury, medical / other personal emergencies and urgent matters affecting
self and/or family members.
• All eligible employees are entitled for 10 days of CL in a calendar year. Any
unutilized leave in this category will lapse at the end of the calendar year.
• CL can not be encashed
• First year’s entitlement would be pro-rated, based on the date of employment and
calculated on the number of days of service up to December 31 of the particular
year.

6.2.1 How to avail CL

• CL can be availed from the day an employee joins the company with the reporting
manager’s approval as these emergencies could occur at any point of time.
• Only working days would be considered for calculation of number of days for leave
availed excluding any intervening holidays/weekly off.
• In case of long sickness, first CL and then Privilege Leave would be adjusted
• Minimum quantum is ½ a day

6.3 Parental Leave

All employees are eligible for parental leave on account of childbirth, adoption and
surrogacy, subject to working for at least 80 calendar days (for Maternity Leave)
continuously in the organization from the date of joining

6.3.1 Maternity Leave (ML)

All full time Women Employees shall be entitled for Maternity Leave, for a maximum of
26 calendar weeks at a stretch and not in a staggered manner. The employee has the
option to take less or more number of weeks, before and after delivery as long as it
totals to 26 calendar weeks. The 26 weeks also include Leave for illness arising out of
pregnancy, delivery, premature birth of child. The 26 calendar weeks of ML will be
applicable for the first 2 children only. After the first 2 children, the applicable ML will be
12 calendar weeks.

6.3.1.1 Termination of Pregnancy

An employee can avail 6 calendar weeks of leave, at a stretch, with salary in case of
miscarriage of pregnancy. Medical certificate as evidence is required to be submitted.

6.3.1.2 How to avail ML

• Before availing this leave, the employee should inform the respective manager and
HRBP through an email.
• The employee needs to raise a request in SNOW to grant maternity leave along with
her doctor’s certificate mentioning the expected date of delivery to HR Service Center
team. The planned start date of ML should also be mentioned
• Once HRSC grants 26 calendar weeks of ML to the Employee’s leave balance, the
employee can apply for the same in ESSIN for Reporting Manager’s approval.
• The employee is expected to report to office for work on the next working day
after availing the Maternity Leave.
Företag/Company name Dokumenttyp/Type of document

Volvo Group India Pvt. Ltd./ Volvo Financial Services Policy

India Pvt Ltd./Volvo CE India Pvt Ltd
Dokumentnamn/Name of document Utgåva/Issue Reg nr/Reg. No. Sida/Page

Leave Policy 5 (7)

6.3.1.3. Adoption and Surrogacy Leave

 An employee can avail upto 26 calendar weeks of leave, at a stretch and not in a
staggered manner in case of adoption or surrogacy.
o The leave will be applicable for adopting child of 3 months of below. For
adopting child of above 3 months old, 12 weeks of Adoption Leave will be
granted
 Necessary legal /medical certificates need to be submitted for availing the
adoption/surrogacy leaves
 The approval process for availing this leave will be similar to the Maternity Leave.

6.3.2 Extended Maternity Leave (EML)

 In addition to the above 26 calendar weeks of ML, all eligible women employees can avail
additional EML of a maximum of 26 calendar weeks, subject to necessary written
approval by the Reporting Manager.
 This means that by combining ML and EML, any employee can be away from work for a
maximum of 52 calendar weeks or 365 days from the day when her maternity leave
started.
 Employee has the responsibility to inform their manager, respective HRBPs about the
number of weeks of EML they want to avail
 The additional 26 calendar weeks of EML should be immediately after availing the ML
and not in a staggered manner.
 The EML can be a combination of Privilege Leave, Contingency Leave, Leave Without
Pay and Work from Home (WFH),as per business requirement and approvals
 The WFH option is business discretionary and can be availed, provided that:
o The nature of the job allows the individual to perform the duties from home
o The decision is made within 2 weeks on completion of 26 calendar weeks of ML.
o Necessary approval from the Manager and HRBP is obtained.
 The LWP days can be availed, provided that:
o Employee has already utilized all the accrued leaves (i.e.,Privilege Leave &
Contingency Leave)

6.3.3 Paternity Leave

Paternity Leave is extended to employees in order to allow them to be with his spouse
and child. This can be also availed if there happens to be any miscarriage by his
spouse or legal adoption.

Every married male employee shall be entitled to a Paternity Leave of Fifteen (15)
working days for the first two (2) deliveries / legal adoptions. The employee should
ensure that 10 days of Paternity Leave is taken immediately upon child birth and rest 5
days within 6 months of child birth.

Employee is required to produce necessary proof (Copy of Doctor’s Certificate/legal

certificate, wherever applicable) to avail the same.

6.3.3.1. How to avail Paternity Leave

• The employee needs to raise a request in SNOW to grant Paternity Leave along with
Företag/Company name Dokumenttyp/Type of document

Volvo Group India Pvt. Ltd./ Volvo Financial Services Policy

India Pvt Ltd./Volvo CE India Pvt Ltd
Dokumentnamn/Name of document Utgåva/Issue Reg nr/Reg. No. Sida/Page

Leave Policy 6 (7)

a copy of doctor’s certificate mentioning the expected date of delivery or Birth

Certificate of child. In case of a miscarriage or legal adoption, the necessary
certificates should be submitted.
• Once HRSC grants 15 days of Paternity leave to the Employee’s leave balance, the
employee can apply for the same in ESSIN for Reporting Manager’s approval

6.4. Leave Without Pay (LWP)

 Employees can go for leave without pay in case he/she has utilized all the available
Privilege Leave/Contingency Leave/Maternity Leave/Paternity Leave.
 LWP can be availed only for exceptional cases like Health concern of employee and
his/her immediate dependents, maternity, marriage of employee, appearing for
examinations or any other emergency personal situation that may arise
 An employee can avail LWP after mandatory approvals from his/her manager and
respective HRBPs.
 The LWP can not be converted to any other leave nor can be reversed on a later
date
 The annual STI will be not paid on the number of days of LWP

6.5. Compensatory Off

 Compensatory Off refers to a day off taken against work done on a company declared
holiday or a scheduled weekly off day to meet the business requirement.
 It will be applicable to only those employees who volunteered to work as per
requirements from their reporting managers.
 For further information on this, please refer the compensatory off guideline available in
ESSIN

6.6. CSR Time Off

 CSR time off refers to a day off taken against participating in CSR related activities
conducted by Volvo Group India
 Total number of days available for an employee will be Two (2) days per calendar year.
 An Employee can take this time off either in the multiple of half day/One day/Two days
 This time off will be credited to the employee’s leave balance, once the CSR head has
approved the request made by the employee on the email. The employee will then have
to apply for CSR time off for approval by manager in ESSIN
 CSR time off will not be carried forward to the next year if an employee does not avail in
the particular year

6.7. Celebration Leave

 Celebration Leave refers to a day off taken by employees to celebrate or be with their
immediate family members (self, spouse, children, parents/in laws) on occassion of
birthday or marriage anniversary.
 Total number of days available for an employee will be One (1) day per calendar year.
 Celebration Leave will be credited to employee at the start of the calendar year to avail
 This will not be carried forward to next year
Företag/Company name Dokumenttyp/Type of document

Volvo Group India Pvt. Ltd./ Volvo Financial Services Policy

India Pvt Ltd./Volvo CE India Pvt Ltd
Dokumentnamn/Name of document Utgåva/Issue Reg nr/Reg. No. Sida/Page

Leave Policy 7 (7)

6.8. Leave Donation

 An employee can donate maximum of 5 days of his/her privilege leave per calendar year
to other employees.
 This will only be in the cases of critical health related exigencies of the receiving
employee, on specific approval of the Business (Manager and HRBP) & HR CoE(C&B)
 Company doctor and Insurance Provider can certify the critical illnesses as required
 Post approval of donation process, donor employees will see reduction in their leave
balance in ESSIN
 The receiving employee must avail all her/his accumulated leaves before receiving any
donation from other colleagues
 Donated leave can not be carried forward or encashed
 At one point, maximum of 22 days of Privilege Leave, can be donated to an employee.
Post assessment of situation, further donation can be initiated.

7. Disclaimer

This policy can be revised/changed/amended/withdrawn at any time by the

management at its own sole and absolute discretion without any discussion or
reference to the employees.

8. Advisory to Employees
Failure to regularise absence from the office and /or making any false representation
is a misconduct and will attract severe disciplinary action. Employees are expected to
apply for appropriate leave types every month for their reporting managers to approve
the same without fail.

9. RASIC

R = Responsibility; A = Approver; S = Support; I = Information; C = Consult

Activities Employee Manager HRSC
Credit of Leave - - R
Applying Leave R I -
Approval of Leave - A -

****
Date Version Changes since the last version Author Approval
10-June-2014 2.0 Extension of Maternity leave HR CoE HRCC
29-April-2016 3.0 Extension of Maternity leave HR CoE HRCC
Maternity and Paternity leave Revision, Inclusion of
Extended maternity leave
25-July-2017 4.0 Change of SEL to CL, Carry Foward limit for EL. HR CoE HRCC
Accrual Limit of Privilege Leave, Maximum carry
forward limit of Privilege Leave/year, Increase in
paternity leave, Introduction of CSR Time Off, Renaming
28-July-2020 5.0 Earned Leave to Privilege Leave HR CoE HRCC