Striking A Balance: Legal And Ethical Dimensions Of Managing Employee Absenteeism

In today's evolving work landscape, the issue of prolonged employee leaves and absenteeism has emerged as a challenge for organizations across industries. As businesses strive to maintain productivity, ensure seamless operations, and foster a positive work environment, the issue of extended employee leaves demands a closer examination. From unexpected medical absences to sabbaticals for personal growth, the impact of extended time off can ripple through an organization, affecting team dynamics, work related timelines, and overall team morale. 

Notwithstanding the above, employee leaves have become an integral part of contemporary workforce management, allowing employees to address personal exigencies without jeopardizing their job security. However, managing leaves can be challenging for employers, particularly when faced with frequent, substantial, or extended leaves due to medical, compassionate, or bereavement reasons. This article delves into the legal landscape, analyses the implications of managing employee leaves, and concludes with few suggestions capturing the recommended practices for addressing this issue with a streak of sensitivity towards individual well-being along with focus on ensuring organizational efficiency.

EXTANT LEGAL POSITION

While legislations such as Factories Act 1948 and the state-specific shops and establishments statute provide for the foundation of an establishment’s leave policy (as relevant), the same provides only for the minimum threshold of leaves that are required to be provided to the employees by an employer. These legislations do not prescribe for a maximum threshold of entitlements that the employees may be entitled to. As regards unapproved prolonged absences of employees, the same is typically dealt with under organisational policy read with standing orders (where applicable), where such absence from work is treated as misconduct and subjected to appropriate disciplinary action (including termination of employment depending on the severity of the case). However, the issue becomes complicated when the prolonged absence – though unapproved – is being availed upon citing a grave situation (such as serious illness) as the reason.

Indian courts have examined this aspect on a few occasions and have largely been in alignment with the principle that an employee’s services cannot be terminated solely on the reason of being on a prolonged leave. Having said that, the courts have time and again recognised the loss caused to the business of the employer due to such circumstances. Accordingly, the Delhi High Court^[1] observed that the discretion of extending medical / sick leaves cannot rest with the employee as essentially the employee is providing service to the employer and therefore an interpretation that an employee is in service of the employer, while being absent for a prolonged period, will be invalid and incorrect.

Ultimately, the ratification of a prolonged period of absence or, in the alternative, termination of employment will depend on the specific circumstances of each case, assessment of the cause, and the provisions of the organisational policy.

Where the employee has proceeded on sick leave or another paid leave on account of an exigency for a defined duration initially but is subsequently incommunicado, the employer may invoke the ground of voluntary abandonment of services albeit with caution. In such cases, it is imperative that all reasonable efforts to contact the employee and understand the reasons for such prolonged absence have been undertaken, as has also held by the Supreme Court^[2]. 

PRACTICAL CONSIDERATIONS FOR THE EMPLOYER

Notwithstanding the above discussion, the challenge is the manner in which prolonged absences are to be addressed practically. Striking the right balance between business requirements and employee welfare is crucial for effective leave management. The appropriate manner for an employer to remain employee friendly, while ensuring that the efficiency of the company is not impacted, is by ensuring and establishing well-defined internal protocols to evaluate and consider such requests on their merits. Few recommendations that an employer may consider are as listed below:

• Medical leave considerations: An employer may consider formulating transparent leave policies that outline the maximum number of paid leaves to which an employee is entitled. If an employee requires leave beyond the paid entitlement, the organization may consider granting unpaid leave. In such cases, conditions such as the timeline for operation, medical certificate requirements, and verification by an empanelled medical practitioner can be incorporated to maintain consistency and fairness. Further, depending on the severity of the medical conditions of the employees, if the employee may require reasonable accommodations, such as flexible work hours or work-from-home options, employers may also consider exploring and granting the same. 

Maintaining effective communication with employees during prolonged sickness is crucial. Recognizing that emails might not be accessible or feasible, alternative communication methods should also be considered. If an employee's health substantially interferes with their ability to perform assigned duties, the decision of parting ways with the employee may be considered, provided that the statutory process is followed.

• Managing leave extensions: Employees extending leaves at the last moment are likely to disrupt workflow and productivity. On occasions wherein employees communicate a specified return-to-work date but subsequently seek extension of their leave, an employer may consider refusal of further leaves if there is a reasonable business driven justification. Disciplinary actions may be considered and initiated if an employee fails to comply with the company's directive to return to work without a justifiable cause or supporting material. Nevertheless, each situation merits individual assessment. If a valid medical certificate advises against reporting to work, the organization may have to consider granting extended leave, whether paid or unpaid and depending on organisational policy. In cases of unexplained absence, proper disciplinary procedure should be followed before any termination decisions are made. 

CONCLUSION

Balancing the needs of the employee and the operational requirements of the organization is essential. While the law may not provide specific guidelines on the maximum tenure of leaves, employers can set reasonable limits based on their business needs and the gravity of the employee's situation. Consultation with legal advisors can help ensure that leave policies align with employment laws and are not discriminatory.

By understanding the legal standpoint, analysing leave management implications, and implementing comprehensive leave policies, employers can foster a supportive workplace culture that prioritizes employee well-being without compromising organizational productivity. A proactive and compassionate approach to management of employee leaves enhances employee morale and overall organizational success.

***

Disclaimer: The views of the author(s) in this article are personal.