Air India’s staff privilege leaves policy to undergo revision from April 1st

An internal communication from Air India states that the airline will be revising its policy on privilege leaves for both permanent and full-term contract staff from the next financial year. The revised policy will align with “prevailing market conditions”. Effective from April 1, the accumulation limit for Privilege Leaves (PLs) for all Air India’s employees will be 60 days in a financial year, according to the communication released on Wednesday. The revised policy also allows an employee to accumulate up to 60 days of PLs at the end of a financial year or to encash the same number of PLs.

Air India’s Chief Human Resources Officer, Suresh Dutt Tripathi, said in the communication that the airline is comprehensively reviewing its leave policy to align it with the prevailing market practices. The new policy will include changes in the leave encashment policy for permanent staff. Currently, permanent employees can accumulate or encash up to 300 PLs. However, there is no leave encashment option for fixed-term contract employees, including pilots, cabin crew, and ground staff. An official close to the development revealed that pilots can accumulate 150 PLs, while cabin crew and ground staff can only accumulate 60 PLs.

Air India

According to the communication, the airline employs approximately 11,000 people, consisting of both flying and non-flying staff.

The communication explained that if an employee’s accumulated PLs as of March 31 are 250 days, then they can carry forward 60 days to the next fiscal year beginning on April 1. The company will pay out the remaining 190 PLs in cash. Additionally, employees who opt for voluntary retirement and are being released will also be eligible for encashment in their final settlement.

In addition, all full-term contract employees will receive encashment for their accumulated PL balance exceeding 60 days. The communication announced that the company will encash unutilized PLs for all employees, including permanent and full-term contract employees, as a special case for the current financial year.

The airline also plans to harmonize the PL entitlements for both permanent and non-term contract employees going forward. As per the communication, the accumulation and encashment limits will be the same for both permanent and full-term contract employees starting in April.

On March 17, the airline offered voluntary retirement to its non-flying staff, marking the second such offer by the Tata Group since taking control of the Air India’s airline, which has been incurring losses, in January 2022.

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