Benefits Handbook | Policy document

Leave Policy
Paid and Unpaid
Effective January 01, 2020
Updated March 1, 2022

The Firm reserves the right, at its discretion, to change, suspend, or

terminate the policy / program at any time. In cases of any material
changes, or modifications to these terms , the firm will notify all colleagues.

Confidential and proprietary. Any use of this material without specific

permission of McKinsey & Company is strictly prohibited
 Leave Policy

Contents

1. Purpose .............................................................................................. 1

2. Scope ................................................................................................. 1

3. Eligibility ............................................................................................. 1

4. Entitlement and other provisions:

4.1. Paid Leave................................................................................... 1

a) Public Holidays ....................................................................... 1

b) Earned Leave.......................................................................... 2

c) Casual Leave ...........................................................................2

d) Medical Leave ......................................................................... 2

e) Certified Medical Leave (STD Benefit) ..................................... 3

f) Personal Leave ........................................................................3

g) Parental leave for birthing parents / primary caregivers

(Maternity Leave (includes Adoption / Surrogacy Leave)) ....... 3

h) Miscarriage Leave .................................................................... 4

i) Parental Leave for non-birthing parents /

secondary caregivers .............................................................. 4

j) Special Birth Leave ..................................................................4

4.2. Unpaid Leaves ............................................................................. 5

5. Administration Process:

5.1. Availing leaves under all leave categories ................................... 5

5.2. Specifics on availing Medical Leave............................................. 6

5.3. Specifics on availing Certified Medical Leave .............................. 6

6. Administration Guidelines… ................................................................ 7

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 Leave Policy

1. Purpose
McKinsey Global Services India, a wholly owned subsidiary of McKinsey & Company
(henceforth referred to as the Firm), recognizes the need of its colleagues to take personal
time off to rest, recover and attend to personal exigencies. The purpose of this policy is to
define leave eligibility and to facilitate planning and availing of leave in a systematic manner.

2. Scope
This leave policy is applicable to all full-time employees (FTE) based out of all locations /
offices of McKinsey Global Services India.

3. Eligibility
All colleagues, who are full-time employees of the Firm, are eligible for leave benefits under
the below mentioned categories, usually defined for a calendar year i.e. from Jan. 1 till Dec.
31, unless otherwise stated:

1) Paid leaves:
a) Public Holidays
b) Earned leave
c) Casual leave
d) Medical leave
e) Certified medical leave (STD Benefit)
f) Personal leave (Erstwhile: Compassionate leave)
g) Parental leaves for Birthing Parents/Primary Caregivers (Maternity leave
includes Adoption / Surrogacy Leave)
h) Miscarriage leave
i) Parental leaves for Non-Birthing Parents/Secondary Caregivers (Erstwhile:
Paternity leave)
1. For colleagues who welcomed a baby (birth/adoption/surrogacy) before
March 1, 2022)
2. For colleagues who welcome a baby (birth/adoption/surrogacy) on or
after March 1, 2022)
j) Special Birth leave
2) Unpaid leave (Erstwhile: Loss of pay)

4. Entitlement and other provisions:

This segment lays out the entitlements and the respective provisions for each leave
category. All paid and unpaid leaves (except Public Holidays, which are pre-approved) are
required to be availed through HRIS portal and approved by the immediate manager.

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4.1. Paid Leaves:

a) Public Holiday:
 Colleagues are entitled to public holidays every calendar year based on the rules
governed by the state and central governments in the country. It varies year-on-
year and across locations.

 The public holiday list, applicable for the year across all locations, is reviewed every
year by the office leadership and HR team and communicated accordingly.
Colleagues are requested to refer to the current public holiday list applicable for their
respective locations on the HRIS home page.

b) Earned Leave (EL):

 Colleagues are entitled to 12 working days of Earned Leave in a calendar year
for taking time off from work for planned vacations / planned absences.
 EL is credited to the HRIS account effective Jan 1 of every calendar year. New
hires are entitled to pro-rated Earned Leaves based on their date of joining.
 Carry forward: Colleagues are entitled to carry forward (and accumulate) un-
availed Earned Leaves up to a maximum of 45 working days, during their total
tenure in the Firm. The un-availed Earned Leaves carried forward from the current
calendar year can be utilized in the subsequent year, subject to immediate
managers’ approval. Any further accumulated earned leaves (i.e. beyond 45
working days) will be encashed during January of the subsequent year up to a
maximum of 12 working days.
 Option to encash Earned Leave: Colleagues can also choose to encash the un-
availed (and / or accumulated) Earned leave balance every year, provided they
sign an e-declaration in December. Please note that partial encashment is not
permissible, i.e. in case colleague has Earned Leave balance of eight days in
December of the current year, one cannot choose to ‘carry forward’ five days to the
next calendar year and encash the remaining three days in the current year.
 If opted for leave encashment, the same shall be computed on the fixed pay as on
December 31 and processed along with the salary for the month of January in the
subsequent calendar year. Deductions (as per statute) will be applied on payouts.

c) Casual Leave (CL):

 Colleagues are entitled to 12 working days of Casual Leave during a calendar
year, for attending any unanticipated event or when an employee is unable to
attend the office due to any personal exigencies.
 CL is credited to the HRIS account effective Jan. 1 of every calendar year. New
hires are entitled to pro-rated casual leaves based on their date of joining.
 Colleagues are not permitted to carry forward or claim encashment of any
casual leave balance.

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 Leave Policy

d) Medical Leave (ML):

 All colleagues, irrespective of their date of joining, are entitled for 12 working days
of Medical Leave in a calendar year.
 Submission of proof of illness (i.e. related medical records) is mandatory while
applying / for applied ML for a continuous period of three working days and

above. The same will be validated and approved through a Firm-provided third-
party medical service vendor.
 Colleagues are not permitted to carry forward or claim encashment of any
Medical Leave balance.

e) Certified Medical Leave (CML) / STD Benefit:

 In the event, a colleague needs to be away for a prolonged period of medical
supervision / assistance due to illness, he / she can avail Certified Medical Leave
(CML). While CML is a MGS-India specific benefit, this is governed by the Firm's
‘Short-term compensation continuation’ or ‘Short-term disability (STD)’
program as part of its global benefits program.
 Colleagues can request for CML only in case of absence from work for a
continuous period of more than five working days or five intermittent days
over a three-week period. Any approved STD benefits begin on the first day of
absence and continue for up to 26 weeks within a 52-week period. (Please refer
Summary Plan Description (SPD) for more details or reach out to your local HR).

f) Personal Leave (PL): (Earlier – Compassionate leave)

 Colleagues are entitled to three working days of Personal Leave that can be
availed for the following situations, on each occurrence:
 Demise of an immediate family member i.e. father/ mother/ spouse/
children
 Wedding ceremony for self only
 Colleagues are not permitted to carry forward or claim encashment of any
Personal Leave balance.

g) Parental Leave for Birthing Parents / Primary Caregivers ( MAL):

 All colleagues who are birthing parents or primary caregivers, regardless of their
tenure in the Firm, are entitled to avail 26 weeks (182 calendar days) of Parental
Leave ( (MAL)), during the birth or adoption of a child (including births via
surrogacy). There are no limits to the number of child births for availing MAL.
 Parental Leave (MAL) may begin from up to eight weeks before (a sub-limit of
the 26 weeks) the expected delivery / adoption date.

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 Leave Policy

 Certified Medical Leave (CML) for Birthing parent scenarios only: Birthing
parents are eligible to claim CML related to maternity, which will be governed by
the Firm's ‘Short-term compensation continuation’ or ‘Short-term disability’
benefit program (STD program). Days approved under CML will be over and
above the 26 weeks of Birthing parent leave benefit.
 Unpaid Leave for Birthing parent scenarios only: Birthing parents are entitled
to avail an additional one month of Unpaid Leave (UL) post completion of the
Birthing parent Leave ( M A L ) for dealing with any unexpected situation related
to the pregnancy/ child birth/ family situation etc., with prior approval from
immediate manager and HR.
 In case of Adoption / Surrogacy, it is mandatory to submit relevant legal
documentation and adoption certificates etc. for availing the leave benefit.

h) Miscarriage Leave:
In the unfortunate event of a miscarriage, colleagues are entitled to six weeks (42
calendar days) of Miscarriage Leave with full pay, from the date of miscarriage.

i) Parental Leave for Non-Birthing Parents/Secondary Caregivers (PAL):

1) For colleagues who welcomed a child(birth/adoption/surrogacy) before

March 1, 2022: Colleagues who are non-birthing parents or secondary caregivers
are entitled to avail Parental Leave (PAL) of up to a maximum of 15 calendar days,
over two instances, with a minimum of three calendar days in each instance.
 There are no limits to the number of child births for availing PAL, however the
same needs to be availed within 6 months from the date of child birth.
 If both the parents are working with the Firm, the non-birthing parent or the
secondary caregiver may choose to transfer the entire 15 calendar days to their
spouse i.e. 15 days can be availed by the birthing parent or primary caregiver .
 In the unfortunate event of the demise of the birthing parent during child birth,
non-birthing colleagues are eligible for an additional 15 calendar days of PAL, to
take care of the new born infant. Such leave needs to be availed immediately after
the time of demise. This is over and above the three days of leave that can be
availed under the Personal Leave category.

2) For colleagues who welcome a child (birth/adoption/surrogacy) on or after

March 1, 2022:

 Colleagues who are non-birthing parents or secondary caregivers are entitled to

avail Parental Leave (PAL) of up to a maximum of 56 calendar days or 8 weeks.

 These can be availed over four instances, with a minimum of 2 weeks (14 calendar
days) in each instance.

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 Leave Policy

 There are no limits to the number of child births for availing PAL, however the
same needs to be availed within one year from the date of child birth.
 In case of adoption of a child, the entitlement is the same i.e. 56 calendar days or
8 weeks, as detailed above.
 If both the parents are working with the Firm, the non-birthing parent or the
secondary caregiver may choose to transfer the entire 56 calendar days or 8
weeks to their spouse i.e. 56 calendar days or 8 weeks can be availed by the
birthing parent or primary caregiver.
 In the unfortunate event of the demise of the birthing parent during child birth, non-
birthing colleagues are eligible for an additional 56 calendar days or 8 weeks of
PAL, to take care of the new born infant. Such leave needs to be availed
immediately after the time of demise.
 For colleagues who are staffed on client engagements overseas for a long period
of time, respective service line leads / managers can discuss the modalities of
minimum stretch / tranches, waive off the separation of the tranches etc. (e.g.,
availing 56 calendar days in one go) – this exception is purely at the discretion of
the respective manager /service line leader.

j) Special Birth Leave (SBL):

Special births are broadly defined as premature births (delivery prior to 37 weeks of
gestation) that result in medical complications for the newborn and require a minimum
of a 10-day hospital stay, or multiple births, or birth of babies with special medical
needs.
 In the event of a “special birth”, colleagues are entitled to an additional four
weeks (28 calendar days) of Special Birth Leave (SBL) over and above the
Parental Leave for birthing parent (Maternity Leave (MAL)), regardless of tenure.
 If both the parents are working in the Firm, they are individually eligible for 28
calendar days of Special Birth Leave. One parent may choose to transfer the
above entitlement to other i.e. overall 56 calendar days can be availed by either
of the parents.
 Special Birth Leave for premature or multiple births must be taken within 12
months from the date of child’s birth.

 Medical documentation to support eligibility will be required. Firm reserves the

right to determine whether eligibility for this benefit is satisfactory.

Please note:
Special medical needs include, but are not limited to, cancer, heart defects, muscular
dystrophy, cystic fibrosis and other medical complications typically associated with a
premature birth. It also includes developmental disorders such as, Autism, Pervasive
Development Disorder (PDD), and Down Syndrome.

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 Leave Policy
4.2. Unpaid Leave (UL): (Earlier – Loss of Pay / LOP)
 Any leave availed with insufficient leave balance under any of the above leave
categories will be considered as Unpaid Leave (UL).
 UL should only be raised when there is insufficient balance in any of the other
leave categories. Any UL request with existing balance in the EL and / or CL leave
categories shall be rejected.
 Colleagues are mandatorily required to request for UL on the HRIS portal and
ensure approval from their immediate manager to avoid any disciplinary actions
due to unauthorized absence from work.
5. Administration Process:

5.1. Availing leaves under all leave categories:

 Attendance and leave (under all categories) are managed through the employee
self-service portal, commonly known as the HRIS portal.
 The leave balance (except for CML) is credited to the colleague’s HRIS account in
the beginning of the calendar year / date of joining whichever is later.
 Colleagues are required to record their daily attendance and/or request for any
leave on the HRIS portal. Once the leave request is raised, the request will be
directed to the immediate manager for approval.
 Once the immediate manager approves/rejects a request, an email notification will
be sent to the colleague with the status of the request. On approval, the appropriate
leave balance will be updated with remaining number of days in the colleague’s
HRIS account.
 Earned Leave encashment request: Colleagues who choose to encash their
accumulated Earned leave balance in a particular year can do so by signing an e-
declaration. The email link for the declaration will be circulated to all colleagues in
the last week of November and the same needs to be completed before 15th
December. Failure to submit the encashment request within the above timeline will
result in default carry forward to the earned leave balance in the subsequent year.

5.2. Specifics on availing Medical leave:

 Colleagues are required to raise their ML request on the HRIS portal and submit
the required documents (refer annexure) in the HR drop box, within 5 calendar days
of last day of work loss (or absence).
 In case of delay (or) failure to submit the required documents within the above
stated time frame, the period of absence will be accounted under Casual Leave
(CL), Earned Leave (EL) or Unpaid Leave (UL) in the same sequence, based on
the available balance.

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 Leave Policy
 List of mandatory supporting documents to apply for Medical Leave (ML)
 Medical Certificate (including Physician License Number with
signature/stamp and contact details)
 Complete address and contact details
 Investigation/Test report
 Prescriptions

5.3. Specifics on availing Certified Medical leave / STD benefit:

 Colleagues are required to raise the CML request on the HRIS portal and submit
the completed Notice and Proof of Claim Form (NCPF) directly to ExamWorks.
 Timeline for submission of NCPF: NCPFs must be submitted within 15 calendar
days after the 5th day of work loss (or absence from work). For example, if your
work loss began on Tuesday, January 8, and continued beyond Monday, January
14, then the deadline to apply for STD benefits would be Tuesday, January 29.
Applications submitted after this deadline may not be accepted, so it is your
responsibility to ensure you apply by the deadline. If your STD claim is not
submitted within the above deadline, benefit payments may be delayed or denied.
(Please refer Summary Plan Description (SPD) for more details or reach out to your
local HR).
 In case of delay (or) failure to submit the required documents within the above
stated time frame, the period of absence will be accounted under Medical Leave
(ML), Casual Leave (CL), Earned leave (EL) or Unpaid Leave (UL) in the same
sequence, based on the available balance.
 List of mandatory supporting documents to apply for Certified Medical Leave:
 Notice and Proof of Claim Form duly filled by the colleagues and the
treating physician with physician’s License Number, signature/stamp
and contact details

6. Administration Guidelines:
 All colleagues are requested to get the necessary approvals from their respective
immediate managers before availing any leave/absence of work. All leaves must be
raised and approved in HRIS before availing leave or by the end of the month in which
the leave is availed, whichever is earlier. Any un-approved leave or un- regularized
leave of absence after the stipulated timeline (5th of the subsequent month) will be
adjusted under CL/ EL/ Unpaid leave based on the available balance in the same
sequence.
 Exceptions: Any exceptions to the above timelines (resulting out of truly exceptional
scenarios only) would require an approval by the immediate manager and Function
Head, followed by submission of the request to Local HR team for appropriate
adjustment in the relevant leave category. Please note that any such exception needs
to be reported to HR within the first 10 days of the subsequent month post which no
such request will be accommodated (even with Function Heads’ approval).

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 Leave Policy
 Non-approval of leave before the above stipulated timeline and any approved leave
under Unpaid Leave (UL) category, will result in salary deductions, computed on the
fixed pay, pro-rated based on the calendar days absent from work.
 Pro-ration of applicable leaves: EL and CL entitlement for the calendar year will be
computed based on the date of joining / date of leaving (as applicable) basis the
formula below:
Total entitlement / 365 x No. of active days in the calendar year
Illustration: If the date of joining of a colleague is April 1, the total entitlement of EL
for the calendar year will be = 12 / 365 x 274 = 9 working days.
 Leave encashment on exit: Earned Leave entitlement will be pro-rated for colleagues
who are serving their notice period based on their last working day. Encashment of any
accumulated Earned Leave of up to 45 days (computed on the fixed pay as on the last
working day) will be done as part of the full and final settlement of the exit process.

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