Avinash Kumar Sharma (Sr. Manager HR) 02 February 2011

ENTITLEMENT OF EARNED LEAVE

Dear Sirs,

There is aproblem which I want to share with u. In my last organisation we used to grant Earned Leave on the basis of whatever an employee earned in the current year was given to him in next year irrespective of the fact of his number of working days in current year even if he used to be a new employee and worked for more than 20 days. But in my new organisation I was asked to grant EL if an employee have worked for more than 240 days. Moreover there is also confusion regarding inclusion of paid holidays and leaves while calculating ELs. Wheather sanctioned CL, SL & EL should be counted while calculating EL or not. What should be the rule during encashment or full & final.

Regards,

Avinash

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5 Replies

Ravindra R. Wankhede (Manager) 02 February 2011

Please refer the Factory Act.

V. VASUDEVAN (LEGAL COUNSEL) 02 February 2011

If the organization comes under the Shops & Establishment Act, the leave policy will be guided by the relevant S&E Act. In case the Industrial Standing Orders Act is applicable, then the policy will be guided by the Model Standing Order. Usually the leave earned in the current year is credited in the following year and there is no necessity for completion of 420 days. Some companies, as a practice, credit the leave earned in the current year itself and does not carry it forward.

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(Guest)

You cannot deduct the period spent on paid leave for making calculation for EL admissible to an employee, may that be in the shape of SL, CL or EL. However, the days spent on leave without pay can be deducted out of the total period while calculating EL to be credited to the leave account of the employee.

As regards the policy of grant of EL that depends from organization to organization. Some oganizations allow EL on prorata basis for the period of service already rendered by the employee, while others allow credit of leave on completion of 240 days of service, or some allow credit on six monthly or annual basis to be availed any time after completion of that period.

PS Dhingra

Chief Executive Officer

Dhingra Group of Management & Vigilance Consultants

New Delhi-110089

Mobile: 09968076381

[dcgroup1962@gmail.com]

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sanjay kumar (BE/ LLM in Corporate Laws) 03 February 2011

The working hours and leaves vary from organisation to organisation.

As per Factory's Act, one day leave with pay is to be granted to a worker after completing max. 48 hours of duty in a week. If he does a night-duty in between, an extra Day-off is to be granted.

Regarding other leaves like EL, Half-pay leave, Extra-ordinary leave etc. are welfare measures of each organisation.