What is this establishment: Commercial, Industrial, Small Enterprise?
The employee is located in which state?
Redg. Office of the company is in which state?
How many employees are employed in this company?
Assuming that the company is covered by ( name of your state) Shops and Commercial Establishments Act you may look into it in Section on Leave/Wages during Leave.
It is usually @ Daily Average of wages e.g. ( that can be obtained by dividing monthly salary/26* NO. of days in month)
The Delhi Shops and Establishments Act, 1954
23. Wages during Leave.—Every employee shall be paid for the period of his leave at a rate
equivalent to the daily average of his wages for the days on which he actually worked during the
preceding three months, exclusive of any earnings in respect of overtime but inclusive of
The EL is usually termed as Annual Leave in enactments.
The leave policy of the company can not be inferior to the provisions of the enactments applicable to the establishment. It can be superior.
IN case of difficulty approach employees unions, Trade Unions, Inspector under ( name of your state) Shops and Commercial Establishments Act, o/o Labor Commissioner or your lawyer.
The change in policy can not be from back date.