Balaji.venkatesan
Payroll, Statutory Compliance & General
Jituraj15
Sarvice
Vinni_m
Human Resource Development
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Maheshb79hr
Human Resource
Shilpavy
Hr- Exe Admin
Jeets
Service
Suneels
Sales And Marketing
+9 Others

In our company One person complete training period then provision period after that he conformed. Which day we should calculate for leave days?

Training period + provision period

Only provision period

Our company standing order does not mention this topic then what I do plz help me
30th July 2009 From India, Ahmadabad
Dear Raj,



FYI Its not provision period, its Probation period.



Not only in ur company where as in every company a fresher gets appointed as Trainee for a minimum of 6months and later depending upon his performance he/she will be escalated to the next level - Probation period where his/her desination changes with a hike in their salary.



For trainees specified amount of leave will be allocated during their training period. Other than trainees, employees under probation and for confirmed employees leave is calculated annually.



I will provide you the process that i follow for leave calculation in our company:





Leave Calculation:
    • As per leave policy the leave year for computing all types of leave will be from 1st January – 31st December. Based on the need / reason and length of leave, the following categories of leave can be availed: CL, SL and EL
    • For a permanent employee CL: 7days, SL:7days and EL:8days will be credited on the 1st – January of the calendar year.
    • For employees falling under Training and Probation period full SL: 7days will be credited on the 1st January of the calendar year irrespective of the date of completion of their training or Probation period.
    • After completion of Probation period the balance CL and EL will be credited to the employee based on the following leave calculations. Refer Leave policy to understand the leave procedure.
Trainee / Probation employee – SL calculation:

For Ex: 1 if a new employee joins on June 1st 2009 as trainee/ probation then the leave calculation is as follows: (For Trainee / Probation only SL will be credited)



SL Leave Calculation:



Total SL credit for the calendar year

-------------------------------------------------------------- * Months remaining in the calendar year

Total number of months in the calendar year









As per the above example:




  1. Total SL credit for the calendar year = 7days
  2. Total number of months in the calendar year = 12months
  3. Months remaining in the calendar year = 7months(As employee joined on June 1st so June 1st – Dec 31st = 7months, June month will be considered only when employee joins on or before 15th of that particular month or else the count starts from next month)




As per the formula the calculation is as follows:



7

--- * 7 = 4.08

12




  • Therefore 4days of SL will be credited to the new employee. Thus new employee joining as trainee / probation will get 4days as SL for the entire year
  • If the calculated leave results 4.50 then four and a half days leave will be credited and if it calculated leave results more than 4.5 such as 4.55/4.6/4.7……then the leave will be rounded up and credited as 5days.
  • If a new employee joins as Trainee on 1st January 2009 then SL – 7days will be credited to the employee as per the above formula and this leave credit is for the entire year and it doesn’t mean that when the employee enters into probation on the month of July again leave has to be credited because both trainee and probation employee will be eligible for SL only. Only after the completion of probation period CL and EL will be credited.
  • If a new employee joins on 1st January 2009 on Probation then SL – 7days will be credited for the entire year and as on July 1st if the employee gets confirmed CL and EL will be credited and the leave calculation is as follows :
Confirmed employee CL calculation:



Example: 2 if a new employee joins on 1st January 2009 on probation the employee gets confirmed on July 1st 2009 so CL calculation is as follows:



For CL the leave calculation is as follows:



Total CL credit for the calendar year

-------------------------------------------------------------- * Months remaining in the calendar year

Total number of months in the calendar year





CL Calculation:




  1. Total CL credit for the calendar year = 7days
  2. Total number of months in the calendar year = 12months
  3. Months remaining in the calendar year = 6months(As employee gets confirmed on July 1st so July 1st – Dec31st = 6months, July month will be considered only when employee confirmation is on or before 15th of that particular month or else the count starts from next month)




Calculation as per formula is as follows:





7

------- * 6 = 3.5

12





Therefore 3.5days of CL will be credited as on July 1st for the entire year and if the calculated value results more than 3.5 such as 3.6/ 3.7/ 3.8………then the leave will be rounded up and credited as 4days.



Confirmed employee EL calculation:



Example: 3 if a new employee joins on 1st January 2009 on probation the employee gets confirmed on July 1st 2009 so EL calculation is as follows:



For EL the leave calculation is as follows:



Total EL credit for the calendar year

-------------------------------------------------------------- * Months remaining in the calendar year

Total number of months in the calendar year





EL Calculation:




    1. Total EL credit for the calendar year = 8days
    2. Total number of months in the calendar year = 12months
    3. Months remaining in the calendar year = 6months(As employee got confirmed on July 1st so July 1st – Dec31st = 6months, July month will be considered only when employee confirmation is on or before 15th of that particular month or else the count starts from next month)




Therefore the calculation as per formula is as follows:

8

------- * 6 = 4.0

12









Therefore 4days of EL will be credited as on July 1st for the entire year if the calculated value results more than 4.5 such as 4.6/ 4.7/ 4.8………then the leave will be rounded up and credited as 5days.








30th July 2009 From India, Madras
dear malini it is very good information and it help to me i not open my id so i am let to finding this information this information clear all point
31st July 2009 From India, Ahmadabad
dear malini it is very good information and it help to me i not open my id so i am let to finding this information this information clear all point
31st July 2009 From India, Ahmadabad
Hi All, Malini really very good info....really appreciable, and this will help me a lot in future. Regards, Shruti Kumawat
31st July 2009 From India, Lucknow
malini one employee join then can i calculate bonus for CTC. if i calculate what will happened it is right that we show in his appointment letter.
31st July 2009 From India, Ahmadabad
Hi Malini,
As per tamilnadu shop 7 establishment act there must be 36 days leave per year
for example 12 SL, 12 CL, 12 EL and then SL and EL can forward to next year. Depends upon company policy we may fix the leave like 15 SL, 12 CL, 9 EL. In probation period we reduce the half of the annual leave. Earn leave will comes after completion of one year. I think it might be right but am not sure. I request you to reply for this.
31st July 2009 From India
Hello Malini,
It depends on the company policy. In our company we give only CL to the employees who are in Probation period. Then once if they are out that period, they are eligible to have CL, ML etc. Still its up to the company's policy to fix which leaves are to be carry forwarded apart from the basic leaves.
31st July 2009 From India, Bangalore
Balaji i agree with u but many companies dont follow these rules. Its purely based on management decision and the same will be framed as Leave policy by the HR. Management seeks to use the max of the employees contributions and hence tend to reduce their leave credit. This is wat happening everywhere.
Apart from this we work for countries outside India and u know in India we have too many festivals too, so too many leaves apart from this company will declare annual leave to employees(CL,SL and EL). Clients outside India will not have so many leaves in their company and management cannot explain all these to the client so tats y they alter and amend the rules
Yes EL should be credited after completion of 1year but again in order to reduce the availing of bulk leave by the employee certain companies dont follow these sort of rules i mean as soon as the employee completes his/her probaion period EL will be credited for the balance months of that calender year

31st July 2009 From India, Madras
Ya Mahesh,
Just for name sake there are certain rules and regulations. Its purely dependent on the management decisions which is then framed as Company policy. Actually balance EL is encashable but certain companies dont, upon this they say that EL can be carried forwarded for 2yrs only. The explanation given by the management for this is, we brought such rules and regulations bcoz we want ur employees to take vacation and again this is eye wash. So much of work will be assigned to the employee that they hardly find time to take a day off

31st July 2009 From India, Madras
Hi friends
I had just got registered today and my name is sunil and was going through various messages exchanged and they were all very interesting and usefull. Can somebody help me know as i have a retail chain of stores which deal in home furnishing products like, carpets , pillows, bed sheets,curtains, etc., i specifically want to know how to fix sales targets to my sales staff. please do let me know the formula involved. Thank you.
31st July 2009 From Tanzania, Dar Es Salaam
Hi Malini I compliment you on an excellent grasp on leaves and leave calculations. i am sure, your posts will be very useful for new/ fresh HR professionals.
1st August 2009 From India, Delhi
Leave, i.e Earned Leave (EL) is eligible for all employees including Trainee, Probationer, casual and contract workmen. For calculating the earned leave, the Date of joining only has to be taken in to account and not any other date
You have to refer Factories act for the leave.
Sridharan
1st August 2009 From India, New Delhi
Dear Jituraj
First of all your company has to formulate a leave policy to implement in your company. What Ms. Malini given is their company's leave policy. If it is suitable for you, you can adopt the same policy in your company also. But, in the first instance, your Company Management has to formulate and communicate the leave policy to its employees. Based on the leave policy so formulated, you can calculate the leave to employees.
Leave policies of all companies are not similar. The policies vary from firm to firm. You need to design a comfortable leave policy with the consultation of the Management for its implementation.
Further I would like to clarify that you have mentioned provision period. It is not provision period, but it is Probation period. The probation period has also to be specified clearly in the service rules. Naturally, probation period counts for calculation of leave.
Suri Babu Komakula
1st August 2009 From India, Vijayawada
Hi Malini, I m very thankful to u for providing such a wonderful data. I m sure this not only help to jeetu infact this would be helpful for everyone.
4th August 2009 From India, Delhi
Hi, The calculations are usefull but our company has only CL(10days) and EL.(5day/qtr) no sick leave as such.
4th August 2009 From India, Mumbai
hi all,
I would like to share a info on the leave calculation is that before calculation we must come to a point were we should be aware of the minimum leaves to be provided to an employee. To know the same we must go the statutory compliance of Shop and Establishment Act. which provided information about the minimum leaves to be provided. It depends on the manpower strength of the company. There are also few limitation.
Regards
Jeets;-)
7th August 2009 From India, Pune
EL can not be less than 12 in a year. As per the Labour laws for every 20 days of working 1 earned leave will be credited to the employee. So if we take approximately 240 working days in a year. There should be 12 earned leaves for an employee.
11th August 2009 From India, Mumbai
hey Malini....great help!
I have framed new leave system for my company which is:
11 National holidays
12 CL's
12 EL's ( encashed after 1 year of completing service)
The calender year is 1 April to 31 March.
Is it legal or O.K.
M about to float mail employees ...kindly help if its fine?
4th February 2010 From India, Calcutta
hey hi malini,
its really good info..... also would appreciate if you could let me know whether weekends(Saturday & Sunday) will be considered as Leave if anyone is taking leave on friday and monday. if yes then can i know on what basis this is considered.
would be helpful if you could mail me the info to id.
Thanks,
Shilpa.
4th February 2010 From India, Kochi
Hi malini,very good information.This will be useful for every body.can i have your mail id please.
26th July 2010 From India, Pune
If I want to calculate an employee 20 years annual leave, when we check his total leaves on documents there is a calculation of how many days he toke in every leave, like you calculate every month days according to 28, 29, 30, or 31 total days of month then you multiply total with 2.5 I guess and I forgot what's after, can you tell me about this calculation please? I hope you got my point
18th April 2014 From United Arab Emirates, Dubai
Hi, Can anyone tell,the leave calculation i.e SL,PL,CL for below details. DOJ - 11May,2013 Probation Period - 6months Leave for Year 2013 i.e after PP and Leave for Year 2014.
18th June 2014 From India, Delhi
Follow link, download file..... Easy leave calculator
https://drive.google.com/file/d/0Bxn...ew?usp=sharing
26th April 2015 From India, Mumbai
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