Hi, Could anyone be of help in explaining the system by which leave is calculated and the common practices.
Mine is a small organisation with workforce of 20, and I wish to institute a system of leave for the team.

From India, Mumbai
Dear Rahul,
The leave is given on calender year basis and looking at your org size , i am sure that you fall with in the purview of commercial establishment definition.
You need to calculate 30 days leave (Act says not less than 21 days) per year basis which need to be accrued on monthly basis i.e. 2.25 day/month.
To give you example if MR. A has joined in the month of March and taken 3 days leave till the end of year than his leave balance by 31st dec would be
Total leave 10month*2.25 == 22.5 days
Leave taken 3 days
balance 19.5 days
Please revert in case on any other query

From India, Delhi
Thanks Dhole,
Certain organisations follow the policy that new joinees during probation cannot take their leave which is accrued and can be taken post confirmation. Is it a prevalent and correct system legally?
Also how does one decide on the maximum days of leave at one stretch. Is there any reference that will guide in finding out the details on paid, half paid and non paid leaves?

From India, Mumbai
Dear Rahul,
Though the leave rule are explained in Shop & commercial est Act. however white collar employee and probabtioners can be governed by org rule & policies.
The sytem of probationers not given any paid leave does exist in various otg though it gets acrued and given after competion of probation period.

From India, Delhi
Hi Rahul,
please note the leave policy which is commonly followed in most of the organisations:
a. Casual Leave which will consist of 2 days per month (It is 1 day for every 15 days worked)
b. Priviliged Leave or Earned Leave which is 15 days per year . Please note that if a employee has availed only 10 days in that calendar year then the remaining 5 days will be carried forward to the next year
c. Lastly it is Sick leave which is for 10 days. This is subject to submission of doctors certificate / Discharge summary from the hospital or nursing home when the employee joins back .
Please note that leave is always calculated on the basis of calendar year January to December (although some follow from april to march as an exception)
Sadashiv Rao :D

From Kuwait, Kuwait
Nice information in this thread... My doubt is that 2.25 days leave in a month ie 27 days in a year is divided into sick leave, casual leave n all tat ?? In my present company we can take 8 casual leave n 5 sick leave in a year... Is this 2.25 rule is given by Indian Govt. ?

One of my employee sanctioned a Casual leave on 10th, on 11th was public holiday. He was not resumed on 12th due to sick. In our organization 3 CL consecutive days is not allowed. I deducted her 3 day PL. Now my employee is arguing with me to deduct 1 CL on 10th & 1 SL on 12th .
Kindly advice.

From India, Moga

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