Hr In A Reputed Automobile Company
Hr Executive

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Dear Seniors,

Pl help me urgently on PL calcuation. I want to know the process how it is calculated with some examples. I have already gone through various post on same topic. But unable to get any satisfying solution. First, let me make you aware of my question:-

I know that leaves are given as per calendar year period from Jan to Dec.

Now assume, an employee joined on 1st May'12. So for him, how PL will be calculated?

One of my known persons told me that if employee joined on 1st May'12, then till Dec'12, there would be 8 months and in Jan'12, in his leave account, this 8 leaves will be credited.

And if he joins in Jan'13, no leave would be credited into his leave account.

But as per Shops and establishment act, employee is required to have completed at least 12 months of service. Only then he is eligible to get such leave. Kindly enlighten me on this issue.

Also, do tell me if sick leaves are made to carry forward in next calendar year, then what would be maximum limit for such accumulation.

I would really appreciate your quick response on same. I am waiting now...

Thanking you in anticipation.



From India, Delhi
Two hours have passed till now. Still no reply on same. feeling demotivated. . . . . . . . . :-( please reply on this ASAP.
From India, Delhi
For both Sick leave and Privilege leave accumulation period is 36 days.
For PL leaves he is complete 1 yr for eligible.
Eg: for assumption, if an employee joins on november 07th 2012 then from next november 07th 2012 PL of 12 leaves will be credited to his leave balance.
and SL only after confirmation SL leaves will be added.
Best Regards,
Venkata Krishnan
Consim Info pvt Ltd

From India, Chennai
Mr. Venkata,
Good Morning and thanking you for your valuable response on this.
But still I have a query pertaining this i. e. as per your example, employee joined on 7th Nov'12 will be eligible to get 12 PL on 7th Nov'13 in this leave account post completion of one year of his service with the company. Now, what will happen on 1st Jan'14 regarding his PL?.. since we have to maintain leave account as per accounting year.
Will it remain the same or what?
And what in case employee joins on 16th Nov'12? How many leaves will be credited into his leave account post completion of one year of his service?
Waiting for your response on this also.

From India, Delhi
Dear Vishal,
The main basic policy for PL CREDIT should happen only after the completion of 240 days in the company.
you are asking for financial year calculation
For PL we can't go with accounting year.otherwise you can do like this.instead of giving PL for individual employees.
you can check the employees service in the company Eg: if an employee joins on 1 jan 2014. then in the next accounting year, you can add the leave balance of PL by 15 to the employee. from 1st jan to 1st april like this.
Venkata Krishnan R

From India, Chennai
Dear Venkata Sir,
I am concerned regarding PL grant as per shops and establishment act. What you have mentioned is as per factories act.
It will be really helpful if you could help me understand the process as per shops and establishment act's. I have stated above the eligibility criteria under this act. But wish to learn the process of crediting PLs in leave account as per the example stated above.
Also, enlighten/comment whether we can follow financial accounting year (Apr to Mar) instead of calendar year (Jan to Dec).
Your valuable response is awaited...

From India, Delhi
Leave :- (1) Every employee who has served for a period of two hundred and forty days or more during a continuous period of twelve months in any establishment shall be entitled during the subsequent period of twelve months, to leave with wages for period of fifteen days, provided that such leave with wages may be accumulated upto a maximum period of sixty days:

Provided that any continuous period of service in an establishment preceding the date on which this Act, applies to that establishment shall also count:

Provided further that any leave accumulated by an employee in an establishment under the law applicable to that establishment preceding the date on which this Act applies to it, shall not be affected;

Provided also that every employee in any shop or establishment shall be entitled for encashment of the leave with wages for a period of eight days in every year.

The counting of Leaves will be posted to employees on 1st January of every year. In your case, the employee has joined on 1st May 2012. So, he is eligible for 8 Paid leaves., but he has to complete min. of 240 working days in an year. So, we will provide leaves to him after completion of a year. After that i.e. on 1st Jan' 2014 we will post 8 PLs to him.

From India, Hyderabad
Perfectly answered!
Now, just want ur confirmation on this calculation:
As U stated above, 8 PL wil be credited on 1st Jan'14.
Then in next year i.e. 1st Jan'15, he wil start getting total no. of PL granted by the company?
Also confirm if we can consider FY instead of accounting year.
Thanking You

From India, Delhi
Yes, from Jan' 15 he will get 15 PLs as granted by the Organization., We will credit PLs in a Calendar Year i.e. 1st Jan to 31st Dec..
From India, Hyderabad
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