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hi
can anyone throw some light whether it is a statutory requirement to pay the earned/ paid leave to any employee who is on probation and has resigned while on probation??? :!:
or it is dependent on organisation what rules they make ???
rahul verma
11th September 2007 From India, Delhi
I think you need to put up certain limit say one year i.e an employee should complete atleast one year in that organisation and then can ask for repayment of leaves after resignation.
What was the probation period of this employee? An emplotee who is on probation should not be paid PL etc.
Even I have just entered the corporate world so I have just mentioned things which I know so I would request Seniors to help us.
Regards,
Purva
11th September 2007 From India, Mumbai
This is SOS call to all Seniors and seosoned professionals to help on the above issue.
thx
rahul
(*For further information, the employee who has resigned is on probation, joined 6 months back. Our company has 1 year probation period.
11th September 2007 From India, Delhi
Dear Rahul,
This all depends on company leave policy..
In most of the organisation while preparing the same it is been recorded 7 days during probation period and the probation period is of 6 months..
And yes if one resigns during the above said period, we use to ask for 7 days notice and after serving the notice and accepting the resignation.. while preparing Full & Final of the said employee we do encash his remaining leaves of that period..
Regards,
Amit Seth.
11th September 2007 From India, Ahmadabad
Hi,
I am a MBA-HR fresher and recently formulated leave policy for my organisation. My boss wants to deduct salary of employee who are on probation no matter it is sanction or unsanctioned leave.
But I feel though an employee is on probation his salary should not get deducted if he takes leave.
I want to know is there any law regarding this or it totally depends on employer.
Regards,
Purva
11th September 2007 From India, Mumbai
Dear Rahul,
This question depends on company's policy. Also, it is always mentioned in the company's Standing Orders.
Normally, companies have a Leave Policy wherein the employees are granted 7 CL, 7 SL & 24 EL/PL. The probation period might be, say 6 months.
Now, my personal experiences with 3-4 MNCs are that your leave account may start from the date of joining, however you can actually take that benefit after confirmation (when probation period gets over).
In your case, you are not supposed to pay anything w.r.t LEAVE to the employee, except if your policy mentiones anything on that part.
Regards,
Shaunak Marulkar
11th September 2007 From India, Mumbai
Dear Purva It depends on the company policy. Your company is not liable to pay for EL to any employee if he leaves in probation period. Regards Neetu
11th September 2007
If your company is registered under Shops * establishment Act/Factory Act - then the employee is entitled to get...refer law
11th September 2007 From India, Hyderabad
Dear Rahul Verma,
Firstly i would like to state that your orgnisation will definetly be covered under Shop & Estb. Act, or Factories Act., therefore its a statutory requirement to pay leave salary (Leave Encashment) at the time of making full & final payment of an employee whether the employee is confirmed or on probation.
Now there may be in most of the organistion, In there leave policy a probationer is not entiltled for availing the earned leave. but Earned leave shall be credited in his or her leave account on completion of one year (240 days or two third of available days in a calender year) which includes his probation period also.
Thanks,
Mohd. Arif Khan

12th September 2007
hi,
Usually in many companies employees are not entitled for any EL during their probation period. According to Act an Worker will be entitled for one day EL for 20 days of actual working. and these dosenot include sundays and other Holdiday. In order to get one EL an employee should be physcially working in the work place for 20 days. For staff level it depends upon the company leave policy. Every where it is given 21 days as EL. Again EL is earned after completion probation period.
Regards
Priya
12th September 2007 From India, Bangalore
Hi rahul,
factories act clearlyanswers your question. An employe becomes eligible for EL/PL once he completes 12 months, which is calculated at the rate of one leave for every 2o days of mandays performed. in the event of resignation before completing one year he becomes eligible to claim encashment of El earned as per above calculation. this is a mandatory rule which is applicable even during the probationary period.
12th September 2007
Dear Purva,
Your Boss is right.
If an employee remains absent during probation period is not entittled to any leave. If the employee remains absent or is on leave during probation, his salary is deducted for those no.of days.
I think this is followed in almost every organisation.
Regards,
Nimish Joshi
13th September 2007 From India, Mumbai
Dear Purva,
I want just add. If a company has the policy of granting CL/SL then an employee becomes eligeble to avail either Sick Leave or casual leave even during probation period. Most companies deny leave only to temporary, casual, trainees category of employees.
But none of the above leaves are mandatory and its left to the discretion of the management.
Only EL is mandatory as per law.
regards
Prashanth
13th September 2007
WELL....IT IS A POINT OF DEBATE....BUT IT DEPENDS ON THE COMPANY LEAVE POLICY...LIKE IN OUR CO...WE DONT ENCASH OR GIVE LEAVES TO PROBATIONERS......BUT YES AFTER CONFIRMATION HE CAN AVAIL THAT RIGHT.....
13th September 2007 From United Kingdom
DEAR RAHUL,
AS PER THE FACTORIES ACT THE EMPLOYEE IS ENTITLED TO GET THE BENIFIT OF THE PRIVILEAGE OR EARN LEAVE IF COMPLEATES 240 WORKING DAYS IN A YEAR THE.
THIS IS AS PER MY KNOWLDGE SENIOR CAN GUIDE ME ALSO.
RAHUL
14th September 2007 From India
In our co we have 5-CL’s, 5-SL’s n 12-PL’s And an employee cannot evil his PL’s still he completes his probation period (6 Mon). Regards, Venkat
19th September 2007 From India, Hyderabad
Hi.
If the person leaves the organization even in probation period than he will be entitle for getting the EL encashment because at the time of full and final we have to show and deposit the PF amount @12% on the EL encashment.
Yes the person can not avail the EL even in probation or in the present calender year. The total no of earned leave will be credit in the next calender month.
The elegibility is 240days while the person joins the organization on 01st January or in other case 2/3 days of work in the remaining calender year.
Regards
Abhishek
19th September 2007 From India, Delhi
hi rahul,
According to rule you are supposed to pay for earned leave during probation period but he/she should have completed notice period if not then deduct from notice period not served whatever is left out pay to the employee
26th September 2007 From India, Ahmadabad
Hi Rahul,

A lot many people have stated that the leave entitlement is based on the organization’s leave policy / standing orders; the argument is that the leave policy will also derive it from some where, and as we know it is either the Shops & Establishment Act or the Factories Act. Which means that it is a statutory requirement, as also stated by Arif.

If you go through both the acts, the leave entitlement part of the Shops & Establishment Act, seems to have been derived from Factories Act so it does not make a difference whether you are governed by Factories Act or the Shops & Establishment act, as far as the basis of leave rules is concerned, except for certain things.

Section 79 (1) of the Factories read as under

Every worker who has worked for a period of 240 days or more in the factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for the number of days calculated at the rate of -

Adult - 1 day for every 20 days of work performed by him during the previous calendar year

Child - 1 day for every 15 days of work performed by him during the previous calendar year

This actually means that during the first 240 days (typically the probation period) the law says no EL or PL (you may use any nomenclature as far as the definition satisfies annual leave with wages).

However, law always prescribes for a minimum benefit so if the organization decides to credit EL or PL on successful completion of the probation (on confirmation) the action is justified at the same time the reverse will be unlawful.

Further, Section 79 (3) of the Act states

If a worker is discharged or dismissed from services or quits his employment or is superannuated or dies while in service during the course of the calendar year, s/he or heir or nominee, as the case may be, shall be entitled to wages in lieu thereof .......

This is why encashment of the EL or PL is statutory; again the law does not stop from encashing CL or SL. In the case put up by you, since the person is under probation, which means he is yet to earn the EL or PL, there will be no encashment as per the act.

Normally in order to adjust the shortfall of the Notice Period we adjust unavailed PL or EL which is unlawful. Please refer Section 79 (12) of the Act which reads as

The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.

In this case logically one should encash the EL or PL and recover the notice period, e.g.

EL - 20 days Shortfall of notice 15 days instead of encashing 5 days of EL encash 20 ELs and recover for 15 days shortfall, now this is lawful.

Hope this will be of some help.

Best wishes,

Sunil Joshi

PGCHRM - XLRI
26th September 2007 From United States, Bedford
Can anyone provide with a link if leave encashment is given on probation period in shop and act
2nd August 2017 From India, Mumbai
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