Labour Law & Hr Consultant
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Dear All We have required on urgent basis a knowledge that Earn leaves are carry forward to next year or optional that in a Indian base company. kindly please suggest me. Best Regard Ritesh
From India, Gurgaon
Earned leave can be forwarded to next year. You can keep a limit too such as 90 days or 120 days or whatever. It is the policy of the company. In some companies, if it crosses the limit, balance can be paid to the employee depending upon the policy.
From India, Pune
Dear Ritesh Upadhyay,
As the very name suggest, Earned Leave or Privilege Leave is a leave or a privilege accruing to an employee on the basis of the number of days worked by him in a year to be availed of in the succeeding year. As Narayan aptly put, it can be carried forward to the succeeding years to a certain limit and beyond which it would lapse. It depends upon the intelligent use or option of the concerned employee. However, since whatever remains in the credit of the employee's leave a/c, it becomes encashable as a terminal benefit on his normal termination of employment like retirement, resignation etc., most of the managements follow the policy of annual leave surrender for cash benefit and employees also welcome it though there is no such provision in any law applicable to establishments of any type.

From India, Salem
Dear Mr.Riteh,
As per Factories act EL can be accumulated up to 30 days and as per shops and establishment act it varies from 24 days (West Bengal ) to 90 days ( Madhya Pradesh) & it varies from organization to organization basing on their leave policies / leave rules.
As far as encashment is concerned no mention in the acts during the course of employment but to encash and pay in case of the employee is leaving the organization.
Most of the companies in their company leave policy are having a provision for encashment of Earned leave over and above the accumulation limit during the course of employment. Some of the companies are encashing @ basic / DA / VDA and some of them are encashing @ gross.

From India, Hyderabad
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