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Our company is new , employees are asking about the leave policy. What is the rules to get EL, how it can be calculated. Newly joined employees are eligible for EL.
From India, Bangalore
The Factories Act (India) has provided annual/earned leave of 12 working days for all the workers who have worked at least 240 days in a year.
Simple calculation: 1 leave earned for every 20 days worked by an employee.
Employees earn these leaves after 240 days of working (which make new joiners not eligible for ELs) thus Sick Leaves and Casual Leaves are provided to facilitate employees before completing 240 days of working.
Not a mandate but some organizations don't allow any additional leaves (other than weekly off and holidays defined by the government) till completion of Probation Period, which could be for 3-6 months after the date of joining. Leaves during probation in the mentioned scenario can be Leave without pay.
The above mentioned information is based on my own understanding, so please do cross check the info before drafting any policy.

From India, New Delhi
Hi Friend,
Leave policy need to be framed as per Factory act or Shop & Establishment Act.
Both the acts have defined leave provisions. EL/ CL/ SL has to be provided as per the acts. As per Karnataka shop & Establishment, every employee who work for 20 working days is eligible for 1 EL and 1 CL/SL for a month. He can carry forward up to 30 days CL. Encashment need to be given, once employee is leaving the organization. You need to maintain required registers (Leave register and Leave book).
For more clarity request you to kindly go through the act (Factory Act or Shop & Establishment) which is applicable to your company.
Feel free to call or revert for any assistance.

From India, Bangalore
It seems from your post that you need to update your staff members on the Leave Policy.
Seniors have already replied you on the applicable leaves w.r.t. your state. I suggest, you prepare an informative circular on Leaves and put it up on your notice board or circulate to your staff, so that you need not have to deal with them individually.
Since new joiners are not eligible for EL (Earned leave) OR PL (Privilege leave) as well as CL and SL on probation, few companies allow them to take CL or SL as advance leave on probation. The leaves taken on probation will be deducted from their leave balance they will become eligible once they are confirmed. It is beneficial as employees are saved from without pay leave and they can at least take a couple of leaves to meet urgent needs.
As an HR, you may initiate such practice with due approval of management.

From India, Pune
I am calculating EL first time and manualy, So please let me know, how we can calculate EL,
if an employee consumed his leaves -7 CL & 7 SL and Holidays (company is giving 10-11 Holidays per year). How we will calculate EL in this case.
As every 20 days presence generate an EL, How we calculate these 20 days.
Sundays, Holidays and their own leaves included in these 20 days or not.
please explain fully, i got confused after reading some responses that 240 days are there to calculate EL, how it is calculated and fixed as 240. Please mention if there is any formula.

From India, New Delhi
May be, it is too late to reply this thread and you must have got your answer already.
Just for clarification, what I have seen in Industries is -
1. Earned leave are mandatory but number of EL changes from company to company.
2. A company may give 18 EL (if we consider the formula 1 leave after 20 working days). These working days does NOT include unauthorized absence, leaves without pay and intervening holidays (e.g. leaves from Friday to Monday will make Saturday-Sunday as leave). However, sanctioned leave is counted as working day.
3. Companies also give EL up to 30 nos. that depends on company's policy.
4. Not to complicate it, simply understand that if a person has worked from January to December (leave calendar year), give him full EL credit to enjoy in next year.
5. If an employee has joined in mid of the year, his EL can be credited on pro-rata basis applying the formula of 240 working days. This will be easy to follow.
Requesting seniors to kindly add value to this thread.

From India, Pune
Privilege Leave/Earned Leave are leaves that are earned by an employee after a span of time in one organization. In no organization PL/EL is credited at the beginning of the year. Hence, as per your querry, new joinees are not entiitled for any PL/EL.
You need to evolve few HR policies and Leave policy is one amongst that. But please ensure that Utmost care should be taken while framing a policy, as there can be many loopholes -if policies are framed without research, study and discussions with seniors in the company - which can be prompting employees to take undue advantage of the policy.

From India, Aizawl
thanks a lot for your replies. Hope same support in future. Thanks alot Vibha Saini E-Mail: [email protected]
From India, New Delhi
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