Is it mandatory to entitle paid leaves - rule that employee is eligible for leaves after working for 240 days? - CiteHR
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I know a little about this rule that employee is eligible for leaves after working for 240 days but is there anyone who can explain this rule in simpler way.
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Dear friend,
Whatever your establishment be, the kind of leave that you mentioned is called " Earned Leave " or "Privilege Leave " or " Annual Leave With Wages "according to the establishment -specific labor law applicable.
This leave i.e., E.L for short is a leave based on the no of days actually worked by the employee in the establishment during the 12 months period commencing from the date of his entry into service. Like you said, its calculation is based on the minimum of 240 days actually worked in a period of 12 months including the interruptions or breaks like holidays, authorised leave availed, days of legal strike or lock out, lay off etc., not ascribable on the part of the employee.
It is calculated as one day per every 20 days actually worked. Thus its accruing nature makes it possible to avail the leave only during the years which follow the year in which it is earned and enables its accumulation subject to certain statutory ceiling, if not availed. Hence it's not a lapsable leave like CL and EL which get lapsed if not availed in the particular calendar year.
This accumulative feature of this leave makes it form part of the employee's terminal benefit in case of termination of his employment. That is leave salary should be paid by the employer for the days of the no of days of EL at the credit of the employee on the date of termination of his employment.
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