Dear All.

If any employee has joined an organization in a later time of a calendar year i.e for example in July or August.
Is he eligible for Annual leave with wages as per factories act
If Yes, when he can avail the leaves granted to the person
If not why?

As per 240 days working eligibility one may be not eligible then what is explained in the explanation 2 of the Annual leave with wages?
some excerpt from the act mentioned below:
"A worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages at the rate laid down in clause (i) or, as the case may be, clause (ii) of sub-section (1) if he has worked for two-thirds of the total number of days in the remainder of the calendar year."

an employee who has joined later in the calendar year is he/she eligible for the PL/EL and when they can avail it? Is there any law which says that they can avail the same after 1 year ?


From India
Partner - Risk Management
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An employee who has joined the company during the calendar year is eligible for paid lead in the following year, provided he has worked at least 3 months in the year.

For everyone else it will be proportionate. The law requires that the leave ledger is filled on Jan 1 of each subsequent year.

You need to check factory rules, Shop & Establishment rules and standing orders for your organisation to get the correct answer. The above is generic

From India, Mumbai

Dear Nitesh;

Leave is of 4 kinds. PL, SL, CL and LW/OPay. All these are sanctioned leave for which no action is taken. Any other absence is a misconduct and action can be taken.

The reason for writing above is that, even on humanitarian ground, an employee requires leave for unforseen circumstances. He may have worked for full year or not.

Those who are in employment on 1 January must have worked in that year for 240 days will get leave in the subsequent year. Even this is being reduced now to 180 days in the new Code. 240 is 2/3rd of 365. Similarly those who have joined later than 1 January, count 2/3 of the calender days till 31 December and if he has worked for 2/3 of those days, he is eligible for PL @ 1 day leave in the subsequent year for 20 days of actual worked days. In any case PL is credited oni 1 January every year. This is earned leave.

CL or SL is not earned. That is under Standing Orders or Service Rules. Quantum of CL or SL is decided by Management in the first year and later it may be negotiated by the Union at the time of settlement. These leaves are sanctioned in advance on 1 January. Those who have joined later than 1 January, proportionate leave is credited on the day the employee joins. For example, if one joins on 1 July, 1/2 CL and 1/2 SL will be credited to his account on 1 July. This is because an employee can fall sick, or may have important personal work. So some leave is must.

All leave is credited on 1 January, PL earned in previous year, CL and SL in advance.

Vibhakar Ramtirthkar. Pune.

From India, Pune

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