Can anyone explain - Why is the Earned Leave bifurcated into Annual Leave, Sick Leave & Casual Leave? Is there any kind of law or specific reason to support this?
From India, Mumbai
Labour Law & Hr Consultant
Partner - Risk Management

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Dear friend,

It is not that earned leave is bifurcated into other kinds of leave as you mentioned. The entire leave admissible under the establishment-specific law or under the contract of employment is further classified into different kinds of leave based on the purpose as well as the duration for which they are applied.

CASUAL LEAVE: The term 'casual' qualifying this kind of leave refers to the unexpected and immediate nature of the reason necessitating this kind of leave which is a paid leave of shorter duration and its clubbing with holidays as well as its maximum duration at a stretch may be limited by the leave policy of the organization. The maximum no of C.L can be fixed per calendar year and gets lapsed with the close of the year. In respect of probationers it can be linked with the actual length of service rendered on pro rata basis. Since the purpose of this leave is purely to permit the employee to discharge his urgent familial/social responsibilities, its prior approval can be at times relaxed and it is not encashable. For the purpose of continuity of service, it shall be counted as duty.

SICK LEAVE: This is also a paid leave and its quantum is determined by the applicable law or the leave rules of the organization. The purpose of this leave is to enable the employee to be off from work due to sudden and temporary illness which requires no medical authentication. This is also a lapsable leave the clubbing of which with any holiday can be permitted as a suffix.

EARNED LEAVE: It is also called as annual leave with wages or privilege leave. As the name would suggest, it is a leave earned by the employee periodically with reference to the no of days actually worked by him during the preceding twelve months period to be availed in the succeeding years. It is an accruing type of leave the unavailed portion of which can be accumulated subject to the ceiling prescribed. The total no of days of this leave availed at a continuous stretch is treated as a single stretch of leave during which the holidays falling in between would also be treated as part of the EL sanctioned. However, the peripheral holidays can be permitted as prefix or suffix to the leave as the case be. The balance of EL remaining at the credit of the employee is encashable on termination of his employment and thus forms part of the terminal benefit of employment. As the main purpose of this leave is to enable the employee to get rejuvenated by being away from the monotony of work inter alia to be on reasonably long holidays for some purpose as per the choice of the employee, it has to be applied in advance for sanction. The days availed on EL would be counted for the purpose of continuity of service but not for earning leave.

From India, Salem
Positive Metering
As per the Factories Act, only Earned Leave is applicable by law. Any other leave like CL, SL are not mandatory. These are optional for the employer and are over and above the Earned Leave. As per Shops & Establishments Act, CL and SL are mandated. Quantum of the same depends on the rules of the State concerned.
From India, Nashik

Dear Positive

please do not forget there is also standing orders act that applies for factories and offices with more than 50 employees, which has a different set of leaves available to employees. In such cases, even in factories, payment of PL, CL and SL is compulsory

From India, Mumbai

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