Query On When Paid Leave Is Accrued

I am trying to evolve the leave policy for our company.
Some people tell me that the general practice of providing paid leave is to calculate the eligible paid leave days at the end of the current calendar year and then provide these days as paid leave during the next calendar year.
Is it right to follow such a system or should the eligible paid leave be provided during the current year itself? In that case how does one manage the leave earned during the last month?
regards, Uttam

Hi Uttam,

Regarding Paid Leave it si better that it should be availed in the current year itself.I give you some guidelines reagrding the Paid leave policy.

Hopefully it would be useful to you.

Earned Leave

a) This is applicable to all permanent employees. This is leave, which a person earns by virtue of actual work put in by him.

b) Earned leave is computed for the period of April-March. The maximum number of days of leave that a person can earn in a month is 2. 5 days and in a year 30.

c) Since, earned leave is related to the actual days worked in a month. The same is computed on the basis of the following table:

Days worked EL earned

01 - 05 Nil

06 - 11 0. 5

12 - 17 1. 0

18 - 23 1. 5

24 - 26 2. 0

27 - 30/31 2. 5

d) For determining the days worked, the days on which the staff is on EL, duly sanctioned with pay will also be considered.

e) Earned leave cannot be taken in more than 4 installments in a year (April-March)

f) An employee is not allowed to take earned leave exceeding leave to his credit as at the beginning of the month.

Regards

Kiran.N

Hello Uttam,
Firstly, I must Congratulate Kiran Namburu. The method for calculating Earned Leave was truly informative.
Both policies are prevalent in different companies. The general practice is of providing paid leave at the end of the year.
However, I am the advocate of making EL payments at the end of the month.
By making payments to the employees at the end of every month one ensures that the employees are rewarded for coming to work(within a shorter span of time , i.e. of one month) and are likewise punished for the absence from work(ABSENTEEISM). This encourages and motivates employees to come for work, especially in the case of those employees who face the Monday Morning blues.
Thank You.
Regards,
Shyamali

Thanks for the responses.
Since our company is small, we will prefer to keep things simple so will probably go for an annually calculated paid leave days model.
A thought: Suppose an employee leaves his/her job during the last week of December, how does one provide or encash the paid leave if it is calculated on an annual basis? I mean, if the leave becomes available for use or encashment during the next calendar year at which time the employee is no longer in employment, will the ex-employee be eligible to get encashment of leave earned for the days which the employee is no longer in a position to enjoy??
Regards, Uttam.

Dear friend,
The resigned employee will be eligible to get his leave encashment.
Rds,
Martin

Dear Uttam,
In our company , our leave policy is that we can accumulate the Earned leaves for a max. of 2yrs after which it lapses. And encashment in between is at the discretion of the management, or at the time of the employee leaving the organization. Here again we can have some minimum no of earned leaves to be avlb, for the encashment to be done. And i think this is what the practice in most of the companies.
Regards
Julie