Understanding Earned Leave Eligibility for Probationers: Can Short-Term Employees Qualify?

Dear Members,

Please clarify regarding EL eligibility under A.P. Shops & Estb Act. An employee joined as a probationer on 1st June '08 and resigned on 30th Sep '08. Are they eligible for Earned Leave on a pro-rata basis, or are they only eligible after completing one year?

Please clarify.

Thanks,
Kamal :) :) :)

Dear Mr. Malik,

He is eligible for encashment of earned leave on a pro-rata basis at the time of full and final settlement.

Thank you.

Best regards,
J. S. Malik

Hi guys,

I am Venkat from Kuala Lumpur, Malaysia. I am implementing an HRIS system for a client here. They have a subsidiary in India for whom they do not process payroll here, but they keep track of and manage the employees' leave. I am not very familiar with the Indian leave system. There seem to be 2 types of leave: Earned Leave and Casual Leave. I would like to know:

a) What is the difference between the two?
b) What are the eligibility criteria for each of these leaves?
c) Is this standard practice for all companies in India (according to your labor law regulations)?
d) I have a case scenario where the users informed that the employees can only get the entitlement for the earned leave after completing 1 year of service for one of the categories of employees. I understand they can carry forward 1/3 of this to the following year up to a maximum of 8 days to be utilized by 31 March of the following year (annual earned leave entitlement was said to be 12 days/year).

Appreciate your advice on the above.

Thanks and best regards, Venkat

Hi Kamal,

The leave policies vary from one organization to another. In my company, employees are entitled to Earned Leave (EL), also known as Privilege Leave (PL), only after confirmation. If an employee is not confirmed, they are not entitled to the same.

Therefore, you should discuss this matter with your management to determine the appropriate course of action.

Regards,
Nel

Hi Nel,

I completely agree with you. In our organization, ELs are entitled only after confirmation. Therefore, it entirely depends on the organization.

Regards,
SS

Dear Kamal,

An employee is entitled to Earned Leave (EL) only after confirmation. After confirmation, typically after one year, the employee would be eligible for EL for the current year. Additionally, the ELs from the past year would be carried forward and added to his/her leave balance.

- Sandhya

Hi,

Employees are eligible for Earned Leave for every 11 days of service in the company as per the Factories Act, which is the guiding principle for the organization. Different companies practice different methodologies for EL accruals. Some companies credit EL in advance to all employees' leave balances, while other companies credit the EL based on a prorated basis, which may be quarterly or annually.

CL refers to Casual Leave, the number of which may vary from company to company, and it expires at the end of the calendar year. Everyone in the company is eligible for CL regardless of the number of days of service. However, EL calculation is based on a prorated basis or the number of days of service in the company.

I hope this clarifies any doubts.

Regards,
Kapill

Dear Mr. Kamal,

EL is provided on a pro-rata basis, where the employee is entitled to 1 EL for every 20 working days as per the A.P. Shops & Estb Act, and it does not depend on the organization's policy.

Regards,
Pawan

Employees are entitled to earned leave (EL) after confirmation only and will receive the same based on calendar month calculations, i.e., from Jan to Dec. However, if anybody resigns or is terminated in between, he/she should be paid the EL on a pro-rata basis.

Employee is eligible on a pro-rata basis.

Friends who are talking about the company's policy must know that the minimum requirement as per law needs to be extended. Over and above may be as per their company's policies.

I also request members not to post messages that are blatantly wrong, such as one day leave for every 11 days. Someone reading this message would think that this information is correct. The Factories Act talks about one day for every 20 days.

Siva

Dear Friends,

As per the Factories Act of 1948, a person who works for not less than 240 days in a year is eligible for Earned Leave (EL) for every 20 days worked. Any person, whether a trainee, probationary, or confirmed employee, who joins a company and works for 240 days in a continuous year is eligible for EL. The accrual period is from January to December, with 1 casual leave for each month, subject to the company's policy.

Please refer to the Act for further details.

Thanks,
Sirisha
HR