How to Handle Leave Accumulation When Employees Exceed Their Leave Quota?

Hi all,

I need help with this. In our company, an employee can take 20 leaves (10 Casual + 10 Sick) per year. They are calculated on a pro-rata basis. Now, the question is, a few employees were on leave without accumulating enough leaves, so they were considered to be on loss of pay. At the end of the year, they have accumulated the leaves. Can this leave-taking be avoided as they have exceeded the amount of leaves stipulated by the company? Please let me know if this kind of thing can be done or not.

I presume that CL in your company will lapse by the end of the year (calendar year).

CL/SL can be given on a prorata basis, and an employee who takes more than that credited will be on loss of pay. If later on he earns CL (as he does not take leave), that leave will not compensate for the loss of pay. If your company permits encashment of CL/SL not availed, you can make encashment, and that will certainly compensate for the pay lost earlier. If your company does not have the practice of encashing CL (usually no company permits encashment of CL/SL), then the same will lapse, and you cannot reverse it back to a month in which LOP occurred. If you go for that, the gross salary should change, deductions towards ESI/EPF will change, and this will create problems because it is based on the actual salary for the month that the employer could have worked out contributions, remitted the amount of contributions, and submitted the monthly returns.

Regards,
Madhu.T.K

Hi All,

I am currently pursuing my final year of MBA in HR. I have close to 4 years of experience in Recruitment, but my interest lies in "Compensation & Benefits" as it has a wide scope and touches almost every aspect of organizational affairs. I would highly appreciate it if you could guide me on how to become a "Compensation & Benefits" Specialist. Also, please let me know the scope of C&B. Since I am a fresher in this area, are there any opportunities for people like me to get into this field?

I would appreciate your valuable thoughts on the same. You can also email me at edwin_macklin@yahoo.co.in.

Regards,
Macklin

Dear Aju,

The salary ceiling is the minimum amount that the government decides upon, depending on the industry and level of employee (i.e., unskilled, semi-skilled, skilled). It consists of the minimum basic salary and DA that should be given, and its slab differs from state to state.

Regards

Hi All,

Leave calculation: As per government norms, any employee who has completed 240 physically present days in an organization in the preceding year is eligible for 1 leave every 20 days. So, suppose an employee joined in July '08 in a firm and by year-end was present for 156 days (excluding Sundays and declared holidays), then pro rata basis, they will be eligible for: 156/20 = 8 days of paid leave.

Every firm has different rules for leave for its employees. So, where the balance of PL, CL, SL, all three leaves are encashed during year-end (on basic salary and DA). The organization balances SL and CL if not used by year-end lapse.

Hope the above information serves your purposes.

Regards

Dear All,

I need to understand if an organization is going for a shutdown without pay for certain days in a month, how is the salary calculated? Is it calculated based on the number of days in a month or the number of working days in a month?

Thanks,
Koel

There can be three types of leave with salary/wages: 1) Casual leave 2) Earned leave 3) Medical/sick leave. Generally, leave rules are framed by the management. Casual leave expires at the end of the year, and sometimes, this can be encashed. Earned leave and medical leave can be accumulated, if not availed, up to a maximum number of days prescribed in the leave rules. Additionally, any excess leave can also be encashed. If the leave rules permit availing leave in advance (i.e., before earning the leave), the salary can be paid.

KCS Kutty, Chennai

Hi all,

Leave calculation:

As per government norms, any employee who has completed 240 physically present days in an organization in the preceding year is eligible for 1 leave every 20 days. So, suppose an employee has joined in July '08 in a firm and by year-end, he was present for 156 days (excluding Sundays and declared holidays), then pro rata basis he will be eligible for: 156/20 = 8 days paid leave.

Every firm has different rules of leave for its employees. So, where the balance PL, CL, SL, all the three leaves are encashed during the year-end (on Basic salary and DA). The organization balances SL and CL if not used by year-end lapses.

Hope the above information serves your purposes.

Regards

Hi my dear friend,

I think if a person joins in between, i.e., as you have mentioned in July and had completed 156 working days, it means he/she will be eligible for 15 EL in the next period if he had completed 2/3 of working days from July to March. Most of the companies only encash EL, but CL is for every month, i.e., 1 CL for the month, and SL is for the year, i.e., you can utilize it in due course of time during any accident or health problem.

Hope this will be clarified to you.