Confused About PL Leave? What Does It Really Mean and Why Is It Important?

Dear All,

I have no idea about PL. Please tell me the purpose of PL leave.

Dear all,

I have no idea about PL. Please tell me the purpose of PL leave.

PL means privileged leave or earned leave. If the employee works continuously for more than 240 days in the year, then 240/20 = 12, and his earned leave will be 12. This does not include weekly offs, holidays, and casual or sick leave.

Got it.

Regards,
Sayali

Dear Sayali,

Sayali has given you an overview of PL - privilege leave/earn leave. PL is decided by the organization and can follow the state leave rules, like Sayali said, 240 days of working and you are eligible for 21 days of leave, which is mentioned in different state acts and in the Delhi Shop Act as well.

It is up to the organization how much PL they give, and PL can be encashed on basic/gross salary, depending on the organization, as the law is silent on this issue.

Seniors, please correct me if I am wrong.

Regards,
Vipin

It depends on the company whether it falls under the purview of an Industrial Establishment or the Shops & Establishment Act. As per the Bombay Shops & Establishment Act, PL is 21 days when an employee has worked not less than 240 days in a year, and it can be accumulated up to 42 days. So, the employer has to draft the leave policy in such a way that PL should be 21 days in a year, and CL or SL is at the company's discretion.

Hope I am clear.

Privileged leaves cannot be carried forward to the next year. A company with a 5-day work week provides 1 privileged leave per month, while a company with a 6-day work week gives 1.5 privileged leaves.

Thank you!

In the organization where I'm currently working, PLs are carried forward until the number of accumulated leaves reaches 45, and then any excess leaves are compulsorily encashed. CLs are never carried forward. In addition to 15 PLs, we get 12 CLs. The CLs are credited on 1st January, and any balance CLs lapse on 31st Dec.

As quoted by other members, there are guidelines for blue-collar workers in various acts, but no such guidelines exist for white-collar workers.

Dear,

Every employee shall be entitled, after twelve months of continuous employment, to privilege leave with full wages - 1 day for every 20 working days. It is provided that where an employee has completed a continuous period of 240 days, then only he/she shall be entitled.

Privilege leave availment should ordinarily be made in writing 15 days in advance. Privilege leave cannot be claimed by the employee as a matter of right but will be granted by the management subject to the exigencies of work.

Privilege leave calculation: 1 day leave for every 20 days working (Days worked only).

Dear,

Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed leave with wages (PL) for a number of days calculated at the rate of:
- If an adult, one day for every twenty days of work performed by him during the previous calendar year.
- If a child, one day for every fifteen days of work performed by him during the previous calendar year.

These leaves can be carried forward up to 45 days or your company can frame its own policy.

Regards,
Manjeet

Only PL can be encased, and no other leaves. Also, the formula for encashing the leave is Basic pay/30*number of PL.

Hi all,

Thanks for all the information. I have a question: like you said, we can calculate PL based on the 240-rule or as specified in the Shops & Establishment Act. Then, how do we encash it? For example, if we wish to encash on a gross of Rs. 20,000/- per month, then the encashment of leaves would be on Rs. 20,000/30 days, i.e., per day salary or Rs. 20,000/240.

Also, I read as follows:
14. Leave. -- (a) Every employee who has been in employment for not less than twenty days in a year shall be entitled to one day's earned leave for every such twenty days: For the leave allowed to him under section 14, an employee shall be paid at the rate equal to the daily average of his total full-time earnings for the days on which he worked during the month immediately preceding his leave, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the Concessional sale to the employee of food grains and other articles.

Kindly clear my doubt.