Understanding Leave Policies: Does PL Carry Forward Annually or Financially?

Hi Seniors,

I am Neha, establishing an HR Department in my company. I know that CL and ML should be six in a month, and PL is to be given for 20 days. Now, I would like to ask if CL and ML lapse after a financial year, what about PL? Is it to be carried forward in a calendar year or a financial year? Please let me know.

Waiting for an early reply.

Regards,
Neha

Dear Neha,

You can carry forward both your EL and SL but not your CL. EL and SL are calculated as per calendar year.

One more thing, there is no established rule that CL and SL should be 6 per year (not month). It varies from company to company. EL (1 for 20 days) is the only thing stated by law. But if someone tries to provide a better benefit than the law, they are most welcome.

Hope I have made myself clear.

Regards

Dear Neha,

First, decide in which act your establishment is covered, i.e., under the State Shops Act or the Factories Act. Then, go through the provisions on leaves. If your unit is covered under the State Shops Act, you can find all the provisions on the grant of EL, CL, and SL. If your unit is covered under The Factories Act, 1948, for EL, please refer to Chapter VIII of the Leave with Wages. For CL and SL, you need to refer to The State Industrial Establishment (Casual and Sick Leaves and National and Festival Holidays) Act.

Regards,
R.N. Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law and Legal Consultants)
09810405361

Thank you to all of you, but it has not cleared yet whether these leaves will be calculated based on the financial year or the calendar year. Hope you understand my question.

Regards,
Neha

Dear Neha,

All the acts that are framed regarding leaves have the definition of the 'year'. Please go through and clear your doubts without any delay.

Regards,
R.N. Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361

Leave policy in attached file.

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Dear Team,

Please find the updated leave policy attached for your reference.

If you have any questions or need further clarification, feel free to reach out to the HR department.

Best regards