Understanding Sick, Casual, and Earned Leave: How Do They Differ and What Are the Rules?

I am working in a private limited. Please help me to know the difference between sick leave, casual leave, and earned leave. How many days could be taken for each leave and what is the formula to calculate earned leave? Tell the days in a month. Whether the sick leave and casual leave could be paid or not. On what basis should earned leave be paid? Give a clear idea about casual leave and what is all included in casual leave. Please try to answer each question separately.

Hi Gnash,

Earned leave has to be granted to the employees at 1 day for every 20 days of work. Employees should be given an option to avail, carry forward, or encash this type of leave.

In addition to Earned Leave, the employer should grant 1 day per month as Casual or Sick Leave. It is better if the carry forward of such leave is discouraged as it should be availed within the same year. Sick leave should only be availed in case of sickness, injury, accident, etc. But casual leave can be availed for any reason, although some companies restrict the number of casual leaves taken at one go to a maximum of 3.

All the above leaves are paid leaves. If an employee exceeds his leave balance at any point of the year, the employer has the option to make it Loss of Pay and deduct his wages for the LOP days.

However, all these need to be made familiar to the employee at the time of joining through a policy or appointment letter.

Hope this clarifies.

Regards,
draksh