How Should We Calculate Earned Leave for Employees on Maternity Leave?

Dear All,

As per our leave rule, employees are entitled to 30 days of E.L. per annum, which equates to 2.5 days of E.L. per month. The query is whether we should provide the full 30 days of E.L. to those employees who take a 12-week maternity leave or deduct a proportionate amount of 7.5 E.L. for the duration of the maternity leave.

Regards,
Rakesh Dubey

Hi,

I had the same problem a few days back. When I consulted the labor law consultant, he told me that you cannot deduct their EL or PL while they are on ML. However, if they have taken LWP after ML due to the same reason, you can deduct the EL or PL.

Regards,
Chitra

Hi,

As per the HR Policy, EL is credited based on your presence on duty. EL can be deducted in cases of unauthorized absences or Extraordinary Leave only. However, in the case of ML, it is a social benefit provided through the Maternity Benefit Act for a period of 90 + 45 days, which is considered as leave. In no case can sanctioned ML be counted as unauthorized absence, for which EL crediting will not be done.

Thanks,
Sanjeev

Under the Factories Act, Earned Leave (EL) is accrued only for the days worked. According to this Act, only employees who have worked for at least 240 days in the previous year will be eligible for leave (EL). Days of leave taken during the previous year, such as Casual Leave (CL), ESI leave, leave due to on-duty accidents, and maternity leave, will be considered as days worked but solely for determining an employee's eligibility for leave in the current year. Therefore, an employee who has actually worked for fewer than 240 days will not receive EL. On the other hand, an employee who worked, for example, for 210 days but was on paid leave for 30 days will qualify for EL this year, based on the 210 days worked. Similarly, an employee who worked for only 156 days but was on Maternity leave for 84 days will receive EL, limited to the proportion of leave to days worked (as per the Factories Act, one leave day for every twenty days worked). However, any leave policy that is more favorable than the statutory one can be adhered to.

Regards,

Madhu.T.K