Leave Deduction Dilemma: How Should We Handle Non-Sick Personal Absences?

Dear friends,

I have a simple question. If someone is absent from work for personal reasons (not health-related – in other words, they are not sick), then should the leave be deducted from EL, CL, or SL? Currently, we are deducting from SL first, even if they are not sick, then CL, and then only EL for personal work. Is this the right thing? The reason for following this practice is that the employee's EL is accumulating and can be carried over or cashed out, thus increasing our company's costs.

As per the act, what is the right thing to do? Please advise.

Normally, sick leave should be availed only for being sick and should be supported by a medical certificate. Earned leave is granted when the leave sought exceeds three days. On the other hand, for casual exigencies, such as one or two days, CL is allowed. While all leaves are subject to prior approval, EL will require sanctioning in advance.

Regards,
Madhu T.K

Hello Rays and Madhu,

Thank you for your contribution. I have a question regarding how earned leave will be calculated. For example, if we consider 20 working days and 1 earned leave, but the employee takes some casual leave or any other leave in between, do we still count it as 20 working days? Please explain this to me in detail.

Thanks & Regards,
Rashmi Mehra :)

Depends on the reason for his leave though not real. If leave is not granted, there will be no deduction from leave but wage deduction.

Hi Rashmi,

The 20 working days - 1 EL is irrespective of the CL credit. However, you need to follow the law of the land (Shops and Commercial Est - if you fall under that) to understand the exact basis for calculation.

Regarding your earlier question, you should contact the employee and request him to send a letter/email regarding the leave. If he does not respond, you may need to take legal action. If he responds, deduct from CL first and then EL.

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Sree

Hi,

For the calculation of PL/EL, if an employee takes CL or SL and it falls under 20 working days for considering 1 leave, you need to treat CL and SL leaves as working days since you are paying wages for such sanctioned leaves.

Mohan Rao
Manager HR