Sick Leave Dilemma: Can You Carry It Over to Next Year or Does It Expire?

Dear Colleague,

Please let me know, can sick leave be carried forward to the next year, or will it lapse in the same year?

Thank you.

Dear,

First, examine under which enactment you are to grant SL. If the Act does not have any provision for carrying forward these leaves, then you can make rules for the same. One can provide better facilities to its employees without any hesitation.

R.N.Khola

No sick leave and casual leave cannot be carried forward for the next year, and they cannot be accumulated either. Only earned leave (PL) is eligible to be carried forward for the next year.

As far as I know, CL can't be carried forward, but sick leave and PL can be carried forward. However, this also depends on the company's policy and rules.

Dear jkphrm,

Yes, sick leave may carry forward up to 90 days. Half the salary may be paid for the remaining days.

'No labor law' dictates that a particular type of leave cannot be carried forward to the next year. It all depends on the company's leave policy. Therefore, the management or board can make a decision on this.

Yes, sick leave can be carried forward to the next year. It can be accumulated without any limit and shall lapse when the employee retires, resigns, or is terminated.

There is no hard and fast rule, and neither does the law prescribe it. It is at the discretion of the management to allow it to be accumulated.

Hi,

Almost all companies in India allow sick leave to be carried forward, but there must be a ceiling on it. For example, a maximum of 60 days or 75 days can be accumulated. However, it is at the management's discretion and decision.

No hard and fast rule for carrying forward of leave. In the IR, as a welfare measure, it is strongly advised to carry forward sick leave to the next year.

It entirely depends on the organization's policy. There is no law that specifies whether to accumulate or lapse the same at the end of the year.

Ravi

As per common practice and current HR policies followed by different organizations, only PL can be carried forward. After the completion of each fiscal year, sick leave and casual leave shall be lapsed.

Hi,

As per the CL/SL & National Holidays Act, all these leaves are for the current year. If management wishes to allow the accumulation, there is no restriction. I would suggest that these types of leave should not be allowed to accumulate. The EL should also be confined to only 30 as permissible under the Factories Act. The more the relaxation, the more the problem.

Hi,

PL should be carried forward to the next year, or it can also be carried forward as SL, but it depends on the company's norms. It's not a right in the act; it's a facility.

Thank you.

First of all, it is as per labor law, then the HR policy of the company, and also the industry type. These all vary in the leave policy, but all go hand in hand and should not be overlooked when making policy. In my career, Sick Leave (SL) and Casual Leave (CL) have not been carried forward to the next year, but there are some industries that have an HR policy for carry-forward.

In general, the leave policy is discussed with management for the betterment of employees and other areas of employee improvement. Below are the practices in most industries:
- PL/EL: Carried forward
- CL: Lapse by the end of the calendar year
- SL: Lapse by the end of the calendar year

Param

I agree with Sreekumar. As far as Earned Leave is concerned, there are provisions under the Factories Act. However, to my knowledge, there are no statutory provisions governing Casual Leave or Sick Leave. At most, organizations can establish some rules under the Standing Orders and have them approved.

Sick leave can be carried forward up to a certain limit of days. As mentioned earlier, it again depends on the company's policy and procedure. There are places where it is encashed at the end of the financial or calendar year.

SL can be carried forward to the next year. Accumulation can be decided by the company, i.e., 45, 60, or whether to encash on basic salary.

Company leave policy determines whether SL can be carried forward or not. In normal circumstances, SL can be carried forward in a limited way to meet any exigencies in the next year.

I hope no one had to refer to the Shop & Establishment Act. As per the Shop & Establishment Act, sick leave can be carried forward for three calendar years, i.e., if you have 10 days of sick leave, then it will be a maximum of 30 days. If not enjoyed, then anything above 30 days is considered lapsed but cannot be encashed. So first, please check the number of sick leaves as per the local Shop & Establishment Act and then carry it forward for three calendar years.

Hi Friends,

It's on management's directive and differs from company to company. In my company, SL/ML is carried forward and can be accumulated up to 60 days. Even PL is carried forward and can be accumulated up to 90 days, and the rest can be encashed. Whereas CL cannot be carried forward or accumulated.

The above opinions were helpful.

Regards,
Swati

Dear friend,

Casual leaves cannot be carried forward to the next year. As for sick leaves and earned leaves (privileged leaves), they can be carried forward depending upon the leave rules regulated by the concerned firm. There are different sets of rules prevailing in various firms according to their HR policies and other regulatory conditions.

As far as the Government of Andhra Pradesh is concerned, regular employees (not temporary employees) are eligible to have 20 days of half-pay leave every year, which will be carried forward to succeeding years. Employees can avail of the half leaves commuted with full pay on the production of a medical certificate only; that is sick leave. If 10 days are taken on a medical certificate with full pay, 20 days leave will be debited from their leave balance.

Suri Babu Komakula

Hi,

No act or law covers SL and CL; it truly depends on each company's policies and best HR practices. Provided employees are not permitted to adjust their leaves against sick leave to avoid adjusting the same from PL, which can be encashable. It is best if ethical decisions are made with no compromise.

Dear Professional,

SLs are carried forward, but it depends on the company policy. First, understand your company policy, then you will get to know.

Regards,
Kalpana

Hi there,

We are in the hospital industry. In our organization, sick leave cannot be carried forward, but it will be encashed. Privilege leave (PL) can be carried forward to the next year, with a maximum of 30 days, and the remaining days will be encashed.

Regards,
Gnanasekaran

Hi,

No sick leave and casual leave accumulate or carry forward beyond one year, as mentioned in the act. However, it is mandatory for the organization, as stated in the HR policy of the company.

Balwant

Sick leave carries forward with a maximum limit of accumulation and then gets lapsed.

Regards,
Vinod

Normally, in the majority of companies, sick leave (SL) is neither carried forward nor encashed. At the end of a particular year, the leave must be utilized, or it will lapse, as the case may be.

However, if the company is generous, it can make a new provision for carrying forward or encashment after careful consideration.

Hi,

There is no such rule in the act, but depending upon management discretion, it may be carried forward. Normally, most companies do not allow for the carry forward of sick leave.