Earned Leave Dilemma: Does Taking Paid Leave Affect Next Year's Entitlement?

Our company credits 15 days of earned leave to an employee after the completion of one year from the date of joining. The calculation is that for every 20 days worked, the employee earns one day of earned leave. My question is, if he only avails paid leave in a year, is he still eligible for 15 days of earned leave next year?

Hi, earned leaves are calculated as one leave for every 20 working days. As per my knowledge, once the earned leave (EL) is paid to the employees, the leaves are carried forward to the next year and accumulated up to 30 leave days only. If the employee still does not take any leave, the leaves will be paid out and not carried forward any further. New leave days have to be calculated.

Hi Walsa,

This is regarding your query on "earned leave". As far as I understand, your company is allowing you to earn 15 days of leave in a year, i.e., 1 day of leave after 20 days of active service. When you avail your 15 days of leave or part of your earned leave, you will not be entitled to earn leave during your leave period. Also, ensure that some organizations do not allow leave in dribs and drabs. What I mean to say is that in a year, 15 days of leave cannot be taken in various 15-day increments. Please check up on this.

Regards

Hi Walsa,

Kindly refer to the Shop and Establishment Act of your state and the company policy handbook. As I understand it, in general, these 15 days per year can be carried forward to a maximum of 45 days in 3 years, which is governed by the Shop & Establishment Act of the state in which the company is registered/operating. If by "paid leaves" you mean holidays, weekends, voting day, etc., then all 15 days can be carried forward.

Hi there,

Is it possible for a company to decide about granting its employees earned leave deviating from the laws/acts? Can a company design a policy according to which employees are granted more than 45 days of earned leave (as mentioned by Gyan Mishra) for a period of 3 years?

Regards,
Meghna

Let me know when the earned leaves are to be utilized. Are they taken when the casual leaves are remaining? Is there any combination of leaves?

Hi,

If any employees have an earned leave balance of more than 45, will their earned leave (EL) carry forward to the next year or not?

Dear Govind,

If your company allows more than 45 days to be accumulated, then you can take leaves according to the company's policy. However, if your company policy or the applicable Act specifies that an employee can only accumulate Earned Leave (EL) up to 45 days, any excess EL will lapse.

R N KHOLA