Understanding Privilege Leave: When Can You Take It and Is Encashment Possible?

Hi All,

I work for a medium-sized IT company in Pune and would like to know:
- When is one entitled to PL?
- How many days of PL are allowed?
- Can PL be encashed? If so, when?

Regards,
Abhilasha

Hi Abhilasha,

The PL can also be called earned leave. One PL is earned with 20 days of work, so you can calculate it for the year. Some companies give PL after working for 13 days. This leave will be accumulated by the employee after one year from joining.

Goodbye,
Sachin
Email: sachinverma_hrd@yahoo.co.uk
Phone: 09997190002

Hi Sachin,

Thank you. I needed one more confirmation. Does any law or Act state that an employee has to complete one year of employment with the same employer to be entitled to PL? Please let me know.

Regards,
Abhilasha

Hi,

As per the Factories Act, 1948, every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed, during the subsequent calendar year, leave with wages for a number of days calculated at the rate of one day leave for every 20 days of work. For the calculation of working days, all festival holidays, casual leaves, and sick leaves are counted as working days.

You may also refer to the Shops and Establishments Act of your state, but more or less, the provisions for PL are almost the same.

To be entitled to encashment or availing the PLs or earned leaves, an employee must have completed at least a year (generally companies require one year of service) or 240 days as per the law. However, it depends on the company if it wants to be liberal to the employees and give the entitlement of availing PLs right from the first month. Many companies have merged all the leaves and they give 2.5 leaves every month right from the first month altogether. But every company has to give a minimum number of leaves as per the provisions of the corresponding applicable Act.

Amit Goyal

Hi Abhilasha,

Regarding PL, the IT industry standard is 16 days a year. You could choose to provide 4 days on a quarterly basis.

Regards,
Pooja

Dear All,

Here is the link from where you can get a fair amount of idea about EL/SL/CL: [clarification regarding EL/SL/CL](https://www.citehr.com/107027-clarification-regarding-el-sl-cl.html).

Thank you.

Hi,

Is this leave information common for all types of industries, and what types of leave does the industry allow its employees?

Regards,
Sriram V B

If an employee leaves the service and has outstanding privilege leave, they are entitled to wages based on their basic salary or gross salary.

I am working in the foundry division. I would like to know if an employee who has not completed 240 days in a calendar year is eligible for paid leave (PL). Please let me know what should be done in such cases.

To calculate privilege leave for a probationary staff member after confirmation, you can use the following method:

The employee in question joined on 17.08.2014 and was confirmed on 17.02.2015. To determine the entitlement to privilege leave post-confirmation, you would typically consider the total length of service from the confirmation date. This includes any accrued leave during the probationary period.

If the organization's policy states that privilege leave accrues from the date of joining, then the employee would have accrued leave from 17.08.2014 onwards. However, if the policy specifies that leave accrual begins after confirmation, then the entitlement would start from 17.02.2015.

It's important to review the company's leave policy to ensure accurate calculation of privilege leave for the probationary staff member post-confirmation. If you need further guidance, please let me know.