Understanding Leave Policies: Can Employees Use Earned Leaves After Casual Days Off?

Leave Policy Revision Under the Shops & Establishments Act

I am working in a manufacturing firm. Our firm is under the Shops & Establishments Act in Delhi. Previously, we were granting 24 paid leaves to employees without categorizing them into Earned Leave (EL), Casual Leave (CL), and Sick Leave (SL).

I want to revise this policy by categorizing these leaves. My confusion arises when, for example, I allocate 15 EL, 8 Casual, and 7 Sick leaves to an employee. If the employee takes one or two casual leaves in a month, will they still be able to avail the earned leaves, or do they need to be present regularly for the full 20 days?

Please clarify.

Regards,
Aanchal Tyagi

Dear Aanchal Tyagi,

Earned leave is applicable for attendance, not for physical presence. All eligible leaves will be treated as attendance.

Regards,
Abbas.P.S

24 leaves can be given as follows:

- 12 EL (One for each month)
- 6 SL
- 6 CL (0.5 each for one month)

EL will be against attendance only and will be given if present.

Regards,
Manish

Thank you for the nice suggestion, but please let me know the rule as per the Shops and Establishments Act. Also, regarding the other comment in this thread stating that EL is for total attendance and not for physical presence, I am still confused after reading the comments.

Regards,
Aanchal Tyagi

Dear Abbas,

Thank you for your reply. However, your post has caused some confusion as some HR professionals have informed me that it is based on actual attendance or physical presence only.

Regards,
Aanchal

EL is given for the total present days (attendance) in a month. (In case of present only, approved leave, and all week-offs are considered to be present). Hope it's clear now. Do let me know if any more information is required.

Regards,
Manish

In our company, I am also facing the same problem. However, I have suggested to top management to increase the leaves and add sick leave, casual leave, and maternity leave. Now they are considering it, and I hope they will implement the changes. You can also suggest to your top management and inform them that it is in accordance with labor laws.

Dear Aanchal and Manish,

Understanding Leave Policies Under the Delhi Shops and Establishment Act 1954

Please read Section 22 of the Delhi Shops and Establishment Act 1954; it refers to leaves!

As per the Act, 15 Earned Leaves (ELs) and a total of 12 Casual Leaves (CLs) and Sick Leaves (SLs) are granted. Earned Leaves, Casual Leaves, and Sick Leaves, if approved by the organization and availed, make an employee eligible for leave generation.

However, if an employee takes leave and has no leave balance, then this day or days will not qualify for leave generation. If an employee takes leave and the leave is not approved by the organization, then the leave days will also not qualify for leave generation.

P.S. - Attached is the Act for your reference.

Regards,
Rahul Chhabra

Leave Policy Challenges in a Pvt. Ltd. Company

I am working in a Pvt. Ltd. as an HR professional. Here, there are only 12 Earned Leaves (EL) and no Casual Leaves (CL) or any other type of leave. Now, my problem is that all employees are requesting an increase in the number of leaves while also needing me to prepare a list of holidays. It is important to note that holidays depend on the decision of top management on the day itself. I find myself caught between the top management and the employees. Could someone help me out?

Please share the list of holidays for private companies in 2011.

Thanks,
Saloni

Refer to some statutory books or labor websites where you will find essential statutory compliance such as holidays, leaves, etc. Present this information to your management and explain it in a way that instills a sense of compliance with government regulations. Any management will naturally have a level of fear or respect for government authority. I have tried this approach in my company and it has been successful. Give it a try. All the best.

Regards,
Ramesh

Thank you so much. It is clear now, but I want to know if it is as per the act or company policy. Could you please clarify how many leaves we should provide as per the act?

Regards,
Aanchal

Understanding Leave Entitlements: EL, CL, and SL

I want to know about the leave entitlements such as Earned Leave (EL), Casual Leave (CL), and Sick Leave (SL), and how these are allocated to employees and when.

Regards

I want to know if we are calculating EL only based on actual presence. For example, if an employee avails CL or SL, then we do not consider them as present. Are we proceeding correctly?

As posted earlier, is the weekly off and the leaves considered for the calculation of earned leave?

Thank you.

Dear Shekhar, Yes, weekly offs are considered for leave calculation. For example, if an organization offers 18 EL per year, then after every 20 days, one leave will be generated. If the leaves are approved and availed from the balance leaves, then the leaves will be considered for leave calculation. If the leave/leaves that an employee takes are unapproved, then this particular day/days will not be considered for leave calculation.

Regards, Rahul Chhabra

We are following a calendar year leave account. Employees are expecting earned leave encashment. Can the entire EL balance be encashed by the individual, or do we need to retain a certain number of EL?

Please reply.

Carrying Forward Earned Leaves (EL)

EL can be carried forward to the next year, but one can accumulate only 30 ELs; the rest would be paid off or lapsed, depending on the company's policy. These accumulated 30 leaves would be paid at the time of Full & Final.

Regards,
Aanchal Tyagi