Understanding State-wise Limits on Annual PL/EL Accumulation for Employees

Hi, can you please tell me what is the maximum PL/EL that can be accumulated by an employee on an annual basis? Please provide me with data state-wise.

Regards,
Indu

In my company, you can accumulate PL (Paid Leave) up to 50 days. After that, it gets encashed at the end of the financial year. However, there is a limitation for the encashment: only leaves above 42 get encashed, and 42 leaves are carried forward to the next year.

Hi Pushparaj, Thanks for your reply. In my organization, the maximum accumulation of earned leave (EL) is 30 days per year. I wanted to know if there is any government rule specifying the maximum EL that can be accumulated.

Under which Act are you interested in obtaining details of EL/PL?

Regards,
R.N.Khola

The total EL entitlement per year is 30. Out of the 30, we need to use 50%, and the remaining 50% will be carried forward to the next year. Therefore, only 15 EL days will be carried forward.

Regards,
Krinesh

Dear Indu,

The PL/EL (Privilege Leave and Earned Leave) are the same as per the act. For every 20 days you work, you will be provided with 1 day of earned leave. So, in a year, it is 18 days per year and it is encashable. The unused PL/EL can be carried forward to the next year, and the capping depends on the company policy, which may be a maximum of 30 days or 45 days.

Regards,
Hombal

Dear Member,

PL accumulation depends on the notice period. If the company gives a notice period of one month, then PL can be accumulated for one month. This is because when an employee leaves the organization without completing the notice period or the company relieves the employee immediately for any reason, the PL will be adjusted accordingly.

This policy entirely depends on the company's guidelines. Some companies do not carry forward PL to the next year, and the balance is encashed in the last month of the year or financial year. This is because employees take leave at any time, causing difficulties for the organization to manage their workload.

Regards,
Santosh Singh

Please refer to the attachment for a better understanding of the leave policy.

Regards,
J. Prakash
[Phone Number Removed For Privacy Reasons]

Can anybody tell me when employees get leave benefits, immediately after joining or after confirmation? Can trainees get leave benefits?

Regards,
HR Thejas

Dear,

Every company has different rules about it. Please refer to the Leave manual of the organization. You can refer to the Shops & Establishment Act and Factories Act for further inputs on the matter.

In most cases, the PL (Privileged Leave) / EL (Earned Leave) is linked to the length of service in the organization and is credited to the employee after completion of one year of service. The Factories Act states that the individual should have been present for a minimum of 240 days to become eligible for EL.

Dear All,

PL is earned on the basis of working days. Forwarding the balance PL for the next year is totally dependent on the company policy. Some companies forward the PL for the next year according to their notice period when an employee is leaving the organization. For instance, if the notice period is 60 days, the company maintains the accumulation of 60 days of PL for the next year.

If anybody wants to leave within two months, they will either need to pay two months' salary to the company or work for two months and encash the remaining PL.

Regards,
Santosh Singh

I do agree with Hombal because, in my company, the maximum limit of EL/PL accumulation is 75. It is purely based on your HR strategy and company policy.

Regards

Earned Leave Accumulation and Encashment

As per the Sales Promotion Employees Act of 1976, Sec. 14, Earned Leave can be accumulated for 180 days, of which the employee can avail themselves for 90 days at a time.

The encashment of leave is possible after 120 days.

Regards,
J.N. Modi

Dear sir,

If a small company (SSI) operating as a partnership wants to introduce a leave policy after 4 years of establishment, how should the leave policy be implemented? How is the earned leave calculated? Is it based on the current year or past years? Please clarify.

Suresh

Dear Indu,

The EL/PL accumulation policy purely depends on the company's description. If the company wants to provide benefits to the employees, it depends on the PL allocated per year.

Hello Everyone,

Can anybody share what the leave policies should be applied in a startup IT company?

Dear All,

Up to 3 years, your earned leaves can be carried forward, but not your other leaves. At the end of 3 years, your EL will lapse. As per labor law, you can encash a maximum of 30 EL on your basic pay, not on gross pay. It completely depends on the company/employer whether they want to adopt this policy. However, I couldn't find anywhere that based on skills (workers & management), leave encashment will also vary.

Dear Member,

If encashment of the amount of EL is within your purview, then who will object to you? But if the employer is to encash the amount of outstanding ELs, then he will review his policy or examine the applicable Act and see the maximum number of ELs that can be allowed to be accumulated.

R N KHOLA

Can anybody help me with the latest leave policy for a startup company with an employee strength of 4 members as per labor law?