Understanding Leave Accrual: How to Calculate Leave for an Employee Who Joined in August 2006

An employee joined on 1st Aug '06 and he/she is still working. What will be the leave status on 1st Jan 2007?

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An employee joined on the 1st of August 2006 and is currently still working. What will be the leave status on the 1st of January 2007?

Also, please elaborate on the 240 days worked in the previous year.

If, for example, he/she joined on August 1, 2006, and is still working, would he/she be eligible? If so, how much would he/she be entitled to? Our company policy stipulates 18 days of leave per year.

The earned leaves are guided by Section 79 of the Factories Act, which clearly states that an individual is entitled to earned leaves if they have worked for 240 days in a year or 2/3 of the remaining days if they have joined in between the year. The minimum number of leaves is 15 as per the Factories Act, but it varies from 20-30 days in a year in different companies as per the company policies.

In your case, if a person has joined in Aug06, they are entitled to the following leaves: (Earned leaves in a year as per policy/12) * 5, if they satisfy the condition of 2/3 attendance, and from thereon every year as per the policy.

SALIL SHARMA 99102 47001

I wanted to know on what basis we can calculate PL for a company employee who has been taken on a consolidated salary basis. Please advise.

If there is a specific provision for leave entitlement for Consolidated Wages employees, follow that; otherwise, follow the general rule. The rule applicable to employees appointed on probation could be made applicable.

Pro-rated PL Accrual

The question of PL accrual arises only when the employee completes one year of service. However, in the given scenario, pro-rated PL can be credited at the time of crediting PL in the leave record.