What I perceive regarding Earned Leave and Privilege Leave is that Earned Leave is the one which one earns based on the working days as per the Factories Act. Every management has the prerogative to have its own leave policy for its employees. Management may prefer to provide leaves strictly as provided in the Factories Act, i.e., one earned leave for every 20 days of working, which amounts to 15 days in a year. Similarly, 7 Casual Leaves will be permitted under the Act. However, most managements restrict this calculation to a group of employees (Workmen) and may prefer to provide a different set of leave rules to Office Staff and Officers. They may provide Privilege Leave (EL), Casual Leave, and Sick Leave in excess of what is given to the other group or provided in the Factories Act. Of course, Sick Leave will be provided to those who are not covered under ESI.
Privilege Leave Policies
Privilege leave provided by the Management could be 30 days in a year (Casual Leaves 10 days in a year normally). Some managements provide the same twice a year, i.e., from 1st January and 1st July every year. This leave can be carried forward to a certain limit at the discretion of the management. Privilege leave accumulated beyond that limit gets lapsed, and encashment of this leave is also permitted by the Management in many companies. Sick leave also will be allowed to be accumulated to a certain limit beyond which the unavailed Sick Leave will get lapsed. Casual Leave has to be availed during the year, and unavailed Casual Leave at the end of the year gets automatically lapsed.
Management Discretion in Leave Policies
Every management can, at their discretion, formulate their own leave policy and implement the same. The statute only provides the minimum eligibility but never limits the same.
I hope I have made the matter clear.
Regards,
Joga Rao