Understanding Earned Leave: Is It Paid After Probation and What Does It Mean?

Hi, I live in Bangladesh. I am working as an HR Executive. In our company, I am the only HR personnel, so I have to handle all HR activities by myself. All employees, including the CEO, rely on my decisions regarding HR matters. It is concerning that if I am unaware of any information.

Question About Earned Leave

I have a question that needs clarification: If an employee takes earned leave after completing the probation period, is this leave with pay or without pay? Also, could you explain what earned leave is?

Regards

First, you should go through your company handbook to become familiar with your company's leave policy according to our government rules.

Regards,
Brinda

Thank you for your response. As per company policy, we offer 21 days of earned leave, 10 days of casual leave, and 9 days of sick leave. I understand that for permanent employees, casual and sick leave are considered as leave with pay per annum. However, if an employee has already used up their sick and casual leave and then takes earned leave, would this be considered as leave with pay or leave without pay?

If an employee has earned leave for that month, then that leave will be paid leave. Please check what policy your organization has for earned leave (EL). Generally, it is 2 leaves per month, so an employee can avail of 2 leaves after completion of that month.

Regards,
Tanu

Dear Fariza,

In India, we calculate leaves on a calendar year basis.

Earned Leave (EL) or Privilege Leave (PL)

Earned Leave is calculated based on the number of days actually worked during the previous calendar year. As per the Factories Act, it is calculated that 20 days worked will earn 1 day of leave. According to the Bombay Shops Act, it is 21 days of leave, subject to a minimum of 240 days worked during the previous year. Almost all Indian states have their own Shops Act, and the number of days of leave provided may vary.

About your query: as briefed above, to avail of Earned Leave, an employee has to earn those many leaves by working during the previous year.

Probation Period and Earned Leave

During probation, no employee earns any leave as he or she is a new joiner, provided this probation period falls within the same calendar year. If the probation period extends into two calendar years, you have to calculate EL proportionate to the actual number of days worked during the previous year and credit it to the employee's account from January 1 of the second calendar year.

If your organization allows employees to avail of EL during the probation period, and subject to the availability of EL as explained above, you can allow them to utilize the same.

Therefore, you may set leave and other HR policies in line with your country's labor laws and operate upon the same.

Hope I could help you to understand this particular issue.

With regards,

Suresh

Have you formally qualified yourself in HR or Personnel Management? Does your country have "labour laws"? Every country does! Are you managing a factory or a "shop/commercial establishment"? These are known as "establishment laws," which typically outline the mutual rights and obligations of both employers and employees. I recommend consulting with a lawyer, particularly one specializing in labor law, for guidance on this matter.

Additionally, has your company established rules covering employer-employee relations? Similar to applicable laws, these rules should address specific questions you may have.

Regarding the Specific Points Mentioned:

1. Whether absence during probation is treated as paid or unpaid will be determined by the terms and conditions of employment outlined in the appointment letters. Please refer to those documents.

2. In the absence of specific rules or laws, the general practice is that unsanctioned absence is unpaid unless there is an emergency situation.

3. Even with authorization, if an employee has no remaining leave balance, the absence will be unpaid but authorized.

4. "Earned" leave typically requires an employee to work a certain number of days to accrue leave at a specified rate. This concept is usually derived from applicable laws or service rules.

If you have further questions, feel free to ask. I believe your initial query has been addressed.

Regards,
Samvedan

My dear Indian friends, this is a matter of law, so please do not suggest Indian practices to her. It will only confuse her.

Explore Bangladesh Labour Law 2006

Labony, why are you not exploring the Bangladesh version of the Labour Law 2006? You will gain a clear understanding of Employee Leave (EL) from there. If you are under EPZ, then you should adhere to Instructions 1 & 2.

Thanks!

Understanding Earned Leave According to Bangladesh Labour Law 2006

According to the Bangladesh Labour Law 2006 (BLC-2006), Earned Leave or Annual Leave: "Every adult worker who has completed one year of continuous service in an establishment shall be allowed during the subsequent period of twelve months leave with wages for a number of days calculated at the rate of one day:

(a) In the case of a shop, commercial or industrial establishment, factory, or road transport service, for every eighteen days of work;

(b) In the case of a tea plantation, for every twenty-two days of work;

(c) In the case of a newspaper worker, for every eleven days of work performed by him during the previous period of twelve months."

I would suggest you read BLC-2006 by Advocate S.A. Huq, which is available in both Bengali and English, to understand the Labour Law.

Thanks,
Saikat

I have a doubt. My company has just started, and we are in the process of recruiting and hiring. In this case, will the employee be eligible for any earned leave or privileged leave?

Thank you.