I have gone through the relevant provisions of Shops and Establishments Act, (TN) and also the Factories Act.
Fact 1: Earned leave is payable only when an employee completes 240 days of continuous service.
Fact 2: This continuous service includes the number of days spend on "probation"
Fact 3: Organizations cannot fix probation period as one year and escape the EL liability
Fact 4: In almost all organizations, an employee is not entitled to any earned leave in the first year of service, because, technically he has not earned any leave in the previous year.
Fact 5: If an employee has completed one year of continuous service, he becomes eligible for the number of days he/she is entitled to, as per the company policy.
Fact 6: Once a specific number of days is earned by the employee, companies/establishments/organizations have to credit that many number of days (xx days), in advance, in the subsequent year(s).
Fact 7: Law specifically says that the employee is entitled to xx number of days in the subsequent year, but
Fact 8: Law does not specify that xx number of days has to be credited upfront in the subsequent year(s).
Fact 8: This allows some employers to resort to some thing called "pro rated" credit every month.
Fact 9: This practice, takes away the rights of the employee to avail the leave he/she has earned in bulk to go on vacation etc.
Fact 10: The defeats the very purpose of granting earned leave, (which is giving the opportunity to the employees to de-stress himself/herself after one year of hard work.
Comments are welcome
B S Balaji, MBA, LL.B.
Not practising now.
Fact 1: Earned leave is payable only when an employee completes 240 days of continuous service.
Fact 2: This continuous service includes the number of days spend on "probation"
Fact 3: Organizations cannot fix probation period as one year and escape the EL liability
Fact 4: In almost all organizations, an employee is not entitled to any earned leave in the first year of service, because, technically he has not earned any leave in the previous year.
Fact 5: If an employee has completed one year of continuous service, he becomes eligible for the number of days he/she is entitled to, as per the company policy.
Fact 6: Once a specific number of days is earned by the employee, companies/establishments/organizations have to credit that many number of days (xx days), in advance, in the subsequent year(s).
Fact 7: Law specifically says that the employee is entitled to xx number of days in the subsequent year, but
Fact 8: Law does not specify that xx number of days has to be credited upfront in the subsequent year(s).
Fact 8: This allows some employers to resort to some thing called "pro rated" credit every month.
Fact 9: This practice, takes away the rights of the employee to avail the leave he/she has earned in bulk to go on vacation etc.
Fact 10: The defeats the very purpose of granting earned leave, (which is giving the opportunity to the employees to de-stress himself/herself after one year of hard work.
Comments are welcome
B S Balaji, MBA, LL.B.
Not practising now.