Understanding Earned and Casual Leave: Can You Encash or Claim Mid-Year?

I have a query regarding EL eligibility and encashment.

Encashment of Earned Leave (EL)

1. Can EL be encashed in the same year it was given? For example, if in Jan 2012, a person has 14 days of EL based on the 2011 allocation with no carry forward, can a portion of the leave be encashed within Dec 2012 or only in 2013? Is there a statutory policy, or is it based on the company's policy regarding encashment?

2. If a person has not worked for 240 days in the previous year but has worked for more than 2/3 of the year, i.e., a minimum of 8 months in the previous year, are they still eligible for EL from Jan of the following year? (Number of days worked in 8 months/20). So, a person needs to work for 240+ days or more than 8 months to be eligible for EL the following year.

Regarding Casual Leave (CL) Eligibility

1. If CL is 10 days, how is it eligible for a person joining in the middle of the year for the same year? Will prorated days based on the remaining months be given, or will the person not be eligible for CL in the year they join? For the following year in Jan, how will CL be issued if the person has not completed 1 year?

Kindly clarify.

Thanks

Regarding CL, you should consider it on a prorated basis.

Encashment of EL Statutory Part

It simply states that it shall be encashed. For that, you should prepare a policy for the encashment of EL.

Hello,

I have a calculation question: if a person is in the midst of the year, how do we calculate CL/SL?

For example, if an employee joined on March 14th, 12. Note: His working months are 8 months.

Calculation: 10/12 * 8 = 6.5 days. Therefore, he will be entitled to 6.5 days of CL.

Seniors, please let me know if this calculation is correct or not.

According to the Shops & Establishment Act, 1963, a person employed in a shop or an establishment shall be entitled to:

Privilege Leave/Earn Leave (PL/EL): For every completed year of continuous service, employees are entitled to privilege or earn leave on full pay for fourteen days. PL/EL admissible under clause (a) may be accumulated up to a maximum of not more than 28 days. However, this can vary from company to company.

Casual Leave (CL): Each year, employees are entitled to casual leave on full pay for ten days. CL admissible under clause (c) shall not be accumulated. During the first year of service, employees will not be eligible for any leave except CL, which is calculated based on the proportion of service rendered in the relevant calendar year.

Leave Year: 1st April to 31st March.

Admissibility: Casual Leave will be due from the date of joining service and calculated on a pro-rata basis. Earned Leave is available upon completion of one year from the date of joining service. A person who ceases to be an employee before completing one year will not be entitled to Earned Leave.

Frequency of Taking Leave:

• Casual: Subject to a maximum of 3 days at a time, except in cases of sickness and with previous permission in writing from the employer. Half-day Casual Leave will also be admissible except on half working days.

• Earned: Up to 3 times in a year with a ceiling of 14 days at a time, except in cases of final service severance. The ceiling of 14 days may be relaxed in case of prolonged illness or for any other reason specially sanctioned by the Management.

Encashment of Earned Leave:

Earned Leave can be encashed if it exceeds a balance of 30 days (varies from company to company) in a leave year. This facility is allowed to those whose leave surpasses the accumulation limit. If the surpassed figure is less than 20 days, staff members will get encashment for only those days which would have lapsed.

Regards.