Understanding Earned Leave vs. Casual Leave: Are They Only for Manufacturing?

Difference Between Earned Leave and Casual Leave

What is the difference between earned leave and casual leave?

Applicability of Earned Leave

Is earned leave applicable only to the manufacturing industry?

Maximum Consecutive Days for Casual Leave

What is the maximum number of consecutive days for which casual leave can be availed at a time? Is it only 2?

Casual Leave (CL)

CL is also called Casual Leave. These are availed on unplanned occasions. It is typically granted as 10 or 12 days per annum, but management may offer more if willing. If an employee does not take these leaves in the given calendar year, the CL will lapse.

Earned Leave (EL)

EL (Earned Leave) is mandatory as per statutory laws under both the Factories Act and the Shops & Commercial Establishments Act. It is calculated as 1 leave day for every 20 days worked. If an employee does not utilize these leaves in the calendar year, the EL can either be carried forward to the next year or the employee may receive leave encashment.

Maximum Consecutive Days for Casual Leave

According to company policies, the maximum consecutive CL days allowed can be 2 or 3. Most organizations set the limit at 2 days, while a few companies allow up to 3 consecutive CL days.

Please let me know if you need any further clarification or information.

We can refer to earned leave as privilege leave (PL/EL). Generally, this leave is given to employees for around 12 days per year, based on the condition that the employee must complete 240 working days in the year. EL is applicable to all types of industries.

The provision of casual leave (CL) may or may not be provided by the company, as it is based on the HR policy manual. In our organization, we provide 6 days of casual leave per year.

Thank you.

I agree with Mr. Jeevarathnam. In my company, we are also following the same.

EL/PL: In the case of PL, 1 PL will be credited for every 20 physically present days for employees. This can be carried forward to the next year as well. However, depending on company policies, it will lapse once the total PL days accumulate to 90 days (usually). You have to utilize a few, or you can encash it.

CL: In our company, for every 30 days, 1 CL day is credited, and a total of 12 CL days per year are available. A maximum of 3 days CL continuously can be applied if available in his/her credit.

Regards,
Bharghavi

If the strength of your organization is 10 or more workmen with the use of power or 20 or more workmen without the use of power, it is considered a manufacturing company. If yours is a manufacturing company, then it is compulsory to provide Earned Leave (EL) to employees. Casual Leave (CL) is not an issue, but EL is a significant concern.

Please inform your top-level management and arrange to provide EL to all employees.

Regards,
Dhivya. R

My organization is involved in import trading, and the total strength is 150+. Can you guide me on whether it's essential to provide Earned Leave (EL) to employees?

Thank you.