Understanding Privilege Leave: Can You Use It This Year or Next?

I would like to know whether Privilege Leave/Earned Leave for the current year (Jan to Dec 12) can be availed in the current year or if they are for the next calendar year. Also, is this governed by any labor law, or does it vary from company to company? If a particular law is applicable, kindly mention it as well.

PL can be availed in the current year on a pro-rata basis, i.e., PL accrued in one's credit can be taken in the current year. For instance, in our company, we are entitled to 21 days of PL, and one will accrue 1.75 days of PL for the preceding month. However, we do not allow the availment of current year PL unless there is any PL balance in one's credit.

Governance of PL/EL

PL/EL is governed by the Industrial Disputes Act, 1947, though the number of days varies from company to company.

Regards,
Prodyut DG

Leave Policies and Legal Framework

Leaves which an establishment should provide to its employees are governed by the base Act under which the establishment falls. Separate leave rules are prescribed for factories, mines, plantations, and establishments covered by the Shops and Commercial Establishments Act, among others. These represent the minimum leaves that the company should offer to its employees as part of social welfare. Any leave given beyond what is specified under the respective Act (such as the Factories Act, Mines Act, Plantations Labour Act, Shops and Commercial Establishments Act, etc.) can be provided to employees without any issue.

Most of the Acts mentioned above stipulate that earned leave or privilege leave for the current year must be taken in the subsequent year. Nevertheless, if the company wishes, it can allow employees to take earned leave/privilege leave in advance.

Regards,
Madhu.T.K

Leave Policies in Different Sectors

The PL/EL is governed by the Shops & Establishment Act of the respective state in the service sector, while the Factories Act governs the manufacturing sector falling under the factory definition. PL/EL can only be availed in the subsequent year. If management wishes to provide it voluntarily in the same year, it can be done on a pro-rata basis.

Accumulation and Encashment of Leaves

PL/EL can also be accumulated up to 60 days in the Andhra Pradesh Shops & Establishment Act and can be encashed for 8 days in a year. In factories, leave will be calculated and credited as one EL/PL for every 20 working days, but only after completing 240 days in a year. (The ID Act does not cover leaves).

In our organization, it is being said that PL/EL should be a minimum of 3 days. Is this correct as per the law? What if I have a zero balance of sick & casual leave and need leave for only one day?

Leave Policies and Legal Compliance

PL/EL can be availed at a minimum of three days and on three occasions in a year as per state S&E laws and the Factories Act 1948.

If a zero balance of SL/CL leads to a loss of pay or leave without pay, a leave application needs to be submitted by the employee to the sanctioning officer. A nil leave balance leads to a loss of pay, but not unauthorized absence.