Leave Eligibility Confusion: How to Calculate Paid Leaves for March Confirmations?

Leave Eligibility Query

We have a query regarding leave eligibility. We are working in a construction firm, which is a partnership firm. As per our policy, an employee is eligible for only 12 paid leaves; no other leave is applicable. This means we get only one leave per month.

If an employee's confirmation falls on March 11, 2013, please let me know how many leaves he/she is eligible for. Should I consider March as well or not? Similarly, if his/her confirmation falls after the 16th of March, should I consider March or not?

Regards,
Sujata

Dear Sujata, you have to formulate a policy in your company in such a way that the employee's confirmation begins prior to the 15th of any month. The same month may be taken into account to provide the calculation of leave. If it is after the 15th of the month, the same month may have to be ignored. As your company provides 12 days of paid leave to employees, you can calculate the leave accordingly by maintaining a uniform policy to avoid discrimination in the company. Nobody finds fault with you.

In the instant case, the employee confirmation falls on the 11th of March 2013. You have to give one day of paid leave for the month of March to the individual. But make sure that the employee completed the service at least one month before awarding one day of leave for the month of March 2013.

Regards,
Suri Babu Komakula

Probation and Leave Entitlement in India

In India, labor legislations are silent on probation/confirmation with regards to the rights and privileges of probationers or confirmed employees, except for their definitions in model standing orders. These matters depend on company policies, job posts, industry practices, etc. Regarding entitlement to leaves, The Factories Act or Shop & Commercial Establishment Act do not discriminate between probationers and permanent employees.

Regards,
Varghese Mathew

[Phone Number Removed For Privacy Reasons]

Dear Sujata, you have to formulate a policy in your company in such a way that the employee's confirmation begins prior to the 15th of any month. The same month may be taken into account to provide the calculation of leave. If it is after the 15th of the month, the same month may have to be ignored. As your company provides 12 days of paid leave to employees, you can calculate the leave accordingly by maintaining a uniform policy to avoid discrimination in the company. Nobody finds fault with you.

In the instant case, the employee's confirmation falls on 11th March 2013, you have to give one day of paid leave for the month of March to the individual. But make sure that the employee completed the service at least one month before awarding one day leave for the Month of March 2013.

Where the joining date is after the 15th of the month, you can give half-day leave. Those who worked for more than half a month can get a full day. If you are going to follow the practice of one holiday for a month worked, a better practice may be to give a full day for those who worked more than 3 weeks, half days for those who work 1-2 weeks, and none for those who worked for up to a week.

Regards, Suri Babu Komakula

Subject: Attention: Mr. Banerjee

Suppose the confirmation falls on 26th August 2013, and an employee will be working only for 6 days. In this matter, can we provide a 1/2 day leave or not? Please reply.

Regards

To keep it simple, round off the leaves to full days. Anything less than 1/2 is zero, and 1/2 and above is 1.

Leave Policy Compliance

Secondly, you have mentioned that your company provides 12 days of leave. Under which Act are you covered: The Factories Act or the Shops & Establishment Act? Under both acts, the number of leaves granted is more than what you are currently providing. Please refer to the acts for better clarity.

Regards,
Preetam Deshpande

As other members have said, the process you follow is incorrect. It should be based on the day the employee joined, not the confirmation date (I was actually referring to the joining date). The general rule is that you credit leaves for the probation period, but they can only be used after the probation is over.

Further, you need to check the number of days required under the Shop and Establishment Act or the Factory Act (as applicable to you) for the minimum number of days required to be allowed for leave.

Assuming your owners are not willing to give additional days or change the starting reference point, I suggested what would be fair. Finally, it's management's call (or HR's call) to decide what it wants to do.

For clarification, I am outlining what I was saying:

1. Anyone who worked the full month or has worked for more than 3 weeks in the month (22 to 31 days) should get a full day of leave.

2. Those who worked for less than 3 weeks (8 to 21 days) can be given a half day of leave for the first month.

3. Those who worked for less than 8 days in the month should not get leave credit for that starting month.

Hope this helps you work out your own method for the above.

Regards

Standing Order and Leave Accrual

If you have a Standing Order, follow its provisions; otherwise, the model standing order is followed. Accrual of leave should be for the calendar year, after completion of a given number of days of the eligibility period. If he is eligible, then you should allow proportionate leave for the actual period of duty days he has put in.

Regards

Leave Eligibility and Confirmation

E.L. depends on the applicable law and is not decided by the owners. The employee will get leave from his or her date of joining; however, it depends on whether you will provide the availing facility from confirmation. If an employee joined on 1st April and his confirmation is for six months, then he will be confirmed on 30th September. But in October, he can avail leave for six months from the date of joining.

Regards,
Rajeev

Understanding Leave Entitlement

First of all, leave is not a matter of right. At any cost, it should not be less than 12 casual leaves per annum apart from earned leaves. If the organization provides more than that, the law or society should not object.

Dear Sujata,

You and your company can't decide the Leave Policy. The policies are decided by the Labour Law Ministry, so please follow the labor law rules under which your company falls.

Thanks & Best Regards,
Rajeev Rawat