Dear Valencia ji,
You are in Goa and that too in Hotel Industry. WOH! Next time when I come to Goa, I will get some privilege from your Hotel.
Privilege Leave is a earned leave. When employee work in previous year he / she is entitled to get credit of PL in current year.
Law says that employee is entitled for PL for so many days say 21 days for example.
You should have your own set of rules in regard to how to give credits of the leave to the employees. You should have written rules so that there won't be any ambiguity.
As you said, the first credit is given by you on completion of 1 year. This is the rule with you.
In this case, if an employee joins on 1st June 2012, the first credit is given on 1st June 2013.
You can give the first credit for 1st June 2012 to 31st Dec 2012 proportionately for 7 months the next credit on 1st Jan 2014 for full year 2013.
You can, alternatively give first credit for full year and second one proportionately for 7 months.
This is up to you how to frame your rules. As long as employee gets 21 days PL per year of his working, there is no issue.
Subsequent credits will be on every 1st January for previous calendar year working.
If employee leaves the service in between the calendar year, he should be credited with proportionate leave up to the period he worked.
Hope you have understood what I explained. Hope my explanation is understandable.