Can Employees Earn Leave Credits During Their Notice Period? Seeking Advice

Dear Seniors, please let me know if PL/CL/SL leaves can be credited to an employee who completes any year of his/her service in the company during his/her notice period. In our office, one employee has served notice, and as per the notice, he will work until 20th October 2013. On 17th October 2013, he will complete two years of service in our company.

Thanks,
Gajinder Singh

The notice period is a period provided to the company to arrange for a replacement and vice versa. Employees continue to work as usual and are entitled to all benefits accruing to them until their last working day.

Depriving an employee of benefits during the notice period may make it seem like a punitive period. In actuality, we also allow for leaves during the notice period, and the notice period is extended for the days of leave taken.

Thank you,

V K Gupta

This is very much dependent on the leave policy of the company. In the organization where I work, we give PL credit to employees serving the notice period. Since the employee has already completed two years in your organization, I see no harm in giving him the leave credits. He deserves to get it.

Regards

Leave Policy During Notice Period

The leave policy should follow the calendar year, so once the employee has completed his/her probation, they are entitled to all leaves on a pro-rata basis until their last working day. For example, if the employee's last working day is the last day of the month, then he/she is entitled to leave for that month as well.

Since PL leave is credited based on working days, the total working days, including the notice pay period, are to be considered for that purpose.

Reasons to Consider Regarding Leave Credit During Notice Period

You must consider the following reasons:

• Reason One: It's just unfair treatment, and one day you will also receive the same treatment.

• Reason Two: Legally, all leaves are credited on January 1st. I doubt you are doing something illegal.

Regards.

The employee who is on a notice period shall be considered an employee until their Date of Leaving (last day of service). Hence, the PL computation has to be made until their last day of service. As rightly pointed out by a member, the notice period is to give the employer time to find a replacement and for the employee to hand over responsibilities to the new employee identified by the employer from the employee who will quit.

In fact, even annual benefits such as LTA, medical reimbursements, etc., shall be paid proportionately until their Date of Leaving the company.

Leave During Notice Period

Regarding leave availed during the notice period, some companies extend the notice period for the period of leave availed, and some other companies adjust leave available to the credit of the employee. Some companies practice granting leave on Loss of Pay during the notice period, though leave is available to the credit of the employee. On the other hand, they pay up for the unavailed leave, as well they can adjust this against the leave availed by the employee during the notice period to simplify the process.

Trust the matter is clear.

Regards,
M.V. Kannan