Is There a Law Allowing More Paid Leave After Long Service, or Is It Company Policy?

Hello, I am Rex Jones. I have been working with a reputed broking company since January 2006 (7 years & 10 months). Due to an accident, I have been on leave for the last 45 days.

According to our HR policy, we can't take more than 30 PL in a year. After 30 days of leave, the rest will be considered as leave without pay (LWP).

Question on Leave Policy and Legal Entitlements

I want to know if it depends on the company or if there is any law that after completion of a certain number of years of service, an employee will be entitled to 3 months of PL in a year or so.

Thanks in advance.

Leave Quantum and Rules

Leave quantum and rules differ from organization to organization, and they are framed considering under which Act the company is registered. For example, a company can be registered under the Shops & Establishment Act, Factories Act, Sales Promotion Act, etc. The Shops & Establishment Act again differs from state to state. Also, a company can register its head office under the Shops & Establishment Act and its manufacturing unit under the Factories Act. Under all these options, quantum and leave rules will differ.

Under the purview of the applicable Act for any organization, it frames its own leave policy. For example, if the Act says 21 days of PL for a completed year is mandatory, then it is the minimum leave specified. An employer can make a policy for granting 30 days of PL for a completed year.

Your Query on Leave Policy

Coming back to your query, I presume your company has a policy of granting 30 days of PL for a year. Since you have finished more than 7 years, for each year you are eligible for 30 days of PL. Calculating leaves already taken during earlier years, whatever balance remains is accumulated to a certain level, say 60 days accumulation, or 100 days accumulation is allowed. Excess balance leave automatically gets lapsed.

Since you are on leave for 45 days, if you have a sufficient accumulated balance in your account, upon producing a doctor's certificate, your HR should grant you the required leave. Of course, if it is a written policy that “under no circumstances, more than 30 days PL is allowed in a year,” then the issue of deduction will arise. We will have to see the legality, and legal experts can provide their comments on whether such a deduction is permissible under any law or act.

Regarding Your Query: 3 Months PL in a Year

I don't think any company has such a policy that after certain years, you are eligible to take 3 months of PL in a year.

Regards

Hi Abhay, as you mentioned about balancing leaves, I have 71 more leaves in my bucket after deducting these 30 leaves. However, it is stated in their HR policy that we cannot take more than 30 PL in a year. So, kindly advise.

Thank you.

As per your company policy, you cannot take more than 30 days of PL. However, I believe there will be no restriction on SL (Sick Leave) as long as you submit all the required medical documents. If you have an SL balance, please avail of it first. If the balance is not sufficient, you can then combine it with your PL.

I hope the above information is helpful to you.

Regards,
Gia

I have 2 casual leaves and 71 privilege leaves remaining. How can I use my privilege leave in this case? Please advise.

Thank you.

Since you do not have SL balance, you will have to avail PL itself. I think you can put up the leave application along with the supporting medical documents. I am sure your management will make an exception to the rule after all it is on medical grounds.

Regards,
Gia

As Gia has rightly said, there can be exceptions to the policy laid down by a company. Please speak to the top management, and on humanitarian grounds, they will work out something wherein they can adjust your PL.