Availing Privilege Leave During Probation Period

Hi
Can anybody please guide me on.
1) Why an employee can not avail PL during probation period ?
where as.....
2) We give encashment for those accrued PLs during probation period if the employee resignes during the probation period ..at the time of F & F settlement

Good question!!
I am also interested to know about this. Experts please throw your views please!
tke cre

Privelege Leave is better known as "Earned Leave" as it has to be earned. For that one has to workfor 240 day in the year under the Factories Act and for sixty days in a period of two months (for example, ONE day for every 20 days worked under the Factories Act and FIVE days for every 60 days worked under the Shops & Commercial Establiashments Act)
On probation one is eligible to earned leave but not entitled till he/she has earned it! So, during probation, you cannot avail of earned leave by rule, as you have not earned it, but should you resign during probation, you are given benefit of encashment of the leave you would have earned, had to completed the requisite period. This benefit is extended by the Factories Act.
I trust the matter is clear, but in case you need further clarification, raise your doubts!
Regards
samvedan
December 1, 2005

Hi Samvedan,
Indeed your answer to the query was crisp & upto the point!! have been following your posts - they are excellent!!
Your presence & thoughts have added immense value to this forum and we are priveleged to have you on board..
Regards,
Rajat

i wanted to ask about paid leaves, as per factories act one is eligible for paid leaves only when he is with company for more than 240 days. then he wil get 1 day paid leave for 20 days worked.
but if someone has worked for 140 days in financial year hw to give paid salary?
i shud calculate it as 140/20=7 days or he is not eligible only for paid leaves.
plz reply back soon
Thank u

Hi Praj,
In the case of the workmen one has to follow above rules however in the case of staff, leaves depend upon the services rules defined ..for instance during the probation period one is not entitled to paid leaves for six months..here also if one quits during the probation period one can encash EL in proportionate to the tenure served..again this has to be defined in the HRD manual..
Cheers,
Rajat

Dear Friend,

The Factory clearly states that:

1) An employee has to work for atleast 240 days in a calander year to be ELIGIBLE to Earned/Privilege Leave.

2) The Act stipulates under Section 79 the manner in which the days worked are to be computed. It is this figure on which the Earned/Privilege laeave is calculated @ one day for 20 days worked.

3) In your query, you say that an employee has worked only for 140 days during the calender year. The correct position is that such an employee is NOT ENTITLED to any Earned/Privilege Leave for the year. The assumption here is that it is NOT his first year of employment in the factory.

4) Therefore, you must acquaint yourself with provisions of Sec. 79 (2) that clearly state that if an employee joins on any day other than 1st January of the year, then in his case, at the end of the year the leave calculation will take into account if he has worked for atleast two-thirds of the working days of the factory till 31 December that year. If he has, then on the days so worked and computed he will be eligible to earn Leave at the same rate (i.e. one day for every 20 days worked). And such leave will be available to him for utilization in the following year.

I hope your doubts are clear now.

Regards

samvedan

June 20, 2006

Hello Samvedan,
Is the encashment of earned leave liable for PF and ESI deduction? And is the whole amount considered basic, on which (if applicable) PF and ESI is payable? Would appreciate a response within a couple of days. Thank you very much.
Regards, BHR

HI!
can somebody tell me from which time is privilege leave counted. is it from the day of appointment or from the day of confirmation?
Adhip

Hi Adhip,
PL calculation starts from the day employee join,but he can avail the same only after confirmation.
Reagrds,
Ragini