Why Can't Employees Use Privilege Leave During Probation, But Get Paid for It If They Quit?

Hi,

Can anybody please guide me on:
1) Why an employee cannot avail PL during the probation period?
Whereas...
2) We give encashment for those accrued PLs during the probation period if the employee resigns during the probation period at the time of F&F settlement.

Privilege Leave is better known as "Earned Leave" as it has to be earned. For that, one has to work for 240 days 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 Establishments Act).

On probation, one is eligible for earned leave but not entitled until he/she has earned it! So, during probation, you cannot avail of earned leave by rule, as you have not earned it. However, should you resign during probation, you are given the benefit of encashment of the leave you would have earned, had you 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

I wanted to ask about paid leaves. As per the Factories Act, one is eligible for paid leaves only when they have been with the company for more than 240 days. Then they will get 1 day of paid leave for every 20 days worked.

But if someone has worked for 140 days in the financial year, how should paid salary be given? Should I calculate it as 140/20=7 days, or is the individual not eligible for paid leaves?

Please reply back soon.

Thank you

Hi Praj,

I wanted to ask about paid leaves. As per the Factories Act, one is eligible for paid leaves only when they have been with the company for more than 240 days. Then, they will get 1 day of paid leave for every 20 days worked. However, if someone has worked for 140 days in a financial year, how should paid salary be calculated? Should it be calculated as 140/20 = 7 days, or are they not eligible at all for paid leaves? Please reply back soon.

In the case of workmen, one has to follow the above rules. However, in the case of staff, leaves depend upon the service rules defined. For instance, during the probation period, one is not entitled to paid leaves for six months. Similarly, if one quits during the probation period, they can encash earned leave in proportion 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 at least 240 days in a calendar 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 leave 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 calendar 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 at least 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 deductions? And is the whole amount considered as basic, on which (if applicable) PF and ESI are payable? Would appreciate a response within a couple of days.

Thank you very much.

Regards,
BHR

Hi! Can somebody tell me from which time privilege leave is counted? Is it from the day of appointment or from the day of confirmation?

Regards,
Adhip

The PL calculation starts from the day the employee joins, but they can avail the same only after confirmation.

Regards,
Ragini

My query is if an employee is on his probation period and after six months, the employee will be entitled to earned leave. So, after completing his six months of probation period, will his earned leave calculation start from the day he began, or will it be considered after confirmation?

Hello everyone, I am new here. Can anyone tell me if an employee has an earned leave balance in their account but doesn't have casual and sick leave, can we allow them to use earned leave for their one-day leave?

I want to know for earned leave calculation, is it necessary to complete 240 days in a year? This includes paid holidays, weekly offs, or only present days.