When Does a Contract Employee Become Eligible for Earned Leaves After Going Permanent?

One of our employees joined on 02/02/2011 on a contract basis. For some reasons, his employment was not confirmed, and he continued to be on a contract until 01/10/2013. As per the contract agreement, he will be given 1 sick and 1 casual leave; he is not eligible for Earned Leaves. On 1st October 2013, his employment was confirmed, and he was made permanent. What will be the effective date for him to get the eligibility for earned leaves?

His EL is eligible from the 1st of October 2013. He can use the ELs after he completes his 240 working days from the 1st of October 2013.

Regards

First, it is surprising that the employee employed on a contractual basis has been kept under probation for more than 2 1/2 years. What does your leave policy say? If you do not have any leave policy, you need to follow the A.P. Shops and Establishments Act. Please go through it.

Regards,
B. Saikumar

Mostly, contract-based appointments do not include Privilege Leave (Earned Leave). Once confirmed in employment, the individual will be eligible for Earned Leave. Avoid arguing with any organization.

Regards

I am in agreement with Mr. Sai Kumar. Please go through the relevant provisions of the AP Shops and Commercial Establishment Act or Factories Act, whichever is applicable in your case, and apply the same. Furthermore, the term "Privilege leave" is a misnomer and a British legacy that has been replaced in the industry by the term "Leave with Wages" or "Earned Leave."

Regards,
S.K. Johri

Apart from what Mr. Saikumar has advised, please let the forum know the term of the contract. As per your query, the employment was not confirmed until 1/10/2013, which means you confirmed the employment as a permanent employee on 1/10/2013. Therefore, the employment is stated to be from the expiry of the contract until the confirmation. Please calculate the Paid Leave accordingly.

For example, if the employee joined on 2/2/2011 and their contract was for 1 year, it would expire on 1/2/2012. Therefore, the Earned Leave will be applicable from 2/2/2012 onwards. The employee will be able to avail of the leave after the confirmation on 1/10/2013, but the applicability will be from the expiry of the contract since the contract was not renewed. I hope this clarifies your query.