Are Paid Leaves Counted as Working Days When Calculating Earned Leave?

I want to know whether availed casual leave, sick leave, or any other paid leaves during the year are considered as working days or not for calculating earned leaves for that year?

In my view, for considering earned leave, casual/sick leaves are counted as worked days. Please wait for other seniors to give their views too.

Yes, of course, my dear friend. Casual and sick leaves are paid leaves, so they are considered as working days for the calculation of earned leave (EL).

Definition of Working Days

Working days are defined as the total number of days (365/366) during the financial year minus 1. These days exclude:

• All Sundays/Weekly Off
• All National Holidays
• All other declared holidays of the establishment
• All absences of the particular employees
• All types of leave - Casual/Sick/Privilege

Considering the above facts, all earned leave (Casual/Sick/Privilege Leaves) cannot be considered as worked days for calculating earned leave for the financial year. The entitlement is one per 12 days for commercial establishments registered under the Shops and Establishment Act and one per 20 days for factory establishments registered under the Factories Act.

Subject: Earned Leave

As per the provisions of the Factories Act 1948, eligibility for Earned Leave is specified as 240 days. These 240 days include the days actually worked in the previous year, any lay-off period, Earned Leave enjoyed in the previous year, and maternity leave sanctioned as per the MB Act. If an employee has completed 240 days based on these criteria, they will be eligible for Earned Leave for the next year. However, the Earned Leave calculation will be based only on the days actually worked and not on lay-off, Earned Leave enjoyed, or maternity leave sanctioned. Therefore, Casual Leave, Sick Leave, or any other paid leave cannot be considered for the calculation of Earned Leave under the Factories Act 1948.

Regards,
SDP