Introducing Privilege Leave for Workmen: How Should We Handle Probation Periods?

Our company is a recent private limited company and will be granting Privilege Leave (cash in lieu of leave) to workmen for the calendar year 2014. Some of the workmen are still on a probation period of six months. Since we will be introducing it for the first time, I seek your comments and suggestions, please.

Privilege Leave is not applicable during the probation period.

Thank you.

Privilege Leave or Earned Leave is not applicable during the probation period. However, if the employer chooses to provide any leave benefits for probationary employees, you may offer leave benefits as per the company policy.

I understand that there is no law to prevent employees from earning PL/EL during the probation or notice period. Probation and the notice period are to be treated as regular service and should be considered for granting all benefits applicable to regular employees. You may refer to the Factory Act or Shop & Commercial Act under which you are covered. However, EL/PL is credited to the employee's account on a pro-rata basis at the end of the calendar year and can be availed/paid in cash during the following calendar year.

Probation and Notice Periods

I wish to inform you that the probation period is the duration during which the suitability of the candidate is assessed for retaining them on a permanent basis. Similarly, the notice period is a time during which alternative arrangements can be made by both parties (employer and employee). There is no reason to treat these periods differently, i.e., applicable benefits should be granted.

Thanks,

V K Gupta

Isn't it mandatory that a workman must complete at least 240 days in a year in a working capacity for entitlement? In simple words, a workman who has completed 8 months or more is entitled. Please correct me if I am wrong.

I have already mentioned that PL/EL is credited to the account of the workman on a pro-rata basis. Please refer to the earned leave rules under the Factory Act in this regard. In other words, if a regular worker joins even in November or December, then he is entitled to corresponding PL/EL, i.e., one leave for every 20 days worked.