Is Earned Leave Available Right After Confirmation or Only After 240 Days? Seeking Clarity

Dear All,

I have heard in the forum that an employee is eligible for earned leave (EL) once he is confirmed. Could you kindly help me understand whether a person is eligible for EL once his services are confirmed or if he is only eligible subject to the fulfillment of 240 working days as per the Factories Act 1948? Generally, in our company, we strictly follow the rule of completing 240 days.

Regards,
Pradeep

Dear Pradeep,

There are certain limits for every segment of a business organization, e.g., factories, shops, etc. EL eligibility does not depend upon his period of working. If he worked only for a month, then even he is eligible for EL; during probation, he cannot avail these EL. But before confirmation, if he leaves the job, EL on a prorata basis will be encashed with full and final settlement. Suppose your company has 30 days, so every month he is earning 2.5 EL, which he can avail only after the completion of the probation period of 6 months, 9 months, or 240 days or one year (depends upon Company policy and Co. registered under which Act). But if he leaves the job even after completion of one or two months, he will get encashment of EL with his full and final settlement.

For example, 30 (Total EL in a year) / 12 (months) i.e. 2.5 EL in a month * 2 months = 5 EL will be encashed with his full and final settlement.

Bibek Banerjee

Hi all,

Can anyone guide me on whether there is any formality to take the earned leaves? Can we take the EL together, and is it encashable?

Regards,
Deepa

Dear Deepa,

There is no special procedure for taking the EL. If at any time you take more than 3 leaves, your leaves will be adjusted through the EL account. If at any time you take 3 or fewer leaves, the account balance will be deducted from CL. Yes, EL can be encashed.

Hope this information will help you.

Regards,
Ranjeet

Good evening,

What you have said about EL is correct, but this also applies to software companies. How many leaves do we need to give in a year? Does this need to be classified as Casual Leave, Sick Leave, and Earned Leave compulsorily? Can we give a total of 10 days in a year? Are there any legal restrictions to follow this method? I have had this doubt for a long period. Please guide me in coming out of this problem.

Can anyone specify whether it's 240 working days or total employment days (including Sundays and holidays)?