Can Companies Delay Earned Leave Until the Second Year? Seeking Advice on Policy

I need help on the below issue.

Can a company deny earned leaves to employees for the first year? That is, the employees will get the earned leaves, but they can only avail them from the second year onwards. For the first year, no earned leaves will be provided.

Also, for the first six months, all absence days are unpaid.

Please suggest if this is correct.

Hi Buddy,

As per the Factories Act of 1948, for the first year, an employee will not receive earned leave. To be eligible for earned leave in the following year, an employee must work for 240 days in the current year. Your company is correct.

As mentioned by Vijay Kumar, the eligibility criteria for earned leave is 240 days of working with the company.

Hi,

It depends on whether your company is covered under the Factories Act. If it is not a factory, then it will depend upon the applicable Shops & Establishments Act of the state in which you are operating.

Thanks,
Ashok Kumar Sharma
9999236926

Leave Policy Clarification

The provision for the same shall be governed by the Shop & Establishment Act of the state if the company is registered under the S&E Act, or else as per the Factory Act. PL/EL is the leave earned by employees after working for a certain number of days as per the act. Hence, it can't be taken beforehand. Therefore, when employees can avail these leaves shall be as per the act first and then as per the company policy.

Also, as you said that for the first six months, absence days are unpaid... but why? Please note HR uses the term "absent" for unapproved leave. If it is so, then your company may be right as per their policy, but if, in the case of approved leave, they don't pay for those days, then it is wrong. In the act, there is a provision for CL/SL which should be assigned to employees beforehand. So, you should check the applicability of CL, SL, PL/EL in the act for your state and act accordingly.

Please note, every company should prepare a policy keeping the respective acts in mind.

Regards

Earned Leave Policy

Earned Leave (Earned Leave) is when you earn and then avail it. Employees can avail earned leaves from the second year onwards. For the first year, no earned leaves.

Unpaid Absence Days Policy

All absence days are unpaid for the first six months. Is this correct?

Kindly review the corrected version above.