How Should I Handle Leave Credits for a New Employee Finishing Probation in December?

Hi, I am working in a small IT company as HR. Here, our leave tenure period is from January to December. A new employee joined us in June; until the confirmation period, he can't take advantage of PL. However, one PL is credited to his account per month until his sixth month. He completed his probation period in December only. We do not encash leave nor carry forward the leave. So, how can he take advantage of his credited leave because December is the last month of our leave tenure? How should I deal with this situation?

Waiting for an urgent response.

Regards,
Rashmika Patel

Policy Development for Leave Management

Whenever such policies are decided for a company, even related circumstances need to be brainstormed and decided so that such instances are well addressed with a predefined policy. Now, it is not clear from your question whether he has just 1 paid leave throughout 6 months or 1 paid leave per month during his probation period.

In my suggestion, assuming that he has 6 accrued but unused leaves in his kitty, it wouldn't be great if you decide to lapse these leaves because this employee has been sincere in his work (again assuming since not clear through your question). Make a policy that either conveys the policy of lapsing leaves accrued but unused during the probation period to the new joiners at the time of induction itself. Also, specify a clause for utilizing such leaves.

However, how you want to deal with this can be decided by you and your senior management but needs to be documented as a policy to avoid such issues and have a solution handy. The employee manual is HR's holy book! Insist on having one.

Addressing Leave Policy for Probationary Employees

Either let him use all the 6 leaves (in good faith that he has been sincere throughout his probation period and considering there was no intimation of leaves lapsing at the end of the year, and no such encashment or carrying forward of leaves is granted) or at least talk to the seniors regarding granting him a certain number of paid leaves before the end of December.

It is obvious that this issue was not addressed by the department in December until now in January when this employee has come to you applying for his leaves, correct? Such instances should always be well thought of at the time of policy formation itself. It will be difficult now to address this employee, and he is not at fault because management had not informed him about the lapsing of leaves. This would not reflect well where employee welfare is concerned either.

Leave - PL is credited only after completion of 240 days as per the Factories Act / Shop & Establishment Act. If I am not wrong, then why calculate and inform employees in advance? After the completion of the probation period, PL should be credited on a pro-rata basis.

Regards

Understanding Leave Policies and Eligibility

I do not understand why contributing members are discriminating in the leave policies and rules. It is clearly mentioned in all the acts and rules, including the Factory Act and the Shops & Commercial Establishment Act. The eligibility for PL (Privilege Leave) or EL (Earned Leave) is subject to the completion of 240 working days in a calendar year. Then, the employee is entitled to 1 PL for every 20 days. I think up to here it is clear.

Whoever joins the company or establishment in the middle of the year, to get the benefit of eligibility for PL or EL, should complete two-thirds of the working days from the date of their joining until December 31st. The calculation or eligibility for leave will be the same as mentioned above. Here, the completion of 240 working days is not applicable; they may join at any time from January to December. The accrued leave shall be credited to their leave account in the succeeding year. This can either be paid as leave wages or leave with wages along with the salary as per the company's policy. This is the normal practice, and no one is authorized to go against this.

Even some companies liberally allow the leave, for example, 1 day for every twelve days or 30 days in a lump sum. However, whatever it may be, the basic entitlement criteria shall remain the same.

Regards,
Adoni Suguresh
Labour Laws Consultant

Leave Accumulation and Eligibility for New Employees

This is in continuation of my post regarding the question of unavailed PL, which can be accumulated up to 30 days. All PL or EL should be made available in the succeeding year for new employees and not at the beginning of the year. This leave eligibility applies to all employees, regardless of whether they are new probationers or old confirmed employees. There should be no deviation in the method of calculation, as this is a statutory leave benefit for employees. However, the company has discretion in allowing casual and sick leave, and each company has its own policy on rules other than statutory leaves, which cannot be made compulsory for every company.

Regards, Adoni Suguresh Labour Laws Consultant