Understanding Earned Leaves: Do Employees Automatically Get Them After a Year?

Under the Shop and Establishment Act of the Indian government, what is the clause or rule for calculating earned leaves for an employee? Does an employer actually need to earn such leaves, or do they get them directly after completing one year of service?

As the very name suggests, an employee has to earn the leave for calculating his entitlement, which means the leave will accrue based on the number of days actually worked by an employee. For example, the Shops Act may stipulate that one day of leave is earned for every 20 days worked.

B. Saikumar

Dear Member,

This is to clarify that the Shops & Establishment Act is a state Act. Therefore, first, identify which state Act is applicable in your case and then refer to the Earned Leave provision in that Act to find the answer to your query.

With Regards,

R N KHOLA

Skylark Associates, Gurgaon

[Website: www.skylarkassociates.com]

Dear All,

Mr. Khola is right; one needs to refer to the respective Act applicable to the state as the leaves vary. However, one needs to earn the leave by putting in service. For example, in Delhi, an employee earns 5 days of Earned Leave (EL) after 4 months (with a proviso of a certain minimum number of days of work in these 4 months), as well as one Casual Leave (CL) or Sick Leave (SL) per month.

There is no thumb rule for Earned Leave.

Regards,

Col. Suresh Rathi