Understanding Earned Leave: Are Employees Eligible for Leave Before Resignation?

Dear All,

I have some queries related to Earned Leave. (If yearly 30 leaves are credited to an employee's leave account):

1. If an employee leaves the organization on 10th June 2016, is he eligible for EL leave for those 10 days?
2. If an employee leaves the organization on 22nd June 2016, is he eligible for EL leave for those 22 days?

Kindly suggest.

Regards,

Earned Leave Calculation for Partial Year

30 EL for 12 months means 5 PL for 2 months. There may be two conditions. Either the leave may start in January or April.

If it starts in January, the status will be as follows: Jan & Feb - 5, Mar & Apr - 5, May & Jun - 5. In this case, May 12, May 24, Jun 5 or 6, Jun 17 & 18 will be the leave earning dates. Accordingly, those who are relieved on Jun 10 will get 5+5+3 = 13, and on Jun 22 will get 14 ELs.

If leave starts in April, the status will be April & May - 5, Jun & July - 5. In this case, the 6th EL will be credited on 12th Jun. Accordingly, those who are relieved on Jun 10 will get 5, and on Jun 22 will get 6 ELs.

Regards, Abbas. P. S.

Abbas sir,

1. If someone is following the academic/financial year for leave balance (April to March), then is there any issue?

2. Yearly, 30 EL days are credited to the confirmed on-roll employees.

3. If an employee leaves the organization on 10th June 2016 and they don't credit EL for that particular month, will it be an issue?

I request your inputs on the above query.

Regards,

What date is the leave credited - 1st Jan or April? In any case, entitled leave from Jan or April to the date of separation on a pro-rata basis is to be added to the existing balance.

Dear Sir/Madam,

Please check up on the following information. An employee is entitled to Earned Leave after completing 240 days in a calendar year. The Earned Leave will be credited in the next year on January 1st.

Regards

Earned Leave Criteria as per the Factories Act 1948

The earning criteria for earned leave, as laid down in the Factories Act 1948, is as follows: one leave is earned after every 20 working days and can be availed in the succeeding year. This means that whatever you earn in a calendar year can be availed in the next year, and it can be earned, availed, or carried forward in full-day rounding off.

The entitlement for earned leave is that if someone is working from 1st January to 31st December, they must have worked for 240 days. In other cases, at least 2/3rd of the working days must be completed.

Regarding the fixed 30 days earned leave policy for the calendar year, one cannot comment without reviewing the policy framed by the establishment. It is subject to not superseding the applicable law and should be in addition to the provisions laid down in the Act.

Regards, P.K. Sharma