Struggling with Leave Calculations? Let's Break Down Carry-Forwarded Leaves Together

Hi, I am unable to understand the concept of leaves, so I would request you to help me understand and calculate carry-forwarded leaves and everything.

Thanks and regards,
HR

Without specifying your organization's nature of activity, it is quite difficult to provide specific information. However, generally speaking, the following laws regulate leaves:

- Factory Act
- Shops and Establishment Act
- Payment of Wages Act
- Weekly Holidays Act
- Sales Promotion Employee Act

For factory holidays, refer to [Working Hours Under Factories Act 1948](http://www.shramsamadhan.com/p/blog-page.html).

For holidays under the Shops and Establishment Act, you can find information for different states:

- Maharashtra Holidays: [Maharashtra Holidays](https://shopsandestablishmentactsindia.quora.com/11-Things-You-Must-Know-About-Bombay-Shops-and-Establishment-Act-Maharashtra-Shops-and-Establishment-Act)
- Karnataka: [Karnataka](https://shopsandestablishmentactsindia.quora.com/5-Things-An-Employee-Working-In-Karnataka-Must-Know)
- Tamil Nadu: [Tamil Nadu](https://shopsandestablishmentactsindia.quora.com/5-Things-You-Must-Know-About-Tamil-Nadu-Shops-and-Establishment-Act)
- Andhra Pradesh: [Andhra Pradesh](https://shopsandestablishmentactsindia.quora.com/6-Important-Things-Workers-and-Employee%E2%80%99s-In-Andhra-Pradesh-Must-Know-About-Andhra-Pradesh-Shops-and-Establishment)
- Punjab & Haryana: [Punjab & Haryana](https://shopsandestablishmentactsindia.quora.com/6-Important-Things-Workers-and-Employee%E2%80%99s-In-Punjab-and-Haryana-Must-Know-About-Punjab-Shops-and-Establishment-Act)
- Delhi: [Office Of The Labour Commissioner](http://www.delhi.gov.in/wps/wcm/connect/doit_labour/Labour/Home/Acts+Implemented/Details+of+the+Acts+Implemented/The+Delhi+Shops+Act,+1954/)
- Sales Promotion Employee: [Sales Promotion Employee](https://www.linkedin.com/pulse/sales-promotion-employees-conditions-service-act-1976-akash-kapoor)

In continuation of the reply of our learned member Labour Law Index, I would like to bring to your attention that all kinds of leave pertaining to a particular year are not to be carried over to the successive years. Only the type of leave that requires accrual based on attendance, as specified in the applicable establishment-oriented labor law or leave regulations, has to be carried forward in case it is not availed by the employee, subject to certain statutory limits. All other kinds of leave, such as casual leave and sick leave, would lapse if not availed by the employee at the end of the calendar year. However, the unavailed portion of certain leave, like sick leave, has a surrender value at the time of termination of employment. Therefore, up-to-date maintenance of leave accounts for employees is a must.

Thank you.

Leave is governed by either the Factories Act or by the Shops and Establishments Act depending on the nature of the activity carried out.

Only earned leave is applicable in the case of a factory, while sick leave, maternity leave, and paternity leave are applicable in the case of shops and establishments.

Understanding the Carryover of Leave

Your query has been answered by Labour Law Index with reference to applicable laws/Acts. I would like to further elaborate on the aspect of carrying forward leave. The law permits the carryover of leave to a limited number. The rationale behind allowing the carryover of leave is worth understanding. In essence, the principle is to enable employees to dedicate their time to work and take leave as per their circumstances. This practice also assists employers in ensuring that employees are available for work when needed urgently, as leave can be deferred due to the option of carrying it forward permitted by the employer. I hope this addresses your query and provides you with a clear understanding of the basics.

Regards

Hi Ankita, there is no standard policy for calculating leaves. Carry-forwarded leaves are those leaves which you carry forward to the next year; this becomes the opening balance in leave for the new year. Carry-forward takes place at the end of the year based on the company policy.

GreytHR Leave Management

GreytHR is a tool that manages leave and automates the process of year-end leave management, including lapsing leaves, carry-forwards, auto-encashment, etc. It allows for the smooth functioning of transactions. Refer to the blog for understanding various leave policies: Understanding leave and leave policies.

Please find more information at https://www.greythr.com/in/features/...ment-software/ and http://blog.greythr.com/understandin...leave-policies.