Earned Leave Calculation Dilemma: Should Last Year's Leaves Affect This Year's Count?

I need your help with respect to Earned Leave calculation.

Earned Leave Calculation

Are leaves availed by an employee in the current year considered as paid days for next year's Earned Leave calculations? For example, 365 - 52 (Sundays) - 12 (Second Saturdays) - 12 (holidays) = 289 actual paid days. The employee has taken 15 earned leaves, 7 sick leaves, and 7 casual leaves within these 289 paid days. Now, the question is whether we will include these 29 days of leaves or not for the calculation of next year's earned leave.

Scenario 1 - Earned leave = 15/289 * (289) = 15?

or

Scenario 2 - Earned leave = 15/289 * (289-29) = 13.49?

Hi Pankaj,

Federal Mogul Goetze IL is a reputed company and well-established in the manufacturing and supply of precision machinery, etc. I don't think such a company will have doubts in HR practices and law. All approved and paid leave days, paid holidays, and weekly off days are considered to be 'service rendered' and therefore eliminating these days for the computation of EL/PL is wrong.