Leave Policy Confusion: How to Calculate Pro-Rata Leave for Mid-Year Joiners in Kerala?

Hello, I am preparing a leave policy for an IT company in Kerala. As per the Kerala Shops and Commercial Establishments Act, an employee is eligible for 12 Sick Leaves, 12 Earned Leaves, and 12 Casual Leaves. For an employee who is joining or leaving the company during the middle of a year, can I calculate the leave on a pro-rata basis?

For example, if an employee is joining on June 1st, how many SL/CL is he/she eligible for? Is it 12 + 12 or 6 + 6? Also, on January next year, is his EL balance 6 or 12?

Hi John,

Leave as per eligibility can be considered on a pro-rata basis, especially when it's required on medical grounds supported by a medical certificate. It's difficult to deny such requests. Moreover, social benefit measures under labor laws are minimal, and every employer should ensure compliance. There is no legal restriction if more benefits are extended. Your proposal is not illegal. As of the end of December, there will be a balance of 6 + 6.