How Should We Calculate Earned Leaves for Mid-Year Joiners from May to December?

Hi,

We provide 14 earned leaves over the period of 12 months, i.e., from January to December. If a person joins on May 15, they would receive around 9 leaves on a pro-rata basis. My question is, would these 9 (or 8.8 to be specific) leaves, if distributed on a monthly basis, be calculated as 9/12 = 0.75 leaves per month or 9/8 = 1.12 leaves per month, considering the timespan from May to December?

Hi Saumya, it should be 9 leaves spread over the period from May to December, and there is no need to bifurcate month-wise. You cannot sanction 0.75 leave for an employee. In case of resignation of an employee in the middle, you may sanction leave till their service period on a pro-rata basis.

Not sure which State Shops and Establishment Act you come under. As per the Shops and Establishment Act, the employee will become eligible for EL after completion of a certain number of months with the company as stipulated by the Act. However, some companies directly credit EL or PL from the date of joining itself.

Hi,

Thank you for your insight. We fall under the Delhi Shops & Establishment Act. Regarding the issue of providing 0.75 leaves, we are not able to grant fractional leave days. However, if it is necessary for record-keeping purposes, that is why I was inquiring about it.

Thank you.