Can Someone Explain the 240-Day Rule for Employee Leave Eligibility in Simple Terms?

Whatever your establishment may be, the type of leave you mentioned is called "Earned Leave," "Privilege Leave," or "Annual Leave With Wages," depending on the specific labor law applicable to the establishment. This leave, known as E.L for short, is based on the number of days actually worked by the employee in the establishment during the 12-month period commencing from the date of their entry into service. As you mentioned, its calculation is based on a minimum of 240 days actually worked in a 12-month period, including interruptions or breaks such as holidays, authorized leave taken, days of legal strike or lockout, lay off, etc., which are not attributable to the employee.

It is calculated as one day per every 20 days actually worked. This accruing nature enables the leave to be availed only in subsequent years to its earning year and allows for its accumulation, subject to certain statutory limits if not utilized. Therefore, it is not a leave that expires at the end of the calendar year, unlike Casual Leave (CL) and Earned Leave (EL) that lapse if not taken within the specific year.

The cumulative aspect of this leave makes it a part of the employee's terminal benefits in the event of the termination of their employment. This means that the employer must pay leave salary for the days of Earned Leave credited to the employee at the time of their employment termination.

I hope this clarifies the details regarding Earned Leave. If you have any further questions, feel free to ask.